Last summer, TMG Partners announced plans to build San Francisco's second-tallest tower and released sparkly designs from starchitect Norman Foster. TMG has now agreed to sell the site for $296 million to China-based Oceanwide Holdings, which will have to pay hundreds of millions of dollars on top of the purchase price to actually construct the planned complex. TMG bought the property in a joint venture with Northwood for $122 million just one year ago, meaning that the site is basically a mind-blowing flip with a $174 million price increase.
According to the San Francisco Business Times, the deal may be the largest ever for a Chinese firm in the Bay Area once construction costs are factored in. The project—which is made up of two towers and is even larger than the Salesforce Tower based on square footage—will allow the new developer to make a mark on San Francisco. When completed, the complex will include office space, a hotel, and residential units, along with a half-acre of public space sitting right beneath one of the towers.
The sale will likely not affect the design or timeline for the tower, although the developers behind it are still finalizing construction management details. TMG may even stay on as the local developer. Construction is expected to begin in 2016.
· Norman Foster Vies for Second Tallest With Sparkly SoMa Tower [Curbed SF]
· Chinese developer to buy landmark First and Mission site for $300 million [SF Business Times]
· Previous Coverage of the Salesforce Tower [Curbed SF]