Remember the blockbuster 50 First Street plan that will bring 1.25 million square feet of office space to the block adjacent to First and Mission streets, including an 850-foot tall building? In the middle of that master plan sits a tiny 16,000 square foot building that has been owned by a family-run real estate group for decades. For 10 years the family has been courted for their building at 82 First Street by several investment groups and developers including David Choo (the original mastermind behind the 50 First Street project), as well TMG Partners (the current leaders of the mega-development). Someone has finally made them an offer they couldn't refuse, but it wasn't David Choo or TMG. The winning $22 million offer was made by Lawrence Lui of the Stanford Hotels Group, who set a $1,600/sq. ft. record in the process. The question is: what will the group do with the property? While it is zoned for 850 feet, if TMG builds their planned skyscraper first, it will be too close to 82 First to build another one. If Stanford Hotels Group is planning to use the structure as is, why would they pay such an outrageous price? Are they simply going to hope TMG Partners feels they have no choice but to buy the property that sits directly in the middle of their master plan? Or do they have another, as of yet undiscovered use for the land; one that will more than justify their record-setting price paid?
·What Happened to the 50 First Street Project? [Curbed SF]
·Buyer snaps up key Transbay parcel, forcing TMG to build massive project around it [SF Business Times]