SAN FRANCISCO-ADCO Group, a privately owned US real estate and merchant banking company led by its Chairman, Alvin Dworman officially revealed that a fund managed by Shorenstein Properties LLC has acquired the property in San Francisco known as Market Square, a rumor that has been circulating for week’s as GlobeSt.com previously reported. Although sources involved in the deal would not reveal the sales price, an unidentified industry insider tells GlobeSt.com that is it approximately $124 per square foot, placing it just around $110 million.
ADCO will retain a continuing economic interest in the property, according to a prepared statement. “Plans for the renovation of this landmark building are in place and the Shorenstein team is proceeding immediately,” says the release.
Market Square is a historic, multi-use facility with a full block front of retail and high-tech commercial space in San Francisco. Eric Grossberg, managing director of ADCO, says that “ADCO is very pleased to pass the baton to Shorenstein, one of the nation’s premier real estate organizations, whose development plans and long-term ownership philosophy align closely with those of ADCO.”
Grossberg adds that “Shorenstein respects our 43-year ownership of this building and shares our vision for the future of Market Square and the surrounding neighborhood. We look forward to working together with them for many years to come.”
The 1.09 million-square-foot property will be fully upgraded into a class A office facility with retail amenities and will be an anchor for the revitalization of the Civic Center. With large floor plates, high ceilings, magnificent art deco features, underground parking and easy access to public transportation, Market Square will offer an appealing new option for a variety of tenants.
“Plans for the renovation of this landmark building are in place and the Shorenstein team is proceeding immediately,” says Grossberg. Market Square will be environmentally friendly and is expected to receive LEED Gold certification.
ADCO acquired the building, located at 1355 Market St., in 1968 and preserved and repositioned it as a multi-use development ready to serve the up and coming Civic Center area in 2008. ADCO determined, at the time, that transitioning the property into mixed-use would better serve the neighborhood. According to Roseann Carini, general manager of San Francisco Mart at the time, they wanted to “create a campus that will become a centerpiece of the developing residential community around us. Our vision for Market Square is a destination where people not only work in a first-class office environment, but can grab a bite to eat, relax in the public space, and run their errands at the shops all under one roof.”
According to the unidentified source that GlobeSt.com spoke with, the building may serve as the new Twitter headquarters, however those involved in the deal had no comment on that front. Twitter’s current home is in SOMA. As GlobeSt.com previously reported, in early 2010, the internet company doubled the size of its corporate headquarters at 795 Folsom St., with its second major lease expansion in two months. Twitter’s $3 million, 41-month lease for the entire third floor of the Westcore Properties-owned building at the 187,202-square-foot was in addition to a sublease it signed just in October 2009 for the entire sixth floor of the building. At the time, the company needed space to accommodate its growth efficiently, while at the same time maintaining a central San Francisco location.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
