The New York State Common Retirement Fund is to sell a California office building to KKR for close to $120m (€107m).

The 227,030sqft building at 180 Grand in Oakland will be the first acquisition in the San Francisco Bay Area by private equity firm KKR.

The sale will close soon, according to sources that track transactions in the region.

The New York State pension fund owns the asset through San Francisco-based Ellis Partners, a value-add investment manager that it hired as part of its real estate emerging manager programme.

Ellis Partners bought the building from the California State Teachers’ Retirement System in 2014 for $61.3m, almost half the price it is looking to achieve today.

The company has made improvements to the property’s exterior, lobby and common areas. It is 96% occupied.

The investment in Oakland will come off the back of a number of recent acquisitions by KKR.