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Office building rentals, sales, for-sales, and solds
A site ideal for a tech office building has an enthusiastic new owner, but meanwhile...

 

Property owned by Scott Plant has been renovated to contain The Hall, a large food court.

It has indoor tables, kitchens, a beer and wine bar, and outside benches.

•  But the buyer of 1028 Market St announced a plan for 150 apartments. Scott Plank, former Under Armour high level executive, paid $9.5 million.

•  Several new investors have purchased stalled residential projects which were approved, years ago, by the Planning Commission.

•  But it is likely that the latest investors will find themselves at the end of this burst of residential demand. Mayor Lee states that 5,500 units of housing are under construction or shovel ready for Central Market. Of these new uniits 26% will be affordable to low-income residents.

 

•  At the same time, real estate pundits are calculating that The City's greatest future need is for large space facilities for tech. More info HERE.

•  The necessity is to build tech office space on the last currently available stretch of Market St with the Bay Area's best transportation.  Unique office buildings, made for tech, clustered on Central Market Street, are needed to serve the entire Bay Area.

 

•  And a new building could provide a first floor space, open to view, with interesting and active stores, built to order for tenants who want to participate in the changing street life in the new Central Market.

•  A substantial improvement here would provide great benefit to the North of Market/Tenderloin CBD. These funds would go towards preserving Tenderloin housing. - Plus there would be City tax benefits and job opportunities.

 

•  In sum, there is need is for a workable 24 hour mixed district of Market Street Arts, restaurants, entertainment, housing, and employment.

 

•  1028 Market St (now the empty Hollywood Billiards, above) could provide regional employment in an arts friendly district.

 

•  Done well, it could be the most important step in creating a unique new Central San Francisco.

 

•  The lot is about 15,077 square feet, extending through to Golden Gate St, allowing for large floor plates and ample natural light. The site qualifies for Transfer Development Rights and Historical Tax Credits. It is also in the Payroll Tax Exclusion ("Twitter") Zone.

 

•  There is a possibility of combining the site with an adjoining lot owned by the Shorenstein Organization (below). This could result in the district's outstanding building. Or - wait - why not make it the new standard of the tech world?

• Meanwhile, repairs to the first floor facade and the interior are underway for a new type of food court which will bring the operators of food trucks indoors. These pop up restaurants will provide street life and services until the next plan is prepared.

 

Property owned by the Shorenstein Organization has been emptied of stores and boarded up.The painted wall above was part of the movie theater which they tore down decades ago. The site extends through the block and would ideally be combined with the Hollywood Billiards building to the right.

•  Read more about how Arts make cities flourish HERE and in Who Walks on Central Market Street which is HERE.
The Columns Building reached full occupancy with two leases

• Zendesk now fills the total of 75,000 square foot of office space at 1021 Market St under lease from Cannae Partners of San Francisco which paid $9.5 in 2011.

• The store is now filled by a 2,500 square foot chai tea cafe. (Below)

The Warfield Building nears full occupancy for offices and a cafe.

•  There's just one floor and store spaces available, according to Group I, Taiwanese investors experienced in San Francisco office buildings, who bought the 40,000 Square foot building in April 2012. It surrounds the Warfield Theater.

•  Matt Cohler and Peter Fenton, a general partner at Benchmark and a board member at Twitter and Yelp, leased 10,000 sq ft on the top two floors of the Warfield in May, 2012. "Round one for Peter and me was the Peninsula, and round two for both of us (is) in San Francisco," he told Ari Levy of the San Francisco Chronicle. They are investors in tech startups. Article is HERE.

•  Another large tenant is Swedish music streaming company Spotify, growing from co-working space in SOMA into three Warfield floors of 13,500 square feet. “We want to make it our tech hub for Silicon Valley,” Spotify's vice president of strategic partnerships, Tom Hsieh, told the San Francisco Chronicle. Article is HERE.

• Equator Coffees and Teas has opened in a 1,000-square-foot space, designed by Boor Bridges Architecture. Next to the theater entrance, it has a circular coffee bar with outside seating.

995 Market peeled away the years, Golden Gate Building will bring the driven

•  995 Market Street is named after David Hewes, the man who in 1869 donated the ceremonial golden spike which was used to join the two halves of the Transcontinental railroad. It was built in 1908.

 

•  Burning Man moved here in April, 2011, taking 19,000 square feet of the 97,578-square-foot building. Website is HERE

The owners put it up for sale two months later. 

 

•  The Hewes was sold for close to $17 million in May, 2013. Above, the de-constructing facade revealed a tan brick underneath, at Sixth as it was until Mid 2015. The green part of the peeling front was an attempt to go for a mid-century 20th century look. The first floor is black false stone in another style.

 

•  As the embodiament of two centuries of changes to Central Market, the exterior should have been landmarked as it was.

