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SAN FRANCISCO | 88 Bluxome Street | 628 + 558 FT | 58 + 51 FLOORS

At approximately 1 million sq ft, this will be one of the largest projects in the new Central SOMA district. Besides 833,000 sq ft of office space, it will contain 100 units of adffordable housing, 24,000 sq ft of ground floor retail/restaurant space, 9,500 square feet of ground floor production distribution and repair (PDR); and a basement garage for 171 cars. It will also have twelve (12) new tennis courts featuring 35-foot ceilings and all-new club facilities for the San Francisco Tennis Club in its basement.

https://iwamotoscott.com/thumbs/proj...-1600x1111.jpg

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https://iwamotoscott.com/thumbs/proj...m-1600x915.jpg

https://iwamotoscott.com/thumbs/proj...m-1600x900.jpg

https://iwamotoscott.com/thumbs/proj...-1600x1231.jpg
Above images: https://iwamotoscott.com/projects/bluxome

http://www.socketsite.com/wp-content...18-Section.gif

Replaces:

http://www.socketsite.com/wp-content...-Club-2018.jpg
Above 2 images: http://www.socketsite.com/archives/2...-revealed.html

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Pinterest inks huge lease in SoMa at proposed 1 million-square-foot office campus
By Fiona Kelliher – Real estate reporter, San Francisco Business Times
Mar 20, 2019, 10:12am PDT Updated a day ago

Social media website Pinterest Inc. has signed a 490,000-square-foot lease in a proposed office complex in Central SoMa as the company's potential IPO edges closer.

The deal is the biggest commercial lease so far this year, and the biggest in San Francisco since Facebook signed a 755,900-square-foot lease in May for the entirety of Park Tower. It's the second time in recent months that a major tech company has signed a lease for a building that is not yet approved. Salesforce in November pre-leased 325,000 square feet at 550 Howard St., which is slated to be the last major skyscraper to rise in the Transbay district. The leases show that tech companies are so hungry for space that they are willing to do deals well ahead of construction starting on a project.

Developers Alexandria Real Estate Equities, Inc. (NYSE: ARE) and TMG Partners are developing 88 Bluxome St., which will include about 1 million square feet of office space when it's completed.

With this lease signed, Pinterest will serve as the campus' anchor tenant . . . .

https://www.bizjournals.com/sanfranc...eXJQU29NIn0%3D

These are really nice renderings! It will definitely make the area look a lot nicer. Also, I'm pretty sure Pinterest has office space just a block away from this location

I usually park across the street from the tennis club for Giants games haha. Hopefully they don't increase the parking prices once this is completed...

Great addition and replacement. Love the contrasting facades of dark to light. Also the square stone facade to the vertical metal. A+

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The Next Major Development Slated for Approval in SF
June 28, 2019

Plans to level the 41-foot-tall San Francisco Tennis Club at 645 5th Street and build up to 243 feet in height upon its 2.6-acre Central SoMa site are slated to be approved by San Francisco’s Planning Commission in two weeks time.

In addition to over 840,000 square feet of new office space to be developed in two phases, with the westernmost building first, the proposed “88 Bluxome” Street development would yield over 16,000 square feet of retail/restaurant space and 8,000 square feet of space dedicated to production distribution and repair (PDR), with a basement garage for 163 cars and 318 bikes, a nearly 30,000-square-foot community/recreational center to be dedicated to the City’s Recreation and Parks Department, a 4,600-square-foot child care center, and an all-new private tennis club with (12) tennis courts hidden underground.

If approved, the development team of Alexandra Real Estate Equities and TMG would also dedicate the air-space above the mid-block community center to the Mayor’s Office of Housing for the City’s future development of an inclusionary housing project with up to 118 below market rate units and construct a 13,000 square foot public park along Bluxome Street (the “Bluxome Linear Park”).

Prior to breaking ground, the project team has committed to securing a site for a temporary indoor tennis club to be located for three to five years during the construction period of the project . . . .

https://socketsite.com/archives/2019...-approval.html

Quote:

Pinterest's new SoMa home seeks approvals, office allocation
By Fiona Kelliher – Real estate reporter, San Francisco Business Times
4 hours ago

On Thursday, the developers will . . . ask for allotment of the first phase of office space under the city’s cap, known as Proposition M. The cap allows for 950,000 square feet of office space to be approved annually as of October, with extra space rolling into the next year.

After approvals of 598 Brannan St., the cap has shrunk down to about 2.1 million square feet, said Zoning Administrator Corey Teague. Approvals for the first phase of 88 Bluxome would bring that down to about 1.7 million square feet — leaving about 7.7 million square feet of proposed space up in the air.

