San Francisco Business Times

August 1, 1997

San Francisco developer makes $10M assault on Battery

Adam Feuerstein - Business Times Staff Writer

A San Francisco developer plans to overhaul the former Bank of California computer data center near San Francisco's Jackson Square.

The Martin Group on July 31 paid approximately $10 million for the vacant three-story building at 640 Battery St. and will spend the next several months examining several different redevelopment options. The sale was brokered by Tom Stubbs of Grubb & Ellis.

The cost of new development in downtown San Francisco is exorbitant due to the paucity of vacant land and high construction costs. As a result, developers have turned their attention to converting older, seemingly obsolete buildings into modern commercial and residential developments.

Last month, San Francisco developer Stein Kingsley Stein purchased an old office building at 475 Brannan St., which will be gutted and remodeled into a showcase for the city's multimedia industry. Similar projects, both for office and residential uses, have recently been completed in the Rincon Beach/South Beach area of the city, as well as in Potrero Hill.

The Bank of California vacated the building after it completed its merger with Union Bank last year. The property has been on the sale block for several months. Martin Group acquired it after another San Francisco developer placed the property in escrow but could not close the deal.