This Week's Bay Area Deal Sheet
Hayes Valley, your wait is finally over. After more than four years, Trader Joe’s has opened its doors at 555 Fulton St. The popular grocery chain will occupy 12,900 SF on the ground floor of the 139-unit condo building, according to the San Francisco Business Times.
Chinese developer Z&L Properties sold the commercial space to Fulton Retail DE1 LLC, an affiliate of Avery Bays Real Estate, for $7.2M last September. An affiliate of Avery Bays also picked up 18 of the property’s residential units in May 2023.
The sale of the commercial portion of the asset in October 2023 would enable Trader Joe’s to finally open its doors in Hayes Valley, David Long told the Business Times.
CONSTRUCTION AND DEVELOPMENT
Sares Regis Group of Northern California completed construction on a transit-oriented project called the Celeste. The 195-unit market-rate residential development in downtown South San Francisco is adjacent to the city’s Caltrain station.
The developer said nearly 50% of the units have been leased at the eight-story at 401 Cypress Ave. building.
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In Santa Rosa, McKellar McGowan Real Estate Development and the RED Housing Fund delivered a 100% affordable housing project on May 8. The property, Aviara Apartments, is at 1375 W. College Ave.
SALES
In a trade valued at more than $850 per SF, venture capital firm Thrive Capital acquired a vacant building at 451 Pacific Ave. in Jackson Square. According to the Business Times, Thrive plans to open a new office at the three-story, 10,300 SF building that served as a firehouse in the early 1900s.
LEASES
General Motors expanded into 50K SF at 1330 Terra Bella Ave. in Mountain View.
Workers in the office will focus on systems engineering, artificial intelligence, and machine learning and design, GM said in a social media post.
GM’s lease on about 27,500 SF at 220 Portage Ave. in Palo Alto expires at the end of May, and employees have started transitioning to GM’s new tech hub in Mountain View.
The auto manufacturer also occupies 20K SF at 955 Benecia Ave. in Sunnyvale, which will remain open for now.
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Jagalachi, a large Korean grocery chain, plans to open later this year at the former JCPenney store at the Serramonte Center mall in Daly City. The 75K SF store will also have a bakery, seafood market and restaurant, according to the San Francisco Chronicle.
