3/30/2013

Screen shot 2013-03-30 at 7.54.09 PM

 

 

 

Here’s what happened in the SF Bay Area Residential and Commercial sectors in the past week:

Nat Bosa who just finished the 239 unit Madrone is looking for another site along Mission Creek and it is likely to be Block 12 Wast a site entitled for about 300 units. FYI Madrone sold fast (about 20 units a month) in a down market…

Bon Marche the newest project from AQ owners is taking up 7,300 square feet of prime real estate in the recently remodeled Mid-Market buildings on Market between 9th and 10th streets that have come be known for housing Twitter’s new headquarters.The brasserie and bar seating 125 will be open all day for breakfast, lunch and dinner.

Pine and Franklin (behind the Chevron gas station) may soon see  instead of four structures (1650, 1656, 1660, and 1670-1680 Pine Street)  two, 13-story residential towers with commercial use on the ground and second floors. The existing building facades of three of the buildings would be restored and incorporated into the proposed project. Units would range from studios to 2/2. Underground Parking will have room for 240 cars. Van Ness is seeing a lot of new projects on both ends. Pine and Franklin is right next to the new approved hospital on Geary. A few weeks back we also told you projects at Van Ness and Market by the old AAA building. We are finally witnessing the metamorphosis of two of SF’s ugliest neighborhoods: the Mid-Market and Van Ness.

345 Brannan currently  a 94-space parking lot down on the other side of South Park plans to build a five-story building with roughly 100,000 square feet office space over either 7,000 square feet for ground-floor retail/restaurant use or additional commercial space. There are plans for a 26 car underground garage and a roof deck for tenants.

Self-Help for the Elderly sold its 17,854-square-foot ooffice building at 407-411 Sansome St. to 407 Sansome LLC for $4.1 million, or approximately $230 per square foot. The deal also included a lease back of the office space. Other noteworthy transactions included 3020-3024 Fillmore Street which sold last week for $507/sq.ft. ($2,055,000). It is  a three story, 4,050 SF retail and residential building which had been on the market for over 150 days.
80 Langton Street, between Howard & Folsom, in SOMA sold for $237/sq. ft. ($1,543,000). The 6,500 sq.ft. industrial building had been on the market at $1,675,000 for over 200 days. Finally, 927 Post sold for $490/ sq.ft. ($725,000). It was a 2,908 SF, former dry cleaning plant between Larkin & Hyde Street, that had been closed for 13 years.

Millenium Partners plans to build 706 Mission St., a mixed-use project that will include 215 condos as well as office space and the Mexican Museum. The 706 Mission St. project would be Millennium Partners’ third San Francisco development. The New York-based group built the Four Seasons on Market St. and the Millennium Tower on Mission Street.

The San Francisco office building pipeline is not even close to being saturated: in the last three months three new project applications have been submitted. They range from a 333,000 sq.ft. building at 100 Hopper in Showplace Square to an 80,000 aq.ft. building at 77-85 Federal St. in South Beach to a 53,000 sq. ft. project at 81-85 Bluxome near the San Francisco Tennis Club.

The SF Planning Department’s Annual Report for Fiscal Year 2011-2012, a total of 2,548 new housing units were permitted from July of 2011 through June of 2012 with the highest concentration in Mission Bay (see chart). There are 43,580 housing units in the pipeline which is 2x the number of units built in SF since 2000.

We are including a link for the full report here:

http://www.sf-planning.org/Modules/ShowDocument.aspx?documentid=9064

 

Screen shot 2013-03-30 at 6.27.21 PM

 

Hines and Boston Properties broke ground last week and celebrated 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- square-foot parcel closed today at nearly $4,000 per land foot. The firms are now set to develop the Transbay Transit Tower, a new Pelli Clarke Pelli-designed icon adjacent to the Transbay Transit Center, a multi-modal transportation hub and the new heart of the revitalized South of Market San Francisco neighborhood. It was also announced that a partnership of Clark Construction and Hathaway Dinwiddie will serve as general contractors for the soaring, 60-story office building at Mission and First streets.

