Jamestown forms a new AI neighborhood in SF’s North Waterfront

Authors: knguyensfstandard.com

Publisher:

The San Francisco Standard

Published: 7/19/2025

Language:English

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David

Good evening 徐国荣, I'm David, and this is Goose Pod, your personalized podcast. Today is Monday, July 21st. The time is 10:33 PM.

Ema

And I'm Ema. Tonight, we're diving into a fascinating shift in San Francisco's tech landscape: how the real estate investor Jamestown is shaping a brand-new AI neighborhood in the city's North Waterfront.

David

Let's get started. Ema, this isn't just about a new office building; it's a trend. We're seeing a migration of cutting-edge AI companies to a part of San Francisco that's traditionally been more scenic than silicon.

Ema

Exactly! Take the startup Salient. Its founder, Ari Malik, said they had "no choice" but to come back to San Francisco after a stint in Los Angeles. The density of qualified engineering talent here is just unmatched, and they needed to scale up fast.

David

And importantly, they didn't choose a typical tech hub like SoMa. They opted for the North Waterfront. Malik mentioned an "ecosystem building here" that they wanted to be a part of, citing the proximity to major AI players in nearby Jackson Square.

Ema

It's like a new 'center of gravity' is forming. Another great example is Sync Labs, the company that made that viral video of Mark Zuckerberg speaking Hindi. Their CEO, Prady Modukuru, said people were confused at first about their move to Waterfront Plaza last year.

David

I can imagine. The area is known more for Ghirardelli chocolate and bay views than for deep tech research. But Modukuru found it to be the perfect environment—beautiful, peaceful, and quiet. He said, "You can’t help but feel inspired."

Ema

That's the key, isn't it? For deep, focused work, maybe the chaos of downtown isn't the best place. Ari Malik from Salient even said downtown feels like it's in a "hollowing-out phase." The North Waterfront offers an alternative, a serene place to build the future.

David

And it’s not just one or two companies. Alex Schwiebert from Jamestown, the real estate firm behind this, confirmed that six AI companies have already signed leases in their North Waterfront properties, and seven more deals are in the works. This is a deliberate, unfolding phenomenon.

Ema

Wow, so it's a full-blown movement. We're talking about companies like the AI research lab Goodfire and AI inspection company Overview.AI all setting up shop there. It’s a real signal that the geography of innovation in San Francisco is shifting.

David

A significant shift. Modukuru from Sync Labs summed up the core driver perfectly: "If you want to push the frontier, you have to be around other people who are doing the same." That critical mass is now building by the water.

David

To understand how this is happening, we need to look at the developer pulling the strings: Jamestown. This isn't an overnight success story; it's the result of a deliberate, decade-long strategy. They are a design-focused, vertically integrated real estate investment manager.

Ema

That sounds very corporate! In simple terms, they buy cool old buildings and make them even cooler, right? Like their work on Chelsea Market in New York or Ghirardelli Square right here in San Francisco. They know how to create a vibe.

David

That's a fair, if simplified, assessment. Their North Waterfront play started back in 2013 when they acquired a part of Ghirardelli Square for $56 million. A year later, they bought Waterfront Plaza for $88 million, which is where many of these new AI startups are moving.

Ema

Okay, so they were laying the groundwork for a while. But the big move was Levi's Plaza, wasn't it? I remember when that happened. It felt like a huge deal at the time. What were the numbers on that purchase?

David

It was a massive deal. In 2019, at the peak of the market, Jamestown dropped $820 million to acquire Levi's Plaza. We're talking about a 900,000-square-foot campus that has been Levi's home for over 40 years. It was a statement of intent.

Ema

So they have Waterfront Plaza for the up-and-coming startups and the massive Levi's Plaza for the big, established players. It sounds like they're creating a full lifecycle ecosystem for tech companies, all within a few blocks. That's incredibly smart.

David

Precisely. Alex Schwiebert of Jamestown stated their goal is to link these properties to create that "center of gravity." He said, "Waterfront Plaza is perfect for starting out, and Levi’s Plaza is for the big users." They even got Snap Inc. to move into Levi's Plaza two years ago.

Ema

So they're curating a tenant list, mixing social media giants with the next wave of AI. But with office vacancy rates so high city-wide, around 35%, how are they making these 40-year-old buildings attractive? It can't just be the view.

David

They're being very proactive. They've focused on renovating the facilities and scaling up the perks. They run a shuttle service to the main transit hubs, bring in food trucks four days a week, and organize community events like Blue Angels watch parties on the rooftops.

Ema

Food trucks and parties! Now you're speaking my language. They're not just leasing space; they're building a community. They even have plaques in the elevators that say, "Refer a tenant and we'll throw you an office party." That's brilliant.

