Business News: PG&E will sell the S.F. headquarters for $800 million and wants half of the money to be returned to customers..
PG&E announced on Monday that it had secured a deal for the sale of the San Francisco headquarters complex and asked for approval. from regulatory authority to return the net funds from selling to its customers, according to a company press release.
PG&E agreed to sell 77 Beale St. and 245 Market St. to Hines Atlas US LP, a Delaware limited partnership, for $ 800 million, as it moves across the bay to its new headquarters at 300 Lakeside Drive in Oakland. , the company said. CBRE’s San Francisco Capital Markets was the listing broker.
PG&E wants to return approximately $ 390 million to $ 420 million in profits from the sale to customers in five years to compensate for future increases in electrical power. There is still no estimate of how much each individual customer would benefit, a spokesperson for PG&E said. And the California Public Utilities Commission must approve the proposal, a move PG&E says is necessary to close the sale.
“We are committed to keeping client costs as low as possible and one way we are doing this is by selling non-essential assets, including real estate. This sale and transfer will enable cost savings that will directly help reduce customer bills, ”PG&E CEO Patti Poppe said in a statement.
It’s another major San Francisco commitment for Hines, which is planning to begin construction on its $ 1 billion Parcel F tower just blocks away. from PG&E Beale Street building. Construction is moving forward despite Salesforce having canceled the office lease in the project as the tech company embraces more remote work. Hines previously developed Salesforce Tower with Boston Properties and also managed a seismic retrofit for the PG&E buildings.
The new Oakland office is more efficient for PG&E’s operations and its employees in terms of layout, density and location, PG&E said. PG&E also plans to consolidate two more East Bay satellite offices – 3401 Crow Canyon Road in San Ramon and 1850 Gateway Boulevard in Concord – into the new Oakland office.