SAN FRANCISCO—Hines and Boston Properties closed on the acquisition of 101 First Street, a land parcel sold by Transbay Joint Powers Authority (TJPA) for approximately $192 million.

The sale of the 50,000-sq.-ft. parcel closed at nearly $4,000 per land foot. The firms are now set to develop the Transbay Transit Tower, a new Pelli Clarke Pelli-designed tower adjacent to the Transbay Transit Center, a multi-modal transportation hub and the new heart of the revitalized South of Market San Francisco neighborhood. A partnership of Clark Construction and Hathaway Dinwiddie will serve as general contractors for the 60-story office building at Mission and First streets.

At 1,070 ft., the tower is set to be the tallest on the United States’ West Coast and the seventh tallest in the U.S., edging out New York’s Chrysler Building. The project was initiated in 2007 and received planning approval in October of 2012. Construction of the 1.4 million-sq.ft. tower could begin as early as summer 2013 with project completion in 2016, just before the opening of the new transit facility.

A ceremonial groundbreaking celebration is scheduled to occur on March 27, 2013 with such dignitaries in attendance as: San Francisco Mayor Edwin M. Lee; TJPA Executive Director Maria Ayerdi-Kaplan, Chair of the TJPA Board and Supervisor Jane Kim, along with other board members, as well as Boston Properties Chairman and CEO Mortimer B. Zuckerman; and Hines Chairman Gerald D. Hines.

“The sale of the Transbay Transit Tower property is a transformative moment for San Francisco,” TJPA Executive Director Maria Ayerdi-Kaplan said in a statement. “The Tower and the Transbay Transit Center will stand at the center of one of the most forward-looking transit-oriented developments in the world today.”

“We are dedicated to making this an iconic tower that will stand as a landmark for all who travel to San Francisco and add to its appeal as one of our most sought after 24/7 cities in the U.S. on top of being the technology capital of the world,” Zuckerman said in a statement.

“Tenant interest in the financial, professional services and tech sectors has been extremely high,” Hines Senior Managing Director Paul Paradis said in a statement. “Now that we are closing on the land and moving full speed ahead with the design, I’m confident that discussions will progress into leasing quickly. Transbay will be a new icon for the city and state, but also a beacon for a progressive anchor tenant looking for the finest, sustainable office space.”

"This record transaction signifies the investor confidence that we all have in San Francisco’s future,” said San Francisco Mayor Edwin M. Lee. “Soon to be the West Coast’s tallest building, the Transbay Tower benefits not only a world-class transit facility but also represents the strength of our City’s economic recovery, providing jobs to build a better, more sustainable future.”