Station 2, the HOK-designed building Shutterfly will likely occupy at Bay Meadows

J.K. Dineen
Reporter- San Francisco Business Times

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Shutterfly is looking at possibly moving its corporate headquarters to Bay Meadows in San Mateo, but corporate officials cautioned that nothing has been signed yet.

Several Peninsula brokerages sources stated that the digital personalized photo firm is looking at taking all the office space in Station 2, one of five office buildings slated for the 83-acre former racetrack. The five-building campus will total 763,000 square feet.

Gretchen Sloan, Shutterfly’s director of corporate communications, said that no lease has been signed and that the company continues to look at its options across the Bay Area. The company is growing and currently has 40 job openings, according to its website.

Station 2, located at the southwest corner of Delaware Street and 28th Avenue, is an L-shaped structure composed of two rectangular wings — one parallel to 28th Avenue and the other adjacent to the Caltrain rail line. The building includes large floor plates on levels two through four, with space for retail and active use on a portion of the ground floor. A landscaped courtyard links the building’s two-story office lobby to Delaware Street. Parking is hidden below the building and within its lower levels at the rear of each wing. The building includes 177,000 square feet of office space and 11,000 square feet of retail, which will include a 3,000-square-foot restaurant.

The architect is HOK.

Shutterfly is currently located in Redwood City at 2800 Bridge Pkwy.

Bay Meadows master developers Wilson Meany and Stockbridge Capital Group have submitted building permits for foundation and grading on Station Blocks two, three, and four. The developers have also pulled a superstructure permit for Station Block Two, the building Shutterfly is looking to take, according to Darcy Forsell, an associate planner with the city.

Shutterfly makes photo books, personalized holiday cards, announcements, invitations and stationery, as well as custom home decor products and photo gifts

The potential Shutterfly lease comes as Bay Meadows is making tracks on multiple fronts. This week Wilson Meany and Stockbridge announced that they have started construction on Field House, a 108-unit apartment complex. In addition TRI Pointe Homes and Shea Home are well underway on 156 for sale town homes, 97 of which have been permitted. The 30 homes released so far sold out immediately.

Bay Meadows will also include a 12-acre park and a campus for the Nueva School, an independent school that is building a 2.76-acre high school.

On May 28th Forsell gave San Mateo planning commissioners an update on the project and said that she expects the three Bay Meadows office buildings could be under construction this summer.

A Shutterfly deal at Bay Meadows would be a huge boost for the development, which a decade in the making, is an ambitious effort to build a dense, mixed-use, transit-oriented community in an area that often resists density and change.

J.K. Dineen covers real estate for the San Francisco Business Times.

Article source: http://www.bizjournals.com/sanfrancisco/blog/2013/05/bay-meadows-lands-first-big-corporate.html?page=all

The company said it has acquired a 0.43 acre, fully entitled development site at 350 Mission Street, a premier location situated at the main entrance of the City’s new transit station for approximately $52 million. KRC expects to invest an additional $200 million developing a high-image glass office tower with floor-to-ceiling windows providing abundant natural light, column-free floor plates offering open-office high-ceiling layouts, and ultra-energy-efficient operating systems—all qualities that are sought after by today’s modern office user.

The Skidmore, Owings Merrill LLP (SOM) design focuses on the creation of an urban living room that is highly engaged with the City’s urban realm animated by a café, a restaurant, and a digital canvas. It reflects state-of-the-art sustainability practices and energy-usage standards which are targeted to earn the building LEED Platinum certification—the first ground-up commercial development property in San Francisco to do so. The design utilizes numerous innovative technologies with the aim of creating a building with a carbon footprint that will be as close to zero as possible. According to Craig Hartman, FAIA, SOM’s Design Partner, this will be one of the most innovative office use towers in the U.S.

Situated at the corner of Mission and Fremont Streets and immediately across the street from the new Transbay Transit Center, the office tower will offer the convenience, high visibility and urban amenities that are attractive to the city’s technology and media companies as well as traditional space users. KRC said it will heighten the impact of the building’s prominent location with a 50-foot, open air entry lobby featuring a 75×40 foot electronic media display wall—the first of its kind in San Francisco. The new building—designed with a side-core configuration, an all-concrete structure and an under-floor air distribution system—will accommodate the high-density usage and flexible and open interiors preferred by knowledge-based, collaborative workforces. In-building amenities include electric vehicle charging stations, a fitness center with showers and lockers, and a first-class bicycle and storage center.

“It is rare that you get the opportunity to build from scratch a cutting-edge urban work environment in one of the nation’s hottest office markets at a cost-basis that makes it highly attractive relative to existing Class A properties. Also, given that there are very few large contiguous spaces available in the market, we have a great opportunity to pre-lease a substantial portion of the building,” said John Kilroy, Jr., president and chief executive officer of KRC. “We intend to make the most of it—for the City and for our tenants.”

Christopher Roeder, David Churton and Ted Davies of Jones Lang LaSalle have been engaged by the company as the listing brokers for the project. “350 Mission will be a truly iconic project and is a pivotal piece of the revolutionary TransBay area redevelopment plan,” said Christopher Roeder, managing director of Jones Lang LaSalle. “Just as the TransBay transit center, in combination with the BART and Caltrain, will forever change how San Franciscans interpret transportation, I believe 350 Mission will change how we interpret office space in this city.”

