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Sunday, 04 March 2007

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

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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.


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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
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Data Digest







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




cppichart FP



CMBS 2.0 Spreads


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





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