UBS lists SF office tower for $280M

Switzerland-based financial house has owned the 23-story property since its completion in 1987

A photo illustration of 455 Market Street (LoopNet)
A photo illustration of 455 Market Street (LoopNet)

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)

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.

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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