Forbes Email September 12 2016

From: Forbes, Elaine (PRT) <>
Date: Mon, Sep 12, 2016 at 9:19 PM
Subject: Sale of the Piers project
To: “Jon Golinger (” <>
Cc: “Peskin, Aaron (BOS)” <>, “Edwards, Jay (PRT)” <>

Good evening, Jon

Supervisor Peskin forwarded me some questions you have regarding the recent sale of the Piers project. Please find answers below and let Jay and me know if you have any further questions.

1)  Who owns “SF Piers Owner, Inc.”? It’s a Colorado nonprofit corporation that the Public Employees Retirement Association of Colorado owns.  We learned this through Invesco Advisors Inc.

2)  What are the terms of this sale and assignment by SF Waterfront Partners and until when will these 3 piers remain under the control of this new company?  The purchase price was $103 million and includes the Assignment and Assumption of the Ground Lease with the Port.  This ground lease expires April 1st 2054 and includes an Option to Renew for 16 additional years until April 1, 2070.  The lease remains in effect without change and the project is 98.5% leased.  We anticipate that the buyer will hold the property for a long period of time given that the Public Employees Retirement Association of Colorado is an institutional investor.

3)  Will the sizable space inside Pier 1 which was until recently occupied by San Francisco Waterfront Partners for its offices but now appears to have been vacated now be used for a public trust-consistent purpose, such as maritime or a community-serving use, rather than leased for a non-public trust consistent purpose such as for non-maritime private offices?  SF Waterfront Partners occupied approximately 4,300 sq. ft. on a sub-sublease from Capital One which has an existing sublease at Pier 1.  According to Prologis who is the Master Lessee and oversees the management and leasing of Pier 1, they anticipate Capital One will expand into premises. For any future vacancies, Prologis is developing a leasing plan for outreach to potential Maritime related office tenants where possible.