Allianz and Barings provide USD319m in debt financing to support the acquisition of 650 Townsend in San Francisco

New York, Charlotte, 07/03/2019

Allianz Real Estate, ranked as the world’s largest real estate investor, and Barings, one of the world’s leading financial services firms, announced today that they have co-committed a total of USD319.1 million (EUR282 million) in debt financing under a co-lending agreement to fund the acquisition of 650 Townsend, a premier creative office building in San Francisco. The asset is being acquired through a sale-leaseback arrangement with the major tenant.

Barings, who arranged the financing on behalf of an institutional investor, will be the lead lender and administrative agent for the transaction, with Allianz co-investing on a pari passu basis.

“The debt financing of 650 Townsend demonstrates Barings’ ability to identify attractive debt investment opportunities across all property sectors and reflects our confidence in the long-term growth of San Francisco, especially as new development opportunities remain limited,” said Dan Hartley, Head of RE Debt Origination in the U.S. at Barings. “We are excited to partner with Allianz on this transaction and showcase Barings’ ability to provide creative financing solutions to strong sponsors that own high quality real estate.”

“We are delighted to announce this latest transaction, a compelling opportunity to expand in the highly attractive San Francisco office market, which has grown significantly in recent years as a result primarily of the booming technology sector,” said Christoph Donner, CEO, Allianz Real Estate of America. “650 Townsend is one of San Francisco’s distinctive office properties in a vibrant, 24/7, ‘Live, Work, Play’ environment that attracts and retains employers and professionals alike. This new transaction also enables us to deepen our existing relationships with prime partners such as CalSTRS, Beacon Capital Partners and another institutional investor.”

650 Townsend is located at the crossroads of San Francisco’s SOMA and Showplace Square Districts. The six-storey property features 685,000 square feet of flexible office space, multiple atriums and unrivalled tenant amenities including two onsite cafeterias, a basketball court, gym, a theatre, on-site retail facilities and numerous collaborate workspaces.

Built in 1990, the building was renovated in 2011 and 2018 and was awarded LEED Gold status in 2017. It is currently leased to a strong line-up of tenants anchored by high-profile technology firms. The asset has benefitted from significant capital investment, with over USD115 million in work completed or in progress since 2012.

Press Contact:

When introducing a property investment opportunity to PIMCO Prime Real Estate you acknowledge that we are under no obligation to accept your introduction or enter into any agreement with you. Fees, commission or other payments in respect of introductions shall only be payable where there is a signed written agreement to that effect entered into between PIMCO Prime Real Estate and the introducer. By submitting an introduction to PIMCO Prime Real Estate you shall be deemed to have accepted the aforementioned terms.

"PIMCO Prime Real Estate” is a PIMCO company that includes PIMCO Prime Real Estate GmbH, PIMCO Prime Real Estate LLC, and their subsidiaries and affiliates: PIMCO Prime Real Estate GmbH (Company No. 158768, Seidlstrasse 24–24a, 80335 Munich, Germany), PIMCO Prime Real Estate GmbH Belgium Branch (VAT No. BE 0841.512.711, Boulevard Roi Albert II, 32, 1000 Brussels, Belgium), PIMCO Prime Real Estate GmbH France Branch (SIRET No. 509 339 669 00053, 50-52 Boulevard Haussmann, 75009 Paris, France), PIMCO Prime Real Estate GmbH Italy Branch (Numero REA MI-2107576, Piazza Tre Torri, 3 20145 Milano, Italy), PIMCO Prime Real Estate GmbH Spain Branch (NIF W2760686B, Paseo de La Castellana, 200 Edificio Spaces, 28046 Madrid, Spain), PIMCO Prime Real Estate GmbH Sweden Branch (VAT No. SE516411865401, Norrlandsgatan 18, 111 43 Stockholm, Sweden), PIMCO Prime Real Estate GmbH UK Branch (Company No. FC036236, 11 Baker Street, London W1U 3AH, United Kingdom), PIMCO Prime Real Estate Asia Pacific Pte Ltd (UEN 202000233H, 12 Marina View #17-02 Asia Square Tower 2, Singapore 018961), PIMCO Prime Real Estate (Shanghai) Co, Ltd (Company No. 91310115MA1K4KBT0L, 479 Lujiazui Ring Road​, Shanghai Tower, Pudong New District ​, Shanghai 200120​, People’s Republic of China​), PIMCO Prime Real Estate Japan GK (Company No. 0104-03-022895, 1-6-2 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan), PIMCO Prime Real Estate LLC (File No. 5234055, 1633 Broadway, New York, NY 10019-6999, USA). PIMCO Prime Real Estate LLC is a wholly-owned subsidiary of Pacific Investment Management Company LLC, and PIMCO Prime Real Estate GmbH and its affiliates are wholly-owned by PIMCO Europe GmbH. PIMCO Prime Real Estate GmbH operates separately from PIMCO. PIMCO Prime Real Estate LLC investment professionals provide investment management and other services as dual personnel through Pacific Investment Management Company LLC.

PIMCO Prime Real Estate is a trademark of PIMCO LLC and PIMCO is a trademark of Allianz Asset Management of America LLC in the United States and throughout the world.