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101 California Stake Would Be San Francisco’s Largest Office Deal in Years
DivcoWest is in talks to acquire a partial stake in the office tower at 101 California St., reported the San Francisco Business Times. The purchase price for the 1.25-million-square-foot property is said to be around $775 per square foot, thereby helping set a new baseline for post-pandemic office valuations in San Francisco.
A source told the Business Times there are outstanding capital obligations that new ownership will need to fund at 101 California. The $775 per square foot that Divco is expected to pay for its stake in 101 California translates into a deal in the mid-$400-million range and values the building in the upper $900-million range. The total investment Divco is expected to make, including the capital obligations, would put the value into the $1-billion range.
If completed, the sale would be the largest office investment transaction done in San Francisco in years, the Business Times reported.
- ◦Sale/Acquisition

