Kaiser-backed PE firm buys San Francisco office

The private equity vehicle of US billionaire George Kaiser has completed the largest office deal in San Francisco so far this year. Argonaut Private Equity Group has bought a $40.8m note for the central business district office.

Argonaut Private Equity Group, an investment firm of US Billionaire George Kaiser, has completed the largest office purchase in San Francisco this year.

The firm purchased an outstanding $40.8 million note for the 116,000-square-foot office at 250 Montgomery Street, from Realty Finance Corporation. Realty Finance acquired the property after foreclosing on the landmark property from Lincoln Property, for $19.9 million. That price reflects a discount of about 25 percent of the building's replacement cost, according to Grubb & Ellis, the property services firm which brokered the deal.

The deal equates to Argonaut paying $172 per square foot for the office, which is leased to tenants including California Pacific Bank, the American Land Conservancy and Bay Street Research.

Argonaut has invested in various sectors and geographies as well as in real estate. Other investments include a $10 million investment into Kouton’s, a Delhi-based retailer, and a $67 million investment into Cordys Holding, a Netherlands and India-focused software company.

The firm has also invested in China, Israel, Japan, Australia and Eastern Europe.