Hudson Pacific Properties, Allianz JV acquires San Francisco ferry building for $291m

Hudson Pacific Properties and Allianz Real Estate have formed a joint venture to acquire a leasehold interest in the land and improvements of San Francisco’s historic Ferry Building from Equity Office, an affiliate of the Blackstone Group, for $291 million.

The Ferry Building, which includes 192,532 square feet of class A office and 75,486 square feet of retail, is located along San Francisco’s popular waterfront Embarcadero at the foot of Market Street and is one of the city’s most famous landmarks.

Hudson Pacific owns a 55 percent interest in the joint venture and will serve as the managing member and day-to-day operator of the property, while Allianz owns a 45 percent interest. The all-cash transaction was approved by the Port of San Francisco and is expected to close this week. The remaining term on the ground lease is 49 years.

The Ferry Building is fully leased to top-tier companies, including SS&C Technologies, Meltwater, Meritage Group and Niantic, as well as restaurants and retail tenants such as The Slanted Door and Blue Bottle Coffee.

Hudson Pacific will provide details regarding the impact of the Ferry Building acquisition on full-year 2018 FFO guidance upon closing.