One of San Francisco’s most notable skyscrapers, 101 California Street, is set for a change in ownership as DivcoWest has agreed to acquire a significant stake in the property. This information comes from a source familiar with the transaction.
The building, which stands 48 stories tall and spans an entire city block in the Financial District, is regarded as one of the city’s prime commercial assets. The deal marks one of the largest office property trades in San Francisco in recent years.
The Hong Kong Monetary Fund (HKMF) is selling its share in 101 California. HKMF became a co-owner of the building in 2012 after partnering with Singapore’s GIC Private Limited to acquire a 92 percent stake. Hines, which developed the tower in 1982 and continues to manage it, holds less than a 10 percent stake. GIC remains the majority stakeholder.
The property consists of over 1.2 million square feet of office space and counts companies such as Chime, Goldman Sachs, and Morgan Stanley among its tenants. A $75 million renovation by Hines was completed in 2023, updating the outdoor plaza and adding amenities on the ground floor.
A $755 million loan secured by the building is due to mature in 2029. As reported by Morningstar Credit, occupancy stood at 82 percent as of September 2025.
The terms of DivcoWest’s acquisition have not been fully disclosed and the transaction has not yet closed.
DivcoWest manages more than 24 million square feet of real estate valued at approximately $18 billion across major U.S. cities including New York, Austin, Seattle, Los Angeles, Boston, and San Francisco. Its local holdings include two buildings on Howard Street that together offer over 730,000 square feet of office space.
When listed for sale late last year at $900 per square foot—implying a total value near $1.1 billion—the property drew attention as an indicator for investor interest in high-end San Francisco offices. The price represents a decline from its valuation of more than $1.4 billion ($1,200 per square foot) in 2018.
San Francisco’s office market has faced challenges since the pandemic but saw improvement through increased leasing activity in 2025; CBRE reported that nearly 10.2 million square feet were leased during that year—a level not seen since before the pandemic—though vacancy rates remain close to 33 percent citywide.
Colin Yasukochi, head of CBRE’s technology division, told The Real Deal: “We’re definitely off the bottom” of the market. He described 101 California as “one of the most prominent buildings” and added: “any renewed investment or commitment to taking space in that building does make a mark.”
Despite strong demand for top-tier properties—nearly nine out of ten leases signed late last year were for Class A buildings—few trophy properties have changed hands recently due to financing challenges facing buyers.
A private equity executive commented: “The opportunities in San Francisco are probably to get a piece of trophy space, like 101 California, or go buy a class B building and spend a ton of money to make it an attractive and competitive office space.”
