Address: 900 Middlefield Road, Redwood City, CA
Landlord: Kilroy Realty Corp/Hunter Storm LLC (joint venture)
SF Leased: 334,000
Pricing: $4.40 /psf NNN (est.)
Type: Class A Office
Term: 144 Months
Box will take over the two-building complex in phases, occupying the first 226,000 square foot building in the third quarter of 2015 and the second 108,000 square foot building in early 2017.
Address: 1029 Geary Street, San Francisco, CA
Seller: Urban Green Investments
Buyer: Mosser Companies
RBA SF: 38,184 SF building
Lot size: 0.21 AC (9,147 SF)
Selling price: $15,450,000 ($404.62/SF )
Type: Apartment – Mixed Use
The property is a 58-unit, 6-story retrofitted brick building, comprised of 22 two bedrooms, 32 one bedrooms, 4 studios and a one story wood frame building that is currently leased to a restaurant.
Alexandria Real Estate Equities, a roughly $9.3 billion total market capitalization real estate investment trust based in Pasadena, CA, has formed a partnership with Uber Technologies to acquire two development sites in San Francisco’s Mission Bay.
The parcels, located at 1455 and 1515 Third St., will support a 422,980-square-foot ground-up development for Uber as the San Francisco-based ride sharing service looks to expand its corporate headquarters.
The strategic partnership will see Alexandria maintain majority ownership, owning 51% compared to Uber’s 49%. Alexandria originally sold the parcels to saleforce.com back in 2010.
The development is in concurrence with a 15-year lease for Uber. The sale also included approximately 425 existing parking spaces, plans, permits and piles.
Read entire Costar article here.
Address: 555 Sutter Street, San Francisco, CA
Seller: Brothers International Holding Corp.
Buyer: Rich State – Arkansas Inc.
RBA SF: 20,765 SF building
Lot size: 0.14 AC (6,081 SF)
Selling price: $7,350,000 ($353.96/SF )
Type: Office – Mixed Use
This building was approximately 50% occupied, with some storefront retail on the ground floor. The Union Square submarket has been hot recently with a solid mix of residential, hotel, and office occupancy rates all remaining strong.
Essex Property Trust (NYSE:ESS) purchased 1.2 acres of land on 5th Street in downtown San Mateo from the Sand Hill Property Co. in a step to develop the property. The space is currently a parking lot situated between Central Park Plaza and the Central Park tennis courts and baseball stadium. Essex plans on building a 117-unit mixed use building which promises to be the largest development in downtown in quite a while. According to several sources, residents and business owners have voiced concerns especially considering the already-tight parking situation in downtown. This article was posted back in January of this year detailing the development and the concerns: “San Mateo Mulls Biggest Downtown Development Since 2003″.
Apparently Essex felt confident enough in their ability to overcome these concerns, since they purchased the land for $10,800,000 or approximately $206/per sq foot on the dirt. San Mateo has certainly upgraded their image in the past decade with the introduction of “Theatre Way” in the heart of downtown and now the halfway-completed Bay Meadows project just south on the Caltrain track.
Things continue to look good from a landlord/seller perspective as inventory reaches new lows and demand continues to drive prices and lease rates upwards. SBA and conventional interest rates are certainly helping on the buy side of things. Here’s an excerpt from the report:
The San Francisco Peninsula saw 606,574 square feet of positive net absorption this quarter, and 1,159,864 square feet of positive gross absorption. The industrial market continues to stay productive with deals of all sizes completed throughout the San Francisco Peninsula in the second quarter of 2014. San Mateo County experienced minimal occupancy losses as well, which is not due to a lack of demand on the Peninsula, but rather a shortage of quality available space.
Read entire KM report here: industrial-market-research-peninsula-2014-2q
San Francisco remains the hottest city in the nation for commercial real estate. The 714,000 s.f. Salesforce lease at 415 Mission Street (formerly known as Transbay Tower and renamed Salesforce Tower) signed during the second quarter is the largest office lease in San Francisco history. Massive pre-leasing deals such as this, along with continuing investment and redevelopment activity, show that both tenants and institutional investors still see value and potential upside in San Francisco despite the huge market gains of the past few years. It is clearly their belief that the market fundamentals are strong enough to support current rents and sales prices into the future.
Read entire report here: office-market-research-san-francisco-2014-2q
Address: 2284 Monterey Road, San Jose, CA
Landlord: RI San Jose, LLC
Tenant: Taco Bell
SF Leased: 29,798
Pricing: $3.59 /psf NNN
Type: Retail – Ground Lease
Term: 180 Months