Redco has successfully completed the acquisition of 300 California St. for $28.5 million, according to a report by the San Francisco Business Times. This marks Redco’s second purchase in downtown San Francisco in recent months and is indicative of the high demand for office properties in this neighborhood, with prices ranging from $200 to $300 per square foot.
The developer, along with partner GCI General Contractors, paid approximately $240 per square foot to acquire the 120,000-square-foot building from New York-based seller LeFrak. This is a significant discount compared to LeFrak’s purchase price of $58.25 million (equivalent to around $485 per square foot) back in 2014.
Represented by John Walsh of Cushman & Wakefield, Redco closed on this deal earlier this week.
As part of the transaction, GCI will be relocating its headquarters from 875 Battery St. to occupy the fifth floor at 300 California St., further increasing occupancy rates which were previously below 50%. With two other leases currently pending approval as well, it is expected that occupancy rates will reach approximately75%.
This latest development highlights Redco’s continued success and growth within San Francisco’s competitive real estate market.
