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 老张, I'm David, and this is Goose Pod, created just for you. Today is Monday, July 21st. The time is 10:49 PM. We've got a fascinating topic lined up.

Ema

And I'm Ema! We're diving into a really interesting shift in the tech world, where the real estate developer Jamestown is shaping a brand-new AI neighborhood in San Francisco’s North Waterfront.

David

Let's get started. The core phenomenon is a surprising migration. AI companies, the new titans of tech, are choosing the scenic, almost tranquil North Waterfront for their headquarters, a place far removed from the usual chaos of downtown San Francisco or Silicon Valley.

Ema

Exactly! Take the startup Salient, which makes AI agents for lenders. Its founder, Ari Malik, said they had to move back to San Francisco from Los Angeles. He said, and I love this quote, "We had no choice but to come back. The density of qualified talent here is unmatched."

David

And it’s not just about talent. Malik pointed out that downtown San Francisco feels like it's in a "hollowing-out phase." He wanted to be closer to a new, emerging ecosystem near Jackson Square, home to giants like Cohere and a major AI startup recently acquired by OpenAI.

Ema

This isn't a one-off move. The real estate investor behind this, Jamestown, confirms that six other AI companies have already signed leases in the area, and they have seven more deals in the pipeline. It’s a full-blown trend! It's becoming a real hub.

David

Another key example is Sync Labs. This is a company that went viral for creating a video where Mark Zuckerberg appeared to be speaking fluent Hindi, all thanks to their AI. They moved into a 5,400-square-foot office at Waterfront Plaza last year.

Ema

And their CEO, Prady Modukuru, admitted that people were confused at first. Moving to the waterfront? It’s known for tourists and history, not deep tech. But he found it’s the perfect place for intense research. He said, “It’s beautiful, peaceful, and quiet. You can’t help but feel inspired.”

David

It's an interesting paradox. These companies are at the absolute cutting edge of a fast-paced industry, yet they're seeking out serene environments. It suggests a new work philosophy, where deep thinking requires a calm backdrop, away from the constant hustle of a traditional tech campus.

Ema

It's like the modern version of an artist's retreat! Instead of writers heading to a cabin in the woods, you have AI engineers heading to the waterfront to design the future. They get the quiet inspiration, but they're still just a stone's throw away from other brilliant minds.

David

That’s the perfect summary. Modukuru also said, "If you want to push the frontier, you have to be around other people who are doing the same." So it’s this unique blend of focused isolation and communal innovation that defines this new AI neighborhood. A very intriguing phenomenon.

David

So, this trend didn’t just happen organically. There's a powerful force shaping this neighborhood, and that's the real estate investor Jamestown. They are the masterminds behind this entire strategy, acting as more than just a landlord; they're effectively 'place-makers'.

Ema

They're a huge player in the area! Jamestown, which is actually based in Atlanta, owns a staggering 40% of the office properties along that waterfront stretch, from Fisherman's Wharf all the way to the Ferry Building. They’ve been on quite the shopping spree over the last decade.

David

That’s right. Their quest began in 2013, with the acquisition of part of the historic Ghirardelli Square. A year later, they bought two office buildings known as Waterfront Plaza for $88 million. But their biggest move came in 2019, right at the top of the market.

Ema

Oh, you mean the huge one! Yes, they dropped $820 million on Levi's Plaza. That's not just an office building; it's this sprawling, grassy campus that has been the headquarters for the iconic Levi's denim company for over 40 years. It’s a massive, 900,000-square-foot property.

David

Precisely. And that acquisition reveals their strategy. Jamestown specializes in buying and renovating significant, character-filled properties rather than building new skyscrapers from the ground up. Their portfolio includes famous adaptive reuse projects like Chelsea Market in New York, which gives you a sense of their style.

Ema

So they take these cool, historic places and give them a new life. And in San Francisco, they really had to get creative. After the pandemic, the office vacancy rate in the North Waterfront was nearly 35%, just like the rest of the city. The buildings were also about 40 years old.

David

This is where their 'place-making' skill comes in. To attract new tenants, they couldn't just offer an empty office. They had to build a community and offer perks. They started bringing in food trucks four days a week to solve the limited lunch options. A key move.

Ema

And they didn't stop there! They started running a private shuttle service to connect the neighborhood to the main BART transit station downtown, making the commute easier. Plus, they fund fun programming, like outdoor concerts and even a rooftop party to watch the Navy's Blue Angels air show!

David

They even gamified tenant referrals. Alex Schwiebert of Jamestown has put up plaques in the elevators that read, "Refer a tenant and we’ll throw you an office party." It's a clever, direct way to encourage growth from within the community they're building.

Ema

I heard he even joked, "Get them to do a whole floor, and I’ll throw in a DJ." It shows a really proactive and almost playful approach to what is a very serious real estate market. They're not just waiting for tenants; they're actively creating an environment people want to be in.

David

Ultimately, it all ties into their grand vision. The strategy is to physically and conceptually link Waterfront Plaza, which is perfect for smaller startups, with the massive Levi's Plaza, designed for big, established users. They're building a complete ecosystem, a "center of gravity" for innovation.

Ema

It's a campus where a company can be born in a small office and grow into a global headquarters without ever leaving the neighborhood. It’s a very ambitious, long-term plan that goes far beyond just filling empty office space. They are truly building the entire neighborhood's professional identity.

