This Week's Bay Area Deal Sheet
OpenAI, the artificial intelligence giant, is reportedly finalizing what would be the largest office lease in San Francisco since 2018. The ChatGPT maker could sign a sublease of 445K SF with Uber at the ride-sharing company’s Mission Bay headquarters in a matter of weeks, as first reported by the San Francisco Chronicle.
In 2017, Uber took all 1M SF at 1725 Third St., which is next to the Golden State Warriors' arena at the Chase Center. The company started looking to sublease space during the pandemic after letting its employees work remotely for portions of the week. This isn't the only building in San Francisco Uber is looking to sublease. It is still paying rent at its former headquarters on Market Street and has not been able to find a subtenant.
SALES
Tenderloin Neighborhood Development Corp. bought a development site at 249 Pennsylvania Ave. for $11.35M. The site had plans for a seven-story, 92-unit residential building filed by William Spencer Co.
***
An apartment building in Oakland traded hands for $11.65M. The 30K SF property has 24 units with a mix of one- and two-bedroom units. Amenities include 46 covered parking spaces, storage closets and four laundry rooms. Residents also have close access to the MacArthur BART Station less than 1 mile away.
CONSTRUCTION AND DEVELOPMENT
Menlo Equities and Beacon Capital Partners broke ground on Portal 405, a 240K SF life sciences building in the Peninsula city of San Carlos. The building will be six stories and have amenities such as a fitness center and cafe. Construction is expected to be complete in 2024.
***
Hines completed the renovation of 101 California St., a 48-story, 1.2M SF office tower in San Francisco’s Financial District. The improvements include a re-envisioned outdoor plaza, lobbies, cafe and lounge.
FINANCING
Pyramid Global Hospitality secured $50M refinancing loan for the Residence Inn Berkeley, a 331-key, full-service hotel in Berkeley. The financing was arranged by Lantern Real Estate Advisors. Prime Finance provided a mezzanine loan and a senior loan from a debt fund.
PEOPLE
Will Sandman was named director of asset management at The Swig Co. and will oversee the company’s West Coast portfolio of office and multifamily assets. Prior to joining The Swig Co., Sandman was with Rubicon Point Partners. He is also a U.S. Navy veteran.
