Baptist Health System is spending $18 million on improvements at St. Luke’s Baptist Hospital. The nearly 6,000-square-foot expansion will include the build-out of new emergency department space that will accommodate nearly a dozen more beds, including eight additional medical-surgical beds.

The project will double the number of EMS bays from two to four. Baptist Health System acquired the hospital in 1994. It’s known to have one of the busiest emergency departments in the city.

The hospital is known to have one of the busiest emergency departments in the city. It sees some 1,600 emergency patients per month, and that figure will likely continue to grow as the demand for care escalates.

The additional rooms at Baptist Health will help offset the reduction in rooms that occurred when Christus Health closed its medical center hospital in late April.

Work on the project is expected to begin before the end of the month and is slated to be completed by May 2026.

Milan Capital Management and Arc Capital Partners said dd’s DISCOUNTS, a value-focused retailer, will join the tenant roster at The Plant Shopping Center in San Jose. The new 18,045-square-foot store will be located at the prominent intersection of Curtner Avenue and Monterey Road, filling a long-vacant space. 

“We are absolutely delighted to welcome dd’s DISCOUNTS to The Plant,” said Chris Nichelson, president of Milan Capital Management, which acquired the shopping center with Arc Capital last summer. “This addition further strengthens our vision of transforming The Plant into a vibrant, high-traffic retail destination.”

Scheduled to open its doors in June 2025, dd’s DISCOUNTS will occupy a prime location between Vallarta Supermarkets (planned opening in 2026) and Target. This strategic positioning is expected to drive significant foot traffic, reinforcing The Plant’s position as a key retail destination for the San Jose community.

Will Bryson of Atlantic Retail represented ownership, while Carol Therien of Retail Pacific represented dd’s DISCOUNTS.

A mystery buyer has apparently agreed to buy $725 million in debt on two of San Francisco’s largest hotels, reported the San Francisco Business Times. The 1,921-key Hilton San Francisco Union Square and 1,024-key Parc 55 San Francisco have been under court-appointed receivership since the fall of 2023, after owner Park Hotels & Resorts handed back the keys.

Eastdil Secured began marketing the debt on the two connected properties this past July. At that time, the two properties were appraised at roughly $554 million by Kroll Bond Rating Agency, a drop of more than $1 billion from their appraised value when the debt was originated.

The Business Times reported that the terms of the sale were still under discussion and the deal has not been finalized. The receiver is under a March 31 deadline to complete the deal or the debt will go back to lender JPMorgan for foreclosure.

The San Antonio Housing Trust is looking for a partner to expand its affordable housing program. The plan is to construct three separate communities in the Vida community on the town’s southside with the goal of building 530 units. The first phase will feature 90 senior housing units.

The San Antonio Business Journal reports San Antonio-based architectural firm Lake Flato is handling the master planning phase. No choices have been made for the developer or architect of record. An RFP process will get underway before the first of the new year.

20% of senior housing units will be considered affordable, targeting residents making 30% of San Antonio’s area median income. It’s expected to qualify for the 9% housing tax credit program.

Phase 2 is anticipated to begin in 2026, with the third phase a few years after that.

The Housing Trust finalized the $3.5 million purchase of the 20-acre site for the project in December 2023, funding it with a $2.2 million loan from Frost Bank and approximately $1.3 million in equity.

Wells Fargo will reportedly sell its San Francisco headquarters and move its central operations in the city to another building as it shifts its power base to New York City.

Wells Fargo’s headquarters at 420 Montgomery St. in San Francisco.

The banking giant could put the 409K SF office at 420 Montgomery St. on the market this month, sources told The Wall Street Journal, which reported Wells Fargo has already begun informal discussions with possible buyers. 

Wells Fargo hired the real estate investment bank Eastdil Secured as an adviser on the sale. A spokesperson told the WSJ the bank routinely evaluates its real estate portfolio “to ensure we are best meeting the needs of employees and customers, responding to consumer and economic trends, and managing our costs responsibly.”

The bank is set to move its headquarters to 333 Market St., where it recently renewed its lease.

The sale would further a steady shift away from San Francisco to the East Coast over the past several years.

Wells Fargo has grown its footprint in New York City since it hired CEO Charlie Scharf in 2019. Scharf is based in the city and has built out the bank there, announcing plans to expand its Hudson Yards footprint in late 2023.

The bank also has a substantial presence in Charlotte, which has featured its biggest employee base since it bought Wachovia in 2008.

