DivcoWest, TMG Close on $110M Sale of 1275 Market
SAN FRANCISCO-DivcoWest and TMG Partners, one of the San Francisco Bay Area’s largest mixed-use property developers, have completed their sale of 1275 Market St., a 16-story office tower strategically located in San Francisco’s booming Mid-Market technology neighborhood.
The building was sold to Dolby Laboratories Inc. for $109.8 million or approximately $310 per square foot. GlobeSt.com first reported on the news in June, and pointed out that according to Kevin Yeaman, president and CEO of Dolby Laboratories, the investment will support the company’s current needs and future growth. He said it would “foster a collaborative environment and will help attract and retain the best employees.”
The two San Francisco-based real estate investment companies have jointly owned the building, built on Market Street between 8th and 9th streets in 1977, since October of 2011. An unidentified source previously told GlobeSt.com that the JV purchased the property in 2011 for $44 million.
1275 Market is situated near where Twitter recently relocated this past month.
Dolby’s current base of operations is in San Francisco’s Potrero Hill neighborhood. DivcoWest founder Stuart Shiff says in a prepared statement that his firm’s investment has been a win-win-win for investors, the City of San Francisco and Dolby Laboratories. “We have all been rewarded for our mutual belief in the future of the Mid-Market neighborhood as an emerging technology center for the Bay Area.”
According to a prepared statement, Dolby is believed to plan to fully occupy the 354,000-square-foot building, which can accommodate approximately 1,000 employees. The company was chosen last month by Microsoft Corp. to provide audio for its Windows 8 software when the package is released later this year.
“Dolby Lab's purchase speaks to the heightened interest among a widening range of corporate users in the city's revitalized Mid Market and has been a wonderful solution for tenants seeking large blocks of ‘creative’ space,” Jones Lang LaSalle San Francisco research manager, Julia Georgules, previously told GlobeSt.com. “Twitter, One Kings Lane and Yammer have already committed to Mid Market and Dolby's action builds upon the high tech industry's concentration there as Mid Market becomes one of the city's newest and most vibrant office submarkets.”
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