SAN FRANCISCO – The sale of 6X6 at 945 Market St. to Ingka Centers San Francisco LLC means an urban format IKEA will soon be part of the urban landscape. The seller MSP Property LLP, a company controlled by Alexandria Real Estate Equities Inc. and TMG Partners and owned by Alexandria Real Estate Equities Inc. and TMG Partners, acquired the retail property in August 2019.
Since then, the $ 150 million project has remained empty except for the two-story underground parking garage with 167 spaces. Prior to opening in Fall 2016, the property was renamed from Market Street Place to 6X6, a reference to the six-story building on Sixth Street.
The neighborhood has patiently waited for this building to welcome tenants and the joint venture is “excited to conduct a signature retail transaction in this current environment,” said Matt Field, president of TMG Partners.
“Ingka Centers is an extremely powerful mall that will bring IKEA to San Francisco,” Field told GlobeSt.com. “This is a great addition to the city. We are very excited to have her at 6X6 and look forward to seeing her in the neighborhood soon. “
Ingka Centers, part of the Ingka Group (which also includes IKEA Retail and Ingka Investments), will transform and redesign the 6X6 building into a new retail destination that will be anchored by IKEA and complemented by mixed-use offerings called “San Francisco Suitable “are lifestyle”. The IKEA store and the first phase of the renovation are to open in autumn 2021.
The acquisition marks the first of Ingka Centers in the U.S. and marks a milestone for the company, which announced a new strategic vision and investment of approximately $ 8.6 billion in 2018 to expand its business in response to the changing retail environment to transform.
“Our urban projects are about getting closer to our customers,” says Gerard Groener, General Manager of Ingka Centers. “6X6 is an impressive six-story glass building with a sleek, contemporary design and interiors that provide the ideal screen to create something truly spectacular. We believe Ingka centers can transform the performance of well-located assets like 6X6 by tailoring their offerings to how people want to spend their time. We are very excited about the potential that the 6X6 building represents for Ingka centers and local communities. “
6X6 will be Ingka Centers’ second mixed-use project in the city center, having acquired Kings Mall in Hammersmith, London earlier this year. The company is currently exploring opportunities in 40 major cities in Europe, Russia, North America, Asia and Oceania to showcase its urban goals. The company is actively focused on locations for similar US projects in New York City, Los Angeles and Chicago.
These urban projects, all of which are anchored by IKEA stores, are intended to complement IKEA Retail’s US strategy of opening smaller stores in city centers in response to global urbanization trends, changing customer behavior and the digitization of retail.
“It’s an exciting time for IKEA Retail US as we move into the next phase of our expansion into major US cities,” said Javier Quiñones, President of IKEA Retail US. “IKEA is evolving around the world to make customers more convenient everywhere. We are excited about the opportunity to bring a new, more accessible shopping experience to the many customers in San Francisco. It has been a pleasure working with Mayor London Breed and her office on this project and we look forward to meeting our new neighbors in the future. “
Ingka centers redevelopment plans for 6X6 are determined by the needs of the local community. The company will work closely with tenants and partners to create a place people will want to visit in the future too. The property is also being redesigned as part of the IKEA People and Planet Positive strategy, which makes the building more sustainable and promotes sustainable living. The Ingka Center will promote recycling, greener spaces and improved air quality at 6X6, among other things.
“The presence of this great retailer in the heart of our city will transform our midsize neighborhood, create more jobs and offer our residents a great new shopping experience. We really appreciate the work Ingka Centers and IKEA have done in our office to make this a reality and look forward to celebrating when they settle into their new home. This investment and the addition of IKEA will be a transformation for our midsize neighborhood and a welcome reminder that while the present is challenging, San Francisco remains a place businesses want to locate, ”said Breed. “The city’s employees have worked for months to win IKEA and we will continue to work to bring new retailers, new employees and new visitors back to the heart of our city to accelerate our recovery.”
The property covers more than 375,000 square feet including the building’s parking garage. The gross rental area is approximately 25,000 square meters with an atrium connecting the floors. The space includes 270 direct feet of floor-to-ceiling glass on Market Street, central escalator access to six levels of retail, 44,000 square feet of floor slabs, four loading bays and two freight elevators. The Gensler-designed development is located between Union Square, the hotel district and SOMA.
Cushman & Wakefield represented sellers and buyers. The US team was led by Vice Chairman Kazuko Morgan.
“This sale has a significant impact on San Francisco, and particularly on the mid-market. From a retail perspective, the larger paving slabs at 945 Market Street / 6X6 meet the needs of a resident like IKEA to showcase their furniture, fixtures and dining options, while the property offers ample on-site parking, which is rare in San Francisco. IKEA is a fantastic addition to Market Street and is helping to anchor this exciting new retail destination for the city of San Francisco along with other mixed-use offerings, “Morgan told GlobeSt.com. “In the emerging mid-market neighborhood, other exciting development plans and brands are in the works that will fill vacancies and create a synergistic environment. Across the street from 945 Market is Serif, a new mixed-use property anchored by The LINE Hotel, a new 236 room hotel with ground floor retail, bar and restaurant, and a rooftop bar, and 242 new condominiums. A new Whole Foods will open in Spring 2021 at Trinity Place, the city’s largest store. This is in addition to Supreme, a global cult streetwear brand, and Yotel, a hip and ultra-modern hotel concept that opened lower on Market Street last year. There are several other exciting retail openings in the neighborhood coming soon. “