more housing in san francisco and we at tishman speyer have tried to capitalize on this. is this our first high-rise residential project in the project. it's a 650-unit project, the infinity, which was delivered in 2008-2009, arguably the worst timing we could have thought up for building a major condominium project. yet that project is completely sold out. it was a strong financial success and there are a thousand people living in these buildings today who call san francisco home. this is a thriving community south of market. given the recovery, we hope to repeat this starting next year with our project across the street at 201 folsom. this is another 650-670 units to be built on the south side of folsom between main and beale. we're also proud of the fact that through our commitment to the board of supervisors, that for both of these projects, we

said yes, we will make a commitment not only to helping fund affordable housing, but to actually getting it built. and together with evans and union property capital we built unitss at 900 gilman down in the bayview and 165 units at 88 7 emstreet at the square and to build that kind of affordable housing in san francisco with market rate housing and live up to our obligation to the board is something that we're very proud of. we hope to replicate that again at 1400 mission together with tndc as an off-site project linked to 201 we also build offices in san francisco. here the city has done less well in bringing things through the permitting process. in part because of prop m and

in part because of ceqa and in part because the higher fees have raised the bar and today there are very few actually entitled projects and we at tishman speyer have tried to capitalize on the locations here. this is a site we entitled in 2001. the dot com bust made us wait until we began construction and this is the only sizeable new building built from the last cycle. when we began in 2006, we felt we were early. midway through construction in 2007, we were feeling pretty smart, but we delivered this within weeks of lehman's bankruptcy in the fall of 2008, again into one of toughest markets you could envision for building half a million square foot speculative officer building, but it's a lesson in

building great products and even in terrible markets you will do okay. we were able to sell it for just over $800 a square foot, which i think is a strong sign of the recovery in san francisco. also allowed to us make an $11 million contribution to the general fund for transfer taxes. [ [ laughter ] [ applause ] looking forward this is foundry square 3. this is the last of the four buildings at the corner of1st and howard. this is a project that was originally envisioned by studios and william wilson and associates. we were extraordinarily lucky to pick up this last corner to complete this project earlier this year. we began construction in july.

construction is going extraordinarily smoothly. we expect to be done by the end of next year, but no, despite the rumors in the marketplace, we don't have a signed lease. but we are blessed with a tremendous amount of interest and activity in this building. we hope to follow it next year with 222 2nd. this is just a block to the west at the corner of 2nd and howard. it's a 450,000 square foot building. both of these buildings from a location standpoint and a product standpoint we're trying to carefully position as the crossroads of the traditional cbdg, but very much in the south of market tech-friendly locations in terms of the size of the floor plans and the way the lobbis are designed to make these great technology locations.

looking forward we have tied up the site at 5th and brandon as part of the capitol corridor project and what until recently has been a neighborhood that nobody thought of for office. but given the access to the train, given the access to the freeways, and given the sort of geographic dispersion that has been part of this tech renaissance, we feel this is an extraordinarily good site for a corporate campus in san francisco in the years ahead. the footprint is expanding and we feel this is where the growth in san francisco is going, not necessarily into the very tall towers that are being talked about in the heart of the transit center district. that from our perspective are

difficult to pull off, given the size of those towers and the height of those towers. one last thing i want to touch on, given that thatis cycle is technology-driven i get asked three or four times a day, aren't we just falling into the same bubble that we did at that time? and clearly technology and real estate are cyclical and we will go through cycles. having been there in sill cron valley in 2000 and sitting here today, there are a couple of things that i see as being significant. first and foremost, the tech tenants that we're dealing with are move stronger financially than the tenants that we saw in 2000. in 2000, the name of the game

for these technology tenants was to go public and everybody was looking for an ipo as their exit. and given the focus on the ipo, they were all focused on market share, first and foremost, and almost everything else was irrelevant. today while the ipo market opens and closes, most of these companies are being managed as much to be acquired as they are to go public. and that means that there is a focus on the liabilities of the company, that there wasn't in '99 and 2000 and also the amount of capital is much more concentrated in a number of key vc firms and being doled out in smaller pieces.

in late '90-2000, it spread through the vc community that wait a minute, everybody is going to run out of space. and the signal got sent to all of these boards that have you go to control real estate to be able to grow and we saw tenants taking three, four, five and in some cases eight or nine times their current foot print it in their new leasing requirements. i knew we were in trouble in 2000 when one of the tenants turned to me when we said why do you need all of this space? and they said that it was part of their business plan that they were going to lease more space than they needed, but because the market was increasing so quickly, they were going to make money on subleasing the space i had leased to them to others. we don't see anything like that going on today. the space that is being taken is much more logical.