At 1,070 feet, 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-square-foot tower could begin as early as summer 2013 with project completion in 2016, just before the opening of the new transit facility.

Barker Pacific Group signed five new leases at One Sansome Street Tower, totaling over 50,000 square feet.  New tenants include Factset Research Systems Inc., Travelzoo, Arch Insurance Group Inc., Hill International, and Paycom Payroll.  The building is currently 76 percent leased, with 125,000 square feet vacant.

We mentioned above the metamorphosis of Van Ness and the Mid-Market. At Golden Gate Ave. and Larkin Street, Philz Coffee is opening a 2,600-square-foot ground floor storefront that has sat vacant since 2009 when the University of California Hastings College of Law built the space. The college was waiting on the perfect tenant to move in. Other openings in the Tenderloin include Acme Burgerhaus from Cup-A-Joe owner Joe Dabit which is headed to the former Dim Sum Bar Restaurant on O’Farrell and Leavenworth. There’s also a new unnamed bar by Dennis Leary owner of several bars, including Canteen and The Sentinel taking over the space formerly occupied by  RJ’s Sports Bar space on Geary and Leavenworth.

Jay Paul Company announced it has acquired 181 Fremont Street, a Transbay development site, from SKS Investments. The San Francisco-based developer plans to immediately commence construction of the fully entitled, 54-story, 684,000-square-foot office and residential condominium tower. Upon completion, projected for the second quarter of 2015, 181 Fremont Street will be the second-tallest tower in San Francisco’s South of Market/Transbay neighborhood. Our friend Karl Baldauf of C&CCNKF will be marketing the office portion of the Fremont Street Tower.

The proposed development at 181 Fremont Street is part of the Transbay Transit Center District Plan, which includes 145-acres surrounding the new Transbay Transit Center currently under construction.  The new transportation hub will ultimately house twelve transit systems including Caltrain and the future high-speed rail network, significantly increasing San Francisco’s accessibility and further shifting the city’s business district to the South of Market (SOMA) area.

The office-as-a-service company RocketSpace is looking for a 50,000-square-foot office lease that will allow for expansion since the company will have to leave 181 Fremont which will be demolished as part of the project described above. RocketSpace is rumored to be looking at 180 Sansome.

3/31/2013

This is pretty cool. Check it out:http://www.aquapeutics.com

Screen shot 2013-03-30 at 3.42.41 PM

 

 

 

Screen shot 2013-03-23 at 3.18.00 PM

 

Here’s what happened in SF Bay Area Real Estate in the last 10 days:

DropCam signed a lease for 14,954 square feet at 301 Howard St. in San Francisco’s south financial district. The 23-story building totals 307,396 square feet. Embarcadero Capital Partners acquired the property in 2011. Details of the deal are not public yet.

Our friend Hamid Moghadam is in the news again: Peet’s Coffee & Tea has leased a +-74,000SF warehouse located at 610 85thAvenue Oakland CA from Prologis. The 85th Avenue warehouse facility is one of the most modern warehouse facilities in the entire East Bay Marketplace. It benefits from amenities such as high density sprinklers, 24-26ft clear height, close proximity to the Oakland Airport and Port of Oakland, and is located within the overweight truck corridor. Other tenants in the complex include Nor Cal Moving, Sleep Train, Pet Food Express, Fed Ex, and World Pac Auto Parts.

San Francisco Bay Area industrial properties are among those targeted for a new industrial investment partnership funded by the California Public Employees’ Retirement System, starting with about a $500 million in purchasing power based on a $250 million equity investment. The deals are expected to produce total returns ranging from about 7 percent to 9 percent, after fees and hopefully increase the yield Calpers has been generating so far. The investment strategy is to acquire existing stabilized warehouse and distribution properties with the possibility of some manufacturing buildings as well.

