Two San Francisco office buildings owned by Turkish investor Polidev Investments is to be acquired for $180m (€161m) in separate deals involving Goldman Sachs and Morgan Stanley.
According to sources familiar with the matter, Goldman Sachs and its local operating partner Tidewater Capital intend to buy 351 California Street for $110m and the 747 Front Street office asset is to be sold for $70m to Morgan Stanley and Bridgeton Holdings.
Public records show that Polidev paid $35m for 351 California in 2010 and bought the 747 Front asset in 2012 for $22.8m.
IPE Real Assets understands that the transactions with the new buyers are under contract and expected to close in the coming month.
The 145,303sqft 351 California office building had in-place rents that were 36% below market when the property was placed on the market for sale in January and 54% of the existing tenants have leases that will end by the end of 2019.
The 85,423sqft 747 Front building is fully-leased. The lease for the fourth floor, which is 33% below market, will expire in two years.
CBRE, which has been working with Polidev on these sales, declined a request for comment.