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:
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|
|3||1455 Market||246,078/1,019,000||Square/Custom Spaces||Hudson/Cushman|
|6||888 Brannan||169,538/400,253||Airbnb/Creative Brokers||SKS/Colliers|
|8||101 California||121,986/1,203,065||B of A/Merrill/Cushman||Hines/Hines|
|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|
|15||140 New Montgomery||98,144/294,100||Yelp/CBRE||Stockbridge/CAC|
|19||600 Townsend||82,852/82,852||Salesforce/Cushman||LBA Realty/CAC|
|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|