Mid-Market boom great for speculators

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The boom in mid-Market office space continues, with Dolby now joining Twitter as a big tech outfit moving into the corridor. There's a lot of debate about whether this is entirely an amazing thing for the world, or for San Francisco, or even for mid-Market (esp. the smaller businesses and nonprofits that may see their rents go up), but I can tell you on thing:

It's great for the real-estate speculators.

Check out the terms of the Dolby deal. The purchase price of the audiotechmoviesnohissontapes company's 1275 Market soon-to-be headquarters is $110 million, according to the Chron, which also notes that the seller, Divco West and TMG Partners, bought the place in October -- less than a year ago -- for $44 million.

That's a $66 million profit in 7 months. Nice work. Who knew that a simply tax break for Twitter could lead to such astronomical profits for landlords?

And what do you know? Ed Lee's BFF, and the man who as much as anyone helped get him elected (because of the Twitter tax break that was set to drive up property values in mid-Market), Ron Conway, is connected to TMG.

 

 

Comments

back in 1994. There's a reasonable argument that whatever fixes it is a good thing.

And, if a few of those porn stores and clip joints get replaced by upmarket smoothie stores and cocktail bars then maybe even someone who loves failure as much as you can possible see some merit here, huh?

Posted by Guest on Jun. 27, 2012 @ 2:05 pm

Before you start complaining about the "profit" of $66M in 7 months, you may wish to look into whether any improvements were made to the building, or whether the deal is contingent upon any improvements. There's also the real estate commission, assorted legal fees, taxes and other costs associated with a deal of this size. As I'm sure Bruce could tell you when he sold the BG building, you can't judge the profitability of any real estate deal by looking at the surface.

Posted by Guest666 on Jun. 27, 2012 @ 2:31 pm

Didn't they sell the Guardian building significantly below market price to a local non profit which will be developing affordable housing or community-based businesses?

Posted by Guest on Jun. 27, 2012 @ 7:15 pm
No

They sold to an investment group who's going to redevelop it into condos.

Posted by Troll II on Jun. 27, 2012 @ 7:26 pm

I agree with Tim, this real estate profiteering is absolutely disgusting.
I recently read about another multi million dollar deal that went down over in Portrero hill @ 135 Mississippi.

Tim, you know anything about that deal?

Posted by Greg on Jun. 27, 2012 @ 2:40 pm

kind of return on that? How un-American. He could instead have become a welfare queen, union activist or hack journalist, each of which would of course have been so much more worthy and noble.

Posted by Guest on Jun. 27, 2012 @ 3:07 pm

way completely over your head guest.

Posted by Greg on Jun. 27, 2012 @ 3:23 pm
Posted by Guest on Jun. 27, 2012 @ 5:56 pm

In taking a shot at Greg for "supporting" the BG so you could take a shot at the BG, you deserve the "clueless post of the day" award. Here's a hint to you to be less clueless: sarcasm.

As for what you actually wrote, you of course ignored the part about whether he (Ron Conway) used his political influence with the mayor to jack up the value of his properties - which was one of the points Tim was making That would border on corruption - of course, corruption is probably just fine in your world.

Posted by Guest on Jun. 27, 2012 @ 3:44 pm
Posted by Guest on Jun. 27, 2012 @ 5:23 pm

What are you talking about? What Conway did was cronyism! That was a big point of Tim's post - that Ron Conway is a crony of Mayor Lee and thus gets favors from him which is highly profitable to Conway.

What enterprise did Conway create? None. He hit the RE speculation jackpot in part thru his political connections.

Damn - you are incredibly clueless.

Posted by Guest on Jun. 27, 2012 @ 5:32 pm
Posted by Guest on Jun. 27, 2012 @ 5:45 pm

before he would have to pay the extra real estate transfer tax he's proposing for the rest of us on the November ballot.

Posted by Troll II on Jun. 27, 2012 @ 3:17 pm

So it took him 11 years to "ram it thru"? Seems kinda slow to me to call it ramming.

And here I thought that it had something to do with selling a bldg he no longer needed since he was selling the biz that he operated in that bldg. Silly me - I should have known that couldn't possibly be the reason he wanted to sell the bldg and that the real reason was so he could support something on the November ballot.

It's good there's such smart ppl here to tell us on the BG message bd about all the bad bad bad things those associated with the BG are up to.

