Email Company Finally Finds Right Spot

SAN FRANCISCO-Critical Path raised eyebrows in the real estate industry when it announced that it was in the market for a commercial space up to 75,000-sf. The company has found its new headquarters in the South Beach section of San Francisco.

Critical Path has leased a 64,000-sf office space at 345 Spear St., for 10 years. The company will move into the space early next year.

The Hills Plaza, a Shorenstein Co.-owned, 590,000-square-foot mixed-use project near the Ferry Building, was built around the historic Hills Brothers office building and tower. The plaza is nearly 100% leased.

The Hills Plaza property has a distinctive Romanesque design with arched windows, covered walkways and colonnades. It is the original Hills Brothers Coffee factory, a national landmark that has been preserved and was completely renovated. The plaza consists of two buildings, joined by a landscaped public plaza with a stone and tile fountain.

Hills Plaza is set on 3.5 acres of waterfront property along the Embarcadero, and offers views of the Bay Bridge, Treasure Island and Alcatraz. Rents at Hill Plaza range from $40- to $50 per sf, monthly.

Critical Path, an email company, was looking at numerous buildings, including Hills Plaza, a Shorenstein Co. property. It was close to making a deal at 945 Battery St., but let the deal go because the space was too small. Critical Path is letting go of its space at 532 Folsom St., after making a deal with the property owners to get out of its 26,000-sf lease.

Shorenstein was represented in-house by Karl Baldauf, Karen Bloch and Jim Collins, while Jon Wittemyer and Jim Dublin of Insignia/ESG Inc. represented Critical Path.