Maybe it is the attraction of having the
Golden State Warriors as a future neighbor, but commercial real estate in Mission Bay is suddenly as hot as
Stephen Curry on a shooting streak.
Kilroy
Realty Corp., which is already building new homes South of Market for
Salesforce.com and Dropbox, has shelled out $95 million for a 3.1-acre
site in Mission Bay, the 300-acre, burgeoning biotech, medical and
tech-centric neighborhood springing up on former Union Pacific rail
yards south of AT&T Park.
The project is the largest remaining
commercial development opportunity in the neighborhood and will allow
Kilroy to build a 680,000-square-foot campus. The entire project,
including the land purchase, will cost $450 million.
Warriors' land deal
The
deal comes two months after the Warriors said they had purchased a
12-acre Mission Bay site and would construct a 18,000-seat basketball
arena in the neighborhood. The seller was Salesforce, which had
originally planned to build a 2 million-square-foot campus there, but
ultimately decided to expand in the south Financial District.
The
Warriors' announcement, while cheered by activists who were opposed to a
previous arena plan for Piers 30-32, essentially took 1.6 million
square feet out of Mission Bay's development pipeline. The last
remaining parcel in the neighborhood is the final piece of the
Salesforce property, which is entitled for 450,000 square feet of office
space. That property is being marketed by CBRE, which handled the
Kilroy deal and will almost certainly sell this summer.
Company CEO
John Kilroy Jr. called Mission Bay "San Francisco's most popular new live-work-play neighborhood."
The
site sits at the southwestern edge of Mission Bay, to the west of
UCSF's $1.6 billion hospital, which will open in 2015. While the land is
removed from the waterfront, Kilroy officials said its proximity to the
Mission and Potrero Hill would make it attractive to the young tech
workers residing in those neighborhoods. The parcel, known as Block 40,
borders 16th Street, which connects Mission Bay to those neighborhoods.
 |
| Steven Johnson, who lives in the Mission Bay neighborhood, walks along
Fourth Street as he carries his dog Lena, as they walk past signage on a
storefront for The Market Hall on Friday, May 23, 2014 in San
Francisco, Calif.
Photo: Lea Suzuki, The Chronicle |
2 phases of work
The
price translates to $140 per buildable square foot, which exceeds what
Kilroy paid for its two other development sites. A property at 350
Mission St., the future Salesforce building at the
Transbay Terminal,
cost $130 per buildable square foot. The site at 333 Brannan St., which
Dropbox had preleased, cost $120 per buildable square foot.
The
project will be built in two phases, with the first phase of
construction expected to begin early next year. The LEED-Gold designed
project will include two six-story and two 12-story office buildings.
Kilroy,
while based in Los Angeles, has been San Francisco's most aggressive
office developer since 2010, when it bought 303 Second St., formerly
known as Marathon Plaza. Kilroy also owns 100 First St. and 370
Third St.
 |
| Pierre LeDuc, Bimma Loft creative director, stands in his store which is
on the ground floor of a building across from the the Mission Bay
construction project which burned in a fire on Friday, May 23, 2014 in
San Francisco, Calif. Bimma Loft opened it's store on March 10, 2014
and the fire occurred the next day on March 11, 2014.
Photo: Lea Suzuki, The Chronicle |
Article and Photos Sourced From:
http://www.sfgate.com/bayarea/article/Major-development-deal-for-Mission-Bay-in-SF-5523124.php