Posted by Guest on Jun. 27, 2012 @ 4:12 pm
Posted by Troll II on Jun. 27, 2012 @ 4:53 pm
Posted by Guest on Jun. 27, 2012 @ 5:24 pm

So you think the sale of the building - a building they used to operate the BG - was not tied to Brugmann & his wife deciding to sell the BG and thus no longer needing the bldg?

And that the real reason was so that he could support a RE transfer tax in an election almost a year away?

I'm curious - how long extra did you want him to delay the selling of a building he no longer needed?

And if profit was the motivation, why would he not keep the bldg on the market for a long time until he gets the highest price he thinks reasonably possible - since he has until November of this year before the measure you're referring to passes?

Like I said, it's good there's ppl like you on the BG message bd telling us how bad those assoc with the BG are.

Posted by Guest on Jun. 27, 2012 @ 5:27 pm

that all these "progressives" line up to praise him.

Posted by Guest on Jun. 27, 2012 @ 5:44 pm

If one wants to get rich via advertising, one certainly doesn't take the stances Bruce & Jean took for 40 years. One only does that because one believes in making a difference in society over making big profits.

Hopefully they did become one percenters - a win for the good guys. But whatever their wealth, progressives should praise them. They are and were the real deal for 40 yrs instead of some corporate whores or kiss-asses to corporations that just about every other publisher is and like you would be.

Safeway used to let ppl pick up the BG inside it until the Nude issue and then no more. Did the BG stop doing the nude issue or chg to stay in Safeway and be "safe" like the SF Weekly? Nope.

So you, being an admitted admirer of the one percenters, would of course have little to agree with the BG. So then why are you here? Why not Faux News - don't they have a MB you can rahrah and kiss ass to the one percenters there?

Posted by Guest on Jun. 27, 2012 @ 7:28 pm

a couple of million made off running hooker ad's in a free rag doesn't really make him a working class hero.

Posted by Guest on Jun. 28, 2012 @ 6:32 am

Let's compare the two:

Case 1: Brugmann & Dibble sell bldg

Use of bldg by sellers: ran their biz from there

Profit on sale: roughly equal to inflation rate over the 11 year period bldg was owned by sellers

Speculation by sellers? No, bldg no longer needed since biz was being sold

Did sellers (Brugmann & Dibble) use political influence to get changes that would benefit them? No

Case 2: TMG sells bldg

Use of bldg by sellers: none I don't believe, just real estate speculation

Profit on sale: 150% profit in less than a year

Speculation by sellers: Yep, reason it was bought

Did sellers use political influence to get changes that would benefit them? Yep, they used their influence with Mayor Lee.

Hey Greg, in your world, I guess third grade little league baseball players can be reasonably compared to those playing in the pros as being roughly equal. It's a strange world you live in where you must post stupid to get that jab at Tim and / or the Brugmanns or the BG. You need to do that jab - makes your day doesn't it?

If I was running this board, you would never post here again no matter what your disguise.

Posted by Guest on Jun. 27, 2012 @ 3:35 pm

How liberal, progressive and enlightened of you.

Your position on RE speculators is hypocritical. I have no issue with Brugmann making an unearned buck, but know he is no different from all RE speculators.

Posted by Guest on Jun. 27, 2012 @ 5:52 pm

if I was running the bd and that appears to be the only reason "Greg" is here. I pointed out how the comparison of the two sales is absurd - unless the purpose is to take a jab at Tim or Steven or Bruce.

There's nothing progressive or liberal or enlightened about letting some fool be a smartass and post here just to attack you. Why did you equate that with liberalism or being progressive? You think being a doormat equals being a progressive? Uh, newsflash to you: it doesn't.

There's not an entity of more than one person that doesn't engage in censorship. Go dump constantly on somebody you know or some organization you're in and you'll find out that censorship has nothing to do with liberalism or any other -ism.

If BB no longer needed the bldg, why was it wrong for BB to sell the bldg??? I showed clearly above that the comparison of BB's sale of his bldg that he no longer needed to investment co's buying up prop to sell for a big profit is absurd.

So answer the question, why was it wrong to sell a bldg he no longer needed? Do RE speculators use their prop for 11 years and then only sell it when they sell their biz they ran from their prop? Then they wouldn't be RE speculators now would they?

Posted by Guest on Jun. 27, 2012 @ 6:30 pm

Why didn't Bruce allow the employees of the guardian to buy the building or the paper? So it's ok to make 28% profit from real estate speculation but not ok to make more than that?

