This Week's Bay Area Deal Sheet
Related Cos. of California proposed doubling the height of its 530 Sansome St. tower for $600M, according to the San Francisco Chronicle.
Related proposed razing the 1970s-era fire station and replacing it with 41 stories rising 575 feet, including 11 floors of luxury lodging toward its base, topped by 24 floors of office space encompassing 375K SF. The property is next to San Francisco's famous Transamerica Pyramid.
Initially, Related planned to build a 256-unit apartment tower at the site. But a growing number of tenants’ flight to quality and their preference for smaller floor plates sparked the proposal to add more office space.
As for the hotel rooms, Related told the Chronicle that a hotel hasn’t been constructed in that part of the city for decades. It would have 100K SF of ballrooms targeted toward both business clientele and tourists.
DEVELOPMENT
Ensemble Investments of Long Beach and AVE, a subsidiary of Korman Communities, are building a 311-unit “resort-style” apartment complex within walking distance of Levi’s Stadium in Santa Clara, with studio rents starting at $2,900 a month.
AVE Santa Clara on 2200 Calle De Luna also includes 15K SF of retail space near several Silicon Valley tech campuses. Designed by BDE Architecture and Groundswell Design Group, amenities will include a two-story fitness center, a dog park, a rooftop garden, fire pits and a pool. Leasing begins in November.
LEASES
The Swig Co. of San Francisco signed more than 38K SF across five leases at 444 Castro St., a 12-story Class-A office building in downtown Mountain View.
- Centers for Medicare and Medicaid Services inked a new 2,300 SF transaction represented by Transwestern.
- Boston Consulting Group renewed a 19,500 SF lease negotiated by CBRE.
- Colliers represented microchip manufacturer MatX in its 10,500 SF renewal.
- Megagon Labs renewed for 4K SF in a deal arranged by Newmark.
- Cushman & Wakefield represented Level AI in its 2,500 SF renewal.
SALES
Fountainhead Development of Fairbanks, Alaska, picked up 795 Folsom St. in SoMa for $46.8M, or $250 per SF, The Real Deal reported. The 187K SF, six-story building is one-third occupied. The transaction represents a decline of more than 57% of its value in 2013 when seller ASB Real Estate of Bethesda, Maryland, bought the property for $110M, or $588 per SF.
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Locally based Ellis Partners and Flynn Properties purchased the 108K SF 631 Howard St. in the South Financial District for $35.6M, about 43% of its value 10 years ago. In 2014, DASB and Atlanta-based Invesco paid $62M for the art deco building, or $570 per SF.
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Boston-based Longpoint closed its first industrial transaction in the Bay Area, a three-building, 122K SF portfolio in Fremont. An unknown seller commanded $31.5M for the portfolio in the heart of Silicon Valley’s advanced manufacturing corridor.
The portfolio’s location near Interstates 680 and 880 and access to the Bay Area’s strong labor market satisfied Longpoint’s strategy of “investing in properties situated within flourishing markets that have long-term value and growth potential,” Longpoint co-founder and Managing Partner Dwight Angelini said in a statement. The firm plans to make future acquisitions in the Bay Area.
FINANCING
Colliers Mortgage California Structured Finance Group is refinancing the old Bayfair Mall at 15555 E. 14th St. in San Leandro with a $33M bridge loan on behalf of owners B3 and Gaw Capital Partners. The nonrecourse loan features a 36-month term with options to extend at a rate of the secured overnight financing rate plus 4%. B3 and Gaw are redeveloping the mall into a mixed-use retail power center and research and development campus.
