May 6, 2016
Are you ready to get the inside scoop on the Bay Area’s CRE market? Register for Connect San Francisco on May 12th at The Hibernia Bank.
Reddit reportedly signed a 50,000 square-foot lease to occupy 100% of a Tenderloin district building at 420 Taylor St. The social news site’s move into an emerging neighborhood runs counter to soaring rents in SoMa and the Financial District.
The Tenderloin offers below-market-rate rents, but faces higher crime rates. Recent revitalization efforts in the area include a re-opened park, new market-rate housing, destination restaurants, and nonprofits.
Irvine-based PRES Cos. acquired the property on behalf of a Luxembourg pension fund for $28.2 million in 2013. Avison Young’s Jonathan Allen represented Reddit in the lease. Bob Kraynak, formerly of Cushman & Wakefield who has since joined CBRE, represented the landlord, 420 Taylor Partners. Currently, Reddit leases space at 101 New Montgomery St. in SoMa.