•  The office building built around the Golden Gate Theater was cleared of arts and community organizations at the beginning of the dot-com boom and then the 45.000 sq ft building sat empty. In April, 2012 the office portion (with entrance at 25 Taylor St) was sold for $6.7 million. Website is HERE.

•  The purchaser is WeWork, who say, "In addition to offering entrepreneurs great space to build their own products, WeWork Labs fosters collaboration among intelligent, creative and driven individuals who may not otherwise have had the opportunity to connect." A New York company, they also have offices in Hollywood and at 156 2nd St, San Francisco. The physical social network Website is HERE.

Mid-century office buildings prep for another century, led by Dolby

•  In 2012, Dolby Laboratories purchased 1275 Market at Ninth Street for a new headquarters,to move from three buildings in Potrero. They paid almost $110 million. "It’s not just art. It’s not just technology. It’s where the two meet," Ramzi Haidamus, Dolby executive vice president of sales and marketing, told the SF Business Times. Article HERE.

•  An indication of the hotness increase on Market St above Eighth St - in one year - is that the previous owners paid half of the the sale just a year previous.

The City at 1145 Market St

•  Two mid-century Central Market office buildings were vacated in 2012, found new owners and now have new tenants  which will enliven the Street.

•  Extensive renovations are completed at 1275 Market St, the State Compensation Insurance Fund building, sold in October 212 for $44 million, 350,000 sf - plus large garage. Dolby made interior renovations. The Fund was sent to the suburbs by former governor Arnold (900 jobs).

•  1145 Market, between Seventh and Eighth sold in September 2011 for $27 million. This was the San Francisco Public Utilities building (140,000 sf). They have moved to 525 Golden Gate Ave. The City's financial and environmental departments are now located here.

Dolby coming to 1275 Market

The annex to the Twitter Building, 1355 Market Street, is well along

•  The former wholesale furniture showroom was chosen by Twitter in a 200,000-square-foot lease for six years - as long as a special city tax exemption lasts. They have an option to double that space in the remodeled annex sharing the site. A estimate of 1,300 new employees would be the current total, still growing. Website HERE.

• Yammer provides private social networks for companies with five million users. They leased the third floor at Market Square of 80,000 sq ft to grow from 350 employees to 600. Website HERE.  Yammer Inc. agreed to an acquisition by Microsoft Corp. on Friday, June 15, 2012.

• CallSocket, which is an international call center services company, has 30,000 square feet. 

• One Kings Road, a website offering sale prices on furniture and home accessories, took 52,000 sq ft for an eventual 200 employees. Website HERE.

•  Shorenstein Properties purchased the 1937 building for $120 million and promised $80 million in updates as a start. The building has 750,000 square feet of space and a newer annex across Stevenson St (which will be a plaza) has 350,000 sq ft. Website HERE.  A building entrance has been added next to Walgreen's.

 

•  A related Shorenstein company owns the Orpheum and Golden Gate Theaters on near-by Central Market Street blocks.

Zendesk and Zoosk grow fast at 989

•  989 Market St was sold in July, 2011 for $26 million. And sold again in December 2012 for 42.5 million. That's a 39 percent rise in value in just a year and a half.

•  The building was built before the quake and fire. Hale's, a value oriented chain was located in the entire building. After the fire, the building was repaired and stands today, looking about the same - the ground floor tenant is now Blick Art Art Materials.

 

•  Hale's soon moved to 901 Market, which was built for them.

 

•   Zendesk, a cloud-based software company, had signed a three-year, 16,000 square foot lease, with an option for more space, for a new headquarters office at 989 Market. They moved into the third floor and a month later, they added a lease for the second floor for a total of 42,000 sq. ft. They have 150 employees at this location. In October 2013, they leased about 75,000 square feet in 1019 Market, the columns building, a block away. Website HERE.

 

•  Zoosk, the Romantic Social Network leased 52,000 square feet at 989 Market in a move from the Financial District for a planned 160 employees . Zoosk could grow to more than 340 employees over the term of their lease, according to The City Office of Economic and Workforce Development. Website HERE.

•  Blick Art Supplies is at the first floor.

The old Federal building is new and full of people 
  

•   At the old Federal building at 50 UN Plaza, work is complete on an rebuild from basement to roof to improve energy efficiency. Construction was paid for with $121 million of federal stimulus money.

•  This, along with the already completed expansion of the Art Institute of California, will re-populate the Plaza.

•   Now that 50 UN Plaza has reopened, U S Homeland Security patrols Market and Seventh Streets from the new Federal Building on Mission St to McAllister and Hyde.

 

•  There is now only one entrance open to the public - the one at the main arcade which is currently used for the tents of the Farmers Market.

Contact us: observesf.com, E-mail: observesf@me.com, Anthony King, editor