Financial district office sales push market toward record year
Send this to a friend
![](https://webarchive.library.unt.edu/web/20141030010247im_/http://media.bizj.us/view/img/3868371/weinbergcoryps.jpg)
- Cory Weinberg
- Reporter- San Francisco Business Times
- Email | Twitter | LinkedIn
It's not just technology companies driving the accelerating San Francisco office market. Two financial district office buildings that cater more to law firms, insurance companies and other traditional businesses are changing hands at 275 Battery St. and 235 Pine St.
The Rockpoint Group is close to a deal to buy 275 Battery, home to law firms such as Squire Sanders and Gordon & Rees, sources who spoke on the condition of anonymity told the Business Times. CBRE Investors also just closed a deal to buy 235 Pine, home to the soon-to-be-vacating GSA Bankruptcy Court, the buyer confirmed.
The Registry reported that Rockpoint will buy the 472,200-square-foot Battery Street tower from TIAA-CREF for $307 million, though the deal hasn't closed. Industry sources told the Business Times that the 150,100-square-foot Pine Street building closed for about $89 million.
The purchases are the most recent large office sales in 2014, which is expected to be the second-biggest year for office purchases in the city's history, after 2007. Nearly $5 billion worth of sales have already closed, according to CBRE, with about $6.7 billion expected in total this year.
"It demonstrates the confidence in the San Francisco office market," said Colin Yasukochi, CBRE's director of research and analysis. "With the cost of developing new buildings continuing to rise, existing buildings are still selling for below replacement costs. That has increased substantially along with land values and cost of construction."
Phil Hench, principal at CBRE Global Investors, said the company saw the Pine Street building as a valuable asset not only because of its proximity to BART, but also because the bankruptcy court will soon give up its more than 50,000 square feet on the top six floors.
Cory covers real estate and economic development.
Most Popular
- Most popular
- Emailed
- Mobile
- City Ventures to invest hundreds of millions into West Oakland
- Google seals massive Sunnyvale, Redwood City deals
- Lake Merritt BART plan spur 4,900 housing units
- Shorenstein seeks right to build housing in City Center
- What will make people care about Silicon Valley's housing crisis?
- Tthe fastest-growing private food companies in the Bay Area
- Fastest growing private tech companies in the Bay Area
- San Francisco's pace of home-price appreciation drops sharply
- Bay Area rents highest in U.S., likely to get worse
- What the Treasure Island court decision means for the $1.5B project
Email Subscriptions
![](https://webarchive.library.unt.edu/web/20141030010247im_/http://assets.bizjournals.com/lib/img/sanfrancisco/blog/SFStructures250x60.png)
-
Executive Director, California Citizen Schools | Redwood City, CA
-
National Sales Manager The Business Journals | San Francisco, CA
-
Sr. Manager of Utility Market Development 3Degrees | Portland, OR
-
Associate Director of Communications and Digital Media World of Children Award | Dublin, CA
-
Principal, Skoll Awards and Community Skoll Foundation | Palo Alto, CA
Comments
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.