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Citigroup Renews Anchor Lease at One Sansome
SAN FRANCISCO-Citigroup has renewed as the anchor tenant at the 739,000-square-foot One Sansome St. tower, though the bank has dropped one floor in its lease at the building. The company now has another 11 years in 121,754 square feet, or seven floors, for its regional headquarters.
Building owner Barker Pacific Group, which bought the property in 2010 in a joint venture with Prudential Real Estate Investors, will now assist Citigroup in a renovation that will cost up to $10 million. Michael Barker with BPG tells GlobeSt.com that the 29-year-old building needs an upgrade. "Most of the floors will be totally redone," he says.
Specifically, the renovation will include redesigning the lobby, new elevator carriages, an updated security center and a new restaurant in the historic conservatory space. The building is 75% leased with the Citigroup renewal, Barker says. "You?ve seen a lot of rents in the south San Francisco market rise faster than in the north from companies such as Twitter and Google," he says. "This building is right on the dividing line on Market Street, and sits atop one of the two main Bay Area Rapid Transit stations. We?re seeing a lot of leasing activity, and we expect to be stabilized within the next year."
Meade Boutwell, Phil Tippett, Jak Churton and Cori English with CB Richard Ellis? San Francisco office have been managing the leasing effort for the building. Nick Slonek and Karl Baldauf with Cornish & Carey Newmark Knight Frank were the tenant brokers for Citigroup. Legal counsel included Pam Lakey with SSL Law Firm, who represented One Sansome St., and Steve Berkman with Paul Hastings LLP, who represented Citigroup.
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