March 21, 2017
Here’s what happened in the Residential and Commercial San Franciso Real Estate Market since January 21:
6 stories planned on top of the building next to Sam’s Diner at 1236 Market which would extend in the back to Grove street. The existing building was the site of a gym and will become a hotel.
1100 Broadway in Oakland, a 320,000 sq. ft. entitled site sold for a rumored price of 9-10M. More to come.
Another entitled site in Oakland is the 650,000-square-foot office tower at 601 City Center which is not yet in play and 3338 21 St street is going through entitlements for 800,000 sq. ft. of office space. Office rents in Oakland are above the $50 per sq. ft. per year for Class A. which is higher than the $35 of only a couple years ago but it does not quite justify new construction hence the number of rehab projects.
736 Hyde may become up to 11 residential units most likely rentals.
Another Fory Niner: the 49,580-square-foot office project at 345 4th St. is part of new office building construction that are not affected by proposition M which puts a cap on new office building construction. Owner paid $7.5M in December for those of you interested in calculating potential net profits. Keep in mind the cost of materials has gone up exponentially and even Forty Niners are expensive to build.
San Francisco traffic congestion problem is enormous: SF has the worst roads in the country and one of the highest number of pedestrian and bicyclist fatalities and injuries. It is also pretty safe to assume there are dire pollution consequences to the traffic congestion. Congestion pricing would be a solution to this issue but it is never brought up by City Planners. Automated Speed Cameras would help decrease fatalities but City Planners again do not address the issue. The current incentives to reduce traffic congestion are arguably doing nothing to improve the situation consider the incentives commercial and residential developers have: The current point system gives developers points for car sharing dedicated parking spaces, bicycles for tenants, setting up shuttle services for residents, dedicated child care etc. This system is not effective in our opinion and we are surprised a world class city like SF does not even attempt to implement congestion pricing which London and Singapore have successfully implemented. It is also surprising that automated speed cameras are not implemented.
Macy’s Stonestown at 280,000 sq, ft. sold for $40.7 million or $148.9 per square foot. Congrats to the buyer. Great price.
Salesforce Tower has such tenants as Accenture and CBRE. We’re waiting to find out if any of the major Tech company express interest in some of the 1.4M office building.
634 Second St. at 46,752 sq, ft sold for $40M or $856 per sq. ft.
222 Kearny sold the 148,797 office building at 222 Kearny for $51,8Mo or $348 per sq. ft. Great purchase indeed.
One Oak at the South Van Ness Muni Station will be right next to 1554 Market and 435 foot tall. The building will create a hub with 4000 sq. ft of retail and a 15,000 sq. ft. foot plaza. More to come.
The 800 foot Transbay Tower at 550 Howard is also on its way.
Interesting condo building at 1965 Market in the works. Apparently 96 condos on this great location over commercial.
The small 2 story building at 570 Market next to the 7 Eleven is in play for 16M or 1000 per sq. ft. since it is zoned for up to 300 ft.
The Action Rentals building at 1526-1530 Folsom is also in play and includes the parking lot at 1560 Folsom and two parcels at 135 Kissing and 276 11th street. Price unknown so far.
The site of the gas station on Howard and 9th is attempting to become t be 124 rental units over commercial.
Another good purchase was 600 Townsend which sold for $50.5M or $609 per sq. ft.