This Week's Bay Area Deal Sheet
Law firm BakerHostetler renewed its lease for 7.9K SF on the 31st floor of San Francisco’s iconic Transamerica Pyramid at 600 Montgomery St. The five-year renewal provides the Cleveland-based firm the option to expand into adjoining space that would allow it to double in size.
Robb Adkins, a managing partner at BakerHostetler, said in a release the lease will enable the firm to grow, attract talent and serve its clients in the Bay Area.
BakerHostetler has been in the 48-story office tower since 2020, when it launched its San Francisco office, and since then the office has more than quadrupled in size to about 20 attorneys.
Michael Shvo, chairman and CEO of luxury development firm Shvo, acquired the Transamerica Pyramid for $650M in 2020. The firm has since committed $1B to renovate the asset, as well as 505 and 545 Sansome St., and restore the nearby Transamerica Redwood Park.
“We’re proud that firms like BakerHostetler, which represent quintessential California industries, continue to choose the Pyramid as their home and gateway to the West Coast," Shvo said in a press release.
SALES
A 90.5K SF mid-market office building sold at auction for $6.5M, or about 10% of its last purchase price. LNR Partners, an affiliate of Starwood Property Trust of Miami, acquired the 16-story Hewes Building at 995 Market St. from New York-based Bridgeton Holdings, according to the San Francisco Business Times. The acquisition amounts to $72 per SF.
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An undisclosed private buyer has acquired a 35-unit multifamily community in Concord for approximately $9.2M. CBRE’s Keith Manson, Zachary Greenwood and Mac Watson represented the seller, whose name was also undisclosed. Built in 1966, the 25K SF California Villas at 1621 Detroit Ave. has 23 one-bedroom units and 12 two-bedroom units.
FINANCING
Gantry has arranged a $14M permanent loan to refinance a cross-collateralized pair of flex-industrial assets totaling 60K SF in Silicon Valley. Both of the multitenant properties are fully leased at 1250-1252 Borregas Ave. in Sunnyvale and 161 E. Evelyn Ave. in Mountain View.
LEASING
The San Francisco Chamber of Commerce signed a 3.5K SF lease to open a ground-floor coworking space, event space and Red Bay Coffee shop as the HQ for the Yes San Francisco Urban Sustainability Challenge. The Yes SF HQ will take advantage of legislation that allows office space on the ground floor in downtown as long as it is paired with a retail, food and beverage, or entertainment use. The space will open this fall.
PEOPLE
Industry veteran Bryan Courson has been appointed executive managing director and brokerage market leader of Colliers' Silicon Valley and San Francisco Peninsula operations. Most recently, he was an executive managing director at Newmark in the Bay Area. In his new role at Colliers, Courson will oversee all brokerage operations, business development, talent recruitment and retention in Silicon Valley and the San Francisco Peninsula.
