SAN FRANCISCO—Clarion Partners, a leading real estate investment manager, has completed the acquisition of 60 Spear Street, an 11-story, 155,000-square-foot office

building located in San Francisco, California from real estate funds managed by Ares

Management. The purchase price was approximately $107 million, or close to $690 per

square foot.

60 Spear is located at the corner of Mission and Spear Streets in San Francisco's South

Financial District, which is considered one of the best “live, work, play” locations in the

region. The property is close to the future Transbay Terminal and the Ferry Building and

is also surrounded by restaurants and hotels. It offers unimpeded Bay views to the east

and city views to the west and south.

The property, which operates at a high occupancy level, was built in 1967 and has since

been substantially upgraded to include an attractive lobby renovation, creative office

space with side core floor plates, and 14-foot ceilings along with various upgrades. Its

office tenants include Starbucks, France Telecom and Rodan & Fields. 60 Spear offers

convenient access to both Interstate 80 and Highway 101 and is two blocks from BART.

San Francisco's office market, which has the best fundamentals across all U.S. metro

areas, has been the best performing market in this sector since the economic recovery

began. Clarion Partners' proprietary research expects rent growth to average 4.9%

annually from 2014 to 2018.