Hines scaled back its interest in the 61-story, 1.4 million-square-foot Transbay  project. In its recent annual recent filing, Boston Properties disclosed that Hines has scaled back its 50% ownership interest in the $190 million land acquisition to just 5%. Boston Properties formed a JV with Hines last October and posted a letter of credit for a non-refundable $5 million deposit with the seller, the Transbay Joint Powers Authority, in a transaction expected to close by the end of this month. 

Hines notified Boston Properties it was pulling back on Feb. 7 and Boston properties indicated it would go ahead with the transaction with a 95% interest. Boston Properties anticipates that the Transbay Tower project will incur pre-development costs of  $225 million in predevelopment costs just in 2013.

Boston Properties as our readers know acquired last month and commenced development on 535 Mission Street in San Francisco, a 307,000-square-foot office tower, in a $215 million investment estimated to be completed in 2014.

We just found out that late December, Ivanhoe Cambridge in partnership with Divco and TPG quietly acquired 73 offices in Silicon Valley. This opportunistic investment provides the partners with immediate access to 6.4 million square feet of leasable space with a very attractive potential long-term return. The investment is rumored to be more than $400M. The properties were part of a portfolio sold by Mission West Properties, Inc., a publicly traded REIT. All the buildings are located in Silicon Valley, California, which boasts a large concentration of high-tech firms and has among the fastest employment growth rates in the United States.

SF Planning Commission approved a plan to add a mini plaza and pedestrian safety improvements at Market and Dolores. The improvements are part of an agreement with the developers whereby developers provide street upgrades and forego a $510,000 impact fee.

Contrary to popular belief, SF is not the top most energy efficient city…It is #6 according to the US Environmental Protection Agency. Los Angeles is #1. Energy Star rated building use about 35 % less energy and are responsible for 35 less greenhouse gas emission than comparable buildings.

Hines was again in the news this week when we found that the company expects to achieve an initial return of approximately 5 percent on its purchase of the 135,500-square-foot Rialto Building at 116 New Montgomery St. in San Francisco. This forecast is based on the fact that the Rialto is 85% occupied and the new management hopes to push occupancy to 100% and increase rents as older leased expire.

In the hot Mid-Market section of SF 1019 Market St. is being improved and marketed by Cannae Partners and financial partner Westport Capital Partners. This gorgeous building is a 75,000-square-feet. The investors bought the building for $9.5 million, about $125 a square foot. We can’t wait to see the results.

We can now confirm what we announced 2 weeks ago: Life insurer Prudential bought a San Francisco office tower amid increased investor demand for commercial real estate in the city, according to two people familiar with the deal. The 100 Spear St. high-rise in San Francisco’s South of Market district was purchased for $100 million and gives the buyer 203,000 square feet of space that is more than 91 percent leased, seller was Clarion Partners.

San Francisco is the top-ranked U.S. office market for revenue per square foot through 2017, and grew last year by an estimated 11 percent.

Office rents in San Francisco soared 27 percent in the fourth quarter from a year earlier to an average $48.83 a square foot.

Loan Star Fund is zeroing in on a buyer for 966-974 Market St., the 25,500-square-foot Mid-Market site that represents one of the city’s most important development sites. Bid have already been submitted by Crescent Heights, MacFarlane Partners, Cypress Equities and BayRock.The unentitled site at 966-974 Market St. offers the potential for a 12-story tower with 255 residential units and 18,000 square feet of retail or 250,000 square feet of office.

 

 

3/10/2013

 

This past week, Africa Israel USA sold the Rialto Building, a landmark office and retail property in San Francisco’s prime South Financial District at the intersection of Misson and New Montgomery. The Buyer is a JV between Invesco and Hines. It took only 6 weeks for the property sell and we understand there were 17 offers. The Rialto Building (home of Walgreen’s and Chipolte) is 135,485 square feet and is 85 percent leased.

