Planning Commission Confirms Empire’s Plans in San Francisco

There’s a new tune blaring from one of downtown San Francisco’s most historic properties.

The Planning Commission approved plans for the Empire record label to renovate the First National Bank building at 1 Montgomery Street, the San Francisco Chronicle reported. More than 100 employees are expected to make the move with Empire to its forthcoming Financial District hub.

The local record label, distribution and publishing firm led by Ghazi Shami purchased the building from Affinius Capital at the beginning of the year for $24.5 million. The company plans to invest another $40 million in the property.

Approval from the Planning Commission almost didn’t arrive due to a debate over privately owned public rooftop space.

Empire wanted to close the space as a security precaution, offering three public concerts a year as a carrot. That didn’t sway the commission, which was deadlocked at 3-3 after a first vote.

But a majority shifted in favor after Empire tacked on another public concert to its promise. It also removed the ability to opt out of the promise with a fee payment.

“I believe this project, when finished, will go a long way to not just reactivate but revitalize downtown as we know it,” Commissioner Sean McGarry said after the approval.

The storied building has a troubled recent history.

Redco Development and Boston-based AEW Capital Management bought the 100,000-square-foot office building in 2019 for $84 million. The price for the now century-old landmark came out to $840 per square foot.

In March 2023, however, Redco and AEW walked away from the two–story building after failing to make their mortgage payments on a $65 million loan. They gave the keys of the vacant building to lender Square Mile Capital, now known as Affinius Capital.

Empire will use office space on the basement and second floor of the building. In addition to the office space, Empire is planning to open a restaurant in one of the banking halls, while the other will mostly be utilized for private use.

— Holden Walter-Warner