Here’s what happened in the San Francisco Residential and Commercial Real Estate Market since 5/3 but first a shameless plug for LEAP and why you should pick our Broker. The idea behind this PR piece is to get new business and referrals from existing clients both on the commercial and residential side. We are selective in terms of who we do business with and do not advertise:Why use or refer LEAP?
Facebook is taking over not only all the office space at 181 Fremont (436,000) sq. ft. but also 750,000 sq. ft. at Park Tower, the Clark project at 250 Howard. We speculate Facebook is paying in the high $80 per sq. ft.
A mixed-use project which is part shopping center, part rentals will be developed in San Mateo on the Concar Shopping Center. San Mateo rents are approximately $2700 a month for a 1/1 and $4100 a month for a 2/2 about $1000 less than SF.
181 Fremont Condos sit on top of an 800-foot tower the bottom of which is Class A office space. The mere height of the condos which start roughly at the same height as the top of the Millennium allow simply incredible views for every single one of these condos. There are only 67 ultra luxury condos and they are similar to the NY ultra luxury condos that we have never really experienced in SF. There is much attention to details in the choice of materials in every single condo. Well-known interior designers have designed each unit. There is a full floor of amenities with gym, catering kitchen, business meeting rooms, a bar and private lounges.
The Central Soma Plan is finally a reality: the area between 2nd and 6th street between Market and Townsend is Central Soma. In a nutshell, the idea is that through up zoning and change of zoning the plan will add 16M sq. ft. of new space including: office space as well as residential and commercial development. SF’s plan in this area is to create by 2040 a neighborhood that can accommodate 33,000 new jobs and 8300 new units of housing. Critics of the plan have indicated that vehicular traffic pollution will dramatically increase before and after construction and that the increase in transit demand cannot be met by the existing infrastructure. Some of the key players include Kilroy’s new SF Flower Mart or 2 M sq. ft. of mixed-use space. Tishman Speyer 1.2M sq,ft. of mixed-use space. Forrest City’s 5 M at 5th and Mission etc.
Now that the Central Soma Plan is approved the next one is the draft of the Hub project:
The draft will be published mid 2019 and the objective is 12,000 units of housing.
Vallejo will build to 1.2 M sq. ft. of commercial space on North Mare Island. Letters of interest divide the project into film production facilities, wine production and sales, office space, mixed use and retail, manufacturing and industrial and Parks. The Southern part of the Island, the former Navy shipyard, has been developed by the City and Lennar and now hosts 110 businesses. The residential stock in Vallejo has been going up as buyers and investors are looking for alternatives to SF within a reasonable driving distance. Vallejo does not have a Bart Station but it is about 70 minutes from SF by car and there is Ferry Service as well.
The parking garage at 1320 Washington Street will be 22 condos.
The skinny tower at 524 Howard Street in its latest rendition is going to yield 149 condos over retail. In terms of height comparison, 181 Freemont stands at 802 feet and 524 Howard is at 450 feet. 540 Howard which is also approved on the site of Temple will be 495 ft. tall and yield 149 residential units (not confirmed whether condos or rentals) and 50,000 sq. ft. of office space.
235 Pine at 164,405 sq. ft. sold for 129M or 4,784 per sq. ft.
Wall street raised $702 M of junk bond debt for WeWork who will pay an interest of 7.875% on the debt. Regulations related to the borrowing forced WeWork to disclose financials which indicate the company lost $934M last year. It is well known that WeWork does not guarantee its leases. Each lease is a single entity with limited exposure just like the Taxi industry used to incorporate each cab to limit the exposure of the parent company.
1228 Folsom street was entitled for a 24 units residential development. The site is listed at $6M or 200,000 per entitled unit.
500 Pine a new 56,179 sq. ft. office building sold for $70M or $1250 per sq. ft.
123 Mission office building in San Francisco sold for $290 million, or $840 per sq. ft.