(SAN FRANCISCO, CA) — In a transaction that adds more than 400,000 square feet of Class A office space to its fast-expanding portfolio in the San Francisco Bay Area, Sterling American Property, Inc., in a joint venture with Hines, announced today the acquisition of the 120 Montgomery Street building in San Francisco for $67.5 million.
This marks the 36th acquisition for Sterling American Property Fund IV.
The seller was Equity Office Properties Trust (“EOP”).
Richard Wilpon, Michael Katz and Thomas Osterman, Managing Directors of the Sterling American Funds, made the announcement, together with Hines Executive Vice President Jim Buie and Senior Vice President Paul Paradis.
In June 2005, the companies formed a joint venture to purchase a portfolio of properties from EOP in the San Francisco area.
Those properties included:
301 Howard Street and Foundry Square II in San Francisco; Parkside Towers in Foster City; and San Rafael Corporate Center in San Rafael.
The 25-story, 420,310-square-foot building includes an excellent roster of tenants such as the US General Services Administration (GSA), Wells Fargo Bank and the Segal Company.
Sterling American and Hines plan to begin a comprehensive repositioning strategy to lease the property at current market levels.
In negotiating the transaction, Sterling American’s Managing Directors coordinated the efforts of: Tarak Patolia, SVP/Head of Acquisitions; Robert Watman, VP, Acquisitions; and Robert Bergman, SVP/Asset Management.
“We believe that the timing is right to continue to expand in this market because of our strong belief in its resurgence and the fact that it is a supply constrained market,” said Mr. Patolia. “Working with Hines, we have a strong partner with an excellent reputation and a great knowledge of this market.”
Mr. Paradis said, “120 Montgomery is an excellent location and a building with great potential.
Together with Sterling, we are looking forward to improving and leasing the building in the coming years.”
Secure Capital represented EOP in the transaction, while Sterling American and Hines represented themselves.
Sterling American Property Inc, a real estate investment affiliate of Sterling Equities and American Securities, LP, backs its entrepreneurial real estate investment approach with a 30-year history of national real estate development, acquisition and asset management experience.
Since 1991, its four consecutive real estate funds have invested in more than $2.5 billion in assets in 43 states, often in conjunction with strong regional joint venture partners.
Today focused on acquiring multifamily and commercial product, New York-based Sterling American Property Inc. is recognized for its ability to respond quickly and with entrepreneurial agility to opportunities and market changes. For more information, go to http://www.sterlingamerican.com.