Boston Rumored To Pay $340M For SoMa Properties
SAN FRANCISCO-TMG Partners and Rockwood Capital have sold two office buildings in the SoMa submarket to Boston Properties, a self-managed and self-administered REIT, for what industry sources unrelated to the deal say is rumored to be $340 million. The properties are located at 680 Folsom St. and 50 Hawthorne St. at the corner of 690 Folsom. Tony Natsis of Allen Matkins Leck Gamble Mallory & Natsis provided the legal counsel to Boston Properties for the transaction.
TMG will continue as development manager for the 680 Folsom Street and 50 Hawthorne St. properties and will be responsible for managing ongoing construction at both locations. When major construction is complete, anchor tenants Riverbed Technology Inc. and Macy’s.com will occupy the majority of 680 Folsom. Macy’s will occupy 242,753 square feet in the top seven floors beginning January 2014 on a 15-year lease, while Riverbed will occupy 202,467 square feet on six floors on a 10-year lease.
“We remain confident in the thriving SoMa revitalization,” said Michael Covarrubias, TMG’s chairman and CEO, in a prepared statement. “This transaction maximizes the opportunities for both seller and buyer.”
Covarrubias added that, when complete, the former Pacific Bell office building, which was built in 1964, will house a total of 521,610 square feet of class-A office space. “Adding to its San Francisco portfolio of premier office properties, Boston Properties is acquiring the 85% leased building before it is completed.”
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The 680 Folsom building will be entirely renovated and expanded by two floors, and TMG is pursuing LEED Gold certification for it. The project will include a new glass curtain wall skin and a new public plaza. The building at 50 Hawthorne St., a 52,000-square-foot, three-story building, will undergo a similar renovation.
As GlobeSt.com previously reported, in February TMG and Rockwood Capital LLC signed a 167,788-square-foot lease to relocate Riverbed Technology to 680 Folsom St. The tenant was previously located at 199 Fremont St.
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