New York State Teachers Retirement System (NYSTRS) has become the sole owner of the 525 Market Street building in San Francisco, after acquiring its partner’s stake in the 1m sqft US office asset.
The pension fund disclosed the acquisition in a board meeting document but declined to comment on the partner or the amount paid.
IPE Real Assets understands that the acquired interest belonged to DWS, which also declined to comment on the transaction.
The asset manager had acquired a 49% interest in the property in 2019 for approximately $608m (€529.7m) or around $1,200 per square foot, according to sources that track the sale of office buildings in San Francisco.
NYSTRS has held 525 Market Street in its real estate portfolio since 1998, managed within a separate account by JP Morgan Asset Management.
“San Francisco has historically been a cyclical market. We are currently seeing improvements in fundamentals with recent execution of large leases for Class A assets in prime locations,” NYSTRS said.
NYSTRS holds a direct property real estate portfolio valued at $6.1bn. The pension fund’s total exposure to office assets is 18%, in line with the weighting of the NFI-ODCE Index.
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