UBS Realty Investors is looking to sell a 23-story Financial District office tower that it has owned since the late ‘80s.
The 372,400-square-foot property is 455 Market Street at 1st Street. UBS is seeking around $280 million, or nearly $750 per square foot, according to the San Francisco Business Times asset.
455 Market Street (Dead.rabbit, CC BY-SA 4.0/via Wikimedia Commons)
Zurich-based UBS has owned the tower, currently 80 percent leased, since its completion in 1987. One of the biggest tenants in the property is Hinge Health.
Alexander Quinn, the director of research for Northern California for JLL, said that the listing may reset pricing expectations for a portion of the office market.
“I think that for multi-tenant buildings, Class A-type properties, we’re going to get a new watermark,” Quinn told the Business Times. “We’re expecting that pricing will be on the lower end, and it’ll reset the pricing for a portion of the market.”
The muted outlook comes despite JLL’s recent projection of recovery for San Francisco’s office market over the next six quarters, citing a 30 percent jump in job postings and around $16 billion in venture capital funding flowing to companies in the area.
“While re-entry remains fluid and the announcements do not necessarily mean a swing towards full re-entry, these are positive signs for the market,” the firm’s first quarter report read.
[San Francisco Business Times] – Christian Bautista