Case: One Sansome

  • One Sansome WSJProperty: Citicorp Center at One Sansome Street – San Francisco, CA
  • Scope: 739,000 SF (NRA is 617,000 SF), 41 story office building
  • Challenge: Excess leverage incurred by previous owner (2007 purchase) — Prudential later acquired the Mezz loan
    • Building not capitalized to attract new tenants after the Bear Stearns failure and other move outs
    • Had fallen from favor due to unresponsive ownership and lack of capital.
  • Solution: -Prudential and BPG formed a JV to collapse the mezzanine loan and take ownership in April 2010
    • Recapitalization of the project to fund:
      • Needed capital improvements and improve management
      • Ability to lease the vacant space (20 new tenants procured since inception)
      • Dealing with significant tenant rollover during the next 3 years.
    • Refinanced with Metropolitan Life in 2012 at a 3.46% fixed rate.