Chinese investor to buy San Francisco office building
China-based HNA Group is in contract to purchase the office building located at 123 Mission St. in San Francisco for $255 million from Hong Kong–based Pacific Eagle Holdings Corp.
The office property totals 345,595 square feet spanning up 29 stories. It is 95 percent occupied.
Pacific Eagle Holdings paid $179 million to purchase the South of Market property in 2013.
The San Francisco office market saw quarterly sales volumes drop from 2014 to 2015, according to Real Capital Analytics. During 2014, the San Francisco market’s office sales volume totaled more than $9.6 billion, averaging approximately $2.4 billion per quarter. Total office sales volume in 2015 dropped to approximately $6.6 billion, with an average of more than $1.6 billion per quarter.
San Francisco experienced a 36 percent year-over-year drop in sales activity in 2015. The market slipped to the sixth seed in 2015 from its second place in 2014 in RCA’s “T