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650 California Street Acquired by Columbia Property Trust in $300 Million Deal

10 Sep 2014, 3:52 pm

By Alex Girda, Associate Editor

650 California Street was recently acquired by Columbia Property Trust Inc. in a deal completed with owners Tishman Speyer and Prudential Real Estate Investors. The buyer paid a fee of $309 million for the iconic Class A office tower located in San Francisco’s coveted Financial District.

In order to complete the deal, the buyer, Columbia Property Trust, took out a $130 million loan bearing interest at 3.6 percent and maturing July 2019. The cash component of the transaction, totaling $179 million, was handled through borrowings under the company’s unsecured credit facility and cash on hand.

The 33-story office asset at 650 California Street offers a total of 478,392 square feet of space. Located in the city’s Financial District, the building was 88 percent under contract at the time of the sale. The asset is reportedly expected to have an operating income of around $11 million during the first year. The property is LEED Gold-certified by the US Green Building Council. During the past two years, the former owner rolled out a $14.2 million renovation process at 650 California. The process included adding an onsite parking garage and an extensive lobby renovation to round out the building’s amenity package including the fitness center, bicycle parking, and a conference facility.

The owner’s Western Region team will henceforth handle asset management duties as well as leasing at the property. In order to accommodate the portfolio expansion, Columbia Property Trust recently added Michael Schmidt to its local team with an experienced professional in asset management in major West Coast markets. Schmidt will handle the company’s West Coast assets, including this latest acquisition.

 Image courtesy of tishmanspeyer.com

KB Homes Acquires Land in Sunnyvale, Unveils Latest Residential Project in the Area

4 Sep 2014, 5:20 am

By Alex Girda, Associate Editor

Part of an increasingly aggressive development policy in The Bay Area, KB Homes recently announced the purchase of a plot of land in Sunnyvale and its development strategy for the property. The home builder has announced that the site will house a new housing community called Solaire. The company has rolled out its plans for its new location at the heart of Silicon Valley where the entity has planned to build 47 homes that would be added to the area’s housing stock.

Solaire will feature contemporary styled, single-story, stacked flat condominium homes. The developer is currently working on model home development, and a grand opening is already scheduled for this fall. The choice of Sunnyvale as the latest KB Home target is obvious, given the city’s location in the bustling Silicon Valley. The city offers some of the best employment options in the world, with world-famous businesses such as Google, Cisco, Yahoo!, Juniper Networks, Lockheed Martin, Northrop Grumman Electric Systems and others having a substantial presence in the area.

The lot on which the Solaire community will be developed offers great access to the 101, Interstate 280, 237 and 85. Other transportation options nearby include the Santa Clara Transportation Authority and the Caltrain commuter rail, with the latter having two different stops in the city.

Solaire is the latest in a number of ventures started by KB Homes in the area. The company has also recently acquired land for a property set for 500 single-family homes at Patterson Ranch in Fremont, and completed other land deals for its 72 Townsend and Bush Street luxury development projects. KB Homes is currently open for new home sales at 14 different locations in the Bay Area.

Image courtesy of kbhome.com

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


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