Rubicon Point Partners paid $72m (€68m) to buy The Townsend Building in San Francisco, representing a 45% drop in the price that CBRE Investment Management paid acquiring the US office building three years ago, according to sources.
Earlier this week, Rubicon Point announced the acquisition of the six-storey building located at 123 Townsend Street without disclosing any financial details.
IPE Real Assets understands that CBRE IM paid $135m in July 2020 to acquire the 137,000sqft building and placed it on the market earlier this year at a $90m asking price.
CBRE IM declined a request for comment.
As reported in IPE Real Assets, US cities with office markets dependent on the tech sector, like San Francisco, have been notably affected by post-pandemic working practices. Capital Economics had forecast a 40% fall in capital values in the San Francisco office market between 2023 and 2025.
Razmig Boladian, co-managing partner of Rubicon Point said in spite of recent headlines, “we are great believers in the resilience” of San Francisco and the Bay Area.
“While challenges certainly remain ahead, we are encouraged by the many recent initiatives San Francisco has undertaken to spur the economy and business climate. We believe The Townsend Building will be a beneficiary of these initiatives.”
Rubicon Point said the brick and timber building is “anchored by an investment-grade tenant” and features convenient access to transit and amenities.
The two main tenants in the property are PayPal with two leases expiring in 2025 and 2028 and Samba TV with a lease until 2029, according to a source.
To read the latest IPE Real Assets magazine click here.