Juul has listed its S.F. office building at 123 Mission again and at a price cut - San Francisco Business Times

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Juul is seeking to sell off its office building at 123 Mission at a roughly $200 million discount.

Embattled e-cigarette maker Juul is taking another stab at selling a SoMa high-rise following a failed attempt to offload the building in 2020. building at 123 Mission St. hit the market this week. Real estate firm Newmark is handling the listing.$397 million— more than $1,000 per square-foot — when it purchased the 1980s-era building from Northwood Investors in 2019. It sought in the ballpark of $450 million when it listed 123 Mission for sale a year later.

A lot has changed since then. According to my sources, the current price guidance for the building has landed at roughly $450 per square foot, or $174 million. Juul did not respond to messages seeking comment on Thursday. A market insider who asked not to be identified to preserve relationships said the deal is complicated by a CMBS loan, and that Juul will take"

a massive loss" on the property — if the company can sell it. Two office properties that hit the market earlier this summer — Wells Fargo's374,203-square-foot building at 455 Market St. — Wells Fargo sought about $160 million for its building while UBS sought $280 million. Both properties are located in San Francisco's Financial District, as is 123 Mission.

A sale of the Juul building would set the tone for pricing moving forward, according to local real estate experts, who say the market is in a new environment with high interest rates, high post-pandemic vacancies and a lack of comps, or financial metrics.

 

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