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 跑了松鼠好嘛, I'm David, and this is Goose Pod for you. Today is Monday, July 21th, 23:06. We have a fascinating development to discuss from the world of tech and real estate.

Ema

And I'm Ema. We're diving into how real estate investor Jamestown is actively shaping a new AI neighborhood in San Francisco’s North Waterfront, a move that’s attracting a new wave of tech companies.

David

Let's get started. The core of this phenomenon is the deliberate creation of a new tech hub in an area not traditionally known for it. We're seeing a migration of AI startups to the North Waterfront, a scenic but quieter part of San Francisco.

Ema

Exactly, it’s not the usual suspects like SoMa or Hayes Valley. Take the startup Salient, for example. They create AI agents for lenders. Their founder, Ari Malik, just moved his team from Los Angeles, and he was adamant about being in SF.

David

He was. His quote really captures the driver behind this trend: “We had no choice but to come back. The density of qualified talent here is unmatched.” He needs to double his engineering team in six months, and this is where he believes the talent is.

Ema

So it’s a talent magnet. But why the North Waterfront specifically? Ari Malik mentioned an "ecosystem building here" that they needed to be closer to. It sounds like they're trying to catch a wave before it gets too big, right?

David

Precisely. That ecosystem includes being near Jackson Square, which is home to the multi-billion-dollar company Cohere and an AI startup from Jony Ive that OpenAI recently acquired. There's a gravitational pull from these major players that is starting to reshape the city's tech map.

Ema

It's like a new 'center of gravity' is forming. So Salient isn't the only one making this move? It’s not just a one-off decision by a single startup? I imagine if one company sees potential, others are bound to follow suit quickly.

David

They are not alone at all. Alex Schwiebert of Jamestown, the real estate firm behind this, confirmed that six other AI companies have already signed leases in the area. And what's more, seven additional deals are currently pending. The momentum is clearly building.

Ema

Wow, so that’s over a dozen companies already. It’s a real trend. Another one of these pioneers is Sync Labs. I heard about them; they had a viral video of Mark Zuckerberg speaking Hindi, which was generated by their AI. It’s amazing technology.

David

Yes, that was them. Their CEO, Prady Modukuru, moved their office to Waterfront Plaza last year. He said that people were initially confused by the choice of location, but he found the peaceful, quiet environment to be perfect for deep AI research.

Ema

That makes sense. You don't necessarily want the chaos of downtown when you're trying to focus on complex problems. He said you can't help but feel inspired there. It sounds like the environment itself is becoming a key selling point for these companies.

David

Let's look at the background of the developer making this happen. This isn't an overnight success; it's a long-term strategy by Jamestown, an Atlanta-based real estate investor. They’ve been methodically acquiring properties in the North Waterfront for over a decade now.

Ema

A decade! So this has been a slow and steady plan. What were the key moves they made? It must have started with a smaller, strategic purchase before they went all-in on creating this massive new tech campus. What did that timeline look like?

David

Their waterfront quest began in 2013, with the acquisition of a part of Ghirardelli Square for $56 million. A year later, in 2014, they bought two office buildings known as Waterfront Plaza for $88 million. These were significant but calculated initial investments.

Ema

Okay, so they started by getting a feel for the neighborhood, buying up key locations. But I read they made a much bigger purchase more recently. That must have been the real game-changer for their whole strategy. What was the anchor property for this plan?

David

The big one came in 2019. Jamestown dropped an astounding $820 million to acquire Levi's Plaza, the iconic headquarters of the denim company. This 900,000-square-foot campus is the centerpiece of their entire North Waterfront portfolio. It was a massive statement of intent.

Ema

Over $800 million! At the top of the market, no less. That’s an incredible gamble. They're not just investing in buildings; they're investing in a vision for an entire neighborhood. So now they have Waterfront Plaza and the massive Levi's Plaza. What's the plan?

David

The vision, according to Jamestown's Alex Schwiebert, is to link Waterfront Plaza and Levi's Plaza. The goal is to create that "center of gravity" we talked about. They envision a campus that caters to companies at all stages of their growth and development.

Ema

So it’s a tiered system. A startup can begin in a smaller space at Waterfront Plaza, and as it grows and needs more room, it can graduate to the major leagues at Levi's Plaza. That’s a clever way to keep successful companies within your ecosystem.

David

Precisely. And it's already working. Besides the new AI tenants, a major player like Snap Inc. moved into Levi's Plaza two years ago. Jamestown's model is to buy and renovate existing real estate, not to build from scratch. They are curators of space.

Ema

That makes sense. They’re known for projects like Chelsea Market in New York. They’re breathing new life into these 40-year-old facilities. But with office vacancy rates so high everywhere, just renovating can't be enough. What else are they doing to attract tenants?

David

They’re scaling up the perks significantly. To combat the 34.7% vacancy rate, they've refreshed retail offerings and are enhancing the tenant experience. This includes bringing in food trucks four days a week and running a dedicated shuttle service to the BART transit system.

Ema

A shuttle is a smart move, connecting the somewhat removed neighborhood back to the main transit lines of the city. What about the community aspect? Are they just providing services, or are they trying to build a culture and a sense of place for these companies?

David

They're actively funding programming to build that community. For example, they’ve hosted rooftop watch parties for the Blue Angels air show and put on outdoor concerts. It’s about making the campus a destination, not just a place to work from nine to five.

