Hudson Pacific Sells San Francisco Office Asset for $66M
The property last traded nearly 20 years ago.
Hudson Pacific Properties has sold 875 and 899 Howard, a two-building office property totaling roughly 280,000 square feet in downtown San Francisco, for $65.5 million.
Seven Equity Group has acquired the asset in partnership with a private investor, according to public records. Genesis Capital Group originated a $51 million acquisition loan.
The two buildings opened in 1920. The one at 899 Howard is a retail-to-office conversion.
Hudson Pacific Properties had been seeking a buyer for its most vacant properties since June, The Real Deal noted. Upon closing, 875 Howard was 36 percent occupied and 899 Howard was fully vacant. Transwestern is the leasing manager.
The buildings previously traded in 2007 for $46 million or $160 per square foot, when Hudson Pacific Properties purchased them from The Reliant Group, according to Yardi Matrix information.
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Located at the intersection between Howard Street and Fifth Street, 875 and 899 Howard sit close to Interstate 80 and U.S. Route 101. The buildings are within walking distance of multiple dining and transit options, including BART and MUNI.
The six-story 875 Howard spans 188,252 square feet, with floorplans measuring 32,000 square feet. Amenities at the LEED Gold-certified building include EV charging stations, on-site bike storage, showers and lockers. The three-story 899 Howard spans 92,000 square feet.
San Francisco strained by loan maturities
San Francisco is one of the high-vacancy office markets that face the pressure of loan maturities, with $12.6 billion in outstanding debt as of August, a recent report shows. Last month, the metro recorded a 25.9 percent vacancy rate, the highest among the top markets surveyed. The national figure was 17.8 percent.
The market also saw significant sales activity, totaling $2.7 billion. The average price per square foot was $535.5, more than double the national figure of $204.6. Nationally, Yardi Matrix recorded $42.7 billion in office sales across 1,850 deals.
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