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March 10, 2014
Bisnow Scoop: Salesforce Lease To Double?
We're learning Salesforce's pending lease at Transbay Tower could now be twice as big as originally thought. (Wheaties work even better than advertised.)
Sources tell us the cloud giant could eat up nearly half the office space at the 61-story skyscraper by taking up to 600k SF. Last week we were the first to report that Salesforce was zeroing in on 300k SF at the First and Mission project, which is set to deliver in 2016. The tower still has no signed commitments as of yet, Hines senior managing director Paul Paradis told us late last week. If the company jumps on 600k SF, that means the tower would have 800k SF of office space left to lease up. A marketing office will open next month to attract more prospects.
Also upping Salesforce's popularity and cool factor around town: Founder and CEO Marc Benioff celebrated the company's 15th anniversary on Friday with a free concert in Justin Herman Plaza starring Janelle Monae. (Above, taken from their social media page.) The sea of people on their lunch breaks also gathered for a good cause, collecting and packing 20,000 pounds of food for S.F.-Marin Food Bank and 22,680 meals for Stop Hunger Now. "A perfect birthday!" proclaimed the Tweet. (The question is, who actually went back to work on the perfect 65-degree day?)
More Housing For Silicon Valley
LA residential developer Watt Communities just scooped up a 24.5-acre commercial office site in Silicon Valley. Atalyst Capital Market managing director John Gilchrist says hisinvestment and mortgage banking firm, which has Vegas and S.F. offices, just arranged $80M in financing for the deal, which ended up being in the $80Ms. Plans for the site haven't been released yet, but we do know Watt has been developing planned residential neighborhoods throughout the Western US for more than 60 years.
In December we caught up with Nadine Watt, prez of Watt Cos, who says she's zeroing in on "vacation destination" retail. (We'd be willing to do some research for her.) Also that month home-building arm Watt Communities (one of three biz units of Watt Cos) announced it's re-entering the NorCal region as market conditions improve. The man with more details behind the Silicon Valley acquisition is Watt's Max Frank, but he didn't return our call for comment.
Above, the interior of Watt's 280-unit South City Lights condo project in South S.F., built pre-recession. Now Watt will re-enter the market with three infill projects in Sacramento County. The first is Autumnwood in Citrus Heights, which should see the first of its 46 homes begin construction this summer on a 9.2-acre parcel. This is the first time Atalyst has worked with Watt, but expect to hear their name more this year. Atalyst was formed in July 2013 and has several deals in the pipeline throughout the state, John tells us. Together, its principals have managed and closed over $3.5B in transactions.
LOI At 760 Market
We are hearing there's an LOI for two floors at 760 Market, the iconic 11-story Phelan Building at the junction of Market and O'Farrell streets and Grant Avenue. The Flatiron-style property sits across from the Four Seasons Hotel in the heart of Union Square. There's been 31k SF available with 90 prime feet of frontage on Market Street, according to its leasing page. Thor Equities, a big Manhattan player that also locally owns 152 Geary, says it has no comment at this time.
New Bisnow Education Video!
By popular demand, we've just released a second video we did with Peter Linneman, widely considered the top professor of commercial real estate in the US. This new video is called "Real Estate Finance," i.e., on how you get money to do deals. Although an advanced topic, it's purposely very simple to understand. It's 77 minutes, broken into 5-minute increments, so you can watch or listen as you are waiting in line, or at the gym, or lying in bed. (To each his own.) Click here for the new video and here for the old video.