Alexandria Real Estate Equities, Inc. executed a 10-year lease with Vaxcyte, Inc., a clinical-stage biopharmaceutical company, for a total of 258,581 square feet at 825 Industrial Rd. on the Alexandria Center for Life Science – San Carlos mega-campus. The lease includes new space and an extension of the lease term for its existing space.

Vaxcyte has been an anchor tenant at the Alexandria Center for Life Science – San Carlos since it opened in 2021. The purpose-built mega campus features significant options for future growth in addition to essential Labspace infrastructure in a location offering convenient access to Highway 101 and walkability to Caltrain, boutique shops and restaurants. 

The REIT did not identify any brokers on either the ownership side or the tenant side. The Alexandria Center for Life Science – San Carlos currently is 97.4% occupied, with approximately 1.4 million square feet of future development opportunities as of Sept. 30.

Breakthrough Properties was joined by San Diego Mayor Todd Gloria, UCSD Chancellor Pradeep Khosla and representatives from Pfizer and BD Biosciences to commemorate the opening of Torrey View, its newly developed, 10-acre life science campus in Del Mar Heights. The 520,000-square-foot campus was 100% pre-leased months before completion.

The oncology division of Pfizer leased 230,000 square feet spanning two buildings. Global medical technology company BD created a 220,000-square-foot innovation center for its Biosciences division across a third building. Charles River Laboratories, Actio Biosciences and Architect Therapeutics leased the remaining space. JLL handled leasing for Breakthrough.

A joint venture of Tishman Speyer and Bellco Capital, Breakthrough Properties acquired the Torrey View site in October 2020 and developed it alongside co-equity partners Mitsui Fudosan America, Investment Management Corporation of Ontario (IMCO) and AP2. “We developed Torrey View as a premier hub of innovation and collaboration where important research will be conducted and advanced,” said Breakthrough CEO Dan Belldegrun.

Israeli tech firm WalkMe Inc. is moving its U.S. headquarters to Kilroy Realty’s 350 Mission St. as it prepares to be acquired by software giant SAP, reported the San Francisco Business Journal. The digital adoption software provider, whose tools help guide users and employees through apps, signed on to sublease close to 18,000 square feet on the 26th floor of 350 Mission St. from Salesforce, sources told the Business Journal. WalkMe previously leased roughly 40,000 square feet at 71 Stevenson St.

The company’s lease at 71 Stevenson was set to expire in July. Although WalkMe is expected to take occupancy at 350 Mission this fall, it already lists 350 Mission as its headquarters on its website. It’s the latest to sublease Salesforce space at the 455,350-square-foot office property, which Salesforce once occupied in its entirety.

Cushman & Wakefield’s Sam Wasserstein, JD Lumpkin and Danny Pickard are listing Salesforce’s space at 350 Mission. JLL’s Mike Sample represented WalkMe in the deal.

Alexandria Real Estate Equities, Inc. said Tuesday that a top 20 pharmaceutical company and longstanding credit tenant has increased its San Diego footprint by nearly 53%. The tenant has signed a 10-year lease for 127,382 square feet, with significant expansion options, for a new R&D center at 10075 Barnes Canyon Rd. on the SD Tech by Alexandria mega campus in the Sorrento Mesa submarket of San Diego. 

With this anchor lease, the 253,079-square-foot development, which is targeting LEED Gold Core & Shell and Fitwel certifications, is now 70% leased ahead of its anticipated initial delivery in 2025. The lease also brings Alexandria’s 1.2-million-square-foot pipeline of under-construction mega campus development projects in San Diego to 94% leased.

Having entered the San Diego market in June 1994, Alexandria has been a key player in the development, expansion and transformation of the region into one of the nation’s top life science clusters. As of this past March, its operational San Diego portfolio was 95.2% occupied.

Institutional Property Advisors (IPA), a division of Marcus & Millichap, has listed Pacific Trails Apartments, an 84-unit apartment property located in Covina within the San Gabriel Valley. The price is open bid.

“Located close to entertainment and shopping along Arrow Highway and Azusa Avenue, Pacific Trails Apartments has benefitted from numerous recent improvements and remains an excellent candidate for additional value enhancing renovations to optimize operations and increase value,” said Alexander Garcia, Jr., IPA executive director.

Garcia and IPA’s Kyle Pinkalla and Chris Zorbas are representing the seller, a private party.

Built in 1977 and renovated in 2014, Pacific Trails Apartments is a gated, nine-building property that has received unit upgrades and improvements to the swimming pool and spa, barbecue grills, fire pit and courtyard seating. The property is located off Arrow Highway, close to State Route 66 and near Interstates 10, 210, and 605.