the m&a activity going on in technology keeps the growth in check. we continue to stair-step along. it's not the sort of constant runup we saw in the earlier cycle and for those of you who focus on san francisco, san francisco is participating in this recovery in a way that it never did before in terms of the number of people living here and the kind of jobs that are being created here. we spent a lot of time talking about the risks of what could happen. what could happen in europe? what is the slowdown in china mean? is is there a double-dip recession? and those are clearly things to think about, but i would postulate to you what should happen after the election, regardless of who should win, the broader u.s. economy does move forward? if we can get

the u.s. economy out of second gear, we have seen the broader housing market turn and we're beginning to see the foundations of some job-growth. if the economy can pick up more broadly, what that would mean for san francisco, given the foundation that we have set for us today? clearly looking forward we think the physical boundaries of what is downtown will change. the type of space the tenants want will change. we think that this is a very good time for san francisco. we live in an exceptional time. and i'm going to paraphrase ever so slightly, but as jerry speyer would say, don't screw it up. [ laughter ] i feel very fortunate to work in this environment, to work for a great company and most importantly to get to work with all of you everyday. thank you very much. [ applause ]

>> thank you, carl. now we're going to move from the talk about the tech explosion to one of our most significant economic generators, which is the hospitality industry and i think we're going to have some breaking news this morning, if i can call it that. and see some of the first visuals of the moscone center expansion. at least i think so. so we're so fortunate -- i'm not going to waste a lot of time on the introduction, but have i to say that joe, president and ceo of sf travel association, formerly san francisco convention bureau is one of the leaders of the city and has done so much for the industry and for sf travel. and he is going to tell you about the plans for the moscone center expansion. he has done so much and created

the san francisco tourism improvement district in 2009 and that actually is helping fund this whole structure. so i'm just going to let joe dallesandro. [ applause ] >> thank you, mary and it's exciting to unveil the moscone district and master plan. we asked san franciscans a lot of questions about tourist and hospitality and what makes san francisco tick? 98% of san franciscos of believe it's very important. 94% say tourism has a positive

impact on the budget of san francisco's city government. 78% say tourism makes san francisco a better place to live. 80% say that san francisco has a healthy balance of tourists and resident activity and 78% believe it's important to update and modernize the moscone center. that 78% is similar to the numbers that we heard for support of the arena. why expand? interestingly moscone is probably the most successful convention center in the united states. it's not the largest. but persquare foot, it's the most utilized. per square foot it generated the most hotel nights and most revenue of any convention center in the united states. so it's very significant in terms of economic impact. it's basically full-year round. a lost our groups are outgrowing it and need more space in order to stay in town and this benefits not only the

tourist sector, but the business sector. it's no coincide that the apple 5 was unveiled there this week or oracle is having their meeting next week. it's the best way to generate more business. the economic impact of the center is significant. we have calculated that we have lost $2 billion in spending because the building is not big enough and people have left. people that want to meet in san francisco or come back over a regular cycle are not able to meet here because it's too small. so we have to expand and once we do, it will create jobs, revenue and taxes for the city. we have a whole expansion team. it's' private-public

partnership. all partnering to make this thing happen. so what is our goals? is that location has changed dram itally and to work cost-effectively to stay onbudget and deliver the project. so this is the context of where we're looking at. it's right on the lines of new central subway. there will be a moscone stop. we have three separate buildings, south opened 32 years and north opened 20 years and moscone west opened a little over ten years ago. for the study looked at that whole area and looked at the three moscone sites and the two garages, 5th and missing the and the moscone garage between folsom and howard.

one of the problems with moscone center it was built basically when the neighborhood was not what it is today. and it was built kind of in independent, isolated area to almost a suburban-type building in what has been a very urban area. we market san francisco as a pedestrian-friendly city and pedestrians are not allowed to walk around the moscone center in some areas. so we need to improve how it functions, but how it looks in the neighborhood. currently below ground, below grade there are two major exhibit halls. one the south hall with 260,000 square feet and the other with 180,000 square feet and a piece that connects both together of the our goal is to connect those two better and open it up to 540,000 of contiguous

exhibit space that. is something that our clients say very much they need to have. we looked at above ground and how to connect the two buildings better and how to make it a better neighbor in the neighborhood. so our plans are to focus on the existing lower level and connect the north and south exhibition halls, to open up the unexcavated space under howard street, to move some of the meeting space that is currently there and connect those buildings. so to give us one entire space of about 540,000 square feet of contiguous exhibit space that can be broken up or can be used as one solid space. this is one of the demands that our customers really feel we need and we really feel in order to stay competitive with other cities such as san diego who has already over 540,000

square feet. we want to figure out to add additional space and make a t a better player in the neighborhood. so we're looking at adding three buildings above moscone north and south lobby and at the corner of 3rd and howard. we'll add up to another 100,000 square feet of meeting space on top of the existing buildings. what this will allow us to do is two things. it allows us to add the meeting space, but expand the space because we want to on top of these buildings is expand the garden experience. expand the public experience that you can do. the public will be able to use the space and it will be programmable space for convention use also. so really expand that whole urban park/plaza field of the yerba

area. we'll narrow that down to be more urban feel and pedestrian and people active and you will see a lot more dynamics going on and make that much more active with the neighborhood. here is a view looking east on howard street. how will it connect the two buildings, north and south and bring it much more into a tight feel. totally right now we have about 540,000 square feet of existing space and we'll go up an additional 200,000 square feet. this is in phase 1. how we pay for it? i was hoping that rick was going to be up next, who is going to talk about how we'll pay for it. [ laughter ] we're expanding the moscone tourism district and what is significant this is a public

