Posted Mar 2, 2007, 7:13 AM
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Join Date: Dec 2006
Location: The Mission
Posts: 690
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Peebles Out
Just found this little tidbit in a San Francisco Business Times Story originally published on February 16th. It sounds like 340-350 may still get built, but not for a while...
Less than a year after acquiring 250 Brannan St. for $20 million as a luxury residential loft play, Florida real estate mogul Don Peebles is putting the property back on the market as offices and expects to attract offers as high as $35 million.
Peebles Corp. Senior Vice President Daniel Grimm said the firm decided to test the market after receiving a number of unsolicited offers for the property. At the same time, Peebles has been going forward with the entitlement process on the deluxe loft development, and is still applying for building permits in case none of the offers are high enough. Offers are due Feb. 23.
"As the numbers get into the low to mid 30s, it makes sense to sell," said Grimm. "Anything under $30 million and we're building."
The shifting future of the brick-and-timber former Gallo Salame plant reflects both the strengthening Web 2.0-fueled SoMa market, and the uncertainties of a weaker housing sector, according to broker Tony Crossley of Colliers International, who is handling the listing.
"I think (Peebles) will do very well," said Crossley. "Over the last 12 months a few things have changed. The sheen is off the residential condo market a little bit. ... But I think these things are less significant than the office market making a comeback."
If the 104,000-square-foot building is acquired for office space, it will have come full circle since it was leased by Internet advertising firm DoubleClick Inc. at the top of the dot-com bubble. DoubleClick leased the entire structure, but never occupied more than 30,000 square feet and had left by 2004. It had been vacant for two years when Peebles picked it up last March and proposed 54 high-end lofts.
Grimm said it has taken longer than expected to secure permits for the office-to-housing conversion and that "during that time the office market changed."
"Given the unsolicited interest as an office building, we need to understand what the market is prepared to pay," said Grimm.
While well-positioned to profit on 250 Brannan, Peebles -- a flamboyant entrepreneur sometimes called the Prince of South Beach -- has struggled to gain a toehold in the Bay Area. In November, Peebles narrowly lost a ballot measure which would have allowed him to build a mixed-use "downtown" on 87 acres in Pacifica. And early this year, Peebles dropped a plan to construct a 380-unit tower at 340-350 Fremont after he was unable to come to terms with seller A
Grimm said Peebles is still bullish on Bay Area housing and is looking at a number of potential deals.
In switching from office to residential and back to office, 250 Brannan would not be unique. Last summer, Beacon Capital Partners filed plans to build a 27-story office tower at 535 Mission St., a site that had been entitled entitled several times for both residential and office development.
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Nice to see progress, but can someone please rescue this one from Heller Manus? Did they put ANY thought into the podium? So bland. So uninspired.
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