Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO-Wells Fargo & Co. is putting 333 Market up for sale and offering a long-term net leaseback as an incentive. The locally based public financial services company paid $150 million for the 620,000-sf Downtown office building in the first half of 2005.

Wells Fargo has since invested an additional $35 million in the 33-story building for a total investment of just under $300 per sf, a company source tells GlobeSt.com. That figure is expected grow as space comes available and the company takes down additional space in the building, which it said it would do at the time of the acquisition.

The asset is being marketed 333 Market through Eastdil Secured, its real estate investment banking subsidiary. Other acquisitions over the past year suggest Wells Fargo could fetch as much as double its current investment in the building.

The Irvine Co. recently placed 560 Mission St. under contract for upward of $400 million, which translates to $601 per sf. The 665,000-sf building is leased in its entirety by JP Morgan Chase for the next 11 years.

In December 2005, TIAA-CREF acquired Embarcadero Center West for approximately $206 million, or $433 per sf. A 475,138-sf class A multi-tenant office building at 275 Battery St. was about 85% leased, including a 42,000-sf lease is scheduled to expire in early 2007. Tenants include O’Melveny & Myers, Gordon & Rees, Leiff, Cabraser, Heimann, & Bernstein LLP and Chubb Insurance.

In November, Tishman Speyer Office Fund acquired 550 Terry Francois Blvd. for $605 per sf. The 282,733-sf waterfront office building completed in 2002 is leased to Gap Inc. through 2017, with fixed rental growth of 9.7% in 2007 and 8.8% in 2012.

In October, New York-based Hudson Waterfront Associates put the 1.8-million-sf 555 California St. (Bank of America Center) for $1.05 billion or $583.33 per sf. The sale of the well leased class A office building on San Francisco’s Nob Hill closed in March.

In June 2005, Wells Fargo paid $110 million, or $323.50 per sf, for 550 California St. and 635 Sacramento St., a two-building 340,000-sf office complex in the city’s Financial District built in 1960. American Assets of San Diego also made a couple of acquisitions that month, acquiring the 393,000-sf Landmark at One Market St. and the leasehold for the 44,000-sf annex building for about $190 million, or $483 per sf, and acquiring 160 King St., a 168,000-sf class A office building across from SBC Park, for $411 per sf.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.