Stake in SF office tower

Real Estate Alert, June 9, 2004

Walton Street Capital Real Estate Fund IV is expected to close later this month on a 67% stake in 425 Market Street, a 909,000-sf office tower in San Francisco. Walton Street will pay Fremont Group, IBM and Shorenstein Co. $159.5 million, or $262/sf; for the stake. Metropolitan Life will retain its 33% stake in the building.

Earlier this spring, Walton Street had bid $125 million for the 53% in the building owned by Fremont and IBM. Shorenstein and MetLife each had the right to match the bid by the end of May, but passed. Instead, Shorenstein instead chose to sell its 14% stake to Walton Street. Jones Lang LaSalle is brokering the sale.