SAN FRANCISCO—San Francisco’s fourth tallest building, 555 California Street, could be sold. Formerly the Bank of America’s headquarters, the property is now an office campus, consisting of three buildings and 1.8 million square feet. It is partially owned by President Donald. J Trump, and has an assessed value of more than $1 billion. Some of its tenants include Microsoft, Goldman Sachs, and a private equity called KKR.
On Tuesday, June 23, New York based real estate investment trust Vornado Realty Trust announced that it is looking to potentially sell the site. VNO co-owns the property with the Trump Organization, and if the building is sold, the Trump Organization will also have to sell its 30 percent of stakes in the building.
Vornado released a company statement on their website on Tuesday that reads: “VORNADO REALTY TRUST (NYSE: VNO) announced today that it is initiating a process to explore options to recapitalize, either together or separately, 1290 Avenue of the Americas, a 2.1 million square foot Manhattan office building, and 555 California Street, a three building, 1.8 million square foot office campus in San Francisco.”
Vornado owns 70 percent controlling interests in these properties and partnerships, and have the right for the sole decision-making authority. If the property is sold, it would be one of the largest financial transactions in San Francisco’s recent history. In a May earnings report, Vornado reported that the building is currently 99 percent leased, and has an annual rent of $117 per square foot, one of the highest rental rates in the United States.
Vornado stated that a transaction is not guaranteed, and a spokesperson for the company declined to provide further comment.