A subsidiary of HNA Ecological Technology Group Co., Ltd., a division of HNA Group of China, has acquired the 29-story office building at 123 Mission Street in San Francisco for $255 million in cash. The Class A office tower was sold by the U.S. subsidiary of Great Eagle Holdings, a Hong Kong real estate company that also owns the luxury hotel chain, Langham Hospitality Group. Great Eagle Holdings’ Bay Area arm, Pacific Eagle Holdings, paid $179 million for the office tower December 2013 when it purchased the office building from Sumitomo Corp. of America.
“As the prices of office buildings in San Francisco have appreciated rapidly over the past year, especially in downtown San Francisco where the building is located, the general partner and asset manager believes that it is appropriate to dispose of the property,” allowing the seller “to take advantage of the favourable market conditions,” Great Eagle Holdings said in the filing.
123 Mission, formerly the Pacific Gas & Electric Building, was designed by Skidmore, Owings and Merrill and developed by the Shorenstein Company in 1986; the Gensler-designed lobby was later renovated in 2009. At ground level, the building includes 2,577 square feet of retail space for four vendors, and below grade parking to accommodate up to 90 parking stalls. Located in the San Francisco Financial District’s South of Market submarket, the 346,000 square foot office building is two and a half blocks from San Francisco Bay and a short distance to the AT&T Park, home of the San Francisco Giants. The building is currently 95% occupied with 14 tenants, according to financial documents.