SF New Developments

Showplace Square is having a positive affect on the western parts of SOMA – the horrendous looking old metal freight building at the end of Langton and sitting on a whole block between 7th and 8th will be a great uplifter for this neighborhood. – Mark

By Brian K. Miller SAN FRANCISCO-Local developer Bill Poland has sold a majority interest in the San Francisco Design Center, a 500,000-sf retail building in the Showplace Square neighborhood. As a result, the founder of locally based Bay West Group now has the funds to develop hundreds of for-sale or for-rent residential units on two other sites in the neighborhood. San Francisco Design Center is located at 2 Henry Adams St. The development parcels are 1 Henry Adams St. and 801 Brannan. Poland declined to discuss dollars–either the value of the center or the cost of his planned developments–but did answer most other questions about the properties. At 1 Henry Adams, a 72,000-sf site with a smattering of small buildings on it, Poland tells GlobeSt.com he plans to raze the site and develop 215 condominiums and 20,000 sf of additional showroom space. At 801 Brannan, an old metal freight building turned exhibit hall, will be razed in favor of 560 units of apartments or condos, or both. “So the capital from the Rreef deal is going to be used as equity or credit enhancement for those other deals,” he says. “The grand strategy was to fund these other elements and still retain an interest in the design center.” Poland says he’s been working on getting the entitlements for the project for the past five years. He expects to have the necessary approvals late this summer and start construction on the smaller project next spring. The larger project is slated to be built in 2008. The proceeds from the residential developments will fund Poland’s hobby, which is acting as the equity partner for various young developers and acting as a mentor in helping them through trouble spots. “I will probably ramp that up a little,” he says. As for the design center, Poland says the retail property has been at least 98% leased for the past 10 years. Its tenants are designers of everything from appliances to porcelain. Their spaces are showrooms. Their clients are in the top 5% to 10% of the income strata, says Poland. John Cecconi and William Cumbelich of the CAC Group brokered the transaction.