AEW, REDCO JV acquires San Francisco office property for $82m
One Montgomery Street in San Francisco’s North Financial District recently traded hands with a price tag of $82 million. The new owner is a joint venture between Boston-based investment manager AEW Capital Management and Palo Alto, Calif.–based developer REDCO Development. The seller was PGIM Real Estate.
CBRE secured the $76.6 million acquisition financing from Square Mile Capital. The loan, a five-year, nonrecourse floating-rate financing with full-term, interest-only payments at a competitive spread, priced over 30-day LIBOR, will finance a portion of the acquisition and provide funding for future capital expenditures and re-leasing costs.
Built in 1980, the 38-story class A tower is located on the intersection of Montgomery Street and Post Street. The landmark, historical property has been 100 percent occupied since 1984 by Wells Fargo.
“One Montgomery represents a truly unique repositioning opportunity that rarely comes along in San Francisco,” said