Embarcadero to buy SF office for $113m

The California-based real estate firm is in the process of purchasing a 22-story office building from Lincoln Property, which owned the skyscraper on behalf of Illinois Teachers.

A Belmont, California-based real estate investment and management firm is in the process of buying a trophy office tower in San Francisco’s financial district. 

Embarcadero Capital Partners is acquiring 601 California Street from Lincoln Property for a rumored $113 million, according to data provider Real Capital Analytics. Lincoln Property owned the 22-story, 250,586-square-foot skyscraper on behalf of the Teachers’ Retirement System of the State of Illinois. 

Lincoln originally purchased the office property from Hines in 2004 for $64 million. At the time, Hines owned the asset on behalf of the California Public Employees' Retirement System. 

Originally built in 1962 and renovated in 2002, 601 California Street currently is 91 percent occupied. Tenants include Brand + Allen Architects, Alaska National Insurance and the law offices of Robert J. Rothman. 

One source told PERE that the acquisition is not being made on behalf of a fund, but rather through a joint venture with a private investor. The identity of Embarcadero Capital's venture partner was not disclosed.

Founded by Eric Yopes and John Hamilton, Embarcadero Capital has raised more than $600 million of equity on behalf of three closed-ended funds, according to the firm’s website. The firm is believed to be in the market with a new fund, Embarcadero Capital Investors IV, which is targeting between $300 million to $400 million to invest in West Coast office properties.