Why it won:
In its quest to snag self-driving vehicle company GM Cruise, Kilroy Realty Corp. had to get creative. The company didn’t have enough space at 333 and 301 Brannan St. So the landlord decided to buy 345 Brannan St. for the highest price per square foot ever for a San Francisco office building — $1,327. It then leased 345 Brannan and its two neighbors, 333 and 301 Brannan St., to GM Cruise.
Matt Griffin, head of Kilroy’s Northern California office, described “an incredible transaction” that was in fact several deals completed almost simultaneously. The six-party dance to complete the deal — which included terminating a lease with Dropbox — had to move in a particular order so that all documents could be executed at the same time.
“If at any given point communication and negotiations between multiple stakeholders were to have broken down, this deal would have never seen the light of day,” Griffin said.
The grand finale? Dropbox shuffled into another of Kilroy’s buildings, the Exchange in Mission Bay, to lease a space twice the size of the GM Cruise lease.
GM Cruise Lease and 345 Brannan St. purchase
Address: 345 Brannan St., San Francisco
Size: 110,000 square feet
Price: $146 million ($1,327 per square foot)
Buyer: Kilroy Realty Corp.
Seller: Breevast B.V.
Broker: Eastdil Secured
Address: 301, 333 and 345 Brannan St., “The Brannans” San Francisco
Size: 375,000 square feet
Tenant: GM Cruise
Landlord: Kilroy Realty Corp.
Tenant’s broker: Jenny Haeg of CBRE
Landlord’s broker: Kilroy Realty, represented by Rob Paratte, Matt Griffin, Amanda Bates