Several other Central SoMa projects are among those in need of Prop M allocations, including Kilroy Realty Corp. (NYSE: KRC)'s Flower Mart project and Boston Properties' (NYSE: BXP) 765,000-square-foot office portion of a mixed-use project at 4th and Harrison streets . . . .

https://www.bizjournals.com/sanfranc...VPK0EifQ%3D%3D

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These Central SoMa projects are now ready to roll
By Blanca Torres – Reporter, San Francisco Business Times
Sep 30, 2019, 2:54pm PDT Updated 51 minutes ago

With a handful of lawsuits now out of the way, large development projects in the San Francisco Central SoMa planning area are closer to breaking ground — but some office projects have one more big hurdle to jump.

With the suits settled, purely residential developments . . . are free to move forward.

Office projects, on the other hand, need to receive an allocation of space from the city’s office cap known as Prop. M . . . . (But) some of the Central SoMa office projects already have allocations in place, such as . . . Alexandria Real Estate Inc.’s 870,000-square-foot 88 Bluxome . . . .

https://www.bizjournals.com/sanfranc...d6SEFnSWZCdSJ9

Quote:

Originally Posted by Pedestrian (Post 8703084)

https://www.bizjournals.com/sanfranc...d6SEFnSWZCdSJ9

:eeekk:

"Pinterest pays $89.5 million to terminate San Francisco office lease"

https://www.sfgate.com/business/arti...e-15525421.php

Damn... I was, and still am, looking forward to seeing this project come up

Quote:

Originally Posted by gillynova (Post 9027106)

Damn... I was, and still am, looking forward to seeing this project come up

Somebody will probably still want to build here. It's just too good of a location.

Quote:

Originally Posted by iamfishhead (Post 9027352)

Somebody will probably still want to build here. It's just too good of a location.

Quote:

Pinterest lease break is 'wake-up call' for S.F., experts say
By Laura Waxmann – Staff Reporter, San Francisco Business Times
Sep 1, 2020, 6:58am PDT Updated Sep 2, 2020, 2:57pm PDT

Pinterest Inc.’s decision to fork over $89.5 million to terminate a year-old lease for a yet-to-be-built San Francisco office development signals a major — and most likely permanent— turning point for the city’s hot real estate and big tech industries, according to local business and real estate experts.

. . . Pinterest will likely not be the last company to change course on expansion plans in San Francisco, where pandemic-induced remote work and pending taxation efforts have created a “perfect storm” bound to impact site selection and accelerate a long-projected exodus of tech companies from the city.

“San Francisco has been the golden child of our national economy for almost a decade. I think this lease break is a wake-up call that our heyday — that era — is coming to a close and the city is not just going to be gifted the best and brightest companies going forward,” said Jay Cheng, public policy director of the San Francisco Chamber of Commerce.

“Remote work has fundamentally changed our economic landscape and how competitive San Francisco is nationally and globally — and it is here to stay, at least for a couple of years,” he said.

Companies such as Core-Mark, Bechtel, McKesson, Schwab, PG&E, Stripe, Juul and Xero have or will soon relocate their headquarters, while Uber and Square have announced large campus acquisitions outside of San Francisco, according to Cheng.

Twitter, Facebook, Slack and Coinbase have “announced the move to near 100% remote workforce,” and smaller tech companies like Gitlab, Buffer, Automattic, Zapier have made “similar announcements pre-Covid-19,” he added . . . .

Increased taxes proposed at the state and local levels — including a proposed repeal of Proposition 13’s protection on property-tax increases for commercial and industrial property and a San Francisco ballot measure that would impose a new levy on highly compensated CEOs — are making companies’ decisions to relocate easier, according to real estate experts . . . .

Pinterest, which has 2,400 employees worldwide, leases space in four office buildings in San Francisco — 410 Townsend St., 149 Bluxome St., 651 Brannan St. and 505 Brannan — totaling 338,884 square feet. The company’s lease for its 122,170-square-foot headquarters at 651 Brannan St. is due to expire in May 2022 . . . .

https://www.bizjournals.com/sanfranc...amVYeXRuIn0%3D

We may not see a lot of commercial building ANYWHERE for a while.

I biked by today. There were a number of trucks hauling dirt and other things out of the building on the Bluxome side. There is a notice of construction posted on the door that says site setup is set to begin on 11/2 and demolition to begin on 11/20.

Take pics next time! haha

https://www.bizjournals.com/sanfranc...nnis-club.html

Alexandria to forge ahead with S.F. Tennis Club development

"Alexandria Real Estate Equities executives indicated Tuesday that the company plans to move forward with development of the 1 million-square-foot project at 88 Bluxome St. despite losing anchor tenant Pinterest Inc.

