Contra Costa County setting itself up to be next Bay Area hub if only the jobs will follow

Several large-scale projects in Contra Costa County could transform the suburban county into a thriving employment center with live-work-play dynamics.

The region’s biggest challenge will be actually getting to that point. Many investors and developers think the county is well on its way.

“What is wonderful about Contra Costa County is that it is unmatched quality of life if you can afford to live here in terms of work, play, live opportunity,” East Bay Leadership Council President and CEO Kristin Connelly said during Bisnow’s recent Future of Contra Costa event. “I’m a huge champion of the East Bay. We are poised to be the center of the mega-region in Northern California because of our assets.”

While more development is occurring in Contra Costa County, many cities are struggling to be attractive to employers, and many residents are still commuting elsewhere for their jobs. The East Bay Leadership Council found that 78% of Contra Costa workers commute to Western Alameda County, San Francisco or San Jose, Connelly said.

Cities like Walnut Creek and Concord are having to build more housing to meet the needs of current and new residents.

“When you’re seeing the South Bay having a 10:1 job-to-housing ratio, we’re the ones in the East Bay and the suburbs having to pick up the slack because of that,” City of Walnut Creek Mayor Justin Wedel said.

Cities are working to create better balances that can be attractive for employers seeking a live-work-play dynamic.

 

 

Read more on Bisnow Oakland

 

 

‘Monster in the Mission’ housing proposal back in new form, but with same old opposition

The developer behind a long-stalled mixed-use apartment complex above the 16th Street BART Station in the Mission District has a new plan, but so far it is being met with the same staunch opposition as previous iterations.

Maximus Real Estate Partners, which owns the 57,000-square-foot site at the southeast corner of 16th and Mission streets, has filed a revised design that calls for two 10-story market-rate buildings — one on Mission Street and one on 16th Street — totaling 285 units, as well as 46 affordable units arranged in a row of five-story townhomes along Capp Street.

The affordable units would be given to the city, and the rents spun off from that building, roughly $1.15 million a year, could be used to help subsidize rents in other nearby buildings in the rapidly gentrifying area.

The revised project, designed by Skidmore, Owings & Merrill, also scales back some aspects of the project, which critics have long dubbed the “Monster in the Mission.”

The 163-unit mid-rise on Mission Street would be moved back 15 feet to expand the usable space on the BART plaza by 40 percent. The three buildings would each have a district architectural style — one green tile, one red brick and one wood — to break up the massing and better fit into the character of surrounding buildings, project architect Leo Chow said.

 

 

Read more on SFGate

 

 

NAI Northern California represents $10.45M sale of Fruitvale Gateway Building in Oakland

Oakland, CA – October 29, 2018 – NAI Northern California, the Bay Area presence for NAI Global and the largest commercial real estate brokerage network in the world, is proud to announce the $10.45 million sale of the Fruitvale Gateway Building in Oakland.

The Mitchell Warren Team, including Vice President Kent Mitchell and Senior Investment Advisor Tim Warren, and Principal Grant Chappell represented both the Buyer and Seller of this transaction.

“We worked for over a year to get this done. We never stopped pursuing leads and supporting multiple escrow efforts until the right buyer closed,” said Mitchell.

The acquisition of the two-acre, eight-story office tower includes more than an acre of land remaining for development. Centrally located with easy access to various transportation points including Fruitvale BART station and interstate freeways, this transaction offers the Buyer a rare development opportunity for increased rental options or a new type of property.

The Fruitvale Gateway Building is a strongly-occupied 50,008 square foot office building located on International Boulevard in the Fruitvale District of Oakland. Historically, the property has benefited from strong rental demand from a diverse tenant background, due in part to its close proximity to various amenities and the high quality of space it provides.

 

About NAI Northern California

NAI Northern California is a full-service commercial real estate firm serving the Northern California Bay Area. Our team delivers technology-enabled commercial real estate services that create value for our clients, industry, and communities.

NAI Northern California is a partner of NAI Global, the largest commercial real estate brokerage network with more than 400 offices worldwide and over 7,000 professionals completing in excess of $20 billion in commercial real estate transactions globally.

 

To learn more, visit nainorcal.com.

Bay Area blazes hit multifamily buildings

A late-night fire destroyed an under-development East Bay multifamily complex Monday night, hours after the San Francisco Fire Department got a fire in a downtown high-rise under control.

