US real estate investor DivcoWest is acquiring a 47.5% interest in the 101 California Street office tower in San Francisco for approximately $450m (€384.1m), according to sources familiar with the matter.
IPE Real Assets understands that DivcoWest is acquiring the stake in the 1.26m sqft skyscraper from Hong Kong Monetary Authority. Singapore’s sovereign wealth fund GIC maintains its majority stake with just under 50%, while Hines retains a small ownership stake and continues as the asset’s operating partner.
According to the sources, the 101 California Street office tower attracted bidders including Ares Management, Blackstone and Brookfield for the stake.
Once the acquisition closes, it will represent San Francisco’s largest office building purchase in over four years.
DivcoWest declined a request for comment.
In 2023, the 48-storey building underwent a $73m renovation to help update the lobby, outdoor plaza and tenant amenities.
The property has a current occupancy of 88%, outperforming the broader San Francisco office market’s 35.1% occupancy, according to sources.
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