Columbia Property Trust and Allianz Real Estate have formed a joint venture to recapitalize 221 Main Street in San Francisco, California. Allianz contributed cash of $180 million for a 45% ownership interest in the joint venture, which values 221 Main Street at $400 million. Consistent with most of the other ventures between Columbia and Allianz, Columbia will retain a 55% ownership stake and function as general partner for the venture. Columbia will also continue to oversee the day-to-day operations of the asset.
“We are pleased to once again expand our relationship with Allianz Real Estate, through a transaction that reflects our shared confidence in both the value of 221 Main and the attraction of San Francisco’s office market for long term investors,” said Nelson Mills, Columbia’s chief executive officer. “We look forward to investing the proceeds in new opportunities to expand our footprint of high quality assets in our core markets.”
221 Main Street is a 381,000-square-foot, LEED Platinum and Energy Star-certified office building in San Francisco’s South Financial District. Acquired by Columbia in 2014, the property features Bay views and abundant outdoor space. The building is fully leased, primarily to tech tenants such as DocuSign and Prosper Marketplace.
With this transaction, 221 Main Street has become the fifth office asset owned by joint ventures between Columbia and Allianz Real Estate, which now have a collective gross asset value of approximately $2.3 billion. The four other properties jointly owned by Columbia and Allianz are University Circle and 333 Market Street in San Francisco, 114 Fifth Avenue in New York, and 1800 M Street in Washington, D.C. Columbia and Allianz have also both made investments in the Terminal Warehouse joint venture in New York, together with other partners.