Here’s what happened in the San Francisco Residential and Commercial real estate market since 2/10:
Golub beat Boston Properties, Jay Paul and Kilroy and purchased Transbay Block 5 known as Park Tower for $172.5M. The site is entitled for 750,000 sq. ft. of office space and 11,000 of retail.
Zurich paid $20 million or $703 per square foot to purchase a 28,450 sq. ft. office building at 135 Mississippi Street.
A new California law that went into effect on January 1 requires commercial real estate agents and brokers to provide clients with written disclosures regarding whom the agents represent. In particular, clients must clients must consent to dual agency in writing at the beginning of the relationship. Even where no dual agency exists, commercial real estate agents are required to still make disclosures and receive consent. This new California law specifically indicates that if two agents work in the same brokerage representing opposing parties, it is still considered dual agency and needs to be disclosed in writing.
Boston Properties has an option to buy a 2.3-acre site on 4th and Harrison streets across Whole Foods. It is now a parking garage and an auto repair shop. It is believed the site that will be zoned for office and/or residential towers when the city finishes the Central SoMa rezoning next year. The site can accommodate up to 800,000 sq. ft. of office space but it is subject to the Prop M cap. Other Central Soma projects both on the residential and commercial side include: Tishman’s condo towers on the site of the Creamery across from Cal Train at 655 4th street. 125,000 sq. ft. of office space will be built over retail down the street on the site of the B of A lot at 501 Brannan. Further down Brannan across our beloved SF Tennis Club, Tishman will build office towers on the site that now houses the Chronicle trucks and the dog boarding (598 Brannan). Continuing down the street, we know now that Kilroy paid $71M for the Flower Mart and will preserve the Flower Mart as a business but will build 1.5M sq. ft. of office space at 640 Brannan. Let’s not forget about the present site of the Chronicle building which will be a mixed use 1.5 M sq. ft. housing/office project. Tishman plans to build on parcels currently owned by Hearst at 598 Brannan across the SFTC which is presently a dog hotel. CIM Group has a parcel across from Cal Train at 330 Townsend which it purchased last year for $30M. Full disclosure: we are actively procuring tenants for CIM Group. Finally, Lawrence Lui of Stanford Hotel Group is planning a massive mixed use project on several parcels at 645 Harrison, 653 Harrison, 657 Harrison, 665 Harrison, and 400 Second St.