Jamestown reported potential buyer of $820m Levi’s Plaza in San Francisco
Atlanta-based Jamestown has been named as a potential buyer for the 800,000-square-foot Levi’s Plaza office asset in San Francisco, reported local media outlets, citing unnamed sources with knowledge of the deal.
The purchase price is approximately $820 million, which would be one of the largest office acquisitions this year.
The property was placed on the market earlier this year for the first time. The office and retail complex at 1155 Battery St. near the Embarcadero has been occupied since it opened in 1982 by Levi Strauss. And it plans to still occupy it after the sale. Levi Strauss’ lease spans 354,797 square feet and runs through the end of 2022.
San Francisco investment activity continued to exceed expectations and kept pace with Manhattan in the first quarter, with the two markets closing at $1.24 and $1.41 billion, respectively, reported Cushman & Wakefield. Office valuations continue to rise in San Francisco. Seven transactions closed citywide with an average price of $933 per square foot, well above Manhattan’s $811 per square foot. Strong leasing fundamentals and buyer demand are expected to continue through 2019, and a number of pending transactions are expected to close above $1,000 per square foot. The top transaction of the first quarter by price per square foot was the sale of 500 Terry Francois Boulevard, as Gap purchased their headquarters from Hines for $1,210 per square foot.