A West Oakland fire, which was first reported around 2 a.m. at West Grand Avenue and Filbert Street, burned six buildings under construction on the site — two that were near completion and four in early stages of construction, the San Francisco Chronicle reports. The project developer is City Ventures, which was planning 126 condos on the site.

Nearby residents were evacuated and power was cut off as a precautionary measure.

Another fire at a building on a construction site on the 3600 block of Peralta Street in the early morning hours was quickly extinguished, the Chronicle reports. The fire department is looking into the cause, which was deemed suspicious.

Monday evening, a 25-story building at 405 Davis Court in San Francisco’s Financial District caught fire, burning on the 12th through 16th floors.

No one was injured in the fire, which was first reported shortly after 5 p.m., according to the San Francisco Fire Department. While there were no injuries, multiple people had to be rescued. The cause of the fire is being investigated.

The fire burned for about 45 minutes.

 

 

Read more on Bisnow SF

 

 

 

More density and time for Brooklyn Basin development as proposed

With only 241 of the fully-entitled project’s 3,100 units of housing to rise on the Brooklyn Basin site along Oakland’s waterfront currently under construction, the Signature Development Group is now seeking approval to add another 600 apartments to the project’s total.

As proposed, the additional units could be “accommodated” within the building envelopes for the development as already approved, without any changes to heights, massings or setbacks. But if approved, the overall timeline to complete the Brooklyn Basin development, which was expected to be completed by 2029, would be extended to 2038.

In addition to the increased density, Signature’s proposed changes also include an additional 158 boat slips around the future Shoreline Park, a new water taxi loading dock, and the potential flexibility to shift the approved locations of the development’s five towers which are currently entitled to rise up to 240 feet apiece.

 

Read more on SocketSite

 

 

 

Is Richmond the new Oakland? New ferry terminal attracts SF homebuyers, stokes gentrification fears

During his 16 years selling homes in Richmond, realtor Mark Lederer has always seen buyers from San Francisco looking in the East Bay city.

But he says those numbers have gone up recently, thanks to both skyrocketing prices in SF and the soon-to-open Richmond-SF ferry service. In fact, he estimates that 30 to 40 percent of buyers in Point Richmond and Marina Bay, the two areas closest to the ferry, are moving from San Francisco.

“Most SF buyers see tremendous value in the different neighborhoods in Richmond,” he says. “This is because the price per square foot is less than half that of homes in San Francisco’s most desirable districts.”

He says high-end condos in Point Richmond have been going for up to $950,000, with prices starting as low as $500,000. In Marina Bay, the price point is a bit lower, with condos and townhomes starting at $300,000 and going up to the mid-$700,000 range.

Those looking for a single-family home are attracted to North and East Richmond, which is a five-minute drive or 15-minute bike ride to the new ferry terminal. “This neighborhood is full of 1920s homes that mimic those found in El Cerrito, Albany and Berkeley,” he says. “Prices range from $325,000 to $731,000 for a home. This area has seen tremendous growth over the last couple of years and a spike once the ferry terminal was announced.”

San Franciscans are certainly attracted to the prices in Richmond, but they also have their concerns, including what Lederer calls Richmond’s “tough crime-ridden image.” But he says this perception doesn’t do justice to all that Richmond has to offer. “The roughest parts of Richmond are an isolated area that is very small as compared to the entirety of Richmond,” he says. “Most of Richmond is full of beautiful housing, water access, beaches, trail and hillside access, great restaurants, fun pubs and great entertainment.”

Richmond realtor Cherie Carson compares Richmond to another East Bay city that has gotten a lot of attention from San Francisco buyers in recent years: Oakland. “Richmond is like Oakland in that there are many different neighborhoods to choose from,” she says.

Just like in Oakland, there are fears of gentrification from this new onslaught of buyers potentially driving up home values and rents. Richmond Vice Mayor Melvin Willis told the Chronicle that he’s concerned long-time residents could be priced out—not just in the tony neighborhoods closest to the ferry, but throughout the city. “If rents go up in certain areas around the ferry, that would cause rents to go up in other parts of Richmond,” Willis said.

 

 

 

Read more on SFGate

 

 

 

Tenants start grabbing space in one of the East Bay’s only new office towers

One of the Bay Area’s largest life science landlords, Wareham Development, is now more than a third leased up in its latest project, the 265,000-square-foot EmeryStation West in Emeryville.

