Union Investment Real Estate has made its first investment in the US in four years with the acquisition of a Class A, LEED-certified office tower in San Francisco from Tishman Speyer. A statement from the Hamburg, Germany-based real estate investment firm reveals that it purchased 555 Mission Street for $446.5 million on behalf of its open-ended real estate fund, UniImmo: Europa.
Located in the city’s south financial district, the 33-storey, 557,054-square-foot office building was completed in 2008 and is 88 percent leased to 12 tenants. The anchor tenant is international consulting firm Deloitte, which has a 14-year lease for the building.
“555 Mission Street's location in one of North America's strongest economic regions makes it a particularly sustainable investment for us,” said Volker Noack, a member of the management team at Union Investment Real Estate. “The development of the submarket should see 555 Mission Street benefit from rising rents.”
The purchase is Union Investment's first acquisition in the US in four years. It follows the firm’s recent sale of Fremont Lake Union Center, an office property at 701 North 34th Street in Seattle, to Kilroy Realty for $106 million.