SAN FRANCISCO | Oceanwide Center | 910 & 636 FT | 61 & 54 Floors | ON HOLD

[Zapatan]

It's Not Even Built Yet, But Downtown's 61-Story Oceanwide Center Is Already For Sale

https://sfist.com/2019/12/04/its-not...2NzaMoRTqWL7_0

Chinese developer Oceanwide Holdings looks to be trying to exit the U.S. market, either partially or fully, putting its considerable development portfolio in New York, Los Angeles, and San Francisco all on the market at once. And that includes the under-construction Oceanwide Center at First and Mission — originally planned to be a two-tower complex, though now only one tower remains in the works.

[theskythelimit]

Originally Posted by Zapatan

It's Not Even Built Yet, But Downtown's 61-Story Oceanwide Center Is Already For Sale

https://sfist.com/2019/12/04/its-not...2NzaMoRTqWL7_0

Kind of old news. Look at reply #971.

Is there still activity at this site?

[Zapatan]

Originally Posted by theskythelimit

Kind of old news. Look at reply #971.

Is there still activity at this site?

Yea I noticed that, it's a more recent article dated yesterday though, but basically says most of the same things.

[slock]

Brief update: https://swinertonwebcor.com/updates/

[david_h]

They were taking out some of the cross-bracing yesterday...

[Zapatan]

Are they dismantling the site?

[slock]

Here are some notes: https://swinertonwebcor.com/updates/

[Pedestrian]

Originally Posted by Zapatan

Are they dismantling the site?

They are pouring the basement walls for the taller tower (the Foster-designed one)--see the progress report just above. As they get them poured, I would assume the cross-bracing would no longer be needed and would be in the way and would need to be removed. This is nothing to frown about.

[bloobityblurp]

Curtain wall:





https://www.fosterandpartners.com/pr.../#construction
(Don't know if this was posted.)

[Zapatan]

Originally Posted by Pedestrian

They are pouring the basement walls for the taller tower (the Foster-designed one)--see the progress report just above. As they get them poured, I would assume the cross-bracing would no longer be needed and would be in the way and would need to be removed. This is nothing to frown about.

I stand corrected, mockup looks cool too.

[Design-mind]

The facade is going to look amazing!

[38R]

This will complete the skyline.

[bloobityblurp]

Oceanwide Center, planned as SF’s second-tallest tower, to sell for $1 billion

...However, the price tag on Oceanwide Center is unprecedented, because the project still requires years of construction to be completed. Oceanwide bought the project land for $296 million in 2015, and it’s unclear how much the company has invested more than three years of construction, and how much money is required to complete the project. Completion was previously scheduled around 2023.

https://www.sfchronicle.com/business...s-14996598.php

[The North One]

How is this gonna get built with another Chinese owner when the reason they couldn't do this was because of limits on Chinese investments in the US?

[theskythelimit]

Originally Posted by The North One

How is this gonna get built with another Chinese owner when the reason they couldn't do this was because of limits on Chinese investments in the US?

Just speculation but Oceanwide was suffering financially and I believe they are selling their US projects to get back to profitability. Also, it is known that XI would rather have these companies return their capital to China because of their softening economy. As for getting money out, a lot of these companies have substantial funds in Hong Kong and use that as a way to get their money out.

https://www.mingtiandi.com/real-esta...ina-oceanwide/

[MichaelMNTY]

What the article does not make clear is that if the tower and neighboring hotel are going to be completed? If they are shelling out $900m, I assume that they are? Especially since this is a hot office market, and there is still a housing shortage for the condos.

With luck, they plan on speeding up construction!

[Pedestrian]

Originally Posted by The North One

How is this gonna get built with another Chinese owner when the reason they couldn't do this was because of limits on Chinese investments in the US?

Because that may not be the reason.

First of all, Oceanwide was/is unusually shakey even for a Chinese conglomerate (perhaps partly as a result of their so-far-unsuccessful attempt to buy Genworth Financial, the former insurance arm of GE Capital):

Genworth's Acquirer (China Oceanwide) Looks To Be Drowning In An Ocean Of Debt
Nov. 9, 2018 11:30 AM ET

In our previous piece we focused on signs of liquidity issues at China Oceanwide including spiking debt levels, negative operating performance, and the aggressive pledging of equity in its subsidiaries.

Today we share a deeper-dive into Oceanwide’s operations, including an overview of its leverage-fueled trophy asset development spree which has shown recent signs of stalling.

We have also identified accounting red flags, including booking $11.4 billion of “development costs” as a current asset, as well as $4.8 billion in questionable related-party receivables.

Bloomberg recently reported an Oceanwide operating sub was “scrambling to sell assets to repay debt.” With another $1.6b of key bond maturities due in Q1'19 we expect significant near-term instability.

We do not think China Oceanwide will fulfill its commitments to Genworth's policyholders and reiterate our view that this deal looks starkly at odds with the interests of policyholders . . . .

https://seekingalpha.com/article/422...-ocean-of-debt

SPF Capital is privately owned, unlike Oceanwide which is publicly traded, so its financials are less well known however it seems to have subsidiaries around the world including in the US SPF Capital Real Estate which owns the Crowne Plaza LA Harbor Hotel. I could find nothing indicating they are in shakey condition as Oceanwide has been known to be for at least 2 years.

[Pedestrian]

Originally Posted by MichaelMNTY

What the article does not make clear is that if the tower and neighboring hotel are going to be completed? If they are shelling out $900m, I assume that they are? Especially since this is a hot office market, and there is still a housing shortage for the condos.

With luck, they plan on speeding up construction!

As part of the deal, SPF agreed to a $20 million security deposit and to pay for the project in two installments, with the first installment totaling $630 million (out of the $1 billion total). SPF has also agreed to pay Oceanwide Holdings for the project's initial development costs.

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

I think you can assume SPF plans to complete the project or flip it to someone who will. Why would they or anyone pay a billion $ for a hole in the ground? Unlike many SF building sites awaiting development, this one couldn't even be used temporarily as a parking lot. And the market for office space in SF remains hot.

[timbad]

I don't know, maybe a trained eye (not mine) can see something new in this shot

[Pedestrian]

Originally Posted by timbad

I don't know, maybe a trained eye (not mine) can see something new in this shot

My eye is not especially trained on this but I think I'm looking at a lower level concrete floor--the little puddle is especially telling--rather than the dirt bottom of a hole which is consistent with the contractor's explanantion that they are working on the basement levels (and walls). And it doesn't look as deep as it wouldn't if that concrete floor is not the concrete pad at the bottom of the original hole but rather a basement level above that.