About Kilroy Realty Corporation. Kilroy Realty Corporation, a member of the SP Small Cap 600 Index, is a real estate investment trust active in the office and industrial submarkets along the West Coast. For over 60 years, KRC has owned, developed, acquired and managed real estate assets, consisting primarily of Class A real estate properties in the coastal regions of Los Angeles, Orange County, San Diego County, the San Francisco Bay Area and greater Seattle. At June 30, 2012, KRC owned approximately 12.2 million rentable square feet of commercial office space and 3.4 million rentable square feet of industrial space.

Forward-Looking Statements. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the Company’s current expectations, beliefs and assumptions, and are not guarantees of future performance. Forward-looking statements are inherently subject to uncertainties, risks, changes in circumstances, trends and factors that are difficult to predict, many of which are outside of the Company’s control. Accordingly, actual performance, results and events may vary materially from those indicated in forward-looking statements, and you should not rely on forward-looking statements as predictions of future performance, results or events. Numerous factors could cause actual future performance, results and events to differ materially from those indicated in forward-looking statements, including, among others: risks associated with investment in real estate assets, which are illiquid, and with trends in the real estate industry; significant competition, which may decrease the occupancy and rental rates of properties; the ability to successfully complete acquisitions and dispositions on announced terms; the ability to successfully operate acquired properties; the availability of cash for distribution and debt service and exposure of risk of default under debt obligations; adverse changes to, or implementations of, applicable laws, regulations or legislation; and the ability to successfully complete development and redevelopment projects on schedule and within budgeted amounts. These factors are not exhaustive. For a discussion of additional factors that could materially adversely affect the Company’s business and financial performance, see the factors included under the caption “Risk Factors” in the Company’s annual report on Form 10-K for the year ended December 31, 2011 and its other filings with the Securities and Exchange Commission. All forward-looking statements are based on information that was available, and speak only, as of the date on which they are made. The Company assumes no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information or otherwise, except to the extent required in connection with ongoing requirements under Federal securities laws.

Article source: http://www.heraldonline.com/2012/10/23/4359597/kilroy-realty-corporation-raises.html

SAN FRANCISCO–(BUSINESS WIRE)–Highridge Partners and Montgomery Capital Partners have completed the
acquisition of 550 Kearny Street in San Francisco. The 10-story office
building is located in the heart of the city’s financial district and
just three blocks from 255 California, which Highridge and Montgomery
acquired last July.

“This is a little jewel located in one of the strongest office
submarkets in downtown San Francisco”

“This is a little jewel located in one of the strongest office
submarkets in downtown San Francisco,” said Jack Mahoney, executive vice
president of Highridge Partners. “It is another great fit with our
investment program that we launched last year that focuses on Class A
office properties in California’s top-tier markets.”

The marble and granite clad building comprises approximately 196,000
rentable square feet including 9,700 square feet of ground floor retail
and on-site valet parking for 150 cars. The building has a 9 ½ foot
window line with views of the city and bay, ample natural light, and is
walking distance from all the financial district’s amenities.

The acquisition cost was $37.7 million, which at $190 per square foot is
well below replacement cost, Mahoney points out. The building, which is
50 percent leased, is well suited for larger users with its
approximately 18,500-square-foot flexible floor plates, which also break
down very well for smaller users.

“With San Francisco’s tight restrictions on new office construction and
the beginning of improvement in the office leasing market, we think this
is a great time to expand our investments in this dynamic market,” said
Jim Clifford of San Francisco-based Montgomery Capital Partners, which
is responsible for Bay Area properties acquired by the partnership. “550
Kearny is a great building in an extraordinary location. We have a few
critical improvements to the lobby and retail areas so that it will
better engage with the street and pedestrians and allow us to attract
San Francisco’s world-class tenants that have started to grow again.”

This was the third acquisition for Highridge Partners’ current $500
million office investment program, which is led by founder John Long,
Mahoney and their long-time office strategic partner, Jim Clifford.
Highridge provides capital and strategic guidance to the venture.
Clifford, through his company Montgomery Capital Partners, assembled a
team of seasoned consultants and professionals in order to fully
underwrite and submit the winning offer for 550 Kearny, which was
marketed through a bidding competition managed by The CB Richard Ellis
National Loan Sale Advisory Group.

Highridge Partners is a privately held, international real estate
investment company founded in 1978 by Long, who applies economics
principles to spot uniquely undervalued opportunities and turn them into
high-value properties. Often called a “contrarian” investor, Highridge
Partners has acquired, developed or financed over $7.7 billion of
assets. The company’s investments have spanned the entire range of real
estate including single family housing, apartments, retail, office,
industrial, hotels, and entertainment venues.

Montgomery Capital Partners is a full-service real estate investment
firm based in San Francisco and led by Jim Clifford. Over the past three
decades Clifford has been the key operational player on projects valued
at over $7 billion. Montgomery provides the critical strategic
operational knowledge to enable real estate investments to succeed.
Montgomery’s core strength is the ability to understand, implement, and
execute on the appropriate strategy for each asset.

Article source: http://www.businesswire.com/news/home/20110325005129/en/Highridge-Partners-Montgomery-Capital-Partners-Acquire-550