Sixth Street Firm Buys Cut of SF Giants and Mission Rock development

Sixth Street has paid an undisclosed price for a slice of the San Francisco Giants and its 2.7 million-square-foot Mission Rock mixed-use development.

The locally based global private equity firm bought a 10 percent stake of the MLB baseball team and the 28-acre office and residential development across from Oracle Park in Mission Bay, Sportico reported.

Terms of the deal with the Giants and New York-based Tishman Speyer, developers of the waterfront neighborhood, were not disclosed.

The Raine Group handled the sale, while PJT Partners advised Sixth Street, which bought equity from a minority partner, an unidentified source told Sportico.

Sportico placed a $4.2 billion value on the Major League Baseball team and its team-related holdings, the fourth highest in the league.

It’s more difficult to quantify the value of Mission Rock, being built on a former parking lot for the Giants on land owned by the Port of San Francisco.

The developers are completing Mission Rock’s first phase with two office towers, two apartment buildings with 537 units and a waterfront park at a cost of $1.5 billion, according to the San Francisco Chronicle.

Tenants include Visa, which leased 300,000 square feet for its headquarters, the Golden Gate Warriors, Blue Bottle Coffee and Sweet Green.

When fully developed, Mission Rock will contain 2.7 million square feet of lab-ready offices, shops and restaurants and up to 1,200 homes, with 8 acres of parks plus a plaza, according to the port.

Real estate has become a primary way for sports teams to leverage their popularity, with mixed-use developments serving as year-round income and ancillary revenue streams, according to Sportico.

Such real estate investments have been especially attractive to the private equity firms, now sinking millions into sports team ownership.

Arctos Partners, the most aggressive firm over the last few years, has bought into the Cubs, Red Sox and Dodgers — all of which have significant real estate holdings. Arctos also previously invested in the Giants, according to Sportico.

Sixth Street’s other sports holdings include Legends and NWSL club Bay FC, plus minority investments in the San Antonio Spurs, Real Madrid and FC Barcelona.

— Dana Bartholomew