5/14/2013

What’s new in the San Francisco Bay Area Residential and Commercial Markets since 5/6/13:

Recap of SF New Office Towers:

  • 140,New Montgomery, 280,000 SF, Meany, 2013
  • 680 Folsom, Boston Properties, 521,610 SF, 2013
  • Foundry Square 3 by Tishman, 286,000SF, ready 2014
  • 350 Mission, 400,000SF by Kilroy, already leased to Salesforce, 2015
  • 181 Fremont, 400,000SF, Jay Paul, 2015
  • 535 Mission, 307,000 SF, Boston Properties, 2014
  • Transbay Tower/101 Mission, 1.6M SF Boston Properties, 2016
  • Foundry Square 3 by Tishman, 286,000SF, ready 2014
  • 222 2nd street, by Tishman, 452,000 SF, ready in ?

 

Columbia Pacific Advisors and Long Market Property Partners’ JV acquired 995 Market Street SF Investment L.L.C for $17 million. The 85,000-square-foot office building is at 995 Market St. Twitter is next door at 1355 Market. The anchor tenant is Black Rock City, the mastermind of the Burning Man Festival with 20,000 square feet. 45% of the space in the building is available…

San Francisco-based BRE Properties Inc. a REIT has begun vertical construction on its 360-unit MB360 apartment development in the Mission Bay area of San Francisco. Cost is estimated at $227 million, or $630,000 a unit. Yield should be in the high 6 percent once the property is leased. The project, at 1200 4th Street and 701 China Basin, is one of five the company has under construction in California and Washington including three in the Bay Area; the second, in Sunnyvale, is a $121.9 million project, while the third, in Redwood City, is a $97.8 million project. The company’s development pipeline includes an Emeryville property with two existing and occupied offices buildings. It also has a Walnut Creek site adjacent to BART under contract where it is pursuing entitlements.

 

Renderings of the Towers across the planned Warriors Arena:

Screen shot 2013-05-13 at 4.20.30 PM

Screen shot 2013-05-13 at 4.20.19 PM

 

San Francisco’s Renoir Hotel thanks to Federal tax credits and a federal immigrant-investor program is being redeveloped. The Kor Group and EB5 Global SF said May 7 that they have closed on the purchase of the 1100-1112 Market St. property after first gaining interest in early 2011. They hope to re-open the triangular, 135-room hotel at the end of 2014. It’s unlikely the project would have been able to gain financing through typical real estate channels. Instead the company turned to the tax credits and the Immigrant Investor Program, also known as the EB-5 program. Under the law, the federal government sets aside 10,000 visas a year to reward immigrants who make capital commitments to a new or troubled commercial enterprise in the United States, according to the U.S. Department of Homeland Security’s Web site. The investment must preserve or create 10 full-time jobs. With $500,000 in a “targeted employment area” —a specially designated high-employment or rural area—or $1 million elsewhere, the investors may gain lawful permanent residency in the United States for themselves and their immediate family.

Converse is opening an 8,200-square-foot store, at Market and 4th.

Hines, the developer with Boston Properties of the 1.4 million-square-foot Transbay Tower, is making a foray into Rincon Hill residential development and has filed an application to build a 184-unit complex at 525 Harrison St., currently the Factory nightclub. The Harrison Street project would include a 16-story, 164-foot residential tower on a 13,000-square-foot lot. Hines is looking for a lot of parking — 280 spots in a four-level basement garage accessible from Harrison Street, according to public documents. The area zoning requires 40 percent of the units to be two-bedroom or more.

If approved the developer would have to pay just over $2 million in Rincon Hill infrastructure impact fees and $2.5 million in South of Market Stabilization Fund fees. That would add about $25,000 to the cost of each unit. In addition, the developer must made 12 percent of the units market rate if provided on site, or 17 percent off-site.

DM Development Partners, LLC and New York-based DDG have begun construction on 8 Octavia, a 47-unit condominium project at Octavia and Market streets.

A recap of the largest office space transaction of 2012. Congratulations to all our colleagues, Landlords and Tenants involved:

2012 largest Office leases in SF:

Rank Office Leased vs.Building SF Tenant/Broker Landlord/Broker
1 350 Mission 444,000/451,000 Salesforce/Cushman Kilroy/JLL
2 50 Fremont 401,786/787,389 Salesforce/Cushman TIAA/CAC
3 1455 Market 246,078/1,019,000 Square/Custom Spaces Hudson/Cushman
4 680 Folsom 242,753/515,000 Macy’s/Grubb&Ellis TMG/JLL
5 101 Spear 253,733/500,000 Salesforce/Cushman Hudson/CAC
6 888 Brannan 169,538/400,253 Airbnb/Creative Brokers SKS/Colliers
7 680 Folsom 167,788/515,000 Riverbed/JLL TMG/JLL
8 101 California 121,986/1,203,065 B of A/Merrill/Cushman Hines/Hines
9 345 California 119,000/600,000 TPG/Axiant Metropolis/Cushman
10 500 Terry Francois 111,761/280,964 Meraki/Custom Spaces Sobrato-TMG/C&CCNF
11 One Market Plaza 108,360/483,726 Autodesk/Colliers Paramount/JLL
12 458 Mission Bay Blvd 105,000/105,000 Bayer/Kidder Mathews Alexandria/Kidder
13 1155 Market Street 103,388/139,956 City of SF Laurus/CAC
14 90 Fremont 100.562/787,389 Salesforce/Cushman TIAA-CREWF/CAC
15 140 New Montgomery 98,144/294,100 Yelp/CBRE Stockbridge/CAC
16 250 Brannan 92,948/95,008 Splunk/Colliers Kilroy/Cushman
17 1355 Market 85,259/751,000 Twitter/JLL Shorenstein
18 188 Spear 83,154/142,327 Amazon/JLL Shorenstein
19 600 Townsend 82,852/82,852 Salesforce/Cushman LBA Realty/CAC
20 1355 Market 78,792/751,000 Yammer/JLL Shorenstein
21 655 Montgomery 78,011/264,000 Hotwire/Cushman Lincoln/CBRE
22 760 Market 75,000/350,000 Obvious/Custom SpacesThorEquities/C&CCNKF
23 One Market Plaza 72,872/483,726 Velti/Cushman Paramount/JLL
24 1001 Front street 70,938/101,160 Y&R/CBRE La Salle/JLL
25 One Market Plaza 68,611/483,726 RPX/CBRE Paramount/JLL

 

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>