SAN FRANCISCO-As GlobeSt.com previously reported, less than two months after the project groundbreaking, Kilroy Realty Corp. signed a 12-year lease with cloud storage and data-syncing leader Dropbox for 100% of the real estate investment trust's 182,000-square-foot, office property currently under construction in San Francisco's South of Market district. In an updated to that story, GlobeSt.com spoke with one of the attorney's on the deal, who noted that the transaction had several interesting legal and business twists.
Allen Matkins' partner Tony Natsis and associate Liz Wilgenburg represented Kilroy and David Kremer of Shartsis Friese LPP represented Dropbox in the leasing of 333 Brannan. Natsis tells GlobeSt.com that the transaction required “some careful structuring to make sure that the use of the premises would dovetail with the use of the premises of the adjacent building to the extent that the tenant also leases such building.”
According to Natsis, it also required some “thoughtful solutions to issues that are germane to a swiftly growing tech company with a high occupancy density that will no doubt launch an extremely successful IPO in the near future.”
333 Brannan St. will be the second ground-up LEED Platinum office development project in San Francisco with the first being the company's 30-story tower leased to salesforce.com at 350 Mission St.
The negotiation of the transaction, Natsis explains, was highly compressed. He tells GlobeSt.com that the deal took approximately 30 days and “required the creativity and constant attention of the officers of both Dropbox and Kilroy Realty Corp.”
As GlobeSt.com previously reported, the six-story brick and concrete building will feature large, efficient, open floor plates, abundant natural light, 100% outside air capability, and a large roof-top garden and roof deck. Among the cutting-edge sustainability attributes of the William McDonough + Partners design are onsite power-generation and a rainwater reclamation system expected to reduce energy usage by approximately 26% and water usage by 45% compared to a typical building of its size.
CBRE facilitated the transaction, led by Tim Kazul, Luke Ogelsby and Laurence Morgan representing the tenant and Phil Tippett, Cori English and Sherman Chan representing the 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.
