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HFF Arranges Acquisition of 1400 16th Street by ASB Real Estate Investments

16 Jul 2014, 2:23 pm

By Alex Girda, Associate Editor

As the city’s office market continues to be white-hot, San Francisco’s assets are increasingly in demand. The latest asset to trade hands is the building located at 1400 16th Street—a historic property sold by Jessica McClintock Inc. to a venture consisting of ASB Real Estate Investments, SKS Partners and ProspectHill Group. An HFF team led by managing director Steven Golubchik, director John Simerlein and senior real estate analyst Josh DiSalle represented the seller in the deal.

The art-deco warehouse and office building was originally developed in 1938 and has been under the ownership of Jessica McClintock Inc. for the past four decades. Totaling approximately 100,000 square feet of space, the reinforced concrete building occupying an entire city block at 1400-1450 16th Street offers great access to nearby I-80 and I-280, as well as Highway 101. The building is also located in the vicinity of several San Francisco Muni bus routes offering connections to heavily trafficked transport lines Caltrain and BART (Bay Area Rapid Transit).

The SoMa district is one of the best-performing submarkets in terms of its R&D assets. Along with Potrero Hill, the area features the largest prototyping and manufacturing tenant clusters, HFF managing director Steven Golubchik said in a press statement announcing the transaction. According to another member of the HFF team that handled the transaction, John Simerlein, “the property’s ideal location, and proximity to San Francisco’s most rapidly evolving neighborhoods with a mixture of housing, jobs, entertainment destinations, and transportation options – combined, provide a 24/7 live, work and play environment.”

According to the HFF reps, the opportunity to acquire a property of this type led to serious interest from a number of potential investors from both the local and national investment scene.

Image courtesy of Google StreetView 

Potential Alameda Point Developers Line Up for Development Opportunities as Initiative Gains Momentum

9 Jul 2014, 6:48 pm

By Alex Girda, Associate Editor

Local authorities have long tried to get a major development project going at former Navy base, Alameda Point. Currently, nine different development teams have submitted their applications in response to a request for qualifications, in order to have a shot at working on the 82-acre parcel located on San Francisco Bay. The list of applicants is currently under review by local authorities. The city previously issued a request for quotation (RFQ) for a 68-acre residential and commercial mixed-use project along the main entrance to Alameda Point.

The developers are vying for the opportunity to develop about 800 residential units, as well as a mixed-use component at the 82-acre site. The parcel, adjacent to the Seaplane Lagoon, is part of the plot of land that has been vacant for 17 years now, mainly due to local opposition directly linked to the fear that excessive development would clog the bridges and tunnel that facilitate traffic to and from Alameda.

According to The San Francisco Business Times, the companies that responded to the RFQ include names such as Alameda Point Partners, Brookfield Homes, Catellus, Mission Bay Development Group, Rising Realty Partners, CIM Group, Tim Lewis Communities, Trumark, Williams & Dame Development with Zelman Development and Langley Investment Properties. Of the nine applicants, four of the companies are in contention for the commercial component at Alameda Point. Mission Bay Development, Trumark, Catellus and CIM are the four companies competing for the commercial project.

Alameda Point is an 878-acre section of the decommissioned Naval Air Station Alameda, located in the inner part of the San Francisco Bay about four miles from downtown Oakland, Calif. The project is set to provide a significant number of economic development through job creation, millions of dollars in tax revenues, and over one thousand housing units.

Image courtesy of alamedapointinfo.com

Zendesk HQ Acquired by ASB Real Estate Investments in $60 Million Deal

2 Jul 2014, 7:43 pm

By Alex Girda, Associate Editor

989 Market Street, the San Francisco home of cloud-based help desk provider Zendesk, just traded hands in a deal worth approximately $61.3 million. The office asset was acquired by ASB Real Estate Investments from seller Harbert Management Corporation, a deal in which the seller received more than double what it had paid for the property back in 2011. This recent purchase was made on behalf of ASB’s Allegiance Real Estate Fund, a $3.5 billion vehicle.