David

Schwiebert even joked, "Get them to do a whole floor, and I’ll throw in a DJ." It shows a modern, aggressive approach to filling these spaces. They’re not waiting for the market to come to them; they are actively creating the market.

Ema

And it seems to be working. They're turning what could be a real estate problem into a thriving, specialized tech campus. It’s a testament to their long-term vision, buying these key pieces over a decade to assemble something new and exciting.

David

However, it's not all idyllic views and catered lunches. This rapid creation of a high-tech hub in a quiet neighborhood comes with inherent conflicts and challenges. The area isn't fully equipped for this influx of tech workers.

Ema

That's a great point. The article mentioned a very practical problem: there just aren't many restaurants or bars around. Workers at Salient and Sync Labs are mostly ordering from Uber Eats or DoorDash, which isn't ideal for building a neighborhood feel. Happy hour is a challenge with only a few options.

David

Exactly. Amenities are a real issue. But there's a broader conflict at play here, one that's classic San Francisco: development versus neighborhood character. The city has a history of "NIMBYism"—Not In My Backyard—where residents resist new development to preserve the status quo.

Ema

So, while Jamestown is creating this amazing campus, are they potentially creating friction with the existing community? An influx of thousands of high-paid tech workers can dramatically change a neighborhood's culture and affordability, a process often labeled as gentrification.

David

Precisely. There's a debate about whether density and development cause prices to rise or if they're a response to pre-existing demand from high-paying jobs. In this case, the AI industry is the driver, creating a huge demand for both talent and space, which inevitably puts pressure on the surrounding area.

Ema

It's a chicken-and-egg problem. Does the trendy tech hub create the high prices, or do the high prices reflect that it's already a desirable place to be? Either way, the result is often the displacement of those who can no longer afford to live or work there.

David

And there's the city-wide real estate conflict. One article noted a "Downtown Dilemma," where aging central business districts are seeing their values plummet, while outer neighborhoods are thriving. This North Waterfront development is a perfect example of that trend in action. It's a success for Jamestown but a challenge for downtown property owners.

Ema

So it's a zero-sum game? For the North Waterfront to win, does downtown have to lose? That seems like a pretty significant conflict for the city's overall health. You can't just have one thriving corner while the heart of the city hollows out.

David

Let's talk about the broader impact of this AI boom. The numbers are staggering. According to a JLL report, the Bay Area captured nearly $70 billion of the $135 billion invested in AI globally in 2024. That capital has to go somewhere.

Ema

Seventy billion dollars! That's an incredible figure. And it's having a direct impact on real estate, right? I read that the office space leased by AI companies in the Bay Area has grown almost tenfold in the last five years. That's insane growth.

David

It is. In 2021, there were just six active AI leases totaling about 280,000 square feet. Now, there are 41 leases covering 2.4 million square feet. This surge is significantly mitigating the office vacancy crisis caused by the shift to remote work.

Ema

So, in a way, the AI industry is the hero of the commercial real estate story, swooping in to save the day. It's creating what one report called a "virtuous cycle"—funding pours in, which boosts office demand, which in turn strengthens the tech ecosystem.

David

It is a powerful economic engine. The growth of AI is projected to add over $15 trillion to the global economy by 2030. The impact on the local level is immense, from job creation to the kind of urban redevelopment we're seeing in the North Waterfront.

Ema

But that impact isn't felt evenly. It benefits the AI companies, the real estate investors like Jamestown, and the highly skilled engineers. But it also drives up competition and the cost of living, which has a major impact on everyone else in the city.

David

Looking to the future, the key question is sustainability. Jamestown has successfully created this initial hub, but what's the long-term vision? The provided materials were surprisingly quiet on specific future development plans for an expanded AI campus. It's still an unfolding story.

Ema

That's interesting. So they've built the core, but the next chapter isn't written yet. You have to wonder if they'll start addressing the amenity problem by developing more retail and restaurant spaces to make it a true, self-contained neighborhood. What do you think?

David

That would be the logical next step for urban planning in the area. Another article I saw mentioned a new life sciences campus, Genesis Marina, being built on a nearby waterfront site. It's focused on resilience against sea level rise and enriching the Bay Trail.

Ema

Oh, so that could be a model for the future of the North Waterfront! Integrating the tech campus with public amenities and environmental resilience. It's not just about building offices, but about building a thoughtful, sustainable part of the city. That's an inspiring thought.

David

And that seems like a fitting place to end our discussion. A new tech hub is born, with all its opportunities and challenges. Thank you for listening to Goose Pod.

Ema

We hope you enjoyed it, 徐国荣. That's the end of today's discussion. See you tomorrow for another deep dive into the topics that matter to you.

