WeWork Leases SF Office Tower
The coworking space provider has signed a deal with Kennedy Wilson and Takenaka Corp. to fully occupy 430 California St., as well as the historic bank building next door.
By Barbra Murray
400-430 California St., San Francisco
The impending full-building vacancy at 430 California St. in San Francisco is no longer. Kennedy Wilson and Takenaka Corp., co-owners of the approximately 252,000-square-foot property, have signed collaborative workspace provider WeWork to a lease of the entire office tower.
“We are proud to execute this substantial lease so quickly and to stabilize the property with a top-tier company nearly two years ahead of our initial business plan,” William McMorrow, CEO of Kennedy Wilson, said in prepared statement.
The 18-year lease with WeWork comes fewer than 18 months after KW and Takenaka acquired 430 California St. and the adjacent 27,000-square-foot historic bank branch at 400 California St. from MUFG Union Bank in a $136 million sale-leaseback transaction. The agreement calls for the bank to vacate the office tower within two years of the deal, and with WeWork scheduled to fill that void, vacancy in the North Financial District office submarket won’t have to increase by a quarter million square feet.
KW and Takenaka will invest multiple millions of dollars to renovate and reposition the 430 California office property, paving the way for WeWork to commence the first stages of its occupancy in the first quarter of 2019.
Big deal
KW and Takenaka started 2018 off on the right foot; WeWork’s commitment at 430 California marks one of the largest office lease transactions in San Francisco so far this year. The lease comes six months after Dropbox Inc.’s historic deal. In October 2017, the tech firm inked a pre-lease agreement to occupy the 736,000-square-foot The Exchange on 16th in its entirety, marking the largest Class A commercial lease transaction in San Francisco history.
Image courtesy of Kennedy Wilson
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