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California  + Bay Area  + Office  | 

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.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Sale/Acquisition
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