Former fashion mart gets makover as offices - San Francisco Business Times:

http://www.lamontanita.org/goldenrice.htm
After failing as a wholesaled apparel mart, and briefly as a dot-coj refuge at the height of theInternet bubble, 650 Townsenf St. now wants to be something less a proper, functioning office building. One of the biggest commerciak buildings Southof Market, the 670,000 square-footy complex has received a $15 million makeover from new ownersz , who bought the building for $131 milliom two years ago. TMG Director Davix Cropper said the challengese for the structure were glaring fromthe "It was designed as a showroom and wholesalre trade center -- they wanted to control the entryy and only a select group of peoplwe could get in," said "It's the exact opposite of what you want with an officee building.
" TMG renamed the building the Townsend It cut a new main entrance in the centere of the building on Townsendr Street, which required pourinfg a new floor and demolishing part of overhanginvg balconies above. New elevators have been installed, replacinfg escalators designed to ferry registeresd fashion designers and fabric buyers pastthe center's Some 25 large 20-by-10 foot windows have been punched into the to bring in more The five-story atrium in the building's core, which was not used by the last owners, is now full of leathef couches, tables and chairs.
"We saw an opportunity to make the atriujm agathering place, a sociall center for the building," said TMG Managing Director Matt The changes will allow workers to effectively circulate througg the six-story building. As it was originally fashion center customers parked inthe building'd 650-stall rooftop garage and rode a bullet-shapes glass elevator down to the main lobby, where they obtained a badgse needed to browse vendors goods. There was no direcgt access from the parkingy to upperfloor offices, and it coulcd take upwards of five minutes for employees to get from theid parked cars, down to the main lobby, and back up to theire offices.
"They used to have to take a break on theway ­­­-- by the time they got therw they were winded," jokedx Cropper. Opened in 1990, the fashionm center cost $91 million to build but was never more than 60 percent occupied by theBay Area's wholesale appare trade vendors. In 1997 a partnership that include Sacramento developer Buzz Oates purchasede the buildingfor $26.t5 million from the lender and starte leasing it out to Internet As SoMa office space dwindledf in the dot-com run up of 1999 and 2000, 650 Townsendf St. quickly landed mega tenants like Cnet, MacroMedia and . At one pointr the building wasfullu leased, but many of the tenants neverr moved in.
"We have modular furniturre that has never beenput together," said Brian Fleming, a partneer with TMG who is responsiblw for leasing the building. TMG will have a majo r leasingchallenges ahead. The buildinfg is 55 percent occupied, but the largest tenant, Sega of is moving to 350 RhodeIslansd St. Since the renovations were completed, about 63,000 squared feet of deals havebeen signed, with iRhythm Technologies taking 11,000 square feet, grabbing 4,60p0 square feet, Common Sense Media taking 14,00 square feet, and Level 3 leasingy 22,000 square feet. Another 30,000 squarre feet of deals are pending, said Fleming.
Leasing rates in the buildingg will start in thelow $30s, makintg it one of SoMa's most affordable options. "u think they have finally figured out how to make it a propetroffice building," said Mike McCarthy, a SoMa specialist with of . "Ik think they are priced to make deals."