David

But of course, it can't all be perfect views and catered parties. Building a new tech hub from the ground up, even in a place like San Francisco, comes with a significant set of challenges and conflicts. The vision is grand, but the reality on the ground has some friction.

Ema

That's a great point. The first and most immediate issue is that the neighborhood's amenities haven't caught up with the new tenants. The article mentions a real lack of restaurants and bars. For lunch, workers are mostly relying on delivery apps like Uber Eats or DoorDash.

David

And the social aspect is missing. After a long day of deep AI research, there aren't many places for teams to unwind and socialize for happy hour. The article notes one recently reopened bar, Grumpy's, as an exception. So while it's quiet and peaceful, it might be a bit *too* quiet after 5 PM.

Ema

Right, it's a bit of a perks desert once you step outside the office campus. But there's a much bigger conflict at play here, and that's the war for talent. Companies are moving there for the "density of qualified talent," but that creates its own intense competition.

David

Exactly. The background data shows that 76% of large companies report a severe shortage of AI talent. So, by clustering all these AI powerhouses in one place, Jamestown is creating a pressure cooker. The very thing that attracts them—the talent pool—becomes the source of their biggest competitive battle.

Ema

It's a paradox, isn't it? You move to where the best people are, but so does everyone else. This inevitably drives up salaries, increases poaching, and makes it incredibly difficult to retain top engineers. You solve one problem—access to talent—but create another: keeping it.

David

Then there's a broader, more societal conflict. The article notes that downtown San Francisco is "hollowing out." By creating this thriving "outer neighborhood," as some reports call these areas, does it inadvertently accelerate the decline of the traditional central business district? It raises questions about balanced urban development.

Ema

And you can't talk about a new, high-paying industry moving into a San Francisco neighborhood without talking about gentrification. While the articles don't focus on it, it's the elephant in the room. What is the impact on the existing community, on housing prices, and on the overall character of the North Waterfront?

David

These are the critical tensions. There's the practical, day-to-day conflict of lacking amenities. There's the fierce industry conflict for talent. And finally, there's the complex urban conflict regarding gentrification and the city's economic geography. It’s a multi-layered challenge.

David

Despite those conflicts, the economic impact of this AI boom is staggering and impossible to ignore. This isn't just a minor trend; it's a massive economic tidal wave hitting the Bay Area, and this new neighborhood is riding the crest of that wave. The numbers are truly mind-boggling.

Ema

Absolutely. Let's talk about the money flowing in. In 2024 alone, the Bay Area has secured nearly $70 billion of the total $134.6 billion invested in AI globally. That means over half of all the AI funding in the world is landing in this one region. It's an incredible concentration of capital.

David

And that capital has a direct impact on real estate. It's helping to solve one of the city's biggest post-pandemic problems: empty offices. The data shows that in the last five years, the amount of office space occupied by AI companies in the Bay Area has expanded nearly tenfold.

Ema

Tenfold! That’s amazing. It's grown from just six leases covering 280,000 square feet in 2021 to 41 leases totaling 2.4 million square feet today. This demand, driven by giants like OpenAI and Anthropic, is a powerful counterforce to the work-from-home trend.

David

It creates what one report calls a "virtuous cycle." The massive funding attracts more companies and talent. These companies then lease millions of square feet of office space, which revitalizes the real estate market. This, in turn, strengthens the ecosystem, making it even more attractive for the next wave of investors.

Ema

And thinking bigger, the impact goes far beyond just San Francisco. There are projections that the growth of AI will add an astonishing $15.7 trillion to the global economy by the year 2030. A significant portion of the innovation driving that growth will come from the companies in this very neighborhood.

David

So, the impact is multi-faceted. It's providing a much-needed lifeline to the city's commercial real estate market, creating high-paying jobs, and solidifying the Bay Area's status as the undeniable global epicenter of the AI revolution. It's a powerful economic engine with local, national, and global consequences.

David

So, looking ahead, what does the future hold for this nascent AI neighborhood? Jamestown’s vision of turning this into a "destination" is really just beginning. Their work is far from over if they want to create a truly self-sustaining campus.

Ema

I think the next logical step has to be tackling that amenities problem we talked about. To become a real destination, it needs more than just offices. I would expect Jamestown to focus on curating a mix of high-quality restaurants, cafes, and bars to create a more vibrant, 24/7 environment.

David

That seems critical. From an urban planning perspective, the success of this model could have long-term implications. If creating these specialized, campus-like innovation hubs outside of traditional downtowns proves successful, we might see other cities trying to replicate this formula for different industries. It’s a new model for a post-pandemic city.

Ema

And for the companies themselves, being clustered together in this "center of gravity" will likely accelerate innovation. The cross-pollination of ideas that happens when brilliant people are in close proximity could lead to breakthroughs and partnerships that wouldn't happen otherwise. The next big thing could be born from a chance meeting there.

David

The future of the North Waterfront is a fascinating real-world experiment. It’s a test case for urban renewal, corporate real estate strategy, and the geography of innovation all rolled into one. Its evolution will be a key story to watch in the coming years.

David

And that brings us to the end of our discussion. We've seen how a real estate company's bold vision is attracting a wave of AI talent and capital to an unexpected corner of San Francisco, creating both opportunity and new challenges.

Ema

That's all the time we have for today. Thank you for listening to Goose Pod, 老张. We hope you enjoyed it, and we'll see you tomorrow!

## 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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