Rockefeller Group Investment Management (RGIM), on behalf of a joint venture between The Rockefeller Group and Mitsubishi Estate New York, has sold 50 Beale Street in San Francisco to Paramount Group for approximately $395 million, or $596 per square foot. RGIM, Rockefeller’s investment management subsidiary, was advised by Eastdil Secured.
The partnership between the New York-based developer and the US investment arm of Mitsubishi Estate Co. originally purchased the 23-story building in September 2012 from Fortress Investment Group and Lehman Brothers Holdings for $305 million. The 662,060 square-foot Class A office is located at the intersection of Beale and Mission Streets.
“This is a great building with solid tenants in an outstanding area of San Francisco,” said president and chief executive of RGIM, Dennis Irvin, in a statement. “For us and our investors, the sale presented an opportunity to realize gains ahead of plan driven by the strength of the recovery in San Francisco and the solid performance of both 50 Beale Street and the whole South of Market submarket.”
Completed in 1968, 50 Beale Street was built as the headquarters for the Bechtel Corporation, which remains a major tenant in the building. The office has undergone extensive renovations as recently as 2012. It is approximately 90 percent occupied.
Earlier this month, RGIM made news with its acquisition of a two-property West Los Angeles office portfolio. The subsidiary purchased UTA Plaza and The Ice House from Tishman Speyer for $212 million.