From Prom To Prime Real Estate

Prom queen Jessica McClintock just sold her shuttered 100k SF SoMa office and dress outlet at 1400 16th St. to ASB Real Estate Investments, SKS Partners and ProspectHill Group, and we've got the DL on the deal. Sources tell us well over 23 offers were plunked down by all kinds of bidders (foreign capital, high net worth guys, families). Only once in a blue moon does a property that covers a whole city block in S.F. come to market, making the warehouse site a generational opportunity. (The last time an opp came around like this was 2012, when Greg Flynn bought the Design Pavilion at 200 Kansas.) But back then the concept of PDR, or Purchase of Development Rights, was unknown. Now more developers want to convert buildings into creative office. (Another big selling point: the second floor up features unobstructed views of the S.F. skyline.)

There's an insane amount of demand for PDR—about 800k SF worth—from cos like Pinterest and Google's hardware division with few options out there; our source counts just one other large block of availability. We hear the massive repositioning project, which requires "substantial capital," will start right away. Sources say the new owners are going all out to create the city's next It Building. User options are endless, from a no-name company that needs 50k SF to Google. HFF repped Jessica, who vacated the art deco outlet after 44 years to move into a smaller space to pursue her licensing biz. This is DC-based ASB's second big S.F. move this month, having closed on 989 Market just five days earlier (HFF also repped the seller on that one).