Four years after acquiring its last holding in the United States, Union Investment has entered one of the most dynamic US office property markets, buying the 33-story office property at 555 Mission Street in San Francisco for around US $446.5 million (approx. 355 million).
555 Mission Street.
Union Investment purchased the class-A building which was completed in 2008 and has been awarded LEED-CS 'Gold' certification from project developer Tishman Speyer. The property has been acquired on behalf of the open-ended real estate fund UniImmo: Europa.
The recent acquisitions and disposals in Seattle and San Francisco further increase the geographical diversification of the fund's American holdings. 555 Mission Street is 88% let to 12 tenants with an average lease duration of 9.3 years. The anchor tenant is Deloitte, the international consulting firm, with a 14-year lease. Designed by Kohn Pederson Fox, the office complex provides a total of 51,748 m² of lettable space featuring highly efficient layouts.
"In addition to the compelling quality of the building itself, 555 Mission Street's location in one of North America's strongest economic regions makes it a particularly sustainable investment for us," says Volker Noack, a member of the management team at Hamburg-based Union Investment Real Estate GmbH.
The prestigious office tower is a prominent landmark in the South Financial District.
As well as conventional CBD tenants, the area attracts companies from the creative and technology industries seeking space.
"The impressively dynamic development of the submarket should see 555 Mission Street benefiting from rising rents," adds Noack.
The property is adjacent to the site of the Transbay Transit Center, which is scheduled for completion in 2017 as a bus and rail transportation hub for the West coast. Tenants at 555 Mission Street will have direct access to the Transbay Transit Center, thereby further enhancing the building's already excellent public transport links.
Source: Union Investment