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555 Montgomery Street Property Management Contract Awarded to Kennedy Wilson

20 Aug 2014, 11:02 pm

By Alex Girda, Associate Editor

Kennedy Wilson (KW) is the new property manager of a San Francisco office high-rise after the company was awarded the contract for 555 Montgomery Street. KW will now handle property management duties at the property on behalf of owner East West Bank, a Pasadena-based financial entity.

The 18-story office building was originally developed in 1984 and features floor-to-ceiling windows that offer great views of the area. The property has a total of 261,839 square feet of space that are divided into a number of individual offices, according to real estate data website PropertyShark.com. These offices range in size between 1,200 square feet and 14,000 square feet, being able to cater to variety of needs. 555 Montgomery Street’s current tenant roster includes well-known financial services firms, legal services and market research firms such as The Guardian Life Insurance Co., The New York Times, US Capital Partners LLC, DHC USA, Inc. and Taipei Economic & Cultural Office. The building’s owner, East West Bank, also maintains a presence at the property. Currently valued at around $53 million, the property is located on a 0.37 acre site and features 24-hour security service.

555 Montgomery Street is located in the city’s booming financial district, and is a coveted office asset. Senior Managing Director Donna Clark says that “due to the location of 555 – near major business districts as well as the wharf among other local attractions – there is no doubt that this will be the building of choice for major companies seeking to expand business practices in a prime environment.”

Goodman Logistics Center Welcomes First Tenant as Benjamin Moore & Co. Inks Lease for 1/3 of Available Space

13 Aug 2014, 4:02 pm

By Alex Girda, Associate Editor 

The Goodman Logistics Center Oakland has announced its first new tenant as Benjamin Moore & Co. inked an agreement to take over more than a third of the available space at the site. The property will serve as the new tenants’ base of operation which will supply paint to Northern California stores. Benjamin Moore & Co. is a unit of Berkshire Hathaway, a Warren Buffett controlled entity. The new tenant is moving to Oakland from its current regional distribution center located in Hayward during the following months. Benjamin Moore & Co.’s lease includes 46 dock doors and an office component of 3,500 square feet.

Completed this May, the 374,725 square -foot Goodman Logistics Center Oakland is the first project completed by the Goodman Birtcher North America, a wholly owned subsidiary of Australia’s largest listed industrial property group, Goodman Group. According to The San Francisco Business Times , this is also the inaugural project in an $890 million investment partnership between the Canadian Pension Plan Investment Board and Goodman Group targeting industrial space in the cities of North America. Contracting duties were handled by Fullmer Construction, while HPA Architects provided the project’s design and architecture.

The industrial building is the largest freestanding industrial facility in the greater Oakland area to be developed in the area in the last twenty years. The asset offers great access to eight major freeways on the Heavy Weight Corridor (overweight container route). Developed within the Oakland Airport Business Center, an enterprise zone and eco-conscience industrial city created by local authorities to create a business-friendly environment, the property is also located in the immediate vicinity of the Oakland International Airport.

The property features include 32 ft. clear height, 92 loading positions in a cross-dock configuration, abundant truck and trailer storage, expandable car parking, and an allowance for office build-out for potential customers. Sustainability was part of the developer’s plan for the building, and a number of environmentally friendly fixtures were incorporated in the building design. The facility is on track for LEED Silver certification.

 Image courtesy of us.goodman.com

Jay Paul Company Receives $480 Million Construction Loan from HFF for its Tower at 181 Fremont Street

6 Aug 2014, 11:35 pm

By Alex Girda, Associate Editor

The city’s South Financial District is set to welcome a new major mixed-use development project as developer Jay Paul Company recently locked in financing for its Fremont Street venture. HFF recently announced that it has arranged construction financing on behalf of the developer through Starwood Property Trust. The total amount sourced for the large mixed-use plan is $480 million. HFF’s debt placement team was led by Peter Smyslowski, a managing director with the company, with director Chris Gandy and associates Walter Chui and Brandon Roth also part of the team.

HFF also handled the acquisition of the asset that will make way for Jay Paul Company’s development last year and the company began construction soon after. Taking shape on a .35-acre site in San Francisco’s SFD, the tower will have 55 stories and will stand 802 feet tall. When completed, the development will be that tallest office and residential tower on the West Coast. Plans call for the property to use materials and technologies for water conservation and energy efficiency that would ensure LEED Platinum certification from the United States Green Building Council.

