PG&E Sells SF HQ for $ 800 Million, Wants Half the Money Returned to Customers –

PG&E Sells SF HQ for $ 800 Million, Wants Half the Money Returned to Customers – fr

PG&E has agreed to sell its San Francisco headquarters for $ 800 million, a mega-deal that shows investors remain interested in downtown properties despite the coronavirus pandemic.

Developer Hines has agreed to purchase office buildings, including 77 Beale St. and 245 Market St., PG&E announced on Monday. The utility company plans to move its headquarters to 300 Lakeside Drive in Oakland in the first half of next year to cut costs and provide better commuting for employees.

The PG&E properties span 1.5 million square feet adjacent to the Embarcadero BART station.

PG&E wants to return approximately $ 390-420 million of sales profits to customers over five years to offset future increases in electricity rates. There is no estimate of the benefits for each individual customer yet, a spokesperson for PG&E said. And the California Public Utilities Commission must approve the proposal, a move that PG&E says is necessary for the sale to go through.

“We are committed to keeping customer costs as low as possible, and one of the ways we are doing is to sell non-core assets, including real estate. This sale and relocation will result in cost savings that will directly contribute to reducing customer invoices, ”Patti Poppe, CEO of PG&E, said in a statement.

It’s another major San Francisco commitment for Hines, which plans to begin construction on its billion-dollar Parcel F tower a few blocks from PG&E’s Beale Street building. Construction is progressing although Salesforce has canceled its office lease on the project, with the tech company embracing more remote working. Hines previously developed Salesforce Tower with Boston Properties and also managed a seismic renovation of the PG&E buildings.

The PG&E deal comes two months after the sale of Dropbox headquarters for $ 1.08 billion, the second highest price in city history for a single building. Despite Dropbox’s “remote first” policy change, the building is sublet to biotech companies, which have continued to expand during the pandemic.

Another major deal was the sale of the Transamerica Pyramid for $ 650 million last year, a deal that was delayed for several months.

Roland Li is a writer for the San Francisco Chronicle. Email: [email protected] Twitter: @rolandlisf


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