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Swig Lands Full-Building Replacement for Bank

SAN FRANCISCO-California Pacific Medical Center leases a 171,000-sf building here that Wells Fargo is vacating at the end of the month.

By Brian K. Miller | Updated on January 08, 2008

SAN FRANCISCO-A 171,000-sf office building here being vacated by Wells Fargo at the end of the month has been scooped up by the city’s largest hospital, California Pacific Medical Center, which signed a 10-year lease for the entire building. Built in the mid-1960s at 633 Folsom St. and renovated twice in the 1990s, the seven-story structure is owned by Swig Co., a locally based real estate company.

CPMC says it will begin moving some of its administrative operations into the building early this year. While the negotiated lease rate was not disclosed local industry sources tell GlobeSt.com that CPMC likely received a break from the asking lease rate of $45 per sf per year because it will occupy the space largely as is, saving the building owner the cost of tenant improvements, which are typically built into the asking rate. At $40 per sf, the value of the lease would be approximately $68 million.

The lease is related to CPMC’s effort to comply with state seismic requirements by 2013. A CPMC source tells GlobeSt.com that the lease will allow the hospital to consolidate a good portion of its administrative operations in a single building while also freeing up other locations for redevelopment.

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