Hines and Invesco Put 116 New Montgomery in San Francisco on the Market 10/10
Hines and Invesco Put 116 New Montgomery in San Francisco on the Market
The San Francisco office of Hines and Atlanta-based Invesco Real Estate have decided to put the 137,000 square foot 116 New Montgomery office and retail property on the market for sale, according to sources that track the sales of properties in San Francisco.
Cameron Falconer, senior managing director for Hines in San Francisco, declined to comment when contacted for the story. A company representative of Invesco wouldn’t comment either.
The sales price on the property could approach $800 per square foot, or close to $110 million for the building, according to sources that are aware of the property being sold. This would be based on the fact that the retail component of the property could trade for around $1,000 per square foot and the office portion of the property in excess of $700 per square foot.
116 New Montgomery is a fully leased property. The retail in the property are Walgreens and Chipotle. The tenants in the office space include EnerNOC, Nelson/Nygaard, Nordash and SocialCode.
The sellers of the property made the decision to put the property up for sale since they have completed their business plan on the property after buying the asset in March 2013. They owners paid $57 million or $434 per square foot to purchase it at that time.
The plan for the property was to lease up the empty space in the building and invest some additional capital into the asset to make it more attractive to tenants going forward. The property was 85 percent occupied when Hines and Invesco made an investment in it. They contributed an additional $11 million into the asset to make it more tenant-friendly going forward.
The San Francisco office of Eastdil Secured has been hired by the property owners to sell the asset. This company was involved in the sale of the asset the last time it was brought to market. The improvements made by the sellers should attract a strong list of core buyers looking for assets in San Francisco. This city has a great deal of demand from capital sources looking to buy properties there.