building owned by the city and county of san francisco, but the city will contribute and help in the financing of it. i want to briefly talk about the master plan beyond this. south of market, if you look at the old city maps had not necessarily a lot of super blocks, but can you see a lot of alleys in the neighborhood. we want to connect those back into moscone and not make it such a distinct, super block and not only add more public space and park space and plaza space, but connect it through a variety of alleys. there are additional opportunities to build for exhibit space on top of the building, but to connect the alley ways and make it more pedestrian-friendly, to people don't have to find, "no-pedestrians allowed" signs. here is an idea of what it could look like from 3rd,

across from 3rd to 4th, between howard and folsom. it opens up the streets to a much more pedestrian-friendly attitude. we'll look at development opportunities that could include additional towers, hotels and residential space on the moscone campus site. so though that is our view. it's our vision. it's a way to keep san francisco dynamic and a way to keep the tourism industry healthy and it's a way for our business community to stay here and show the world how they operate business and to make that neighborhood even more dynamic. thank you. [ applause ] >> thank you, joe, very exciting and very high-impact. if you haven't seen is the beautifully renovated moscone

center, a lot of things have happened in the last year. so it's already miles ahead of where it was. very impressive. thank you so much. and now, a very exciting vision for a future we imagine the golden state warriors being here. an iconic new waterfront arena. so we're going to hear about that, rick welts, president and coo of the golden state warriors and he has over 36 years' of experience in the nba, one of the most respected business executives in the league. most recently he spent nine years with the phoenix suns and was president and ceo for the last two seasons, also served for 17 years at the nba league office in new york and rose through the ranks to become the league's third in command. we're going to -- i'm going to spend a lot more time on rick welts wonderful resume.

i'm going to let him tell us about the wonderful and exciting plans for the golden state warriors here in san francisco. so please welcome rick welts of the golden state warriors. [ applause ] [ applause ] >> we all know where we're in the program right now. this is the time when you are look at your watch and figuring out how am i going to get to the restroom or how do i make that 10:00 apilot that i wish i hadn't made? here is the deal. i can't talk quite as fast as joe. [ laughter ] but this is going to be eight minutes. here are you are alternatives. i have stationed the entire warrior's season ticket staff at the door. [ laughter ] >> thank you to the business times, mary, thank you. thank you for the kind words from mayor lee, supervisor jane kim sitting at the port's table. thank you very much. [ applause ] and i also -- i'm not sure

why, but have i to acknowledge joe, because those who know joe know he gets really pouty if you don't. [ laughter ] all right, thank you, joe. you may these two guys. joe and peter bought the golden state warriors for a record $450 million. they are the perfect pair. joe has funded the start-ups of dozens of companies that are household names for us and cut his teen in the nba as minority owner with the boston celtics and won the championship there. peter, hollywood icon has earned 50 academy nominations

and made movies like color purple." rain marn," "batman," ohio $3 million in gate receipts for his movies. i metnese guys a year ago when they looked for a president of warriors and i never heard them use the word "good in our conversation. i only heard them use the word "great." and we have really set out to build a world-class organization. i can tell you now what has happened. i think jerry west is responsible as a great player and architect of all the los angeles lakers' championship teams and a member of our executive board involved in every player-personnel decision that the warriors make it. we purchased a dame last week that played in bismarck, north

dakota and this december that team will began play in santa clara was the santa clara warriors in the new arena that we're constructing in santa clara. we hired mark jackson as the coach. but this is not about waiting five years for a great new arena to become a great franchise. we are heavily investing in both the team and the fan #kg:íw experience now. this summer there has been more investment about $11 million in oracle arena than there has been any other time since the major renovation in 1999. and one thing i would probably not expect you to recognize on that slide is a 7' center, which usually doesn't go along with the warriors. andru gagot, one the top centers in the nba will begin play for the warriors in about a month from now. part of the fan experience is

in the arena, warriors fans as you know have been incredibly supportive, but also very patient. . we looked throughout the bay area and we really do believe we found the perfect place to be the home of the golden state warriors going forward, thanks to mayor lee's support and . encouragement. on may 22nd, we made an announcement. this is also a queue for the video and a good time if you have to get out, that would be now. we intend to build the most spectacular arena in the country that all bay areas, not just san franciscos, but all bay area residents can be proud. today sets the stage for the

warriors to see another year. we promise it's going to reflect creative, diversity and technologically savvy of the bay area. one mission today, a world-class venue. a beacon for the warriors. [ music ] [ music ] we're all in. i hope to sigh at the ribbon-cuting in 2017 with a smile from a journey well-done.

we watch that every morning to get your juices flowing. [ laughter ] san francisco deserves it. how crazy is that san francisco -- there is no city in america half the size of san francisco that does not offer world-class, multi-purpose arena and san francisco has never had it, with all due respect to the cal pals. [ laughter ] we are prepared to spend over $100 million to renovate that pier, those piers, which are now crumbling into the