Hines Global REIT Acquires Gap’s San Francisco Headquarters for $180 Million
- Sep 12, 2012
International real estate giant Hines recently announced the purchase of one of the city’s best known office properties. The company’s subsidiary, Hines Global REIT, has completed the acquisition of 550 Terry Francois, the building that is currently fully under contract with Gap Inc. The real estate investment trust paid $180 million for the Mission Bay district office building. The seller was a wholly owned subsidiary of GLL Real Estate Partners Inc.
550 Terry Francois is a six-story Class A office building offering a total of 282,773 leasable square feet of space. Completed in 2002 after a design by Studios Architecture, the building is divided into two wings connected by a central open core. The resulting J-shaped floor plate is one of the buildings most notable features. The building is LEED Gold certified and features under-floor HVAC and 12-foot ceiling heights for a loft-like ambiance.
Amenities at the building include a coffee shop and company-operated cafeteria that ensures employee dining. Parking at the building is ensured by a six-story parking structure offering 308 stalls for the property’s use. Hines Global REIT CEO and president, Charles Hazen, praised the addition of 550 Terry Francois to the company portfolio because of the building’s “premier location, its state-of-the-art design and strong credit tenancy.”
Gap Inc. owns the full lease for the building through 2017, and it is currently using the facility as the headquarters of its successful Old Navy brand. The buyer was represented in the acquisition deal by Hines, who will also stay on as the property manager. The seller was advised throughout the transaction by real estate company Eastdil Secured. Hines Global REIT is a Houston-based, public, non-traded real estate investment trust that currently owns 20 commercial investments worldwide.
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Photo courtesy of studios.com