by Adam Brinklow | SF Curbed
Ground lease deal had more than 60 years left
On Monday, the real estate group Hudson Pacific and financial group Allianz announced that they plan to pay $291 million for the ground lease rights on the San Francisco Ferry Building.
“We take our stewardship of this world-renowned San Francisco landmark seriously,” Hudson Pacific CEO Victor Coleman said in a statement released by the two companies that also promised “creative ways to improve the performance” of the property.
Note that the Port of San Francisco owns the historic building itself. What’s for sale here is instead the leasing rights, which give Hudson and Allianz the opportunity to collect rent from building tenants.
New York City-based Blackstone Group had more than six decades left on its lease deal on the building when it made the surprise announcement that it would sell in the summer of 2017.
At the time, the San Francisco Business Times and other parties guessed that the deal might go as high as $300 million. Monday’s acquisition announcement obviously fell short of that number by several million.
Hudson Pacific is a real estate firm based in LA that includes Rincon Center in its portfolio. Allianz is a financial services company based in Germany.