Columbia Property Trust has plans to acquire 201 California, a 272,000-square-foot, class A office tower in San Francisco, for $239 million from Beacon Capital Partners.
Located at the corner of California and Front streets, the 17-story building has been substantially renovated and is 97 percent leased to multiple tenants, the largest of which are First Republic Bank, Dow Jones, and the law firm Cooper, White and Cooper. The building has substantial lease rollovers the next five years, with in-place rents estimated to be at least 10 percent below market, giving Columbia an opportunity to take advantage of continued demand in the market and drive further growth in rental rates.
Additionally, the company is proceeding with two planned dispositions expected to close in early 2020 that it anticipates will collectively provide $245 million to $265 million in gross sales proceeds: the Westinghouse campus in Cranberry Woods (Pittsburgh), Pa., which is now under contract; and Pasadena Corporate Park in suburban Los Angeles, for which the company has commenced marketing efforts.
Columbia is under contract to sell the three-building campus fully leased to Westinghouse Corporation in suburban Pittsburgh, which it has owned since 2010. The disposition, for which the buyer was not disclosed, is expected to close in early 2020. In 2017, Columbia secured a renewal with Westinghouse to retain its corporate headquarters in all 824,000 square feet at the campus until 2032.
Columbia has also commenced marketing efforts for Pasadena Corporate Park, a 262,000-square-foot property that comprises three office buildings in suburban Los Angeles, and the firm expects to complete the disposition in the first quarter of 2020.
In addition, Columbia also closed on its previously announced acquisition of a 235,000-square-foot, 16-story office building at 250 Church Street in Manhattan for $205.5 million, through its joint venture with Normandy Real Estate Fund IV. It has commenced a full redevelopment of the property under a new address, 101 Franklin Street.
