Cornerstone Nears Agreement to Buy Wilson & Associates for $1.8 Billion

Cornerstone Properties Inc. is close to an agreement to buy William Wilson & Associates, a closely held investor in West Coast office buildings, for $1.8 billion, people familiar with the purchase said Friday.

The acquisition would make New York-based Cornerstone, which specializes in acquiring downtown “trophy” buildings, a major player in the hot West Coast real estate market. It would also gain San Mateo, Calif.-based Wilson’s development expertise, property management capabilities and extensive West Coast contacts.

An announcement could come as soon as Monday. Representatives of William Wilson and Cornerstone weren’t available to comment.

The talks developed after the two teamed up in recent months to bid on San Francisco’s Embarcadero Center office complex. They eventually lost out to Boston Properties Inc., which paid about $1.2 billion.

Cornerstone shares fell 19 cents to close at $16.25 on the New York Stock Exchange.

William Wilson controls about 11 million square feet of office space through four real estate funds it manages on behalf of pension funds and other large investors. Its properties are mainly in California and the Pacific Northwest. It may be best known for developing computer software company Oracle Corp.’s headquarters in Redwood City, Calif.

Cornerstone owns 21 office properties, including 527 Madison Ave. in midtown Manhattan and Washington Mutual Tower in Seattle.