In February we noted that Miami developer Don Peebles was unloading 250 Brannan, a vacant commercial space which was purchased in March, 2006 for $19.8M and then entitled for 54 uberluxury loft condos. A couple of weeks ago, the deal was done (sale price of $31M) and it will remain office space.
From the Business Times: “Colliers broker Tony Crossley, who represented Peebles, said the city’s slow entitlement process gave Peebles a chance to do “reality checks along the way.” . . . Crossley doesn’t expect to see any more office to residential conversions in this cycle. “I believe residential conversion is over — we’re done,” said Crossley.”
JustQuotes: Nope, Not Included In Our “Near-Term Likely” Cii Pipeline [SocketSite]
Peebles unloads SoMa space for $31M [Business Times]

Comments from Plugged-In Readers

  1. Posted by anon

    Peebles is not stupid — he sees the writing on the wall and with the glut in new condos coming on line and a downward price trend, now is not the time to build even more. Office space has also gotten tighter in SF in the last 18 months with rents significantly higher. So this decision was a no-brainer — take the $11M profit and run.

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