## Jamestown Cultivates AI Hub in San Francisco's North Waterfront **News Provider:** The San Francisco Standard **Author:** knguyensfstandard.com **Published:** July 19, 2025 This report details the strategic initiative by real estate investor Jamestown to transform San Francisco's North Waterfront into a thriving ecosystem for Artificial Intelligence (AI) companies. Jamestown, which owns 40% of office properties in the area between Fisherman's Wharf and the Ferry Building, is actively leasing space to AI startups, aiming to create a "tech and innovation campus." ### Key Findings and Trends: * **AI Company Migration:** Several AI companies, including Salient, Goodfire, Overview.AI, and Zams, are relocating to or signing leases in the North Waterfront. Salient, a creator of AI agents for lenders, has moved its team of approximately 20 engineers back to San Francisco from Los Angeles, citing the "unmatched" density of qualified talent. * **Jamestown's Strategic Investment:** Jamestown's commitment to the North Waterfront began in 2013 with the acquisition of Ghirardelli Square for $56 million. Subsequent investments include $88 million for Waterfront Plaza (50 Francisco St. and 1700 Montgomery) and a significant $820 million purchase of Levi's Plaza in 2019. * **Creating an "AI Neighborhood":** Jamestown aims to link its properties, Waterfront Plaza and Levi's Plaza, to establish a "center of gravity" for AI innovation. Levi's Plaza, a 900,000-square-foot property, already houses Snap Inc. and is being positioned for larger AI tenants, while Waterfront Plaza is seen as ideal for startups. * **Talent Attraction and Retention:** The move to the North Waterfront is driven by the need for proximity to AI talent and venture capital funding. Companies like Sync Labs, which specializes in AI-powered audio translation, have found the area conducive to "deep AI research" due to its peaceful environment, despite its distance from downtown. * **Office Vacancy and Renovation:** The North Waterfront faces an office vacancy rate of 34.7%, mirroring the city's overall rate. Jamestown is addressing this by renovating 40-year-old facilities, enhancing retail offerings, and providing tenant perks to attract new businesses. ### Key Statistics and Metrics: * **Jamestown's Ownership:** Owns 40% of office properties in the North Waterfront stretch. * **Salient's Team Growth:** Mandate to double its team of around 20 engineers in the next six months. * **Acquisition of Jony Ive's Startup:** OpenAI acquired Jony Ive's AI device startup for $6.5 billion in May. * **Levi's Plaza History:** Served as Levi's headquarters for over 40 years. * **Snap Inc. Occupancy:** Moved into Levi's Plaza two years ago. * **Sync Labs Office Size:** Leased a fully furnished 5,400-square-foot office at Waterfront Plaza. * **Anysphere Inc. Valuation:** Valued at $20 billion, developer of the AI code editor Cursor. * **Office Vacancy Rate:** 34.7% in the North Waterfront. * **Jamestown's Property Acquisitions:** * Ghirardelli Square: $56 million (2013) * Waterfront Plaza (50 Francisco St. and 1700 Montgomery): $88 million (2014) * Levi's Plaza: $820 million (2019) ### Jamestown's Tenant Attraction Strategy: Jamestown is actively working to make the North Waterfront an attractive destination for tech companies by: * **Providing Amenities:** Offering food trucks four days a week at Levi's Plaza and a shuttle service to BART. * **Funding Programming:** Organizing events like a rooftop Blue Angels watch party and outdoor concerts. * **Incentivizing Referrals:** Offering office parties for referring new tenants and a DJ for securing an entire floor. ### Notable Risks and Concerns: * **Limited Local Amenities:** The North Waterfront currently lacks a sufficient number of restaurants and bars, leading employees to rely on food delivery services and limiting after-work social options. * **Perception vs. Reality:** While the area is being promoted as a tech hub, it still requires further development to rival established tech districts like SoMa. ### Company Focus and Future Outlook: Jamestown's approach involves buying and renovating existing real estate, with past projects including One Times Square and Chelsea Market in New York. They were also hired by Google in 2023 to curate programming for its downtown San Jose redevelopment. The company's vision is to create a "destination" for companies at all stages of their growth, fostering a concentrated AI ecosystem in San Francisco's North Waterfront.

Read original at The San Francisco Standard →

One peek inside Salient’s new San Francisco office, and it’s clear they got the keys to the place this week. Office chairs, just unwrapped, are strewn around, and desks are unconstructed. Yet Ari Malik can’t wait to fire up the monitors. The founder of the fledgling company, which creates AI agents for lenders, has already lost time relocating from Los Angeles.

But it was imperative that the startup — which went through Y Combinator in 2023 — return to San Francisco.“We had no choice but to come back,” Malik said. “The density of qualified talent here is unmatched.” Malik has a mandate from investors to double the size of his team of around 20 engineers in the next six months, in order to meet customer demand.

