China’s Debt-Ridden HNA Group Sells San Francisco Tower
China’s beleaguered HNA Group Co. is continuing to whittle down its real estate holdings as it seeks to reduce its massive debt load.The company sold a San Francisco office tower, 123 Mission St., for about $300 million to Northwood Investors LLC, according to people with knowledge of the matter. HNA made a small profit, having paid $255 million for the property in August 2016.
The 28-story tower, in the SoManeighborhood, is on a block adjacent to the newly constructed Park Tower, leased by Facebook Inc. as its office in San Francisco. The building HNA is selling was developed by Shorenstein Properties LLC in 1986 and designed by Skidmore, Owings & Merrill LLP, an architecture and engineering firm responsible for properties such as the BurjKhalifa in Dubai. It’s fully leased, according to the building’s website.
Real estate has been a saving grace for HNA, which has been able to make gains on its recent sales. That’s been critical for the company, which is under pressure to repay borrowings amassed through its $40 billion-plus acquisition spree.