Ironwood is currently located at 201 Spear St. The relocation to Steuart Tower will occur in April 2007, after tenant improvements are complete. The seven-year, 16,264-sf lease is valued at $7.62 million, which translates to an average annualized lease rate of just under $67 per sf.
"There is very limited inventory of view space available in San Francisco, making this Steuart Tower location a very hot property," says Ironwood's broker, Bradley Colton of Charles Dunn Co. "Within the Steuart Street building, this was the only floor with a view available for the next three years."
Ironwood Capital wanted the space for the view, plus the image and prestige it would bring to the company. Colton says there was fierce competition for the space from existing One Market St. complex tenants. It took nine months to negotiate the terms of the lease and convince EOP to choose an outside company over those already located on the property, he says.
There are only two spaces in Steuart Tower being marketed for lease by EOP on its website--a 5,800-sf space on the 14th floor and a 6,200-sf space on the 10th floor--and only the 10th floor space is immediately available. The other isn't available until January.
In February, Standard & Poor's renewed its lease for the 15th floor of Steuart Tower. The 7.5-year lease commences at the end of the year. S&P has leased the space since 1998.
In April 2005, the law firm of Sedgwick, Detert, Moran & Arnold signed a long-term lease for most of the fifth through eighth floors in the building. Including renewal options, the lease runs through 2018.
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