san francisco

Salesforce set to buy 50 Fremont skyscraper in S.F.'s south financial district

Nov 11, 2014, 11:29am PST UPDATED: Nov 11, 2014, 4:14pm PST

Cory Weinberg

Reporter-San Francisco Business Times


Salesforce is set to buy the 50 Fremont office tower from TIAA-CREF, sources close to the deal told the Business Times.

The deal would continue to grow the San Francisco-based software company's real estate footprint. The company is the largest technology employer in San Francisco, with 4,000 employees in the city. Salesforce already leased about a half-million square feet of 50 Fremont in 2012, more than half of the 817,000-square-foot building. That $339 million, 18-year lease gave Salesforce first dibs to purchase the building — if TIAA-CREF decided to sell — or the right to buy in 2017.

The 43-story 50 Fremont is the ninth-largest office tower in San Francisco, according to Business Times research. Mellon Capital Management and Drinker Biddle & Reath LLP are also tenants.

It's not clear just yet how much Salesforce would pay for the building, and representatives for its broker Cushman & Wakefield did not immediately return requests for comment.

UPDATE: Salesforce to join exclusive real estate club with SoMa tower purchase

Salesforce has leased more space in the city than any other company in recent years. The company inked a deal in April to become the anchor tenant of what will be the city's largest building – the Salesforce Tower. That 714,000-square-foot lease is valued at $560 million over 15 and a half years, starting in 2017.

In 2012, Salesforce also leased 444,273 square feet in 350 Mission St., which is being built by Kilroy Realty Corp., and 235,733 square feet in Rincon Center.

The 50 Fremont potential purchase comes in a near-record year for San Francisco office sales. It's expected to be the second-biggest year for office purchases in the city's history, after 2007. About $5 billion worth of sales have already closed, according to CBRE, with about $6.7 billion expected in total this year.

Salesforce refused to comment on the deal. John Cornuke, who runs TIAA-CREF's asset management team, said "it's premature" to comment.

Cushman & Wakefield is representing Salesforce and CBRE is representing TIAA-CREF in the deal. 



Google signs 60-year, $1 billion NASA lease

By BRANDON BAILEY, AP Technology Writer on November 10, 2014

SAN FRANCISCO (AP) — Google has signed a long-term lease for part of a historic Navy air base, where it plans to renovate three massive hangars and use them for projects involving aviation, space exploration and robotics.

The giant Internet company will pay $1.16 billion in rent over 60 years for the property, which also includes a working air field, golf course and other buildings. The 1,000-acre site is part of the former Moffett Field Naval Air Station on the San Francisco Peninsula.

Google plans to invest more than $200 million to refurbish the hangars and add other improvements, including a museum or educational facility that will showcase the history of Moffett and Silicon Valley, according to a NASA statement. The agency said a Google subsidiary called Planetary Ventures LLC will use the hangars for "research, development, assembly and testing in the areas of space exploration, aviation, rover/robotics and other emerging technologies."

Google founders Larry Page and Sergey Brin have a well-known interest in aviation and space. The company has recently acquired several smaller firms that are working on satellite technology and robotics. But a Google spokesperson declined Monday to discuss specific plans for the property, which is located just a few miles from the company's main campus in Mountain View.

NASA plans to continue operating its Ames Research Center on the former Navy site. Google will take over operations at the runways and hangars, including a massive structure that was built to house dirigible-style Navy airships in the 1930s. NASA said the deal will save it $6.3 million in annual maintenance and operation costs.

Local officials praised Google's promise to restore the historic structure known as Hangar One, which is a San Francisco Bay Area landmark. U.S. Rep. Anna Eshoo, D-Palo Alto, called the lease agreement "a major win for our region."

Google already has a separate lease for another portion of the former air base, where it wants to build a second campus. Page and Brin have also used the Moffett runways for their collection of private jets, under another lease arrangement that's been criticized by some watchdog groups who say NASA gave the executives a sweetheart deal.


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