From the San Francisco Business Times:
Sweet music to real estate investors TMG Partners and DivcoWest. Finance officials at the State Compensation Insurance Fund, however, must be feeling pretty short-sighted right now. TMG and Divco, both San Francisco-based real estate investment firms, more than doubled their money on the deal in less than a year, buying the property for $44 million in October of 2011 and agreeing to sell it this week for $109.8 million.
State Fund, which moved its workers to the suburbs, obviously had its strategic reasons for selling a building for which it no longer had use. But even last fall, it was pretty obvious that the Mid-Market was on its way up and the value of the building was only going to increase with time.
The deal also had some winners and losers at City Hall. Mayor Edwin Lee is justifiably proud that another major tech company is moving to the tough neighborhood, saying that the relocation “clearly demonstrates that our economic strategy to attract and retain companies is helping to create jobs, revitalize Market Street and spur more economic activity in the area.”
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