Tishman in Contract to Sell 550 Terry Francois
October 15, 2009
We previously reported on Tishman’s putting up 550 Terry Francois for sale back in May. It now appears that they are in contract to sell the 282,773 square foot building that is fully leased to GAP through 2017.
The fund (referring to Tishman’s Australian Fund) has a contract to sell the so-called Gap Building at 550 Terry Francois Blvd. in San Francisco to GLL Real Estate Partners, a manager of investment funds based in Munich, Germany, according to Tishman public documents and people familiar with the transaction. The 282,773-square-foot building in the city’s Mission District has a sought-after attribute: the creditworthy clothing company Gap Inc. has a lease to occupy the entire building through October of 2017. Tishman, which paid US$173.1 million for the building in 2005, has an agreement to sell the property for US$136.5 million property, according to a Sept. 28 company statement. GLL is expected to assume an existing $107.5 million mortgage on the property.
80% LTV, not bad. $482 psf, not good, but we’re glad the Euro is strong. Not sure about what happens to those ~$40+ rents though when they roll off and can’t go biotech. I suspect the chances that the lender will be the proud owner of an empty building in 7 years is pretty good.
[via WSJ]
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Tags: 550 Terry Francois, Commercial Real Estate, GLL, Investment Sale, Mission Bay, Office Space, San Francisco, Tishman Speyer
Anybody know the Gap rents? Would be interesting to know the cap rate, even though based on these over-mkt rents.
I think it’s almost fifty bucks per year. based on the reported price, i’d say it might break double digit cap rates