PRP Sells 350 Rhode Island Street Office Building in San Francisco, CA for $182.5 Million

350 Rhode Island Street, 
a 127,100 square foot office building
leased to the City and County of San Francisco

 

WASHINGTON, DC -– PRP has sold 350 Rhode Island Street, a 127,100 square foot office building leased to the City and County of San Francisco (S&P: AAA).

Miyeon Lee

The property was originally acquired for $134.25 million in November of 2019.

PRP was represented in the leasehold sale by the San Francisco office of JLL, while PRP worked directly with Safehold.

Adam Lasoff

JLL’s Capital Markets team was led by Adam Lasoff, Rob Hielscher, Michael Leggett, Miyeon Lee and Erik Hanson.

As part of the exit, PRP bifurcated the land and the improvements, selling the Fee Simple position to Safehold Inc. (NYSE: SAFE) for $64.5MM while selling the Leasehold to a venture of Lincoln Property Company and Korea Asset Investment Management (“KAIM”) for $118MM, for a total consideration of $182.5MM or $1,436/SF. Both sales occurred simultaneously.

Rob Hielscher

 “By structuring and executing a highly complex deal involving two separate negotiations and sales that were required to occur concurrently by December 31st of 2021, PRP was able to maximize the value of the asset through the bifurcation process at disposition," stated Paul Dougherty, President of PR.

  "We are not aware of another owner that has successfully undertaken such a complicated effort at the sale of an asset.

 “JLL did a great job of holding this sale together though a very tough process.”

 

Paul C. Dougherty

Originally built in 2002, the property was redeveloped in 2018 for the City’s tenancy.

 The San Francisco District Attorney’s Office is headquartered in the building.

 The City of San Francisco leases 350 Rhode Island Street through 2033.

 Located in the premier SoMa submarket with close proximity to world-renowned technology firms including Uber, Airbnb, Dropbox, PayPal and Zynga, the property is walking distance to public transit options including BART, CalTrain, and Muni Metro.

 

CONTACTS:      

     

Kristen Murphy

Senior Manager

 Public Relations

 Investor Services

JLL

One Post Office Square, Suite 3500

Boston, MA 02109

T +1 617 848 1572

M +1 617 543 4873

Kristen.Murphy@am.jll.com

 jll.com

 

Kacey Converse

PRP, LLC

 202-741-8400

 kconverse@prprei.com

 

Colleen Ramsey

PRP, LLC

202-741-8400

 

WWW.PRPREI.COM

 

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