Newark based Prudential Real Estate Partners acquired the 203,260-square-foot 100 Spear St. office building in downtown San Francisco for $100 million, or about $492 a square foot, from New York City-based Clarion Partners.Prudential purchased the property for one of its institutional clients.100 Spear Street is located in the city’s South Financial District, one block from the future site of the Transbay Transit Center, which is slated to be one of the largest transportation hubs ever built on the West Coast. The office building was 91.5 percent occupied at the time of sale. Clarion in December paid $105.75 million to acquire 343 Sansome St. for the Tennessee Consolidated Retirement System. In July it paid $180 million for 600 California St. and $148 million for 475 Brannan St. The Sansome and California street buildings are in the North Financial District; 475 Brannan is South of Market St.The San Francisco office market continues to perform at a high level, according to a fourth-quarter San Francisco office-market report prepared by Kidder Mathews. Year-on-year rental rates for class-A buildings were up nearly 19 percent last year. Asking rents climbed $7 to $44.14 a square foot a year. Notable North Financial District office sales transactions in the final quarter included 475 Sansome St. for $461 a square foot and 100 Montgomery St. for $388 a square foot. Notable SoMa transactions included 153 Townsend St. for $558 a square foot and 350 Mission St. for $674 a square foot.

Across from our beloved San Francisco Tennis Club in Western SoMa, a plan to demolish the two-story industrial building at 81-85 Bluxome between 4th and 5th Streets is  floated to Planning. As proposed, a 65-foot-tall office building without parking would rise on the site.

 

The Registry citing a SF Planning Department Presentation indicates there will be a major shift in San Francisco jobs  from the city’s downtown north of Market Street to the South of Market neighborhood and that this shift will intensify over the next 30 years. In new draft land-use plans, San Francisco anticipates adding up to 64,000 jobs in a 20-block area that hugs 4th Street in SoMa—a third of the city’s new jobs. Another 25,000 jobs are expected near the Transbay station, also south of Market Street. However, in the same 30-year span the city expects as few as 5,000 new positions in its traditional downtown.“There has been a 25 percent loss of jobs in the Financial District” over the last 30 years, San Francisco Planning Director John Rahaim told the city’s Planning Commission Feb. 28. “It has the same amount of space as 30 years ago, but the job density is much lower. There is more space per employee versus 30 years ago.” In contrast, SoMa has seen more job growth than any other part of the city.City planning staff now are remaking the proposed land-use map for the keystone of the SoMa district, the so-called Central Corridor: an area from 2nd Street on the east to 6th Street on the west and from Market on the north to Townsend Street on the south. The neighborhood connects the Transbay and East SoMa to Showplace Square, Mid-Market and the Mission in the west. It includes the South Park neighborhood, the Moscone Center, Yerba Buena Center for the Arts and Yerba Buena Gardens. It also includes Forest City Enterprises Inc.’s experimental 5M project. A major impetus for the city land planning is construction of the 1.7-mile Central Subway extension beneath SoMa’s 4th Street, where work is to begin in late April or early May. When the segment is complete, proposed at the end of 2018, it is expected to carry as many as 50,000 passengers daily, making it one of the most heavily used transit lines in the country, said John Funghi, program director for the Central Subway project at the transit agency. Funghi spoke to the Urban Land Institute San Francisco.San Francisco is slated to add 190,000 jobs in the next three decades, according to growth estimates from the Association of Bay Area Governments. Seventy-five percent of them will be office jobs, the city estimates.While the city has lost employment to the suburbs in the last 30 years, city staff believes their city will participate in the national reversal of that trend as urban centers attract in-migration for the first time since the Great Depression, Rahaim said. San Francisco City and County’s jobs numbers bottomed in 2005 at less than 396,500 and have grown since to not quite 450,000 at the end of last year, according to the California Employment Development Department.

