Blackstone's EQ Office Sells Stake In Historic San Francisco Ferry Building
A JV of Hudson Pacific Properties and Allianz Real Estate has purchased a leasehold stake in San Francisco's Ferry Building for $291M.
Blackstone Group's EQ Office, formerly Equity Office, sold the stake in the historic building in an all-cash deal set to close this week, according to a news release. The deal was approved by the Port of San Francisco, which owns the building, with 49 years remaining on the ground lease.
Blackstone announced in 2017 that it planned to sell the remaining assets from its $39B purchase of Equity Office Properties Trust in 2007, including the Ferry Building. The building drew interest from several investors.
The Ferry Building has 192,5332 SF of Class-A office and 75,486 SF of retail. It is a popular spot for restaurants for those visiting the city and those who work in the office component and in nearby buildings. More than 8.8 million people visit the public food market each year.
Hudson Pacific has a 55% share in the partnership and will be the managing member handling day-to-day operations.
“The acquisition of the Ferry Building fits perfectly with our strategy of identifying creative ways to improve the performance of exceptional real estate within global centers of tech innovation,” Hudson Pacific Chairman and CEO Victor Coleman said in a statement. “As a long-term owner-operator of Bay Area real estate, we take our stewardship of this world-renowned San Francisco landmark seriously. We are thrilled about the opportunity to further position the Ferry Building as a premier Class-A office and retail destination through new amenities, activities and events.”
The Ferry Building is fully leased with tenants including SS&C Technologies, Meltwater, Meritage Group L.P. and Niantic, the company behind Pokémon Go.