SAN FRANCISCO-In earlier story, GlobeSt.com reported that 995 Market St. was acquired by 995 Market Street SF Investment LLC, a joint venture between Columbia Pacific Advisors, based in Seattle and San Francisco-based Long Market Property Partners. According to Newmark Knight Frank Cornish & Carey Commercial capital group managing director Kyle Kovac, who represented the buyer with executive managing director Daniel Cressman and managing director Mike Taquino, there has been a surge of activity in the area as of late.
Twitter's 215,000-square-foot commitment to Shorenstein's 1355 Market St. in April of 2011 prompted a surge of growth and activity in the area. “We are seeing tangible evidence of the mid-Market transformation almost weekly with high-profile tenants, landlords, and developers all committing to the neighborhood,” Kovac says.
995 Market Street is located within the Payroll Tax Exclusion zone, and benefits from the economic incentive plan implemented by the city of San Francisco in 2011 to attract tenants to the mid-Market area. Under the plan, new company hires are exempt from payroll taxes, according to a statement.
“It's the latest piece of good news in San Francisco's mid-Market corridor where as recently as 2010 vacancy was as high as 40%,” says Cressman. “There is a significant opportunity here for established or growing tenants to create an identity in the city's fastest growing submarket.”
The NKFC&CC capital group just closed on the sale of 330 Townsend St. in the South of Market Area for ATC Partners and 2155 Webster St. in Pacific Heights for the University of the Pacific. CIM Group paid an undisclosed amount to purchase the 61,000-square-foot property, which is 98% leased to an assortment of creative and professional service firms.
“Low vacancy rates affirm that SoMa is San Francisco's most popular office submarket, and 330 Townsend offers one of the best locations and space configurations in the area,” says Kovac.
Tenants in the mid-Market corridor, such as Dolby Sound, Benchmark Capital, Square, One Kings Lane, WeWork and Spotify have all settled in, joining 995 Market St.'s 20,000-square-foot anchor tenant Black Rock City, the corporation behind the Burning Man Festival. Additionally, Market Street Place, a 250,000-square-foot anchor retail project located at 965 Market St., will be a vibrant consumer destination when construction is completed in 2015, according to a prepared statement.
For the Market Street Place project, demolition crews are now beginning to prepare for construction at the site. Market Street Place will be a six-level, urban retail redevelopment project featuring an exterior façade of translucent glass that will serve as a window into the shopping experience inside. A creation by Gensler's San Francisco architectural team, the design provides for enhanced streetscape improvements around the building, prominent street presence for retailers and a large, open floor plan with clear heights up to 17 feet on the ground floor, according to a statement. The planned interior finishes include natural stone, glass wall systems, stainless steel accent finishes, progressive lighting, and creative art installations to foster a welcoming environment for the diverse community. According to Chris Maguire, CEO of Cypress Equities, which is co-developing the site with the Carlyle Group, “Market Street Place is an important step forward in the renaissance and transformation of San Francisco's most public thoroughfare.”
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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.