The city’s most ambitious plans for SoMa’s Central Corridor propose up to 64,700 new jobs and approximately 12,000 housing units. SPUR says the city should be increasing density even more given  the enormous transit investment that the neighborhood will enjoy.The Central Corridor planning area encompasses 680 Folsom St.—new home to Riverbed Technology and Macys.com; 140 New Montgomery St., under redevelopment and anchored by Yelp Inc.; One Hawthorne; 360 3rd St.; and 333 Brannan—all large SoMa buildings that have sold or seen significant activity in recent years.  Existing city plans propose adding 16,000 jobs and 7,700 new homes to an area north of the Interstate 80 division. Those goals would remain in place. The new planned growth is targeted for the area south of Harrison Street, which is dominated by large-tract sometime industrial, often sparcely developed parcels. The city wants to preserve these sites for new office development where it wants to expand the city’s current office stock to include not only typical downtown high rises but also more campus-like environments and the large-floorplate mid-rise “creative” buildings that technology tenants and increasingly others seem to prefer.

We wish Planning would put some thought on the Congestion and Pollution issues associated with the increased traffic in SF. We suggest that Congestion Pricing successfully implemented in London be implemented in SF.

The Registry also reports that the latest plan for the CPMC Cathedral Hill Campus Van Ness Avenue and Geary Boulevard calls for a less massive facility than originally planned, but the number of car parking spaces per bed will actually be higher.Under the new agreement announced by city supervisors the size of the hospital will be cut nearly in half, from 555 beds to 304 beds. But the number of parking spaces included in its garage won’t be downsized at the same ratio, shedding only 210 of its 1,200 original spaces — a 20 percent reduction. So while the facility may bring in less car traffic as a whole, it will actually be more car-centric compared to the original plan.The $14 million that CPMC has agreed to pay the SF Municipal Transportation Agency to help fund Van Ness and Geary Bus Rapid Transit projects was also reduced from the $20 million included in the development agreement as late as November. As for funding pedestrian and streetscape improvements, the agreement calls for the institution to provide $13 million — $5 million less than the mayor’s original ask. Those funds would go towards upgrades in both the Mission, where CPMC is also planning its now-upsized St. Luke’s hospital at Valencia and Cesar Chavez Streets, and the Tenderloin, where pedestrian safety needs will only become greater as the Cathedral Hill campus induces more driving on the neighborhood’s streets. Whether or not parking will be added to the St. Luke’s campus, which has been upsized in the deal from 80 beds to 120, is unclear.

 

 


 

3/10/2013

We help Buyers, Sellers, Landlords and Tenants close successful Commercial and Residential transactions.

We just represented a Medical Group Tenant and helped them negotiate a lease in a building on Union Street in San Francisco. We secured a 5 year lease (+ an option for 5) at $40.8/sq.ft. Industrial Gross meaning that there are no triple net in addition to the monthly rent. We also negotiated Tenant’s ability to sub-lease the space to fellow professionals without notice or sharing of monies. We obtained Tenant Improvements and Tenant Improvement Credits. Finally, we edited out of the lease numerous provisions that created potential liabilities for Tenant.

In Q1 we are representing two Landlords in the lease of Commercial Spaces in SF, one Buyer in the purchase of Commercial Space in SF, three tenants in the lease of Commercial Spaces in SF. On the Resiential side we’re representing two Buyers in the purchase of a Condo in SF and one Buyer in the purchase of a home in Burlingame.

We appreciate any referrals you send us and will take good care of them.

Thank you.

3/2/2013

Since 2/16 the following transactions took place in the SF Bay Area:

Tishman found an investor in China Vanke to develop two connected residential towers – 37 and 42 stories high – with a total of 655 residences.  The site is located across the street from The Infinity, a pair of residential towers that also were developed by Tishman.

Tishman Speyer and JP Morgan Chase Asset Management, a partnership that is already building a speculative 300,000-square-foot building at 505 Howard St., expects to start construction on a second building at 222 Second St., a 450,000-square-foot tower on the site of a surface parking lot this despite the fact that Tishman’s Foundry Square III which is a spec building has not landed a tenant yet.

Sunhill Enterprises a Marin-based family investment firm paid $4.6 million, or $313 a square foot, for 527-533 Sutter St., a two-story retail commercial building that consists of 14,778 square feet. The property is fully leased to five tenants including 7-Eleven, Pacific Exchange, the Sheldon Theater on the bottom floor and two other theaters on the second floor. The seller was Barkhordarian Trust, also based in Marin.

