(EDITOR’S NOTE: The lease named below is with Open AI, a non-profit artificial intelligence (AI) research company, associated with business magnate Elon Musk. According to a source familiar with the details, this tenant represented itself in the lease negotiations. The lease, which was negotiated for 10 years is around $70 per square foot on a gross basis. The previous tenant in this building was Stripe, an online and mobile credit card processing company. They had a lease that lasted for another three years. Stripe made the decision to leave the building in Auguts of 2016 in its effort to find more space for its expansion. Bridgeton Holdings had started looking for a tenant about three months ago. The property totals around 38,000 square feet. The owner of the building had paid $16.5 million to acquire the property in 2014. The building is located at 3180 18th Street in San Francisco.)
CBRE announced recently that Bridgeton Holdings has signed a long term lease with a credit tenant at the Pioneer Building, a 37,104-square-foot office building in the heart of San Francisco’s colorful Mission district.
Located at 3180 18th Street, the Pioneer Building is a three-story, fully renovated creative office building with a unique story and identity. Originally built in 1902 as the Pioneer Luggage Factory, the property has undergone a full, state-of-the-art restoration that preserves the integrity of the historic building while meeting the needs of today’s technology and creative office tenants.
Bridgeton acquired the building in early 2014. At the time it was leased to several growing technology tenants. Over the past two years, Bridgeton stabilized the property by negotiating lease expansions. When the in-place tenant required a significantly larger space, Bridgeton recognized the opportunity and negotiated an early termination to re-lease the building at market rent. The new lease is for a 10-year term with space delivered in “as-is” condition.
Charlie Withers and Josh Peterson of CBRE’s downtown San Francisco office represented the owner, Bridgeton Holdings. Bridgeton was actively involved in negotiating the lease.
“We are excited to have leased the building to a credit tenant for a long term without incurring any downtime,” said Atit Jariwala, CEO of Bridgeton Holdings. “The new tenant will be an important member of the Mission District.”
Bridgeton recently acquired 995 Market Street in San Francisco’s Mid-Market for $62 million. The company also owns other buildings in the San Francisco Bay Area.
About Bridgeton Holdings LLC
Bridgeton Holdings is a vertically integrated investor, owner, developer and manager of commercial and residential real estate. We invest in a range of real estate asset classes, including office, retail, hospitality and residential properties. Our investment strategies include single property acquisitions, property development and redevelopment.
Bridgeton currently owns and/or operates over 60 properties throughout the U.S., including three properties in San Francisco. Please visit our website at www.bridgetonholdings.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.