The California bank SVB collapsed in large part because it was so dependent on the high tech, start-up crowd in Silicon Valley. San Francisco’s office market has the same weak point and the result appears to be a growing firestorm of distressed high rise sales. A few examples, which were compiled by GlobeSt.com:
CBRE Investment Management is selling 123 Townsend Street (13,000 sqm) for $90 million, for which it paid $140 million in July 2020. It’s 73% leased to PayPal. The vendor is even offering financing.
Clarion Partners is selling 60 Spear Street (14,500 sqm) for $55 million, half of what it paid for it in 2014. The building is currently 37% leased.
350 California Street has been sold for $60 million (allegedly to a Korean investor), having been initially advertised for $250 million back in 2020. The anchor tenant, Union Bank, has vacated.
Just down the road, the 35,000 sqm building at 550 California street received bids of $39 million, slightly off the initial price Wells Fargo hoped to get for it. The bank is vacating the premises.
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