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.