Columbia Seals Deal on 650 Cal
We were the first to report that Columbia Property Trust was buying 650 Cal from Tishman, and the deal just closed. The 33-story, 478k SF tower sold for $309M, or about $646/SF (sources had told us it could sell anywhere from $625 to $675/SF). The 88%-leased property is expected to have first-year in-place NOI of approximately $11M. Columbia's game plan is to boost that figure over the next three years, with more than half the current tenancy rolling in the next three years and in-place rents significantly below current market levels. Columbia just hired market vet Michael Schmidt to oversee 650 Cal and Columbia’s other West Coast assets. The property got a $14.2M renovation over the past two years that included the addition of an onsite parking garage.
