Paramount Group, Inc., a fully-integrated real estate investment trust, has agreed to acquire 55 Second Street, a trophy office building located in San Francisco’s South Financial District, for $408 million or $1,054 per square foot.
The 387,000 square foot office building was developed in 2002 and sits in the highly desirable Mission-Market Street corridor and is within one block of the new Transbay Transit Center and nearby Montgomery BART station
“The acquisition of 55 Second Street enables us, once again, to recycle capital opportunistically from Washington, D.C. into one of San Francisco’s most desirable corridors,” stated Albert Behler, Chairman, Chief Executive Officer and President.
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“With its modern construction, highly efficient floor plates, rich amenity base and proximity to the Transbay terminal, we see tremendous opportunity to fill existing vacancy as well as proactively manage renewals and any potential rollover in a building where in-place office rents are well below market,” he added.
The property is currently 87.4% leased primarily to accounting, legal and technology tenants. The property’s efficient, nearly column-free floorplates with multiple accessible outdoor terraces position 55 Second Street to appeal to a modern and diverse tenant base.
The transaction is expected to close in the third quarter of 2019. In connection with the transaction, the Company expects to bring in a joint venture partner prior to closing.