(SAN FRANCISCO) – The San Francisco offices ofHines and MetLife Real Estate Investments, both international real estate firms, and the Transbay Joint Powers Authority (TJPA) staff have successfully negotiated the essential terms for an Exclusive Negotiations Agreement for San Francisco’s new Transbay Tower.
The essential terms will be initially heard in public at the TJPA Board meeting Monday, September 29 at 5:30 pm.
Hines’ price formula for the Transbay Tower site totals $235 million. The proceeds will be used to help fund the development of the new, multi-modal Transbay Transit Center. Hines’ proposal for the land purchase amounts to approximately $4,900 per square foot, which would set a record land sale price for San Francisco.
The Transbay Transit Center program includes the construction of a new Transit Center building in the place of the existing Transbay Terminal, a rail tunnel extending Caltrain from Fourth and King streets to the Transit Center, and 3,500 new housing units, 35 percent of which will be affordable.
The Transit Center will also serve as the northern California terminus for High Speed Rail.
Hines’ proposed 1,000-foot Transbay Tower will be sited on a 48,000-square-foot parcel at Mission and First streets in San Francisco’s financial district, immediately adjacent to the planned Transit Center. The tower, designed by renowned architects Pelli Clarke Pelli, will offer approximately 1.6 million square feet of office space with ground-floor, convenience retail serving office tenants, commuters and local residents.
The Transbay Tower, which is planned to be the tallest building on the West Coast and built to LEED Gold certification, will be connected to the Transit Center via a main promenade and other walkways. The tower’s iconic obelisk design is the centerpiece of San Francisco’s efforts to encourage forward-thinking architecture and greater urban density served by mass transit.
“This is a once-in-a-century project, and Hines is honored to help make this vision a reality in the city of San Francisco,” said Hines Senior Vice President Paul Paradis. “Transbay Tower will mark the center of an entirely new district in San Francisco – one that offers a model for sustainable and responsible urban development in the 21st century.”
“This is truly a historic public-private partnership, not only for Hines but for the residents of San Francisco and the Bay Area as well,” said Gerald D. Hines. “The goal is nothing less than the establishment of a regional transportation hub that will offer residents and visitors alike a greater range of efficient and convenient mass transit options. We have a compelling design for Transbay Tower, and we are very pleased to present the essential terms that we expect will ultimately form the basis for a purchase agreement.”
Groundbreaking for the Transbay Transit Center program is scheduled for this November with the construction of a temporary terminal facility bounded by Howard, Beale, Folsom and Main streets. The current Transbay Terminal is scheduled to be demolished in 2009.
Construction of the new Transit Center will begin in 2010, with Phase 1 completed in 2014. The sale of the Transbay Tower site will take place upon completion of environmental review, anticipated in late 2009. Based on that schedule, the building could break ground as early as 2010.
About MetLife Real Estate Investments
MetLife Real Estate Investments ranks among the most active commercial mortgage lenders in the nation, with annual transaction volume of $8 - 10 billion and an existing portfolio of $35 billion. The company’s investment focus centers on institutional quality office, multi-family, retail, industrial and hotel properties in major markets with experienced sponsors. MetLife provides fixed and floating rate loans with flexible terms. MetLife also has $10 billion in managed equity real estate and is actively looking to increase the portfolio through acquisitions and development joint ventures. For more information, please visit www.metlife.com/realestate, http://www.metlife.com/realestate
MetLife, a subsidiary of MetLife, Inc. (NYSE: MET), is a leading provider of insurance and financial services with operations throughout the United States and the Latin America, Europe and Asia Pacific regions. Through its domestic and international subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement & savings products and services to corporations and other institutions. For more information, please visit www.metlife.com, http://www.metlife.com
Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of projects that are underway, completed, acquired and managed for third parties includes more than 1,000 properties representing approximately 435 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments.
With offices in more than 100 cities in 16 countries, and controlled assets valued at approximately $22.9 billion, Hines is one of the largest real estate organizations in the world. Visit www.hines.com for more information.