This Week’s Bay Area Deal Sheet
The San Francisco Baking Institute is heating things up in San Francisco. Last week, an affiliate of the school led by French pastry chef Michel Suas acquired a 1-acre parcel occupied by the famed Phoenix Hotel for $9.1M.
The seller was Ziegler Family Trust, which put 601 Eddy St. on the market for $15M in January, the San Francisco Chronicle reported.
The Tenderloin hotel has a 40-year land lease expiring in 2025 and plans for business to continue as usual until then.
In June, an LLC of the school also purchased a 20K SF SoMa building occupied by the California Historical Society for $6.7M.
LEASES
As it prepares to be acquired by software giant SAP, Israeli tech firm WalkMe plans to downsize into 18K SF of sublease space at Salesforce’s 350 Mission St. tower in San Francisco.
The software company will relocate to the 26th floor of the Salesforce building this fall, after leasing about 40K SF at 71 Stevenson St., according to the San Francisco Business Times.
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Irvine Co. signed two lease transactions in Silicon Valley. In Santa Clara, venture capital firm LG Technology Ventures inked a new 11K SF lease at 2755 Great America Way in the Santa Clara Gateway building.
Futurewei Technologies renewed its 18,800 SF deal at 2560 N. First St. in San Jose at Silicon Valley Center.
SALES
A Millbrae company is the new owner of a 132K SF Hayward warehouse at 2376 Davis Ave. TPM Davis LLC picked up the asset from CenterPoint Properties Trust of Illinois for $34.7M, or roughly $233 per SF, the San Francisco Business Times reported.
CenterPoint bought the property in 2020 for $25.5M.
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Orange County-based Klein Investments Family LP acquired San Jose’s Silicon Valley Innovation Hub for $81.5M from Cannae Partners and Blue Vista Capital Management. Merck is the sole tenant of the 146K SF property at 3011 N. First St. in San Jose.
Colliers International represented the buyer, and Newmark negotiated on behalf of the seller.
DEVELOPMENT
McCarthy Building Cos. celebrated the opening of a new six-story student housing project with more than 700 beds on Wednesday at San Francisco State University. The new residence hall is part of an affordable student housing program that offers students a 25% reduction in room fees.
In collaboration with EHDD Architecture, the new first-year residence hall “addresses the critical need for affordable student housing and was brought to market with remarkable speed and efficiency,” according to a press release from McCarthy.
West Grove Commons marks the first project to be completed under the California Affordable Student Housing grant, with the housing portion wrapped up in 23 months.
