At least three San Francisco office buildings that were re-listed at heavy discounts after failing to achieve asking prices in recent years are now under contract, according to the San Francisco Business Times. This could be a sign that landlords may no longer be “testing the market” to gauge office values amid rising vacancy.
The most recent case is 180 Howard St., a 250,000-square-foot office building in SoMa which has served as the State Bar of California headquarters for 30 years. It is reported that Ellis Partners and equity partner Baupost Group will purchase this 13-story building for approximately $250 per square foot or $62 million – significantly lower than its initial listing price of around $400 per square foot last year.
Two other towers have also recently gone under contract after failing to secure buyers earlier this year; 350 California St., once occupied by Union Bank, and 550 California St.. Both properties are expected to sell for much less than their respective owners had hoped when they first hit the market last year – 75% below asking price at 350 Caliornia Street and 50% below what Wells Fargo paid nearly two decades ago at 550 Caliornia Street respectively.
Pictured: 180 Howard St. Photo by Coolcaesar/Wikimedia
