633 Folsom, an aging San Francisco office building located in the city’s SoMa submarket, is going to get an extensive makeover. Property owner and manager The Swig Co. plans to turn the 1967-built Class B asset into a modern, Class A office tower.
Aided by HFF and a domestic bank, the company recently secured $145 million in construction financing for the renovation and expansion of the building. The loan proceeds will be used to bring the seven-story mid-rise to 21st-century standards, by completely changing the building’s exterior design and by adding five new floors.
“The planned repositioning and expansion of 633 Folsom coincides with a shift in leasing patterns from traditional tenants seeking 5,000 to 10,000 square feet to large users establishing new headquarters or satellite campus locations in the San Francisco CBD. It will be exciting to watch The Swig Co. execute its plan to transform 633 Folsom into a Class A building,” Bruce Ganong, senior managing director at HFF, said in a statement.
The renovation and expansion project is scheduled to begin in the summer of 2018. Upon completion, the total rentable area of the 12-story tower will increase by over 94,000 square feet, and the building’s height will rise from 92 feet to roughly 165 feet.
Built by The Swig Co. in 1967, the property at 633 Folsom St. was completely renovated in 1994 and was cosmetically revamped in 1998. The office building has been fully leased for the past 20 years, most recently to the California Pacific Medical Center, which has a 10-year lease bound to expire at the end of April—per Yardi Matrix data. The 171,632-square-foot office mid-rise also features 1,100 square feet of retail space, occupied by R&B Cafe.