SAN FRANCISCO-The Sobrato Organization, a developer of facilities for high technology companies, has teamed with San Francisco-based mixed-use property developer, TMG Partners, to acquire 500 Terry Francois, a class A office space located on the waterfront in Mission Bay. GlobeSt.com has learned that the purchase price was $91 million.
This is the first formal association between the two real estate companies and will be Sobrato’s first acquisition in San Francisco. According to a prepared statement, this “leverages the firm’s long-term relationship with TMG.”
The six-story, 291,000-square-foot “green” building is in a campus-like setting in Mission Bay, known as the current hotbed for the biotech industry and now the future home of Salesforce.com’s 2.5-million-aquare-foot campus, according to a prepared statement. TMG will advise and provide leasing, management and advisory services for this asset to Sobrato.
Lionstone is the seller of 500 Terry Francois. TMG earlier purchased 208 Utah from Lionstone in Q4 2010. Colliers International’s Frank Wheeler represented the seller, along with Tim Maas, Tony Crossley and Erik Hanson.
“While we inherently understand the valuable intrinsics in the San Francisco commercial market—and specifically Mission Bay—the opportunity to associate with a San Francisco-based developer as experienced as TMG made tremendous sense as we decided to pursue this opportunity,” says John Sobrato, CEO of the Sobrato Organization. “TMG is not only a leading developer, but has been extremely active in San Francisco throughout the real estate cycle and we are confident our complementary strengths will ensure the successful leasing of the project.
The Sobrato Organization has developed many of Silicon Valley’s largest campuses such as Apple’s 856,000-square-foot headquarters in Cupertino, Nvidia’s 500,000-square-foot headquarters in Santa Clara, and Siebel System’s 450,000-square-foot former headquarters in San Mateo now occupied by Oracle.
“We further believe the trend of Silicon Valley tenants wanting to have a major presence in San Francisco will continue and we want to be there to accommodate their growth,” adds Sobrato. “That is the primary reason we wanted to expand our holdings to San Francisco.”
The Sobrato Organization has selected Cornish & Carey Commercial Newmark Knight Frank to market the property for lease. According to a prepared statement, “This property represents a rare opportunity for a single tenant to lease a large block of premium space in the city.”
Donnette Clarens and Mike Brown of Cornish & Carey Commercial Newmark Knight Frank’s San Francisco office, together with Jack Troedson of the firm’s Palo Alto office comprise the 500 Terry Francois Boulevard listing team. “We feel very fortunate to have been chosen as the listing agent for one of the most desirable properties in San Francisco,” says Cornish & Carey Commercial Newmark Knight Frank senior vice president Donnette Clarens. “500 Terry Francois Blvd. is a newly constructed building strategically located in San Francisco’s center of technology and research and development. We are confident that this property will soon house one of the Bay Area’s technology giants.”
500 Terry Francois Boulevard is one of the few properties in San Francisco that offers a large block of contiguous space for lease, according to the firm. “Currently, only seven buildings in the city offer leasing opportunities of 250,000 square feet or more. Only four of those buildings are located in the technology-centric SOMA, or South of Market area, of which Mission Bay is a submarket.”
The Cornish & Carey Commercial Newmark Knight Frank listing team plans to market the unique, full building occupancy opportunity primarily to companies in the technology sector either already located in San Francisco or Silicon Valley or those looking to re-locate from out of the area.
Construction on 500 Terry Francois Boulevard was completed in 2008. “Sobrato has built an extremely loyal tenant base,” Clarens says. “The firm prides itself on cultivating enduring relationships with its tenants, responds nimbly to any issues, and maintains the highest of property management standards. San Francisco is lucky to have Sobrato as a local landlord.”
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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.
