By Jon Peterson
San Francisco-based Lumosity, the online brain-training company, expects to sign a lease to occupy 36,000 square feet at 140 New Montgomery St. in San Francisco, a historic building being renovated by developer Wilson Meany.
Lumosity has approximately 90 employees at its current 12,000-square-foot location at 153 Kearny St. Its new offices will give it the capacity to grow to about 300.
The new lease has an eight-year term with Lumosity expected to occupy floors 17 through 19. The company completed the transaction with the help of broker Reza Musavi, a director with Cushman & Wakefield Inc. in its San Francisco office.
“We do like our current location, but it just wasn’t big enough for us. We are now packed in there pretty tightly, and we need a larger space for our growth,” said Kunal Sarkar, Lumosity chief executive.
The historic Pacific Telephone & Telegraph building satisfies many of the requirements that Lumosity had for its new space. “We wanted high ceilings, natural lighting and open and collaborative space. Given that our employees live either in San Francisco or the East Bay, we needed to be close to public transportation. A BART stop is two blocks from the building,” said Sarkar.
Amenities were also a factor. These include new restaurants and a bar, 200 secure bicycle parking spaces in the basement, space for bicycle tune-ups, lockers and showers.
Sarkar would not give the specific rental rate other than to say it was a market-driven transaction. Yelp Inc. is the anchor tenant at 140 New Montgomery. The online business-review site expanded its footprint earlier this year to 110,000 square feet of the 295,000-square-foot building. Yelp committed in May 2012 to an eight-year occupancy, agreeing to an annual rental rate of $54 a foot that rises to $66.41 a foot by the eighth year, according to public records. Wilson Meany gave Yelp a $60 a foot tenant-improvement allowance.
Lumosity expects work to begin on its space in July. Based on that timing, he would expect the company to move into its new space in October, Sarkar said. The firm has chosen Seth Boor of San Francisco-based Boor Bridges Architecture as its principal architect for its space. Architects Perkins + Will are Wilson Meany’s architects for the building itself.
Lumosity has occupied the sixth floor at 153 Kearny for the past three-and-a-half years and has six months of lease term remaining at its current digs. The company was founded in 2005 and launched in 2007 and claims 40 million members and paying subscribers from 180 countries. The company’s commitment to its customers is to provide games that enhance the functioning of the human brain, particularly memory and attention, based on cutting-edge neuroscience.
Lumosity had searched for space for nine months. Its desire to stay in San Francisco and be close to public transit has restricted the radius of consideration. With its lease at 140 New Montgomery, the building is 70 percent leased.
Photo courtesy of steelbluellc.com