We just got off the phone with Paramount SVP of leasing Ted Koltis, who disclosed the back story behind One Market Plaza's makeover and the NYC company's plans to expand in S.F. from more than one property.
Paramount, which has an impressive portfolio of iconic Class A buildings in D.C. and NYC, is now actively looking at a number of opportunities in S.F., Ted tells us (then One Market would have some family nearby to spend holidays with). He explains why now's the right time for a $25M renovation since becoming an owner in 2007: In a nutshell, Paramount thinks One Market is arguably the best located office tower in S.F. But why stop with that title? He also wants to compete for the hottest lobby in town. The '70s era complex was last revamped in 1996 and the lobby needs sprucing. In addition to architectural upgrades, the whole atrium will be activated by injecting 20k SF of new retail. Between existing tenants and public foot traffic, shopping should take off. (We hear Visa's already started to move in under its huge 111k SF lease inked last year.)
Did we mention Bisnow's office sits on an upper floor at One Market? Check out this pic from our office. The first phase of the redo started a few months ago and the makeover won't be fully complete with retail tenants up and running until the end of 2015, he says. Blackstone is following through on its reported plans to buy a 49% stake in the 1.6M SF building, but he can't comment at this time (we hear the deal hasn't fully closed yet). The renovation's goal is to capitalize on Spear Street, or the strip from "the old seedy Market Street" to where he thinks the new CBD is shifting (towards Mission Street and the incoming Transbay District). Retail will line Spear Street. As the starting point of the street, he feels it's Paramount job to step it up.
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