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Building Would Sell At More Than 30% Premium to Previous Sale In December 2013
In another sign of the super-heated market for commercial property in San Francisco, one China-based company has agreed to sell 123 Mission Street to another Chinese investor for $255 million in cash, more than 30% higher than it paid for the 28-story office building in late 2013.
The 346,000-square-foot office building in San Francisco’s South Financial District, formerly the Pacific Gas & Electric Building, is a 407-foot-tall structure constructed in 1986. The building is currently 95% occupied with 14 tenants, according to financial documents.
The seller is an investment holding company and a wholly-owned subsidiary of Pacific Eagle Real Estate Fund, L.P., the vehicle for investment in U.S. real estate for Great Eagle Holdings Ltd., a Chinese real estate company listed on the Hong Kong Stock Exchange.
Great Eagle sold the multitenant building to a subsidiary of HNA Ecological Technology Group Co., Ltd., which invests mainly in the high-tech industry, with operations in China and the U.S., according to a Hong Kong exchange filing.
HNA made headlines earlier this year by paying $6 billion for Ingram Micro, a U.S. tech firm that distributes products for Apple and Microsoft.
Great Eagle Holdings bought the office building and land rights for $195 million in cash from Sumitomo Corp. of America in December 2013, so the sale agreement to HNA announced June 22 would be a markup of more than 30.7%. The transaction is expected to close Aug. 4.
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