Safehold, LPC and Korea Asset Take Separate Pieces of the $182M Pie in SoMa

PRP recently sold 350 Rhode Island St., a 127,100-square-foot office building leased to the city and county of San Francisco. The property was originally acquired for $134.25 million in November 2019.

As part of the exit, PRP bifurcated the land and the improvements, selling the Fee Simple position to Safehold Inc. for $64.5 million while selling the leasehold to a venture of Lincoln Property

Company and Korea Asset Investment Management for $118 million, for a total consideration of $182.5 million or $1,436 per square foot. Both sales occurred simultaneously.

“By structuring and executing a highly complex deal involving two separate negotiations and sales that were required to occur concurrently by December 31st of 2021, PRP was able to maximize the value of the asset through the bifurcation process at disposition. We are not aware of another owner that has successfully undertaken such a complicated effort at the sale of an asset,” says Paul Dougherty, president of PRP. “JLL did a great job of holding this sale together though a very tough process.”

PRP was represented in the leasehold sale by the San Francisco office of JLL, while PRP worked directly with Safehold.

Originally built in 2002, the SoMa property was redeveloped in 2018 for the city’s tenancy. The San Francisco district attorney’s office is headquartered in the building. The city leases 350 Rhode Island St. through 2033.