Posted on 05/29/2023 3:31:57 AM PDT by FarCenter
TOKYO -- Mitsubishi UFJ Financial Group (MUFG) has made a formal decision to unload the former headquarters building of San Francisco-based Union Bank, the U.S. regional banking subsidiary it sold in 2021, Nikkei Asia has learned.
The 22-story office tower, built in 1977 and located at 350 California Street in San Francisco, is set for a sale, a person familiar with the matter said, adding that the bank has not sold the property yet or chosen a buyer.
A deal could have major implications for the San Francisco-area commercial property market. Local business media have reported that the sale price of the old Union Bank headquarters will be around 80% below pre-pandemic levels for office buildings.
A sale at such a depressed price could trigger a chain reaction of markdowns in the value of downtown buildings. It also could result in a loss for MUFG, but not a big enough one to have a material impact on a bank with an annual net profit close to $10 billion.
MUFG was unable to dispose of the building when it sold Union Bank to U.S. Bancorp in September 2021. The building has been vacated by Union Bank and is only 32% leased today, according to commercial property marketplace LoopNet. San Francisco has seen a dramatic increase in office vacancies, as more people in the tech industry choose to work from home.
Analysts say older buildings like the Union Bank building would have better prospects if they were passed on to new owners for renovation. Selling the building would also relieve MUFG of its obligations for maintenance costs and property tax.
(Excerpt) Read more at asia.nikkei.com ...
Cities serve no purpose now other than to warehouse the undesirable refuse of society. Those who can, should flee.
I used to ride by it on the Cable Car every day on my way to and from work at PG&E headquarters in the late ‘90’s. SF was a great place then. As a young, single, straight man in my 30’s, in a town full of fags, I had my pick of single women.
And so now the leftists with money tuck and run to go to another city to destroy it.
democrats = viruses
Jack Posobeic, Twitter influencer, had been admonishing people to get out of cities for some time now; for their own safety and well-being.
“... in a town full of fags, I had my pick of single women.”
Lucky You!!!!
As an aside, factory jobs may require employees to be on-site, but factories are not located in cities.
The big Democrat cities may be replaced by mini-cities scattered around the countryside. That kills the political power of the ghettoes.
“.. as more people in the tech industry choose to work from home.”.
Really...., how about the fact that SF has become a $hit hole city.
“Local business media have reported that the sale price of the old Union Bank headquarters will be around 80% below pre-pandemic levels for office buildings.”
Did the author mean 20% below pre-pandemic levels? You just can’t trust people with numbers anymore.
Ann Wass and I visited together in the summer of 1983. I was there for a conference and she tagged along. We stayed at the (Sheraton) Palace Hotel and did lots of touristy things.
Highlights for me were a baseball game at the cool and breezy Candlestick Park, a cablecar ride down to Pier 39 where I enjoyed a walk-around dungeness crab cocktail, a ferry ride across to Sausalito for coffee and snack and then we ran back to the city across the Golden Gate Bridge.
Those great memories are best preserved by foregoing any future visits to San Francisco.
It’s unofficial. SKS Real Estate Partners will pay up to $67.5 million to buy the office tower at 350 California Street in a fire sale that could reset office prices across San Francisco.
The San Francisco-based firm teamed up with a South Korean investor to pay between $200 and $225 per square foot for the 297,600-square-foot building in the Financial District, the San Francisco Business Times reported, citing unidentified sources.
The seller of the 22-story glass-and-stone tower was Mitsubishi UFJ Financial Group, based in Tokyo.
The deal comes out to $60 million to $67.5 million — or around 75 percent below the $250 million sought when the building hit the market in 2020.
75% below what was expected three years ago. Wow. Companies bailing out at those loss rates tell us they don’t expect any urban recovery soon.
Thanks for confirming the original statement. Amazing.
As the city is left reeling from this downturn, property values at 550 California Street may take a similar hit. The Real Deal reported that Wells Fargo, the building’s owner, is likely to sell at a deep discount: around $40 million, despite an original asking price nearer to $150 million. For countless commercial landlords in downtown San Francisco, it seems the writing is on the wall, as bleak forecasts turn their worst nightmares into a harsh reality.
All of this upheaval has experts asking: What happened to San Francisco’s once-thriving commercial real estate market? It seems that the city’s vast amounts of office space are becoming increasingly difficult to lease or sell, leading to severe consequences for the wider economy. Recent statistics from the Crexi highlight only further emphasize this downturn: according to their data, San Francisco’s office market ended 2022 with a staggering 32.1% vacancy rate and a record negative absorption of over 4.5 million square feet.
And today, folks worry about China land purchases.
The problem in San Fran is that the leaning tower is going to fall and take God only knows what along with it
The Japanese rats are deserting a ship that may already be sunk to far to escape.
City residents faithfully voted for the politicians whose ultra-leftist policies are destroying America's great cities one after another.
Businesses financially supported the same politicians as well as radical leftist organizations (like BLM) who turned their city streets and business districts
into dangerous, nonfunctional No-Go areas riddled with crime and serving as open toilets.
Now they are abandoning the cities they helped bring to ruin and relocating to as-yet unspoiled cities and states where they will continue their support of
the same type of leftist politicians, radicals and policies.
Add to the picture that this $hit hole city also did the Fauci lockdown game for so long, driving those who could work "away" away. They don't want to come back. Aw....
Rational decision making is involved. When an investment looks to lose more, cut and run.
The Serengeti for straight men!😎
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