by Jerry Feitelberg

SAN FRANCISCO–Kilroy Reality Corp is proposing to build a 680,000 square foot campus which would turn out to be the largest commerical development in Mission Bay. After the Golden State Warriors purchased land at Mission Bay for their new arena, Saleforce who previously owned the property will now develop a campus south of the financial district for their new office development.

Salesforce originally intended to have Kilroy develop Mission Bay for over 2 million square feet for commerical use. Kilroy has built homes south of Market for Saleforce and Dropbox. The 3.1 acre property was bought for $95 million which also included 300 acres located at the former Union railway yards near AT&T Park, companies from bio tech, mediical, and high tech will mostly be occupying the properties.

The land purchase is almost the half the cost of the Warriors new arena, the cost of the 680,000 foot development which includes the project and property runs at $450 million. The Warriors who plan to build at Mission Bay are looking to spend upwards to $1 billion on the new arena a cost that is more than the original arena that they had their hearts set on at Piers 30-32.

The Warriors said the projected price for building the new arena at Mission Bay would be originally at $500-600 million but that cost has soared into their first billion. Piers 30-32 ran into neighborhood problems as neighbors said they oppose any construction development that would block or change the existing scenary of the bay, the bridge, and east bay views.

The neighbors and former San Francisco politicians former Mayor Art Agnos and former SF Board of Supervisor president Aaron Peskin helped get propositon B passed which limits any new building on the waterfront to 40 feet unless voters approve a project over that size.

The Mission Bay arena will run twice as much higher than the Piers 30-32 proposal and with more freedom to build on that property. With home properties it’s expected that the Warriors will include retail and condos a hotel on Mission Bay as well. How much of a that Kilroy will play into the project is still up for discussion with the Warriors.

Jerry Feitelberg is covering the new arena developments of the Golden State Warriors and the Sacramento Kings for http://www.sportsradioservice.com