The San Rafael-based developer recently completed the building after starting construction back in 2016 with no tenants in hand and now has commitments for 93,000 square feet with Profusa Inc. taking 18,000 square feet and Dynavax Technologies Inc. taking 75,000 square feet.

“We have built the project to the highest-quality research and office building standards and are pleased the market recognizes that,” said Geoffrey Sears, a partner at Wareham, in a statement.

The building, designed by Perkins + Will, contains seven stories of office and lab space above two levels for transit and parking. DPR Construction served as the general contractor.

The building is part of Wareham’s 2 million-square-foot EmeryStation research and technology campus and is the latest addition to the company’s broader 4.5 million-square-foot portfolio in the Bay Area.

Wareham, led by CEO Rich Robbins, has specialized in developing biotech and life science buildings in Emeryville, Berkeley, Richmond and Palo Alto. Before EmeryStation West, the last new office building in Emeryville was Wareham’s 99,000-square-foot EmeryStation Greenway in 2012. That property was leased up by Stanford Health Care.

Read more on San Francisco Business Times

Walnut Creek housing project near BART beats back appeal

The developer is a frequent face at Walnut Creek’s Planning Department, and will responsible for constructing more than 900 new housing units around the downtown BART station.

A Walnut Creek housing proposal cemented approval last night after the City Council voted to quash an appeal.

Danville-based developer Blake Griggs’ now has a clear line of sight for its 1910 Noma project, which includes 135 units of housing and 10,000-square-feet of retail about a block away from the Walnut Creek BART station.

Lauren Seaver, Blake Griggs’ vice president of development, said it expects to break ground sometime within the next six to twelve months. Fuddruckers restaurant now occupies the site, but would temporarily leave and then move back into 4,000 square feet of retail space once the site is rebuilt. Seaver said tenants for the remaining 6,000 square feet have not yet been chosen.

A local union, the Laborers International Union of North America, was behind the appeal and cited inadequate environmental reviews. Unions have frequently appealed East Bay housing projects on environmental grounds when they’ve had disagreements with developers over the use of union labor.

The Laborers International Union of North America did not respond to requests for comment.

Walnut Creek Senior Planner Gregg Kapovich said the union could still sue, but as of now, no more appeals are possible.

 

Read more on San Francisco Business Times

 

 

 

BART to build 519 new homes at Lake Merritt

Last week, the BART Board of Directors voted to advance a plan to develop hundreds of new homes near the Lake Merritt BART station, a proposal that’s been in the works for years and continues the agency’s foray into transit-adjacent housing on potentially choice plots of land it owns throughout the Bay Area.

Technically, the motion at the board’s September 13 meeting (which passed unanimously) only authorizes negotiations with potential developers, a process that could take up to two years.

A press statement from BART provides some additional details:

The Board voted to authorize BART staff to enter into an exclusive negotiating agreement with a joint venture of East Bay Asian Local Development Corporation (EBALDC) and Strada Investment Group with a goal of creating a transit-oriented development (TOD) above the BART station.

The plan proposed by the EBALDC/Strada joint venture calls for four new buildings on BART-owned lots above the station. The proposal features 519 units of housing, 44 percent of which would be affordable, and 517,000 square feet of commercial space for offices and shops.

BART staff singled out EBALDC as the developer of choice but retains the option to negotiate with SF-based Strada if those talks fall through.

 

 

 

Read more on Curbed SF

 

 

 

UC Berkeley professor blames rent control for California’s housing shortage

Kenneth Rosen hopes to sway voters against Proposition 10.

Kenneth Rosen, a UC Berkeley economist and real estate consultant, published a paper Wednesday titled The Case For Preserving Costa Hawkins, in hopes of swaying voters against Proposition 10.

Proposition 10, which will go before voters in November, would repeal the 1995 Costa-Hawkins Act, a state law that severely curtails rent control in California cities. For example, under Costa-Hawkins, only San Francisco apartments built before 1979 may be subject to rent control.

Passing Proposition 10 would not in and of itself create any new rent control housing, but it would allow cities to expand rent control stock for the first time in decades if they so choose.

Rosen, however, argues that turning the clock back to 1994 will stifle new housing and drain apartment stock.

 

Read more on Curbed SF