In choosing a spot for its San Francisco homecoming, Malik didn’t look to a conventional tech haven like a Hayes Valley hacker house or a SoMa coworking space. Instead, the team opted to make the scenic and serene North Waterfront — decidedly removed from downtown’s chaos — their home.Ari Malik and his dog, Dante, at their new San Francisco office.

| Source: Thomas Sawano/The StandardSource: Thomas Sawano/The StandardSource: Thomas Sawano/The Standard“There’s an ecosystem building here we felt like we needed to be closer to,” Malik said, referencing the proximity to Jackson Square, which is home to multibillion-dollar company Cohere and Jony Ive’s AI device startup, acquired in May by OpenAI for $6.

5 billion. “It felt like downtown is in a bit of a hollowing-out phase,” he said. They’re not alone in migrating north. According to Alex Schwiebert of Jamestown, the Atlanta-based real estate investor that owns 40% of the office properties in the waterfront stretch between Fisherman’s Wharf and the Ferry Building, six other AI companies have signed office leases in the area.

Seven more deals are pending. Jamestown’s quest to dominate the waterfront kicked off in 2013, when it acquired a portion of Ghirardelli Square for $56 million. One year later, the firm paid $88 million for two office buildings, known as Waterfront Plaza, at 50 Francisco St. and 1700 Montgomery. Then, it took its biggest bite yet, dropping $820 million at the top of the market on Levi’s Plaza in 2019.

The centerpiece of its office holdings in the neighborhood is Levi’s Plaza, the grassy campus that has served as the headquarters for the denim company for more than 40 years. Snap Inc. moved into the 900,000-square-foot property two years ago. Between the social media company and the new AI tenants, Jamestown is aiming to compile a “tech and innovation campus” that will rival the best of the Bay Area’s office market.

Source: Morgan Ellis/The StandardSource: Morgan Ellis/The StandardSource: Morgan Ellis/The StandardSchwiebert said the landlord’s intent is to link Waterfront Plaza and Levi’s Plaza to create a “center of gravity” for the neighborhood. Other startups that have signed leases this year include AI research lab Goodfire, AI inspection company Overview.

AI, and sales automation company Zams. “We think we can turn this place into a destination, regardless of where companies are on their journey,” Schwiebert said. “Waterfront Plaza is perfect for starting out, and Levi’s Plaza is for the big users.” Jamestown buys and renovates real estate, rather than building its own.

Its previous projects include One Times Square and Chelsea Market in New York. The firm was also hired by Google in 2023 to curate programming ahead of its redevelopment of downtown San Jose. With office vacancy rates in the North Waterfront mirroring those of the rest of the city — at 34.7%, per Cushman & Wakefield — kickstarting office leasing after the pandemic meant renovating 40-year-old facilities, refreshing retail offerings, and scaling up perks for new tenants.

Source: Morgan Ellis/The StandardSource: Morgan Ellis/The StandardSource: Morgan Ellis/The StandardSource: Morgan Ellis/The StandardCurrently, Jamestown brings food trucks to Levi’s Plaza four days a week, runs a shuttle service to BART to connect the neighborhood to downtown, and funds programming like a rooftop Blue Angels watch party and outdoor concerts.

“We initially got a bunch of confused looks when we told people we were coming here,” said Prady Modukuru, CEO of Sync Labs, which moved into a fully furnished, 5,400-square-foot office at Waterfront Plaza last year. “But we’ve found [the North Waterfront] is actually the best place to work on deep AI research.

It’s beautiful, peaceful, and quiet. You can’t help but feel inspired.” Modukuru’s AI company — which allows editors to translate audio into various languages — went viral in 2023 for producing a video of Mark Zuckerberg and Lex Fridman talking about Elon Musk in Hindi. Although Sync Labs’ customers are mostly in Los Angeles and New York, Modukuru said the proximity to engineering talent and venture capital funding makes it critical to be based in San Francisco.

“If you want to push the frontier, you have to be around other people who are doing the same,” Modukuru said. Less than a mile from his office, Anysphere Inc. — developer of the popular AI code editor Cursor, which recently surpassed $500 million in annualized revenue — is valued at $20 billion. Sync Labs co-founder and CEO Prady Modukuru.

| Source: Thomas Sawano/The StandardStill, the North Waterfront needs more work before it can become the new SoMa for startups, and there’s only so much food trucks and nice views can do. There is a lack of restaurants in the immediate area, meaning the workers at Salient and Sync tend to order through Uber Eats or DoorDash.

There aren’t many bars at which to enjoy happy hour — one exception being the recently reopened Grumpy’s. For now, Schwiebert is focused on bringing in the people. In the elevators of Jamestown’s office properties are plaques that read “Refer a tenant and we’ll throw you an office party.” “Get them to do a whole floor,” he added, “and I’ll throw in a DJ.

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