Located between 5th and 6th Streets in the Mid-Market district, 989 Market Street offers a total of 111,497 square feet of Class A office space. Zendesk and Zoosk, a social dating service, are the two tenants at the six-story building, currently taking up approximately 94 percent of the available space. The building also provides 13,000 square feet of street-level retail space with Market Street frontage, currently under contract with Blick Art Materials, an art supplier.

The building offers floorplates of 17,000 square feet that also offer ceiling heights of between 10 and 15 feet. The property offers great proximity to Union Square, as well as Powell Street and Civic Center BART subway stations. The area will soon add a nearby access point to Caltrain. The President and CEO of ASB Real Estate Investments, Robert Bellinger, the new owner of 989 Market Street, noted that “led by Twitter, Spotify, Yammer and Intuit, new and expanding tech companies have made the Mid-Market District a location of choice, leading to a market renaissance, from which our investors can take advantage.”

He also pointed out that given the property’s proximity to Union Square and the amount of premier retailing along Market St., will translate into sustained interest for the retail component of the building.

1155 Market Street Sold by Laurus Corporation for $72 Million

26 Jun 2014, 12:04 am

By Alex Girda, Associate Editor

The Laurus Corporation recently offloaded one of its most high-profile properties for a fee of $72.6 million. The private real estate investment and development firm has sold its 1155 Market Street in San Francisco, resulting in 56 percent Internal Rate of Return for investors.

1155 Market Street is an 11-story office asset that has been under the ownership of Laurus since 2011. The building offers a total of 140,000 square feet of rentable space, which was almost completely unoccupied when the property was acquired by Laurus. Since the acquisition, the owner increased the office asset’s occupancy by up to 75 percent by completing a leasing agreement with the City and County of San Francisco for a 10-year term. The lease came as a result of the extensive renovations carried out by the owner. Around $14 million was invested by Laurus into the refurbishment of various parts of the building including the façade, the lobby, common areas and elevators.

The improvements brought to the building have earned the asset LEED Gold certification from the U.S. Green Building Council, as well as Ashrae compliance.

According to a press statement announcing the sale, the CEO of Laurus Corporation, Philip Cyburt noted that the initial acquisition of the asset came during “the early stages of revitatlization” of the mid-market area. The company’s Chairman and Co-Founder Andres Szita expressed his satisfaction at his company’s success with the asset: “Renovation, leasing and disposition efforts were not exempt from challenges, yet a laser-focused attention to detail from the organization proved to be key to success.”  


Demand for Space in the Bay Area Continues as Three Large Leasing Deals are Inked

18 Jun 2014, 6:37 pm

By Alex Girda, Associate Editor

The Bay Area’s office market has been one of the highlights of the national real estate market in recent years, and due to the lasting appeal with the tech industry, the trend seems to be going strong. Three large leases were recently inked in San Francisco and San Jose, the largest urban centers in the tech-oriented region.

NerdWallet, Spansion and Loring Ward are set to move to new digs in the coming months, all three firms deciding to expand operations and take up more commercial office space. NerdWallet, a growing startup that has to do with advising consumers to make smart financial decisions, is now in contract for the fifth and sixth floors of the office building located at 901 Market St. The young company will occupy 45,700 square feet of space for the next seven years, as per its agreement with landlord Hudson Pacific Properties, rentv.com writes.

Meanwhile, North San Jose saw a company complete a leasing deal for 154,600 square feet of space. Spansion inked an agreement for space at the Ridder Park Technology Center. The new tenant recently sold is sprawling 470,000-square-foot HQ in Sunnyvale and is now relocating to two buildings part of the office campus. The company’s landlord at its new facilities will be Hines. The owner was represented by CBRE and Cassidy Turley teams in the leasing deal.

Loring Ward is the third company to ink a move in the area, reportedly the largest office lease in downtown San Jose, Loring will move into 42,600 square feet of space at Ten Almaden, a substantial expansion from the company’s current residence in west San Jose, where it occupies around 25,000 square feet. The owner of Ten Almaden is Equity Office Properties, an owner that has seen its asset be boosted to 90 percent occupancy by this recent deal according to rentv.com.  

Image 1: 901 Market St., San Francisco, courtesy of 901market.com

Image 2: Ten Almaden, courtesy of eoptenalmaden.com



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