As I reported previously, Pinterest announced in August that it had terminated a 490,000-square-foot lease signed just last year at the South of Market location, forfeiting an $89 million deposit. The plan was to build a mixed-use development with two high-rise office buildings over ground-floor retail and PDR uses to replace the San Francisco Tennis Club in partnership with TMG Partners.

Sources have told me that Alexandria is considering the recapitalization of some of its office portfolio in an effort to focus on life sciences, casting doubt over the future of the unbuilt 88 Bluxome development. But during a third-quarter earnings call on Tuesday, Alexandria co-CEO Stephen Richardson described the project as a “lab-ready shell” and indicated that few changes would have to be made to build out the site for life science users.

“At 88 Bluxome we have important pre-construction activities that we will be undertaking in the next several quarters,” said Richardson. “We have ... capability for shipping and receiving. It’s a mid-rise facility with a lot of outdoor space. (We have) the capability to go lab. We think it will be an extremely desirable product. We will see this time next year where we are at.

“From the outset we designed it as a lab-ready shell. We have the ability to accommodate both lab and technology users,” he added.

Alexandria sold a key asset at 945 Market St. — the long-vacant, 250,000-square-foot 6X6 mall — for $198 million last month to Ikea-sister company Ingka Centres, realizing an approximately $19 million profit. Alexandria bought that property in partnership with TMG last year for $179 million.

Asked by analysts why the company moved to offload 945 Market but is planning to keep 88 Bluxome in its portfolio, Richardson said the company received an “unsolicited offer” for the vacant mall and that its location on Market Street did not necessarily lend itself for further development.

“It was a one-off at the edge of a cluster in the South of Market. It made sense to go ahead and exit,” said Richardson. “I think the scale and size of 88 Bluxome is much different and qualitatively in a different position. You are at the edge of Mission Bay there. You have the opportunity at scale for life science and tech whereas the Market Street location was a smaller project there. We weren't going to build a cluster around it there. Receiving an unsolicited offer and recycling that asset … made sense.”

Alexandria Executive Chairman and Founder Joel Marcus was reluctant to comment on the company's plans to shrink its office portfolio in the city, but said simply that in regard to the 945 Market sale that “you have to look at that in isolation and the circumstances that led us to make that disposition.”

As I reported previously, sources have said Alexandria is quietly considering selling a seven-story, 300,000-square-foot office building at 510 Townsend St. entirely leased to payment company Stripe. Stripe plans to relocate to South San Francisco in 2021 and is seeking to sublease all of its space at 510 Townsend St., where its lease expires in 2027.

The Alexandria executives did not comment on the company’s plans for 510 Townsend on Tuesday. However, Richardson confirmed Stripe’s plans to sublease the space.

“Stripe’s plans for subleasing were always the case with the relocation to South San Francisco. They haven't done anything official yet. I think they are just putting some feelers out. That’s TBD,” he said.

President and Chief Financial Officer Dean Shigenaga said the company currently has “two key transactions” in the works, with “one expected to close soon.”

“Both deals are in process,” said Shigenaga, but did not say where the assets are located.

According to Alexandria’s earnings release, the company does plan to sell more of its assets, including in San Francisco.

Per the earnings release, the company has pending dispositions worth between $500,000 and $600,000 in the San Francisco market projected to close in the fourth quarter. Another pending transaction worth between $200,000 and $300,000 was announced in Seattle. The report didn't provide additional details.

On Tuesday, Alexandria reported $3.9 billion in liquidities in the third quarter."

Quote:

With the San Francisco Tennis Club at 645 5th Street having been fenced and Alexandra Real Estate Equities poised to break ground for the 243-foot-tall, 775,000-square-foot “88 Bluxome” Street development to rise on the Central SoMa site, over half of which Pinterest had pre-leased, demolition permits have been issued for the 598 Brannan Street site across the street as well.

http://socketsite.com/archives/2020/...ak-ground.html

Drove by this site today and demolition looks to be a quarter of the way done (mostly on the Bluxome/5th side). Unfortunately could not snap any photos, but will try next time I’m there.

I haven't passed by here in awhile and damn, this is so crazy to see because I used to park across the street for Giants games before but I am REALLY excited for this to come up!

Quote:

Originally Posted by gillynova (Post 9156194)

I haven't passed by here in awhile and damn, this is so crazy to see because I used to park across the street for Giants games before but I am REALLY excited for this to come up!

Yeah, I used to pass by it all the time when coming back from Oakland since my GF lived there. Strange to see it going, but this is a far better use of the land!