Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Sunday, 04 March 2007

Morgan Stanley to Buy Equity Office's San Francisco Properties for $2.8Bln

Written by 
Rate this item
(0 votes)

Commercial Real Estate Direct Staff Report

Morgan Stanley Real Estate is buying 10 downtown San Francisco office buildings from Blackstone Group for $2.8 billion.

The purchase of most of the San Francisco portfolio that Blackstone acquired in its buyout of Equity Office Properties Trust will make Morgan Stanley San Francisco's largest office landlord, according to the San Francicso Business Times, which first reported the deal.

The $675/sf price for the 4.1 million square-foot portfolio compares to a $408/sf average for central business district office sales in San Francisco, according to Real Capital Analytics. It also is the largest office-building transaction ever sold in San Francisco.

The properties being acquired are: One Market St., with 1.4 million sf; One Maritime Plaza at 300 Clay Street, with 534,874 sf; 201 Mission St., with 483,289 sf; One Post St., with 421,121 sf; Foundry Square I at 199 First St., with 335,000 sf; 580 California St., with 313,012 sf; 201 California St., with 240,546 sf; 150 California St., with 201,787 sf; 60 Spear St., with 133,782 sf, and 188 Embarcadero, with 85,432 sf.

The only Equity Office downtown building excluded from the sale was the 243,000-sf One Ferry Building on the San Francisco Bay, which is leased to the Port of San Francisco.

Other bidders for the properties were said to have included Tishman Speyer Properties and Brookfield Properties. The sale is among a series of Equity Office portfolios that Blackstone has been negotiating to sell since it acquired the Chicago REIT in early February in a deal valued at $38.3 billion.

Morgan Stanley also is negotiating to buy the Denver properties that Blackstone acquired in its purchase of Equity Office.

Other properties under sales agreements include a portfolio in Los Angeles and Orange County, Calf., going to Maguire Properties for $2.9 billion; eight Manhattan buildings for $7 billion to Macklowe Properties; 2.7 million sf of office properties in the Denver area to a venture between Morgan Stanley and Callahan Capital Partners, and properties in Seattle and Washington, D.C., for $6.5 billion to Beacon Capital Partners.

Shorenstein Properties, meanwhile, is buying 4 million sf of Portland, Ore., office properties for $1.1 billion, along with properties in Sacramento, Calif.

Comments? E-mail John Covaleski or call him at (267) 247-0112, Ext. 208.



weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Additional Info

  • Syndicate to Realpoint: No
  • Cities: San Francisco
  • States: California
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Company: BNP Residential Properties Inc., Equity Residential Property
  • Valuation: More than $150 million
Read 1455 times

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
warehouse-backstage