L
incoln Property has acquired a 208,000-square-foot office building in San Francisco's Showplace Square for approximately $62 million. The Dallas-based investor purchased the five-story building at 600 Townsend Street from Toda America, a Tokyo-based company, for around $300 per square foot. This price is significantly lower than the initial ask of $75 million, or about $360 per square foot.

    The building was listed by JLL brokers Rob Hielscher, Erik Hanson, and Adam Lasoff at the end of last year. Toda America had owned the property for three decades and had renovated it with high-end creative improvements, including a solar overhaul and upgraded lobby. At the time of sale, the building was 92% leased to tenants such as SS&C Advent and PagerDuty.

    However, several tenants in the building have near-term expiration dates, and some have put their offices on the sublease market. Lincoln Property has a significant presence in the Bay Area, with over 12.3 million square feet of office space, 3.1 million square feet of industrial buildings, and 2 million square feet of mixed-use storefronts and apartments.

    This acquisition is part of Lincoln Property's ongoing expansion in San Francisco. The company has partnered with international investors to acquire and develop several high-profile properties in the city, including a joint venture with Germany-based Cara Investment to acquire the Saks Fifth Avenue building at 384 Post Street for $156 million in 2021.