1950’s through 2000’s
William Zappettini, Sr. purchased the two properties at 610 & 620 Brannan St at 6th Street in the 1950’s in anticipation of the SF Flower Mart relocating to the adjacent property. Zappettini agreed to lease 620 Brannan to the California Flower Mart and 610 Brannan to a variety of industrial tenants including Pacific Bell (now AT&T). CFM and AT&T continued leasing the properties until 2016. Concurrently with property ownership on Brannan, Zappettini remained active in as a wholesale florist operator at the SF Flower through three generations.
2008 - 2011
In early 2008, J Zappettini began discussions with neighbors at the Flower Mart Block to explore together future development opportunities. Zappettini organized meetings with the three main group of property owners (flower cooperative organizations with over 400 individual owners), City officials and several local developers. Flower Mart tenants became divided as to long-term strategy to either stay at the current location or redevelop a new market elsewhere in San Francisco.
In 2010, the SF Planning Department launched the SOMA rezoning project that includes the SF Flower Mart block. The City is anticipating an additional 64,000 jobs to be created by 2030 just within a 20-block radius of Central SOMA. The Central Subway train expansion is underway and is expected to be completed in 2018 in order to support 50,000 passengers daily, a number that tops the charts countrywide. The Association of Bay Area Governments predicts that over a million people will be residents in San Francisco within the next 20 years. Any redevelopment project at the SF Flower Mart block must accommodate the proper changes for the future.
Zappettini evaluated several options for either a stand alone or block wide development. In 2014, Zappettini entered into a join venture with a local developer and an international private equity partner for $450 Million development to create 600 Brannan on the 610-620 Brannan sites. A proposed development project in connection with the Central SOMA Plan, which is an initiative for the area to encourage commercial and housing development near to the new $1.7 billion Central Subway being built along 4th street. The team worked closely with The City of San Francisco’s Planning Department for approvals and in cooperation with our neighbors on the block and with the local community.
The plan called for a 580,000 square feet 12-story building that will provide offices to accommodate up to 5,000 jobs and ground floor retail and industrial uses. A project of this scale in the diverse SOMA District needs to incorporate the demanding requirements of today’s tenants, integrate properly into the neighborhood, and be energy efficient. The City’s Planning Department is considering 600 Brannan to be one of the first pilot projects for the new Eco Districts Plan.
In late 2014, Zappettini identified after an extensive search a suitable property to relocate its long time tenant AT&T from 610 Brannan Street. Zappettini purchased the property located in South San Francisco and renovated to AT&T’s specifications. In early 2016, AT&T entered into a long-term lease agreement and relocated from Brannan St into the new facility at 222 Littlefield Avenue.
With 610 & 620 Brannan free of any long term tenants, the assemblage of the entire SF Flower Mart Block became possible. The adjacent parcels had been purchased by the Kilroy Realty Corporation, a publically traded REIT (NYSE: KRC). In early 2016, Zappettini entered into a transaction with Kiroy to contribute their property to the block development in exchange for cash and KRC stock. As a result, the SF Flower Mart block is planned for redevelopment of the 7 acres into over 2.2 Million square feet of office, mixed use and new Flower Mart. The commercial project is the second largest development in San Francisco. Zappettini remains involved with the project assisting Kilroy.
“Our integrity is our bond as we strive to ensure our real estate investments provide a return to all stakeholders including our tenants and the local communities.”
John Zappettini, President