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Experience

CASE STUDY

Bank of America Center

A REMARKABLE STORY OF FORESIGHT, BOLDNESS, AND EXCEPTIONAL TIMING

OVER 100 YEARS OF
EXPERIENCE

One of the unique elements in the success of 601W is its level of teamwork, which is a result of many years of working closely together in all facets of commercial real estate. All of the principals and associates in 601W are seasoned veterans with decades of experience in their fields of expertise. The members of our team, whether in Property acquisition and negotiation, asset management and support staff, engineering, legal, brokerage, or leasing, have been a part of 601W from the outset and are each very experienced and savvy in their areas of responsibility. The outside professionals who represent 601W have been associated with it since its inception, and have been available to 601W around the clock when the demands of a negotiation have required it.

SUCCESS STORY

$194 MILLION PROFIT
IN UNDER 18 MONTHS

Bank of America Center Location Map

555 California St. San Francisco, CA

  • SQUARE FOOTAGE 1.8M
  • PURCHASE PRICE $813M
  • CASH INVESTED $121M
  • SALE PRICE $1.065B
  • RETURN ON INVESTMENT 107% PA
  • HOLDING PERIOD 18 MOS

In 2004, the commercial real estate market in San Francisco was in the midst of a dramatic decline. Rental rates, which had previously topped $100 per square foot, had declined to as low as $30 per square foot. Through their relationships in the national brokerage community, the principals of 601W were made aware of the possibility of preemptively purchasing the Bank of America Center, the largest and most prominent class A building in the city. Following extensive yet expeditious due diligence, and with great foresight, 601W recognized the inherent value of this magnificent trophy building in its unique market. Based on their experience, analysis, and market savvy, the principals sensed the downward spiral was close to its end. 601W acquired this world-class trophy asset in September of 2004, with a REIT as a minority preferred equity partner, at a purchase price of $813 million. As the market began to improve soon thereafter, 601W initiated clever building upgrades and the leasing team was soon signing leases at $60– $70 per square foot. Because of its exceptional timing, 601W was able to sell the Property within two years of acquisition and achieve a 160% profit on its investment.