Principal Real Estate Investors has acquired the 150 Spear Street office building in San Francisco for a reported $142 million (€97 million). A spokesperson at the firm confirmed the purchase price for the 18-story, 256,827-square-foot office building.
Acquired from Pacific Eagle Holdings Corporation, the property is located in the Spear Street Corridor in San Francisco’s South Financial District and features underground parking and views of the San Francisco Bay. Current tenants include NASDAQ, Kessler Pacific, Department of Defense and Market Tools.
“This acquisition continues our strategy of acquiring quality, well-located assets in premier markets,” Christopher Aust, Principal director of acquisitions and dispositions, said in a statement. “We are excited about the opportunity to offer a significant amount of high-quality office space for lease in a desirable sub-market, with outstanding Bay views, and close to all forms of transportation.”
The Iowa-based investor has also been busy in the hospitality sector. In October last year, Principal launched a joint venture with Miller Global Properties to develop the JW Marriott San Antonio Hill Country Resort and Spa in San Antonio, Texas. The development, set to open in the spring of 2010, consists of 12 structures totaling 1,153,055 square feet. Resort facilities will be joined by two 18-hole championship TPC golf courses in addition to a clubhouse and practice facilities.
Last summer, the firm announced the closing of its new fund, Principal Mortgage Value Investors, to focus on investments in the value-added commercial real estate debt sector, including bridge loans and subordinated debt. The closed-end fund raised $225 million in commitments from institutional investors, with 10 percent of the fund coming from the firm’s insurance affiliate, Principal Life Insurance Company.