City invests in SoMa Submarket
San Francisco’s South of Market district has an attractive reputation as an original and artistic community, which appeals to modern creative professionals. City efforts to modernize the area will likely benefit recent commercial investments.
The Second Street Improvement Project is set to transform Second Street, between King and Market Streets, by the end of 2018. Extending from downtown San Francisco to the SOMA district, the project will upgrade transit conditions for all. According to San Francisco Public Works, construction should begin this month: repave the street, widen side-walks, bike lanes in both directions, transit-boarding islands at most public transit stops along the corridor, new street trees and all the furnishings.
Thor Equities Bets on Tech
New York-based Thor Equities stepped up to the area’s opportunities and put $40 million on Manchester Capital Management’s building at 634 Second Street. According to The Registry, MCM purchased the building for $16 million back in 2007 and invested another $8.6 million in improvements.
The brick and timber building dates back to 1927, when it served as the Crane Company Warehouse. Today the 46,752-square-foot Class A office and retail building sports modern amenities, such as expansive floor plates, new elevators, indoor bicycle storage and a rooftop deck. Its many windows allow for plenty of natural light and ensure a bright, well lit space.
All of the Class A office space is occupied by tech wonder OKTA, on a lease that runs through 2024 with a 5-year extension option. The 1,720-square-foot ground floor retail space is leased by SAJJ Mediterranean.
Thor contracted NGKF to secure the acquisition financing for the deal, as well as begin management of the asset going forward.
According to The San Francisco Business Times, Thor Equities’ investment could go bigger, as current zoning allows for 23,000 square feet to be added to the property.
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