Clarion Partners has acquired 215 Fremont St. in San Francisco for $335.5 million, according to media reports.
The eight-story building was sold by Jack Resnick & Sons, which bought the asset in 2006 as part of a five-property, $300 million acquisition from American Financial Realty Trust.
The deal is considered the largest office-building sale in San Francisco in nearly two years.
There was an uptick in San Francisco’s office investment sales activity toward the end of 2018, according to Cushman & Wakefield. While the total number of transactions in 2018 will be in line with 2017, there are a number of sales (most in-contract) that are expected to close in the first quarter of 2019. Sales were brought to market later in the year than normal as sellers looked to capitalize on very strong leasing conditions and buyer demand. A number of pending transactions are expected to close above $1,000 psf. The top transaction of the fourth quarter by price per square foot was The Ferry Building. Hudson Pacific Properties, in a joint venture with Allianz, purchased the historic mixed-use building for $1,217 per square foot from the Blackstone Group.
New office leasing totaled 1.9 million square feet in the fourth quarter and 8.9 million square feet for 2018, marking the third highest year on record behind 2014 and 2000.
