SAN FRANCISCO (KRON) — Pacific Gas & Electric is selling its San Francisco headquarters.
The $800 million agreement was announced on Monday.
Hines Atlas US LP will be acquiring the PG&E complex at 77 Beale St. and 245 Market St., pending approval from California Public Utilities Commission to return the net gain realized on the sale to PG&E customers.
The utility will be moving to a new location in Oakland.
The new PG&E HQ at 300 Lakeside Drive will be ready for move-in by 2022, and is expected to lower costs for the utility.
“We are working hard every day to make fundamental changes at PG&E and become the utility our customers expect and deserve,” said PG&E Corporation Chief Executive Officer Patti Poppe. “We’ve made a commitment to keep customer costs as low as possible, and one way we’re following through on that is by selling non-core assets including real estate. This sale and relocation will achieve cost savings that directly help reduce customer bills. At the same time, it will give us an efficient and effective Bay Area workspace as we focus on delivering for all of the communities we serve.”
PG&E will propose to CPUC to distribute over $300 million from the sale to customers, to offset future customer rates.
PG&E said it also plans to consolidate two other East Bay satellite office locations — 3401 Crow Canyon Road in San Ramon and 1850 Gateway Boulevard in Concord — into the new Oakland headquarters.