By Jon Peterson
Chicago-based The John Buck Company and Golub & Company are planning to pay $172.5 million for the development site for its office and retail development called Park Tower at Transbay’s Block 5 in downtown San Francisco, according to a document from the City. The proceeds for the land sale will be pledged to the Transbay Joint Powers Authority to cover a portion of the construction costs of the Transit Center.
The John Buck Company did not respond to inquiries for this story.
“This month we did receive the schematic designs from the developer of this project. It calls for 750,000 square feet of office space and 11,000 square feet of retail. The expectation is that the project will kick off in April of 2016 and be completed by sometime in 2019,” says Shane Hart, a project manager with Transbay Joint Powers Authority.
The total cost of the development is projected to be $690 million. The project is located in the middle of the Transbay development.
According to a document from the City of San Francisco, there were four proposals that were considered finalists for the project. The others were Boston Properties, Jay Paul and Kilroy Realty Corporation. The Buck/Golub team will be paying the city a non-refundable $2 million DDA deposit in April that will be credited against the purchase price. The closing of the development site purchase is projected to occur in September.
The San Francisco office of JLL will be heading up the efforts to lease the office component of the project. The leasing team includes Christopher Roeder, Wes Powell and Steven Anderson.
“This project is ground zero as far as the San Francisco office market is concerned. I would think that technology tenants would likely be a logical first choice for the project. There is surely to be other kinds of companies interested in leasing space in the project. The design is flexible for the project to consider either single or multi-tenant options,” said Roeder, an international director with JLL.
The office development project will be started on a spec basis if it necessary. The type of tenants that it attracts will determine what kind of retail goes into the project. The two are planning to bring an equity partner into the project at some point in the future. The Buck/Golub team is presently in the market talking to a variety of possible participants.