Located directly above the 12th Street BART station, City Center is a 3.5-million-sf mixed-use development with office space, 18 eateries, a dozen retail shops and services, an athletic club and parking for 2,840 vehicles. The new building will replace a full-block parking lot bounded by Martin Luther King Jr. Way and 11th, 12th and Jefferson streets.
Shorenstein EVP Tom Hart tells GlobeSt.com that the company's impetus includes the growth needs of its existing tenants as well as some interest from large users not already in the market. "Our experience has been that some San Francisco tenants will look at the Oakland marker for economic rents and to locate more centrally in the Bay Area from a transportation standpoint," he says. "While we always look for some kind of anchor tenant, right now we are contemplating building this project on spec."
The venture will be owned and operated by one of Shorenstein's real estate investment funds and MetLife Real Estate Investments. Shorenstein Co. will provide leasing and management services.
The partnership's plans call for construction of a building that can achieve LEED certification from the US Green Building Council. The building is being designed by Ted Korth of the architectural firm Korth Sunseri Hagey.
The estimated cost of construction was not provided by the parties involved. Local source tell GlobeSt.com that it likely will be in excess of $200 million or $400 per sf.
Shorenstein has been actively planning to develop the site for the site for the past three years. The company originally planned to build office space, switched to condos and now is back on the office track. The company has a option for one other site at City Center, but no plans as yet.
Across the Bay, Shorenstein is under construction at 409-411 Illinois St. in Mission Bay for a five-story, two-building 450,000-sf office development. The project is 50% preleased by Fibrogen. Shorenstein also is negotiating with the city for a possible mixed-use development on Piers 27-31.
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