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TIAA-CREF and Norges Bank Investment Management, manager of the Norwegian Government Pension Fund Global, Acquire Prime Office Asset in San Francisco
New York, September 5, 2014 — TIAA-CREF, a leading U.S. financial services organization, today announced the acquisition of a prime real estate asset as part of its joint venture with partner Norges Bank Investment Management, manager of the Norwegian Government Pension Fund Global.
In San Francisco, TIAA-CREF and Norges Bank Investment Management have entered a joint venture to own and operate The Orrick Building also known as Foundry Square II, an office building located in the South Financial District. TIAA-CREF will own a 50.1% interest while NBIM will own 49.9%.
"Today's announcement enhances TIAA-CREF's existing real estate portfolio and demonstrates our ability to source premium properties on behalf of the joint venture," said Suzan Amato, Head of Strategic Joint Ventures for TIAA-CREF. "These acquisitions are reflective of our real estate investment goals -- to take a long-term investment approach with an emphasis on large, high-quality assets in gateway cities."
The Orrick Building is a 10-story, 521,555 square foot, Class A, LEED Platinum office building located on the corner of Howard and First Streets in San Francisco's South Financial District. The property is within one block of the future Transbay Transit Center, a $4 billion regional transit hub that will connect eight Bay Area counties through 11 transit systems. The property is 100% leased to 12 tenants. Law-firm Orrick Herrington is the largest tenant. Other major tenants include Moody's Analytics, BlackRock and FitBit.
"We began investing in San Francisco's South Financial District more than a decade ago with the purchase of another south-of-market office property, 50 Fremont Street," said Rich Kimble, Senior Director, Head of Northwest Acquisitions, TIAA-CREF Global Real Estate. "Since then, we've consistently been active in the Bay Area with a number of other office, retail, and multifamily acquisitions."
TIAA-CREF (www.tiaa.org) is a national financial services organization with $613 billion in total assets under management (as of 6.30.14) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.
About Norges Bank Investment Management
Norges Bank Investment Management is the asset management division of Norges Bank, the Norwegian central bank. As manager of the Government Pension Fund Global, its mission is to safeguard and build financial wealth for future generations in Norway. Norges Bank Investment Management aims for the highest possible long-term return within the investment mandate set by the Ministry of Finance. The fund is invested globally in equity, fixed income and real estate markets and had assets worth almost 5,500 billion kroner, or about $890 billion, at the end of August 2014.