A joint venture between The Rockefeller Group and Mitsubishi Estate New York has closed on the acquisition of a class-A office tower in San Francisco’s South Financial District.
The venture between the New York-based developer and the US investment arm of Mitsubishi Estate Co. has purchased 50 Beale Street, a 23 storey, 662,100 square-foot building located at the intersection of Beale and Mission Streets, from Fortress Investment Group and Lehman Brothers Holdings. Although the venture declined to disclose the terms of the deal, data provider Real Capital Analytics lists the closing price at $300 million. Eastdil Secured advised the sellers on the deal.
Completed in 1968, 50 Beale was built as the headquarters for engineering and construction firm Bechtel Corporation. The building is located two blocks from the future site of the Transbay Transit Center, a $4.2 billion transportation project billed as the “Grand Central Station of the West”. The building has undergone extensive renovations as recently as 2012. It is approximately 90 percent occupied by major corporations including Bechtel and Blue Shield of California.
Kevin Hackett, president and chief executive officer of The Rockefeller Group, said in a statement: “50 Beale Street will continue to benefit from its quality and location long into the future.”
The property represents the third joint venture acquisition completed by Rockefeller and Mitsubishi Estate New York. In 2011, the firms acquired 1100 First Street and 1101 K Street in Washington DC, which total 347,608 square feet and 306,000 square feet, respectively. With the acquisition of 50 Beale St., The Rockefeller Group and Mitsubishi Estate New York have acquired more than 1.3 million square feet of premier U.S. office space over the past 18 months.
Like Mitsubishi Estate New York, The Rockefeller Group is also a subsidiary of Mitsubishi Estate Co.