Posted by Greg on Jun. 27, 2012 @ 7:34 pm

Yes, all retirees should welcome their new digs in refrigerator boxes below freeway entrance ramps, eating cat food.

Posted by marcos on Jun. 28, 2012 @ 6:22 am

I suppose the rules are that certain people get a pass because of their progressive credentials.
I wasnt aware that Bruce was so destitute that he was homeless. Amazing that one can make a few million off the sale of their property and still be homeless.

Posted by Greg on Jun. 28, 2012 @ 6:32 am

Fat pensions and free healthcare forever on the public dime.

While the poverty pimps make out like bandits on taxpayer handouts.

Gotta love SF.

Posted by Guest on Jun. 28, 2012 @ 6:34 am

1275 Market is between 8th & 9th Sts. and across from Larken. Owners of vacant buildings or lots on Market Street know they are sitting on gold--just wait long enough and someone will buy that porn theatre or vacant lot or small building for a tidy fortune. Meanwhile people complain of the impact down and outers make on the area--as if they were to blame for the empty / vacant buildings or lots. The trouble with having companies move into the mid-Market area is that employees leave after 5 pm and are no-where to be seen on weekends. So the impact of the down and outers continues to be negative. As a planning strategy, one has to wonder whether business usage is the best usage for the mid-Market area. Trinity Apartments provides housing on Mission Street in that area; can't help but wonder whether housing is not better use for the mid-Market area. Housing would assure a greater presence of people throughout the day and the week which would lessen impact of down and outers in the mid-Market. After all, those down and outers hang around that area, because it is in close proximity to services they need to sustain themselves: food, showers, shelter, etc. So they are not going to go away with any kind of development of the mid-Market area.

Posted by Steven Torrey on Jun. 27, 2012 @ 3:32 pm

best usage? People like you hate business.

Posted by Guest on Jun. 27, 2012 @ 5:25 pm

I'm fine with this move. Dolby has a long history here, makes something of tangible value, isn't clamoring for special tax treatment or just another 'me too' startup. I bet they would have done this anyway. In fact:

"The company is making the move despite not receiving financial incentives from the city. Its new headquarters lies a bit outside of the Mid-Market area where companies are eligible for a temporary exemption from the city's payroll tax. "

http://www.sfgate.com/realestate/article/Dolby-Laboratories-moving-head-...

Posted by Guest on Jun. 27, 2012 @ 6:29 pm

revitalization? Horrible, terrible things.

Posted by Guest on Jun. 28, 2012 @ 3:02 am

Politics always comes down to real estate in this town.

Posted by Guest on Jun. 28, 2012 @ 8:42 am

Generally speaking, it doesn't take work. you just have to wait.

Posted by Guest on Jun. 28, 2012 @ 9:34 am

Right, guaranteed profits. All those people who bought homes in 2006 will agree with you. They may have to wait until 2050, but patience is a virtue.

Posted by Mark F. on Jul. 01, 2012 @ 5:29 pm

It takes work and money for them to rig the game for any given developer to profit.

Posted by marcos on Jul. 01, 2012 @ 5:38 pm

Pretty much true all across the world.

Posted by Guest on Jun. 28, 2012 @ 9:52 am

The neighborhoods of SF are becoming more and more congested. Single family homes have become apartment buildings with all the tenants cars parked on the streets.

People with dogs ignore the pooper scooper laws since they are not enforced and let their dogs poop on the sidewalks, in front of other peoples homes of course.

Parking fines are outrageous.

Victims of crime may be punished by the city; ie; graffiti. OR some one, in the middle of the night stealing recylables, goes thru ur trash and puts the stuff from the black can into the blue can. or a tenant from a single family home whose owner does not pay for increased trash cans for their multiple tenants, puts their garbage in your blue can.

The quality of life in SF has been dropping due to the increased population density.

SF has become like NY city.

And now we got another "boom" . A boom for a few which cost the rest of us.

Perhaps its time to leave?
but
where to go?

Posted by sf T party on Jul. 02, 2012 @ 9:40 am

Move to Indianapolis. A nice large city with many lovely and very affordable neighborhoods and overall very high quality of life. Lots of nice restaurants and community events.

Have a safe move and enjoy your new home.

All Best!!

Posted by Guest on Jul. 05, 2012 @ 5:38 pm

Ya.............Patience is very important when buying a property and surely, it will give you the benefit in future.

Regards,
Paras Tierea

Posted by Paras Tierea on Apr. 29, 2013 @ 2:40 am