SF office building sells for reduced price despite bidding war

This office building at 115 Sansome has sold amid an intense bidding war. 

This office building at 115 Sansome has sold amid an intense bidding war. 

Screen shot via Google Maps

An office building in downtown San Francisco has reportedly sold for about 60% less than its previous value — though it was at the center of a bidding war that drove its asking price up by 40%. 

The Beaux Arts-style building at 115 Sansome St. sold for $35 million, an industry insider confirmed to the Real Deal. That’s considerably less than its 2016 sale of $83 million, but it’s still 40% higher than the $25 million it was marketed at by real estate agency JLL, according to the Real Deal. JLL did not respond to SFGATE’s request for comment by publication time. 

The 124,476-square-foot building was built in 1912 as the headquarters for Standard Oil Company. Today, it includes a cocktail lounge, omakase restaurant and Blue Bottle Coffee on its ground floor — amenities that attracted several “high net-worth individuals” to bid on the property, the Real Deal reported. The building also formerly housed The Wing, a women-focused co-working space that closed earlier this year.

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The Real Deal’s insider told the outlet that 20 offers were placed on the property during its first round of bidding and 10 in its final round. Bidders included international investors, the aforementioned high net-worth individuals and local buyers who have been involved in the purchases of other commercial properties around San Francisco over the past year. 

This is one of several office buildings in downtown San Francisco to sell at a significant decrease from its previous value over the past year: Last month, the State Bar of California’s San Francisco headquarters sold for $54 million after being expected to sell for $85 million in 2021. A building near the city’s waterfront sold for less than half of its price a decade ago later that week.

However, heightened interest in the property may indicate that San Francisco’s commercial market might be bouncing back after bottoming out, according to the Real Deal. 



This article was originally published by a www.sfgate.com . Read the Original article here. .