By Jon Peterson
Dallas-based Cypress Equities has broken ground on the 250,000 square foot Market Street Place urban retail project located in downtown San Francisco at 935 Market Street.
“This is a project that we are pleased to be starting today. This will be a development that will have a total development cost in excess of $150 million,” says Chris Maguire, chief executive officer with Cypress.
This project is being funded on an all equity basis. “Our financial partner in this development is a sovereign wealth fund, which prefers to remain in the background on this project. This kind of capital structure allows us to be more flexible with the project going forward,” said Maguire.
The project is commencing without any signed leases in place. “We feel confident about the project in starting the development without any tenants. We are getting very strong demand from a variety of tenants who are interested in the project. This includes a mixture of fashion and food operations that are local, regional and national kind of tenants,” says Maguire.
SRS Real Estate Partners in its San Francisco office is taking the lead for leasing up the development. The project will be covering six levels and have 15- to 18-foot high ceilings and large floor plates of up to 40,000 square feet. The development will have underground parking that can accommodate 167 cars. The project should be completed and ready to open in 2016.
San Francisco Mayor Ed Lee was very enthusiastic about the project during the ceremonies yesterday. “This is a very important project for the city of San Francisco. It will be a definite job booster and will help improve the Mid-Market section of San Francisco,” he said.
Market Street Place will be the only retail development that Cypress Equities has going in San Francisco. The company is known as a developer of retail and mixed use-projects located through the country. It’s now developing and managing more than 9.4 million square feet of real estate. It has regional offices in New York, San Francisco, Chicago, Atlanta and Fort Lauderdale.