SAN FRANCISCO–An office development site at 505 Brannan St. was acquired by TMG Partners and Alexandria Real Estate Equities Inc. in a joint venture. The site is fully entitled, complete with Prop M office allocation secured during late 2014. Terms of the transaction were not disclosed for the 135,000-square-foot development project.
Matt Field, chief investment officer with TMG Partners, tells GlobeSt.com:
“We foresee this to be a great project that will enjoy strong demand due to the density of surrounding amenities of transit, retail and nearby residential. The project will benefit from our joint venture with Alexandria Real Estate Equities Inc., allowing both of us to deploy our complementary skill sets in the SOMA area.”
One of the most active developers in this area in the last decade, TMG has developed a variety of office, retail, residential and industrial properties, ranging from office campus and multi-story properties in urban, infill locations to mixed-use retail and single-story suburban buildings.
The mixed-use property developer has developed more than 23 million square feet of property throughout the San Francisco Bay Area.
“The project has everything tenants are looking for–large floor-plates, a side core design, surrounded by residential and retail amenities–and has great transit access with the Caltrain station a block away and a new Central Subway stop less than half a block away,” continues Field.
Alexandria is a developer of urban science and technology campuses, and a fully integrated, self-administered/managed REIT with a total market capitalization of $11.3 billion and an asset base of 30.7 million square feet. Alexandria has established a dominant market presence in locations including Greater Boston, the Bay Area, New York City, San Diego, Seattle, Maryland and Research Triangle Park.
“Alexandria's highly successful Mission Bay-SOMA cluster—comprised of 980,000 square feet of operating properties—is 100% leased predominately to investment grade tenants and its near-term development pipeline comprised of 723,000 square feet is also 100% leased to high quality disruptive technology companies,” said Stephen Richardson, Alexandria's chief operating officer and regional market director, San Francisco. “We are very enthusiastic to continue partnering with such client-tenants and believe 505 Brannan will be highly desirable.”
Just last week, TMG, in partnership with Farallon Capital Management, sold a 385,000-square-foot office campus in Mountain View to Samsung. Also last week, Alexandria announced its 300,000-square-foot lease in San Francisco to Stripe.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
