Sovereign Wealth Fund Buys Building of Airbnb HQ
Posted on 09/15/2015
Shelling out big bucks, large sovereign wealth funds are buying up more of San Francisco offices. Norges Bank Investment Management (NBIM), the manager of Norway’s sovereign wealth fund, acquired a 49.9% interest in 888 Brannan for US$ 153.2 million. The property, a former battery factory, was valued at US$ 307.1 million and no financing was involved in the deal. The property is a 445,000 square foot office located at 888 Brannan Street in San Francisco (South of Market area.) The property consists of 73% office and 27% retail. NBIM bought the property through a joint venture with TIAA-CREF. TIAA-CREF is acquiring a 50.1% interest in the asset and will manage it on behalf of the partnership. The seller is Boston-based Beacon Capital Partners, LLC, making a handsome 69% return in just over a year.
The building is home to the headquarters of Airbnb, the third-largest privately held tech company in the United States. Airbnb has a valuation of US$ 24 billion. Airbnb forked over around US$ 10 million in rent for 2014.
The deal was signed on July 24, 2015 and closed on September 11, 2015.
In 2014, SKS Real Estate Partners sold 888 Brannan Street to Beacon Capital Partners for US$ 187 million. SKS Real Estate Partners bought the building for under US$ 40 million in 2011 (they put in US$ 35 million renovation.)
Keywords: Norway Government Pension Fund Global.
