China-based HNA Group Co. has sold a San Francisco office tower at 123 Mission Street for an estimated price of $300 million, according to Bloomberg.
The building, which was the Chinese conglomerate’s first property on the West Coast, was sold to Northwood Investors.
HNA Group Co. purchased the 28-story tower in August 2016 for $255 million.
The unemployment rate for the San Francisco metropolitan division (San Francisco and San Mateo counties) was 2.5 percent in February, well below the 3.1 percent reported one year ago with the market remaining at full employment, according to Cushman & Wakefield.
A total of 4.7 million square feet of office space was under construction at the end of the first quarter 2018 with 1.9 million square feet of new construction scheduled to deliver in the second quarter of 2018 including 181 Fremont Street (Facebook), 501–505 Brannan Street (Pinterest), 510 Townsend Street (Stripe), 100 Hooper Street (Adobe), and 1800 Owens (Dropbox); all are 100 percent pre-leased.
Active tenant requirements totaled 4.8 million square feet at quarter end, down 600,000 square feet since the first quarter of 2017. Large-block demand continues to outpace supply.
Although only a few property sales closed in the first quarter, there are currently more than 10 buildings ($1.5+ billion in total value) that are either on the market or in-contract — a significant increase compared to this time last year.
