A sample of SF waterfront redevelopment concepts

The Port of San Francisco’s “request for interest” for 14 waterfront structures within the Embarcadero Historic District is an outgrowth of a larger effort to update the port’s Waterfront Land Use Plan.

That effort began in 2015 and should move to environmental studies next year. The goal for the requests is to try and begin making plans to revive specific piers, so work could begin soon after an update is approved.

Respondents include restaurateurs seeking space, cultural entrepreneurs, and developers or design firms eager to take part in future projects. The full set of 52 responses can be found at www.sfport.com, but here are six examples that show the range of ideas.

 

Read more on the San Francisco Chronicle

 

 

New SF hotels, WeWork-backed waterfront school among ideas for historic piers

Developer Simon Snellgrove has an idea: A new 65-room boutique hotel just south of the Ferry Building.

The problem: Hotels are illegal on Port of San Francisco land unless voters authorize them.

Snellgrove’s concept is one of 52 responses received by the port to revitalize 13 historic waterfront piers that dot the city’s scenic Embarcadero.

For the past three years, the port has sought public uses to bring new life for the piers, some of which were built over a century ago. The projects have big financial hurdles, requiring millions of dollars in renovations to withstand future earthquakes and sea level rise. But previous projects like the renovated Ferry Building and AT&T Park are a testament to the public’s love — and the lucrative business — of waterfront development.

The port received a diverse mix of ideas, including basketball and tennis courts, art galleries, an Italian Innovation Hub, and an International House of Prayer of Children. Boston Properties, the city’s biggest office owner and majority owner of Salesforce Tower, said it was open to operating nonprofit, maker and research space.

 

 

Read more on SFGate

 

 

 

 

Exclusive: Huge cannabis business campus headed to Oakland

Will this business park near Oakland’s Oracle Arena be California’s next big hub of cannabis innovation?

A sleepy Oakland business park a stone’s throw from Oracle Arena may be transformed into the Bay Area’s next big cannabis business campus.

Mesh Ventures, a venture capital firm focused on investing in cannabis startups, hopes to turn an office complex on Edgewater Drive into a center of the region’s cannabis manufacturing, marketing and production.

“It’s going to look very much like a tech campus,” said Mesh Ventures Partner Parker Berling.

The complex is master leased to Mesh Ventures Partner Martin Kaufman who is making around $20 million in infrastructure and tenant improvements.

California Capital and Investment Group bought the 207,700-square-foot office property in 2013 for $7.8 million, but has struggled to fill it. Kaufman said the Mesh Ventures team saw the opportunity of creating a campus in an area with access to top-tier scientific and technological talent.

“Sure, we could have done this in Fresno or Humboldt and t would have been cheaper but the level of people that we have here are unmatched anywhere else,” Kaufman said. “We have academics, scientists, really trained qualified people who are located here and are looking to enter the industry as it turns from a black market to a white market.”

Kaufman is the co-founder of dispensary Blum Oakland, which was sold in 2016 to Irvine-based cannabis agriculture company Terra Tech.

The center is being built out with the particular security and regulatory concerns of the cannabis industry in mind. Berline said roughly three-fourths of the tenants will be cannabis companies, mainly from the firm’s investment portfolio. Tenants are starting to move into the campus – which already has a functioning grow operation – and the renovations are expected to be completed by the end of the year. Leasing rates are rates around $2 per square foot.

 

 

Read more on San Francisco Business Times

 

 

After two projects sank, can San Francisco find developers for decaying waterfront?

The new effort is one of the largest but also potentially costliest redevelopment opportunities in the city.

The Port of San Francisco is seeking ideas for new uses at 13 historic waterfront piers, in one of the largest but also potentially one of the costliest redevelopment opportunities in the city.

The agency wants proposals from both large developers and smaller tenants such as nonprofits, arts groups and retailers to revive the piers, which are now vacant or used for parking or storage.

Some previously renovated piers have been financial successes. Waterfront offices at the Ferry Building and Piers 1 1/2, 3 and 5 have signed tenants for rents over $100 per square foot. Control of the Piers later sold for $103 million in 2016, and the Ferry Building is expected to be sold to Hudson Pacific Properties for around $300 million, according to sources tracking the market.

But two recent redevelopment efforts failed because of the high costs of rehabilitating and seismically protecting piers. A study for the Port found that $74 million to $10 million would be required to bring a single pier up to code. Last year TMG Partners and Premier Structures, Inc. exited an office, event and restaurant space proposal at Pier 38 after the cost to repair the pier was expected to be as high as $122 million.

 

 

 

Read more on San Francisco Business Times

 

 

 

Another 500 apartments on tap amid tiny East Bay city’s housing boom

Emeryville’s former Sherwin-Williams paint factory could begin its transformation into 500 new apartments early next year. 

After a five-year development process, the city approved Lennar Multifamily Communities project in February.

Lennar is expected to file for building permits early next year, said Charles Bryant, Emeryville’s planning and building director. The first homes could be completed by the end of 2021. Lennar didn’t respond to requests for comment.