Essex Property Trust has bought the apartment portion of Fox Plaza in San Francisco for $135 million, but doesn’t have immediate plans to build a second, 11-story tower that is already approved. The deal for the 444-unit property, the latest in a string of investments the Palo Alto-based company has made in the city, values the Mid-Market building at about $300,000 a unit. The Company plans to spend $27 million over the next several years to renovate both the exterior and interior of the property.The seller was Archstone. The property is a 29-story high-rise tower with Fox Plaza apartments located on floors 14 through 29. The purchase price did not include floors 1 through 12 of commercial office space but did include an adjacent two story building comprised of 37,800 square feet of space leased to retail and office tenants and a two story underground parking garage comprised of 405 stalls. The two story commercial building is entitled for a 250 unit, 11 story apartment community. At present, Essex does not plan to develop the apartment tower but will evaluate this option in the future. Archstone acquired the complex in 2005 for $147.5 million and in 2007 unloaded the 232,000-square-foot office/retail component for $42.7 million to Broadreach Capital, which still owns it. The deal comes less than a week after the city picked Essex and Avant Housing to develop a $250 million tower in the Transbay District. A year ago, Essex joined up with the State of Wisconsin Investment Board and made a seven-year, $175 million preferred-equity investment in Parkmerced, the city’s largest single apartment complex with 3,221 units, which is slated for redevelopment and expansion. Last year Essex bought two SoMa apartment complexes that Avant Housing is building at 260 Fifth St. and 900 Folsom St., a total of 463 apartment homes and a $250 million investment.

San Francisco’s Clift Hotel sold for $120 million. Hospitality Properties Trust a REIT out of Massachusetts acquired the 363-room hotel from Tarsadia Investments, according to Hotels Magazine. The property is managed by New York City-based Morgans Hotel Group. The Clift is the latest hotel to change hands in San Francisco. Six hotels, including the Fairmont, Hotel Milano and Hotel Palomar, sold for more than $230,000 per key last year. The Ritz-Carlton, Harbour Court and Triton Hotel are still looking for buyers.

The cost of construction materials continued creeping up in January, a trend experts expect to see for months to come according to SF Business TimesPrices rose 0.7 percent between December and January resulting in a 1.3 percent jump compared to 12 months ago, according price index tracked by the Associated General Contractors of America, a trade group. Specifically, prices for gypsum, wallboard and lumber, as well as significant increases in the cost of insulation and architectural coatings such as paint is going up along with pump prices for diesel fuel. The increase is fueled by more housing construction and renovations on other types of buildings, the association said in a statement. Rising construction costs typically mean development costs will also spike.

Square signed an expansion option for 81,354 square feet at 1455 Market St. in downtown San Francisco. The company signed for 246,078 square feet at the tower in November. Square will move into the space in several phases throughout the year and will occupy a total of 327,432 square feet by 2014. Congratulations to Jenny Haeg and Eva Gabrielsen of Custom Spaces who represented Square.

OSH will not be able to convert 975 Bryant into a 33,000 square foot store. It appears that the Planning Commission vote was based on the impact of Formula Retail on Cole Hardware, Builder Supply, Center Hardware.

A map of the Central Corridor transit lines is below. We are of the opinion that SF is not prepared to handle growth and there is a clear lack of leadership. Oracle World, The Giants Victory Parade, Salesforce trade shows indicate that the City comes to a halt when there is increased traffic. None of the City Departments work together. We rarely see Police Officers on the streets. Worse, as Development increases so does the number of Pedestrian fatalities. District 6 for example where most of the Development takes place has the largest number of Pedestrian fatalities in the City. We are witnessing much construction in SF without any thought as to the impact on traffic, health etc.

The Giant’s Mission Rock project will look like this:

 

The latest Case Shiller figures indicating that in SF homes are up 14.4% and Condos up 21.3% does not come as a surprise. Far more interesting is the fact that Homes and Condos are respectively still 32.6% and 23.6%below their all time high prices. Consequently, the question is how much upside do we still have?

