The asset is being acquired through a sale-leaseback arrangement with the major tenant.
650 Townsend is located at the crossroads of San Francisco’s SOMA and Showplace Square Districts. The six-storey property features 685,000 square feet of flexible office space, multiple atriums and unrivalled tenant amenities including two onsite cafeterias, a basketball court, gym, a theatre, on-site retail facilities and numerous collaborate workspaces.
“The debt financing of 650 Townsend demonstrates Barings’ ability to identify attractive debt investment opportunities across all property sectors and reflects our confidence in the long-term growth of San Francisco, especially as new development opportunities remain limited,” said Dan Hartley, Head of RE Debt Origination in the U.S. at Barings.
“We are delighted to announce this latest transaction, a compelling opportunity to expand in the highly attractive San Francisco office market, which has grown significantly in recent years as a result primarily of the booming technology sector,” said Christoph Donner, CEO, Allianz Real Estate of America.
“650 Townsend is one of San Francisco’s distinctive office properties in a vibrant, 24/7, ‘Live, Work, Play’ environment that attracts and retains employers and professionals alike. This new transaction also enables us to deepen our existing relationships with prime partners such as CalSTRS, Beacon Capital Partners and another institutional investor,” he added.