Bentall Kennedy, on behalf of the Multi-Employer Property Trust (MEPT), has acquired 600 California Street in San Francisco for $216.5 million. The 358,591-square-foot office tower was sold by Clarion Partners, which acquired the 20-story property for $180 million in June 2012, according to data from Real Capital Analytics.
600 California Street is a Class A, LEED® Gold-certified office building located in the North Financial District of San Francisco at the corner of California and Kearny streets. The 20-story property features an expansive lobby, column-free floor plates and three levels of below-grade parking. Building construction was completed in 1990, and the property was significantly upgraded in 2006.
“San Francisco’s North Financial District is one of the most in-demand office submarkets in North America, so we’re pleased to be acquiring 600 California Street, one of the neighborhood’s most sought-after buildings and one that has been nearly 100 percent occupied since it was built,” said Ashley Powell, senior vice president and Western region head of transactions at Bentall Kennedy, in a statement. “We will bring to 600 California our proven commitment to responsible property ownership and management, and we are excited to be able to offer for lease very shortly one of the largest contiguous spaces available in the city.” Indeed, primary tenants Merrill Lynch and Wells Fargo are both expected to vacate the building shortly.
“600 California Street is a great fit with MEPT’s portfolio, and the acquisition increases the fund’s investment commitments in the Bay Area to more than $929 million in existing assets and new developments,” stated David Antonelli, executive vice president and MEPT portfolio manager at Bentall Kennedy. “The transaction advances our core strategy to acquire energy-efficient urban assets in innovation markets with strong employment trends and solid demand growth.”
MEPT is a $6.8 billion open-ended, commingled real estate fund that invests in a diversified portfolio of institutional-quality real estate assets in 25 major metropolitan markets across the US. Launched in 1982, the fund has more than 320 institutional investors and, as a signatory to the UN Principles for Responsible Investment, is recognized as a pioneer in responsible property investing.