REAL ESTATE - A real estate firm co-owned by Dutch pension fund ABP and State Street has bought an office block in San Francisco.
The Tuckerman Group, part of ABP and the Boston bank's State Street Global Alliance, said its Redevelopment and Renovation Fund has formed a joint venture with an affiliate of Chicago based M&J Wilkow for the deal.
It's buying 500 Sansome Street, a Class B office building in San Francisco. The eight-story, 147,989 square foot building is located in the North Financial District submarket of San Francisco.
Margaret Duskin and Mark Anderson of Cushman & Wakefield's San Francisco office have been retained as the building's leasing agent.
M&J Wilkow and Tuckerman plan to renovate the property, which dates from 1929, and convert approximately 3,750 square feet of first floor office space to retail space.
"Located in a highly sought-after market that offers many possibilities for adding value through renovation, this building is a welcome addition to our fund," said Tuckerman chief Chip Lauckhardt.
"The investment has great potential to meet the return expectations of our clients."
M&J Wilkow serves as both operating partner and managing agent for the project. The project was 84 percent leased at closing. Column Financial provided acquisition financing.
"Our Redevelopment and Renovation Fund reviews and selects real estate investments nationwide that demonstrate the ability to be revamped in order to generate superior risk-adjusted returns," added Tuckerman senior managing director Glen Weisberg.
Earlier this month Tuckerman said that one of its European-based institutional clients had acquired Chambray Apartments and Meritage Apartments, two adjacent developments in Rancho Cucamonga, California, for $149m.
Elsewhere the Dutch newspaper Volkskrant reported that Dutch building industry pension fund BPF Bouw is the largest single investor in so-called Vinex housing development.