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SAN FRANCISCO-Laurus Corp., a US-based private real estate investment and development firm, has leased approximately 75% of the building located at 1155 Market St. to the City and County of San Francisco. The San Francisco Board of Supervisors approved the nearly 104,000-square-foot, 10-year lease in a vote earlier in the month.
Agencies including the treasurer/tax collector, assessor-recorder, public works and others, will occupy all but three floors of the building with expansion options and right of first offer for the 10th and 11th floors. Laurus Corp. is investing roughly $14 million towards LEED Gold certification, ASHRAE Compliance, as well as a complete overhaul of the building’s physical aspects, according to a prepared statement.
Laurus Corp. created 1155 SF Partners LLC, a single purpose entity to acquire 1155 Market St. in September 2011 and worked with the CAC Group to lease the building. The City and County of San Francisco will exit their lease at 875 Stevenson St. where it has been located since 1994. The San Francisco Public Utilities Commission previously occupied 1155 Market St. and will move to a building on Golden Gate Avenue.
Andres Szita, chairman and co-founder of Laurus Corp. says that “1155 Market St. is one of several recent transactions where we are implementing value-add strategies.” Szita adds that “This and our other upcoming property closings continue Laurus’ approach of capitalizing on opportunistic acquisitions.”
According to Laurus Corp. asset manager, Charles Russo, “Mid-Market has enjoyed recent activity with Twitter, Dolby Laboratories and other high-profile tech firms joining the neighborhood, making it a favorable area for the City and County of San Francisco to relocate.”
Russo adds that the company has made numerous capital improvements and has more in progress “to enhance the building’s aesthetics and operations, which work well with renovations of surrounding properties.” The 1155 Market St. renovation program includes a face lift of the building’s façade, lobby, corridors, bathrooms, elevators and common areas.
Mark Geisreiter and Dean McPadden of the CAC Group represented Laurus Corp.
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