The construction of a new six-story office building along Terry Francois Boulevard is the latest addition to the Mission Bay redevelopment plan that is dramatically transforming the former site of rail yards.
Lowe Enterprises Investors, a Los Angeles-based real estate firm, announced Friday it has acquired for an undisclosed price the waterfront property next to the new Old Navy headquarters.
The firm said it acquired the property to builda six-story, 300,000-square-foot office building, which is expected to open by early 2008. It will include about 9,000 square feet of ground-floor retail space.
The San Francisco Redevelopment Agency is charged with redeveloping the 303-acre Mission Bay area. The six-story building is part of a larger vision that includes construction of 6,000 housing units, 6 million square feet of office and biotechnology space and 750,000 square feet of retail. It also includes a 43-acre University of California at San Francisco research campus. It’s estimated that the development will create 31,000 new jobs.
Amy Neches, the agency’s project manager for Mission Bay, said the Lowe Enterprises project is a sign that the market for office space has recovered and similar developments are likely to follow.
There has been more movement with housing developments. About 1,500 residential housing units have been built since the redevelopment plan went into place in 1998, and there are another 1,004 under construction, according to Neches.
“Mission Bay has turned a corner and is poised to be a significant factor in San Francisco’s growing economy,” said Andy Segal, senior vice president of the Lowe Enterprises Real Estate Group. “With the new UCSF Life Science campus, the arrival of Muni [Third Street light rail] just three blocks away, and new housing and services, Mission Bay is quickly becoming a location of choice in San Francisco.”
Neches said Mission Bay will be transformed into “a neighborhood in The City with its own character.”
“[Mission Bay] is going to be this whole mixed-use, high-density urban infill community that will contribute a lot of jobs and a lot of housing for The City,” she said.