Broadway Partners has agreed to sign over the deed to Citigroup Center, also known as One Sansome, located in downtown San Francisco, their lender, Prudential Real Estate Investors.
According to a report in the San Francisco Business Times, Prudential will assume ownership of the 550,000 square foot office tower later this month.
One Sansome is reportedly 30% vacant, totaling about 165,000 of available space. Current tenants include Citigroup, Lumetra Healthcare and law firm Lewis Brisbois Bisgaard & Smith LLP.
Like most of the surrendered properties, One Sansome was purchased near the pinnacle of the building-buying boom. In December, 2006, Broadway Partners, a private real estate investment and management firm headquartered in New York, paid $3.3 billion for a 10-building national portfolio that included four San Francisco properties. While values were never broken out for individuals properties, One Sansome St. was likely valued at more than $600 a square foot, about $350 million, when Broadway bought it. In June of 2008, South Korea-based Mirae Asset MAPS Investment Co. had the property in contract for $365 million, but backed out when the financial crisis worsened that fall.
San Francisco has seen a slew of high profile properties get taken back by their lenders. Examples include the Lembi Group portfolio, a 5-building Morgan Stanley portfolio transfered to AREA Property Partners, Hines‘ strategic default which ceded 333 Bush Street to Brookfield Properties.
Hat tip to Bay Area Commercial Real Estate Blog for their post on this action.
[San Francisco Business Times]
Update: Prudential teams up with Barker Pacific Group to take over One Sansome:
http://www.globest.com/news/1665_1665/sanfrancisco/185078-1.html