The tower’s top 15 floors will offer a total of 68 high-end condominium units, while 33 floors will be dedicated to a total of 404,000 square feet of Class A office space. The building will also be provided with a 78-stall bike barn featuring private stalls and an underground valet parking garage. The size of the column-free efficient floor plates will range between 14,000 and 10,000 square feet and will cater to high density and office intensive users.

Designed by Heller Manus, the building will feature a state-of-the-art exoskeleton that will allow for a two-story, mid-level skydeck, while a sky-bridge located at the 5th floor will ensure connection with the Transbay Transit Center’s 5.4-acre rooftop city park.

Rendering courtesy of 181fremontsf.com


Marcus & Millichap Arranges Trade of Viking Apartments in Peninsula at Above-Average Per-Unit Price

31 Jul 2014, 4:37 am

By Alex Girda, Associate Editor

A Peninsula multifamily property recently traded hands in a deal worth $10.8 million. Marcus & Millichap arranged the transaction for the Burlingame, Calif. asset at a per-unit rate of $308,571. The seller is a family that owned the property for around 50 years, while the buyer is another local family trust. Both parties were advised by representatives of Marcus & Millichap’s Palo Alto office, with associate Richard Reisman handling the seller’s end, and vice president investments, Adam Levin, working on behalf of the buyer.   

The Viking Apartments residential complex in Burlingame offers a total of 35 units. The 1958-built apartment complex is located at 500 El Camino Real in one of Burlingame’s more high-profile neighborhoods. The residential property offers a total of 21,007 square feet of rentable space. According to a press statement announcing the transaction, Adam Levin predicted that Viking Apartments is set to become one of a number of properties in the area that have been acquired, and were then repositioned in order to boost gains from the property.

Sales Trends for Metro San Francisco

According to Marcus & Millichap’s San Francisco Metro Area Apartment Market Report for Q2 of 2014, the average sales price for multifamily properties stood at around $264,300 per unit for the last year. That means that the market has recorded a 17 percent increase over the previous 12 months, while buyers are reportedly still setting their sights on assets that bear value-add potential. This makes the aforementioned deal an above-market transaction with a per-unit sales price of more than 40k compared to the Metro Area’s average.

The report mentions that the market’s immediate future remains with buyers that can navigate local legal constraints of the low-yield market. Purchases might require an immediate capital infusion immediately afterwards, with amenity enhancement the primary focus.

Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com


Levi’s Stadium Announces Completion of NRG Solar Terrace as Facility Awaits LEED Gold Certification

24 Jul 2014, 7:20 am

By Alex Girda, Associate Editor

The San Francisco 49ers are moving to Santa Clara, as the newly-completed Levi’s Stadium will be the home of the NFL franchise starting with the upcoming season. The facility’s developer, the Santa Clara Stadium Authority, the San Francisco 49ers and NRG Energy Inc. recently announced the completion of the NRG Solar Terrace and the new photovoltaic systems for the three NRG Energy Bridges. This makes Levi’s Stadium the first stadium in the country that is home to a professional football team with LEED-level standards built into the design specs and architecture.

The amount of technological innovation introduced at the $1.2 billion, 68,983-seat facility is worthy of LEED Gold level certification. The sports arena will use a 375 kW solar installation, consisting of 1,150 solar panels installed on the NRG Solar Terrace, as well as the three NRG Energy Bridges as an important part of the power generation. The E20/327-watt solar panels used were provided by Levi’s Stadium’s official solar tech partner, SunPower Corp. The three bridges will act as the main entry and exit avenues to the stadium, and will also provide shade on warm game days. A host of environmentally friendly features are also part of the package at the stadium, including six eVgo electric vehicle charging stations in the Great America parking lot, with the capacity of charging up to 12 vehicles.

The President of the San Francisco 49ers, Paraag Marathe said that “the vision for an energy-efficient and visually-stunning stadium has been realized.”

Marathe also said that the developers never deviated from their original plans for the project, with sustainability always being one of the key elements of the planning process for the stadium.

NRG has made Levi’s Stadium its seventh stadium for college or pro football where it has installed its products. The other venues that have benefited from the company’s clean energy solutions are FedExField, NRG Stadium, Lincoln Financial Field, MetLife Stadium, Patriot Place and Arizona State’s Sun Devil Stadium.

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