January 13, 2015

One Sansome Adds More Tenants,
Now Leased Up

Here's what made the 43-story tall drink of water so attractive to so many tenants, including two that just snapped up the last space available.

This month we reported on Wish's mega 54k SF lease inked at One Sansome, and now we've learned there's no more room in the 587k SF building. Landlord Barker Pacific Group (BPG) has the tower fully leased after signing two more leases, managing director Michael Barker (here on a hike in Southern Utah) exclusively tells us. Sotheby's has leased 2,540 SF on the sixth floor and Capsilon Technologies leased about 5,600 SF on the seventh floor. Michael says the building embodies what the new S.F. represents: a meld of innovative tech companies and established long-standing powerhouses. CBRE reps the landlord and had a stellar 2014, filling up the building fast. Wish will occupy this spring, he says.

When Citibank downsized at One Sansome, he dumped millions inside and renovated floor by floor (leases and renewals followed). Wish will also occupy the penthouses that have sat empty for 20 years, so Michael plans to install two new elevators for access. Wish will get some of the "most dramatic space" in S.F. (check out the view, above), he says. Two months ago, One Sansome was the first major building in the US to get LEED Version 4 Platinum status. He's not stopping there and is in the process of modernizing its building management systems even more.

Michael is no stranger to filling big holes left behind. When Disney shut down at Barker Pacific's Novato campus four years ago, he lured in an assortment of new tech tenants craving Hamilton Landing's creative layout. He gave us an update on the project: He still has "a ways to go there" before the 403k SF campus is full, but says the site managed to capture strong absorption in Marin County last year.

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Sneak Peek at Condo Report

This week Jackson Fuller unleashes its S.F. condo report with stats for each of S.F.'s 80-plus neighborhoods. Here's Matt Fuller, a Zephyr agent and Jackson Fuller co-founder, multitasking by poring over figures and pet sitting. The second annual real estate report looks at five key metrics for both single-family homes and condos. In 2014, condos sold for an average of 6% over their asking price, up from about 5% in 2013. And though the median sales price for a condo hasn't yet broken the $1M mark, it's getting close. The median sales price in 2014 was $956k -- up from $670k in just five years, he notes. 

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Concern: Not a Lot on the Sales Block

The lack of for-sale signs in front of commercial office buildings these days is worrying some brokers, marking a weak start to 2015 activity in the city. One investment sales broker tells Bisnow it's definitely an issue, though more so at the high end of the market. Last year there were a lot of trades and usually that exhausts the supply of sellers, he says. Most groups that buy in S.F. are long-term holders so when a large amount of product trades, it takes a while for the next batch of sellers to emerge. 2014 will be hard to beat: there were 50 office sales that closed for a total of $5B, according to Colliers.


Closed: 731 Market

Last month Bisnow broke the story about Jamestown scooping up 731 Market for more than $700/SF, and now the deal has officially closed. We exclusively confirmed the 92k SF building ended up trading for $706/SF, which is higher than has been reported. The Atlanta-based investor has been active in that part of town, filling 799 Market with techies last year and selling Pacific Place at 4th and Market in June to JP Morgan, unloading the property after a 10-year hold. 731 is 100% leased to eight tenants, including Stitch Fix, Liftopia and CVS Pharmacy, which anchors the ground floor through January 2031. JLL marketed the property, which Jamestown president Michael Phillips says is attractive to today's workforce because of its history and design, along with its convenient location.

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Don't Miss Our State of the Market Event

What better stocking stuffer than a ticket to our 4th Annual State of the Market event? It goes down Jan. 20 at the S.F. Marriott Marquis, at 8am. Heavy hitters on the panels include Kilroy CEO John Kilroy, AGI Capital president Eric Tao and Emerald Fund chairman Oz Erickson. With development in full force in the city next year, now's the time to get an update on whether we're still on the upswing and how restrictions like Prop M may limit new projects. Don't wait, register now!

Tell Us

First to tell me about a recently closed deal gets a free State of the Market ticket! tierney.plumb@bisnow.com