DivcoWest, CalSTRS JV buys first asset, a San Francisco property for $293m
The new joint venture between San Francisco–based DivcoWest and the California State Teachers’ Retirement System has purchased its first asset, a 319,000-square-foot office building in San Francisco located at 301 Howard Street, for $293 million, according to TheRegistry.
The Vanbarton Group, a privately owned, vertically integrated real estate investment and advisory firm, sold the property to the joint venture, according to TheRegistry. Vanbarton had owned the property since January 2015.
DivcoWest and CalSTRS have a 15-year history of investing together. The firms entered into the new $300 million venture in May. The joint venture focuses on acquiring core and core-plus commercial real estate assets in growth-oriented markets throughout the United States.
The venture’s investment activities will concentrate on commercial real estate opportunities in targeted markets that are characterized by strong local economies and highly qualified workforces. Another key characteristic of these markets is their substantial tenant bases in dynamic, new economy industries. Cities in five states plus the District of Columbia have been identified as target markets. In California they include San Francisco (including the greater Bay Area), Los Angeles and San Diego. Other target markets include Austin, Boston, Seattle and New York.