SAN FRANCISCO-DivcoWest and TMG Partners, one of the San Francisco Bay Area’s largest mixed-use property developers, have completed their sale of 1275 Market St., a 16-story office tower strategically located in San Francisco’s booming Mid-Market technology neighborhood.
The building was sold to Dolby Laboratories Inc. for $109.8 million or approximately $310 per square foot. GlobeSt.com first reported on the news in June, and pointed out that according to Kevin Yeaman, president and CEO of Dolby Laboratories, the investment will support the company’s current needs and future growth. He said it would “foster a collaborative environment and will help attract and retain the best employees.”
The two San Francisco-based real estate investment companies have jointly owned the building, built on Market Street between 8th and 9th streets in 1977, since October of 2011. An unidentified source previously told GlobeSt.com that the JV purchased the property in 2011 for $44 million.
1275 Market is situated near where Twitter recently relocated this past month.
Dolby’s current base of operations is in San Francisco’s Potrero Hill neighborhood. DivcoWest founder Stuart Shiff says in a prepared statement that his firm’s investment has been a win-win-win for investors, the City of San Francisco and Dolby Laboratories. “We have all been rewarded for our mutual belief in the future of the Mid-Market neighborhood as an emerging technology center for the Bay Area.”
According to a prepared statement, Dolby is believed to plan to fully occupy the 354,000-square-foot building, which can accommodate approximately 1,000 employees. The company was chosen last month by Microsoft Corp. to provide audio for its Windows 8 software when the package is released later this year.
“Dolby Lab's purchase speaks to the heightened interest among a widening range of corporate users in the city's revitalized Mid Market and has been a wonderful solution for tenants seeking large blocks of ‘creative’ space,” Jones Lang LaSalle San Francisco research manager, Julia Georgules, previously told GlobeSt.com. “Twitter, One Kings Lane and Yammer have already committed to Mid Market and Dolby's action builds upon the high tech industry's concentration there as Mid Market becomes one of the city's newest and most vibrant office submarkets.”
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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.