Who calls the shots? It is common knowledge that Developers large and small are at beck and call of lenders such as Banks, Pension Funds, REITs etc. For example, the new JV between Tishman and China Vanke to build two more towers across the existing Infinity Towers will cost about $620 million, which the developers hoped to fund using $250 million in equity and the remainder debt. The equity was to consist of 70 percent, or $175 million, from Vanke and… 30 percent, or $75 million, from Tishman. In other words lenders will put 60% of the money and in this case Tishman 12%. It consequently comes as no surprise that banks are involved in every detail of construction projects including the choice of the Brokerage firms handling the sale…

Condo construction: As of mid-February, there were 3,700 apartments under construction in the city and less than 400 condominiums… lenders see apartments as low risk right now followed by industrial, office, retail, hotels and then condos.

Can SF handle growth? In response to our feature about SF’s inability to handle growth, it was pointed to us that the boards for the Association of Bay Area Governments and the Metropolitan Transportation Commission are expected to adopt Plan Bay Area, the local iteration of a statewide initiative dubbed the Sustainable Communities Strategy. We explain what it is here:

An outgrowth of 2008 law Senate Bill 375, the SCS aims to concentrate new development within the state’s 18 metropolitan areas in existing urban nodes with the goals of reducing sprawl, promoting public-transit use and cutting pollution and greenhouse gas emissions. In the Bay Area, the 25-year growth framework advocates high-density residential and commercial construction in 180 “priority development areas” centered mostly along or near transportation corridors in the region’s three largest cities: San Jose, San Francisco and Oakland. Each development district is expected to be at least 100 acres, with a full spectrum of housing, workspace and amenities. Plan Bay Area will serve as a transportation and land-use guideline for cities throughout the region. Under the preferred scenario now being evaluated in an environmental impact report, 79 percent of all new homes and 66 percent of job growth would be located in the 180 development zones. In the less-populous and more rural North Bay counties of Marin, Sonoma and Napa, up to half of all new homes are expected to be in a priority development area. The Bay Area is expected to generate 1.1 million new jobs by 2040 bringing the total to 4.5 million; 27 percent of the new jobs would be in Santa Clara County, 17 percent in San Francisco. The population is expected to surge to nearly 9.3 million, 2.15 million more than today. The newcomers are proposed to need 660,000 new homes.

Under the preferred scenario, the development pattern is one of compact communities connected by transit with a goal of avoiding the financial and environmental downsides of continuing to build suburban-style subdivisions on the fringes.The proposed plan contends the requirements continue an established regional bias toward multifamily housing, including apartments and condominiums. In 2010, 65 percent of all new Bay Area housing was built in the multi-family format compared to 44 percent in 2000 and 25 percent in 1990.The higher-density, concentrated development is supposed to help the Bay Area contribute to reaching the state’s overall target reduction of 15 percent statewide in greenhouse gas emissions set by the state Air Resources Board for the next 23 years.

To persuade local jurisdictions to implement the land-use, housing and transportation goals of the state and federal governments, the Metropolitan Transportation Commission has created the OneBayArea Grant Program. Under the program, the MTC is to invest approximately $795 million in federal funds during the four fiscal years from 2012-2013 to 2015-2016 in transportation projects supporting AB 32 goals (the California Global Warming Solutions Act). It provides financial rewards for jurisdictions that approve new housing development for all incomes, preserve open space and build bike and walking trails. The Building Industry Association of the Bay Area but the loss of funding through the state’s nearly 400 redevelopment agencies, which had to spend 20 percent of their revenue to finance low-cost housing, is a major blow to development of urban-infill apartments and condos, he said. Such development is expensive given high urban land values, the compliance cost of environmental regulations and local building fees.

