Photo: Nicolas Raymond/Flickr
Norway’s Norges Bank Real Estate Management, known for having the world’s largest sovereign fund at $888 billion, is in the midst of acquiring $453 million worth of San Francisco real estate. It’s investing the money in two office properties in the city, and will ultimately have a 44 percent common equity interest in the buildings.
The two properties, 100 First Street and 303 Second Street, are both in San Francisco’s SOMA neighborhood. The former is a 27-story high-rise with graduated tiers and a pale marble facade, while the latter is a set of twin nine- and 10-story buildings — it features an outdoor plaza, reflecting pool and terraced seating. Together, the properties offer 94 percent rentable office space and 6 percent rentable retail space.
Norges is buying its stake in the buildings from Kilroy Realty, and has already closed its acquisition of 100 First Street. Its purchase of 303 Second Street will close in the fourth quarter of this year.
Wondering why a foreign firm is taking such a large monetary interest in San Francisco? According to this highly informative video, Norges’ real estate investment strategy is to “invest in key cities that will continue to play a key role in the global economy. We target modern, high-quality buildings with potential for long-term sustainable income. San Francisco is a cultural and commercial center, and a hub for technology companies and start-ups, bringing talented people in need of office space to the city.”
You heard it here first — San Francisco has been targeted for its potential.