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NEWS RELEASE
Contact:
Denise D. Resnik
Nick Quan
(602) 956-8834

FOR IMMEDIATE RELEASE

PIVOTAL LLC PURCHASES 650 CALIFORNIA STREET

 
 
 
 
     
 

SAN FRANCISCO (October 13, 2000) - Phoenix-based Pivotal Group recently announced the purchase of a nearly 500,000-square-foot, 33-story Class A office building through a $160 million capitalization. Pivotal 650 California Street, LLC, comprised of Pivotal Group and private investor William S. Levine, purchased the 650 California Street building from Sarofim Realty Advisors of Dallas, Texas.

"This acquisition reflects our ongoing commitment to secure select, value-added strategic assets in this dynamic market," said Francis Najafi, CEO of Pivotal Group and managing partner of Pivotal 650 California Street, LLC. "We're looking forward to exploring other opportunities in the Bay Area's surging marketplace."
Jeff Congdon and Bob Gilley of Cushman & Wakefield in San Francisco negotiated the transaction.

Located in downtown San Francisco, the 650 California Street building is currently 100 percent leased. Major tenants include Donaldson, Lufkin & Jenrette, a global investment bank; Littler Mendelson, the largest employment and labor law firm in the United States; and Jefferies & Company, an institutional brokerage and investment bank.

With a market-wide Class A vacancy rate of 1.3 percent, San Francisco is considered one of the nation's strongest real estate markets. According to Jeff Congdon of Cushman & Wakefield, developments like the 650 California Building offer a competitive opportunity for long-term investment. "The Bay Area is experiencing an unprecedented demand for competitively appointed office space," said Congdon. "A strong quality of life, coupled with ready access to nearby amenities, freeways and airports, makes this the place of choice for new and relocating companies."

The 650 California building has been an integral part of the San Francisco skyline since 1964 when it was the tallest structure in California and the second modern high-rise over 400,000 square feet ever built in the city. Formerly known as The Hartford Building, it was developed by The Hartford Insurance Company for use as their West Coast headquarters.
Pivotal Group is an institutionally based diversified real estate investment and development firm widely recognized for its ability to create high-quality business environments and communities. The firm first entered the Bay Area real estate market in 1998.

In recent years, Pivotal's notable acquisition and development activities include the landmark Century Plaza Hotel and Tower in Los Angeles; Promontory, a $500 million, 6,000-acre master planned resort community in Summit County, Utah; Red Mountain Spa, a luxury spa resort near St. George, Utah; Ritz-Carlton Phoenix; Camelback Esplanade in Phoenix and a variety of other real estate assets located throughout the western United States.

Sarofim Realty Advisors, a wholly owned subsidiary of Fayez Sarofim & Co, is a registered investment advisory firm which represents many of the nation's largest corporate and public pension funds.

For more information about Pivotal Private Equity, visit www.pivotalgroup.com