Ema

That paints a very attractive picture. It sounds like they are trying to build the ideal work environment from the ground up. Prady Modukuru from Sync Labs even said, "If you want to push the frontier, you have to be around other people who are doing the same."

David

That’s the essence of an ecosystem. The proximity to other innovators is a powerful draw. And it’s not just hype; less than a mile away is Anysphere Inc., the developer of the AI code editor Cursor, which is valued at a staggering $20 billion. Success breeds success.

David

However, this rosy picture of a new AI utopia exists within the much more complex reality of San Francisco's broader real estate market. The city is facing what some call a "Downtown Dilemma," where the central business districts are struggling mightily with vacant offices.

Ema

That's a huge point of tension. So while Jamestown is successfully building this shiny new hub in the North Waterfront, the traditional heart of the city's commercial world is "hollowing out," as Ari Malik put it. It’s like one part of the boat is being rebuilt while the other is taking on water.

David

Exactly. And the office vacancy rate in the North Waterfront, at 34.7%, is the same as the rest of the city. So they are not immune to the broader trends, they are simply fighting against them more creatively. It’s a pocket of growth in a sea of challenges.

Ema

This also brings up the classic San Francisco debate about development and gentrification. When you create a hyper-desirable area for high-paying tech jobs, what happens to the surrounding community? Does it inevitably drive up costs and push people out, creating an exclusive bubble?

David

That is the fundamental conflict. The city desperately needs the economic activity and jobs that these AI companies bring. Yet, the high concentration of wealth and demand for housing often leads to what critics call a "selection effect," where only the most affluent can afford to live there.

Ema

It's a delicate balancing act. On a more immediate, practical level, the article mentions some very real challenges for the people actually working there. It’s not a perfect paradise just yet. There’s a significant lack of amenities in the immediate area. It's beautiful, but is it convenient?

David

That's a major obstacle. Workers from Salient and Sync Labs often have to rely on Uber Eats or DoorDash for lunch because there simply aren't many restaurants nearby. The quiet and peace that is great for research also means a lack of urban infrastructure.

Ema

And what about after work? The social aspect is a huge part of tech culture. The article points out there aren't many bars for happy hour, with the recently reopened Grumpy's being one of the only exceptions. You can't build a thriving community without places to socialize.

David

It's a real-world constraint that food trucks and nice views can't fully solve. Jamestown's focus right now is on bringing in the people first, but they will have to address this infrastructure gap to make the neighborhood truly sustainable and vibrant in the long run.

David

Now let's zoom out and consider the wider impact. This North Waterfront development is a microcosm of a much larger economic story. The Bay Area is, without a doubt, the global epicenter of AI investment right now, and that has massive implications for the region's economy.

Ema

The numbers are just mind-boggling. I read that of the roughly $135 billion invested in AI globally in 2024, the Bay Area captured nearly $70 billion of it. That’s more than half the world's AI funding flowing into one region. It’s a tidal wave of capital.

David

It is, and that tidal wave is directly fueling a real estate boom, especially for office space. While remote work has created vacancies, the explosive growth of AI is the counter-force. In the last five years, the office footprint of AI companies in the Bay Area has grown tenfold.

Ema

Tenfold! So we went from just six leases for AI companies in 2021 to over 41 leases now, covering millions of square feet. This Jamestown neighborhood isn't an anomaly; it's a direct consequence of that incredible surge in demand for physical office space.

David

Correct. This influx of capital and companies creates what economists call a "virtuous cycle." The funding attracts talent, which attracts more companies, which in turn attracts even more funding. It's a powerful engine for economic growth, boosting jobs and overall output.

Ema

But this engine also has a significant impact on the city itself. It puts immense pressure on housing and infrastructure, as we discussed. It's great for the local economy in terms of tax revenue and jobs, but it also amplifies the challenges of affordability and equity.

David

That is the core impact. The projected $15.7 trillion that AI is expected to add to the global economy by 2030 will be felt most intensely in places like San Francisco. Managing that growth, and its side effects, is the primary challenge for the city.

David

So, what does the future hold for this nascent AI neighborhood? Jamestown has made its ambition clear: they want to turn this area into a premier destination. They are not just passively leasing space; they are actively curating the entire experience for their tenants.

Ema

I love their creative, almost playful, approach to attracting new companies. The plaques in the elevators that read, "Refer a tenant and we’ll throw you an office party," is such a clever marketing tactic. It feels very modern and in tune with the startup culture.

David

It is. And Alex Schwiebert even joked, "Get them to do a whole floor, and I’ll throw in a DJ." It shows they're willing to be flexible and fun to get the critical mass of people they need. The immediate future is all about population density.

Ema

But looking further ahead, the big question is whether they can build a soul for the neighborhood. Can they attract the restaurants, bars, and shops needed to turn it from a collection of offices into a living, breathing part of the city? That's the real test.

David

That is the long-term challenge. The success of this AI campus will depend on urban planning and execution. Can they evolve from a beautiful, quiet research park into a truly integrated and dynamic urban neighborhood? The next few years will be critical in determining that.

David

That's the end of today's discussion. From a strategic real estate play to a burgeoning AI hub, the story of San Francisco's North Waterfront is a compelling look at urban transformation. Thank you for listening to Goose Pod.

Ema

It’s a fascinating story to watch unfold. We'll be sure to keep an eye on it. See you tomorrow, and thanks for tuning in!

## 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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