PRP sells San Francisco office for $182.5m

PRP has sold 350 Rhode Island Street, a 127,100-square-foot office building leased to the City and County of San Francisco.

The property was originally acquired for $134.25 million in November of 2019. As part of the exit, PRP bifurcated the land and the improvements, selling the fee simple position to Safehold Inc. (NYSE: SAFE) for $64.5 million while selling the leasehold to a venture of Lincoln Property Co. and Korea Asset Investment Management (KAIM) for $118 million, for a total consideration of $182.5 million or $1,436/SF. Both sales occurred simultaneously.

“By structuring and executing a highly complex deal involving two separate negotiations and sales that were required to occur concurrently by December 31st of 2021, PRP was able to maximize the value of the asset through the bifurcation process at disposition. We are not aware of another owner that has successfully undertaken such a complicated effort at the sale of an asset,” said Paul Doughe