Because of AB 32 there is a legal mandate to reduce polluting emissions. The basic framework needed is jobs and housing close to public transportation. The so called Priority Development Areas are in San Francisco, Oakland and San Jose; the Lake Merritt area near downtown Oakland; the area around the Oracle Arena and the Coliseum off I-880 in Oakland; the Shattuck Avenue corridor in Berkeley and the “Grand Boulevard,” or El Camino Real corridor in the South Bay and along the Peninsula; and the downtown districts of such cities as Livermore and Cloverdale.

Here’s what Essex Fox Plaza mentioned above will look like:

SF Demand for growth is almost entirely concentrated in one sector:94.7 percent of the expected net absorption comes from technology companies. In contrast, financial services firms represent 1.9 percent of anticipated growth and business services accounts for 4.3 percent. Meanwhile, other industries are shrinking: legal service companies are looking to downsize their office space by 1.8 percent and government/social services are also reducing occupancy, by about 1 percent, according to CBRE.San Francisco office tenants out looking for space represent 900,000 square feet of positive absorption, enough to add about 7,000 new employees to the city’s workforce, according to a new report by CBRE. Even though high-profile technology firms like Twitter and Salesforce account for nearly 95 percent of future net positive absorption, the crop of growing companies is actually quite diverse, ranging from social media to software to hardware to cloud computing.The growth of the tech industry is generating more need for professional and businesses services and that is boosting the overall economy.We have often written about this multiplier effect on the pages of this blog.

Together the top three growing technology firms are looking to take 175,000 square feet more than they now occupy. The smart phone-based car service company Uber is in the market for about 100,000 square feet, a 74,000 square foot jump over what the firm now occupies at 405 Howard St. Today Demandforce is jammed into 57,000 square feet at 22 Fourth St., and is looking to add at least 43,000 square feet and Yahoo settled into 42,000 square feet at 475 Sansome St., would like to expand into about 90,000 square feet. Overall, the city’s tenants are in the market for 4.5 million square feet. Non-tech companies looking for space include B of A, Deutsche Bank, and Delta Dental. All of those firms are looking to reduce their square footage in order to become more efficient.

The Apple Campus expected to be completed mid 2016. Here’s the latest rendering:

 

Sonoma-based A&C Ventures has bought the historic Warfield Theater on Market Street from Mid-Market entrepreneur David Addington for close to the asking price of $6.5 million.The deal is the latest investment into the suddenly desirable Mid-Market neighborhood. Last year Addington sold the Warfield office building, which is being renovated and the top floors of which have been leased to Benchmark.ACV invests in single-tenant retail and entertainment properties around the United States.

Trumark Urban is about to purchase a site for condominium developments in…Pacific Heights: 2155 Webster St. is the site of University of the Pacific Dental School. Trumark replaces TMG who was originally interested in the property.The 222,000-square-foot building includes a 17,000-square-foot surface parking lot — a rarity in densely settled and well-heeled Pacific Heights. The property will be vacated by the University of the Pacific in 2014 when the elite dental school finishes renovating its new campus at 155 Fifth St.

The  deal is the seventh property that Trumark is developing in San Francisco. Trumark Urban, a spinoff condo developer launched by the Trumark Cos., is working on entitling projects in Nob Hill, Hayes Valley, Mission District, South of Market and Dogpatch neighborhoods. In addition, the company is in contract on an entitled property in Cow Hollow. Trumark plans to build all of the projects as condominiums rather than apartments, and is poised to become one of the city’s biggest condo developers over the next three years. With the addition of the Webster Street property, Trumark will have more than 650 units in the pipeline. The potential sale of 2155 Webster comes a year after the school unloaded 2130 Post St., a 67-unit, 100,000-square-foot apartment building near its current campus. The buyer was Prado Group.

Market Place a few doors down Nordstrom’s lost J.C. Penney as an anchor tenant a few months back. A potential anchor tenant is now rumored to be Nordstrom Rack. Market Place is a  250,000-square-foot Market Street Place development at 935-965 Market Street between Fifth and Sixth Streets. It was formerly known as City Place.

 

 

 

 

 


  • Phone 415-246-4211
    Email
    Chat Text
    Send Feedback
  • Archives