345 California Office Tower is Now Debt Free

345 California Center, a 35-story Class A office tower totaling 600,000 square feet in downtown San Francisco, is now owned debt free by its long-time owner 345 California LP, an affiliate of Metropolis Investment Holdings Inc. 345 California LP recently paid off a $150-million term loan with Massachusetts Mutual Life Insurance Company. 

“Our ownership is well-positioned to address the biggest challenges tenants face in the current market; namely, matching underlying market rents with the significant capital required to build new space,” said Metropolis managing director Tom Dempsey. “Our long-term hold approach puts us in the enviable position of having a low-cost basis, and paying off the loan reaffirms our commitment to the San Francisco office market.”

In addition to its loan payoff, 345 California also just completed a new lease with Degenkolb Engineers. Relocating from within the city, the engineering firm will occupy 17,000 square feet.

Cushman & Wakefield’s Sam Wasserstein and Greg Fogg, who handle leasing efforts for the tower, represented ownership in its new lease with Degenkolb Engineers. Jonathan Allen and Griggs Ziesing of JLL represented Degenkolb.