PIMCO Outbids Rival For Juul Building In S.F.: REPORT

Vaping company Juul has reportedly sold its San Francisco office building just a year after buying it.

A partnership led by Newport Beach, California-based PIMCO has agreed to buy 123 Mission St. from Juul for $310M, according to a new report in industry newsletter Real Estate Alert. The sale is not yet reflected in county property records.

In its tentative agreement with Juul, PIMCO has outbid rival investment management company Angelo Gordon and its group's $290M valuation, according to Real Estate Alert, which also said brokerage Newmark Knight Frank is advising Juul. 

The sale follows the e-cigarette maker's purchase of the 29-story building last June, when it paid previous owner Northwood Investors almost $400M for the SoMa property. The sale also comes after PGIM Real Estate reportedly walked away from a plan to buy the property, the deal falling through after the onset of the pandemic. 

In the last couple of years, Juul has faced opposition from San Francisco lawmakers over its e-cigarette product and tenancy in a city-owned building near San Francisco's Dogpatch neighborhood. The city banned e-cigarette sales last year, pending a review from the U.S. Food and Drug Administration.

The company is reportedly moving its headquarters from San Francisco to Washington, D.C., while keeping some of its operations in the Bay Area.

Juul has faced backlash from regulators for health problems linked to the use of e-cigarettes and is the subject of multiple federal investigations. The share price of its parent company, Altria Group, which acquired a 35% stake in Juul in 2018, has fallen almost 20% year-to-date. 

Both Juul and PIMCO declined to comment on 123 Mission St.  

At 346K SF, 123 Mission St., which was built in 1987, is about 35% leased and requires extensive renovation, according to Real Estate Alert.