The team also includes developer James Falaschi, president of Transbay Holding Co. and Cargill Inc. The plan is to add 320,000 sf of office, 124,000 sf of retail and 24,000 sf of restaurant space, plus a 250-room hotel and 1,600 parking spaces. Phase two of the project will occupy and 8-acre waterfront parcel where a parking lot and a privately owned shopping complex now stand.
Formally known as Jack London Square Partners, the development team entered negotiations with the Port in December after failure by the port and LCOR/WDG Ventures to come to an agreement on the financial arrangements.
The final agreement between the partners and the port calls for a series of ground leases for various parcels, according to Omar Benjamin, the port's director of real estate. New construction could begin anywhere from 9 months to two years depending on the responses of the various agencies involved in any waterfront project.
The port and the developers estimate the expansion will generate 3,700 jobs, $17 million in local and state taxes and $180 million in business. The existing project generates $85 million a year. The port is slated to contribute $10 in infrastructure improvements toward the expansion.
According to a management report the existing office space is 100 percent leased and the retail space is about 89 percent leased. Retail rents average $1.80-$190 sf per month with most leases running for five years.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