Despite its tiny 1.28-square-mile size, Emeryville is seeing a number of large multifamily projects as industrial sites give way to mixed-use development. Sherwin-Williams would be the largest.

 

Read more on San Francisco Business Times

 

 

New Oakland law could prevent cannabis companies from evicting tenants

The Oakland City Council will hold a special meeting on Thursday to discuss new legislation that, if passed, could prevent cannabis companies who own real estate from displacing existing tenants.

The proposed amendments to the city’s cannabis ordinances, Oakland Municipal Code Chapters 5.80 and 5.81, prohibit the issuance of any approvals for cannabis businesses seeking to operate in spaces currently occupied by work-live or residential uses.

Oakland council member Rebecca Kaplan, the co-author of the proposed legislation, says the amendments balance the city’s support of the cannabis industry with protections for work-live spaces, thus supporting a diverse industrial sector in Oakland.

Read more from KQED

Dorm living for professionals comes to San Francisco

The middle-class backbone of San Francisco is looking to move into dorms.

In search of reasonable rent, the middle-class backbone of San Francisco — maitre d’s, teachers, bookstore managers, lounge musicians, copywriters and merchandise planners — are engaging in an unusual experiment in communal living: They are moving into dorms.

Shared bathrooms at the end of the hall and having no individual kitchen or living room is becoming less weird for some of the city’s workers thanks to Starcity, a new development company that is expressly creating dorms for many of the non-tech population.

Starcity has already opened three properties with 36 units. It has nine more in development and a wait list of 8,000 people. The company is buying a dozen more buildings (including one-star hotels, parking garages, office buildings and old retail stores), has raised $18.9 million in venture capital and hired a team of 26 people. Starcity said it was on track to have hundreds of units open around the San Francisco Bay Area this year, and thousands by 2019.

Read more from The New York Times

 

 

Exclusive: A 102-year-old East Oakland warehouse has been reborn as offices and artist studios

The project is one of East Oakland’s biggest in years.

The property at 2744 E. 11th St. opened in 1916 as a cannery for H.G. Prince, a company that invented a method to remove pits from fruits – a fitting use in a neighborhood once known for its orchards. Decades later, Lucasey Manufacturing Corp., a maker of television mounts, bought the building and stored products there, part of the blue-collar industry of Oakland.

Another transformation will happen next month, when the building reopens as more than 100,000 square feet of offices, industrial and artist space called Artthaus Studios.

The project will be one of the largest new developments in East Oakland. It is the largest source of modern, renovated artist and maker space in the area, said Riaz Taplin, CEO of Riaz Capital, the project’s developer, general contractor and designer.

“Oakland has really taken this new role within the Bay Area as the home of the creative community. So creating a building to accelerate the innovation of those types of businesses and people and creators and artists was the goal in creating Artthaus Studios,” said Taplin.

Taplin believes the project provides three benefits for smaller businesses and creative companies: It creates collaboration by concentrating various businesses in the same building, it provides a new facility near a BART station and it’s relatively affordable for new space.

“We wanted to tailor the spaces to be for small, young businesses — entrepreneurial, small businesses, ideally in the creative industries,” said Taplin. “We wanted to create an environment, which made them competitive. We want to make it easy to collaborate. We wanted to make it easy for them to seek out customers.”

Read more from San Francisco Business Times

 

 

 

Exclusive: Developer associated with Soho House closes on S.F. Armory building for $65M

A developer associated with private club and hotel operator Soho House has officially purchased a storied San Francisco building for a whopping $65 million.

SF Armory LLC, an entity affiliated with Chicago developer Benjamin Weprin, who previously developed Soho House’s Chicago facility, closed on the Mission’s former National Guard Armory, according to a deed filed with the city Jan. 26. Transfer taxes for the building were nearly $2 million.

The San Francisco Business Times originally reported in November that the upscale social club had been scouting for a place to land in San Francisco and was slated to take over the 200,000-square-foot building at 1800 Mission St., a site which has been used as an S&M porn studio and headquarters for the building’s owner, Kink.com — an arm of Armory LLC, which bought the building for $14.5 million in 2006.

However, in a statement after the article published, Soho House denied that it was attempting to move into the Armory building, and told multiple other news outlets that the story “was not true.”

“We love San Francisco, however, we don’t have a space confirmed as of now,” a Soho House spokesperson told SFGATE.

Read more from San Francisco Business Times

 

What to know about cannabis real estate, and what might be changing

Those interested in the cannabis industry will have a lot to talk about in the coming months.

With the legalization of recreational cannabis sales in California, which went into effect on January 1, 2018, there are a total of nine states where the average citizen can purchase marijuana products, so long as they are over the age of 21. Medical marijuana is legal in a total of 29 states.

The softening of state and federal drug laws in recent years has allowed the cannabis industry to flourish, posting close to $29 billion in sales in 2018.

With this spike in demand for recreational marijuana came a dramatic increase in demand for cannabis-suitable real estate. While the laws and regulations surrounding this specialty are tricky, and can even foreseeably get brokers and other agents involved in transactions into legal trouble, professionals who take a chance on pot stand a lot to gain.

Read more from Apto Blog