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

 

 

 

Cupertino approves massive development agreement for Vallco Mall

The city of Cupertino approved a specific plan and development agreement Wednesday night that could aid in bringing nearly 3,000 residential units and millions of square feet in commercial space to replace its dying Vallco Shopping Mall.

In a 3-2 vote, the council reluctantly approved the densest development ever proposed for the 58-acre site that sits about a mile from Apple Inc.’s new headquarters.

Cupertino Mayor Darcy Paul and City Councilmember Steven Scharf, who both favored a less dense redevelopment option, voted against the plan.

The vote marks the first move by city council members to willingly pave the way for a dense project on the site after years of community disagreement over what should replace the nearly empty, 1.2 million-square-foot mall has kept redevelopment in limbo.

That stalemate ended early this year when Vallco property owner, Sand Hill Property Co. invoked SB-35, a new and highly controversial state law aimed at speeding up residential development in housing starved California. That proposal set a tight deadline for the city to either approve Sand Hill’s redevelopment plans or come up with something better that the Palo Alto-based developer would consider building instead.

Read more on Silicon Valley Business Journal

 

 

 

 

SF considers barring offices from Union Square ground floor

Supervisor Aaron Peskin’s plan would reserve shopping district spaces for retail.

At Tuesday’s Board of Supervisors meeting, Supervisor Aaron Peskin made a bid to squeeze big-ticket office space out of the Union Square shopping district, introducing new legislation that would reserve ground floor space in Union Square for retail establishments.

“Office space is in high demand and frankly out competes retail and threatens those spaces currently occupied by retailers,” said Peskin, citing the plight not just of shopping hubs around Union Square but also the likes of “tailors, design professionals, and life sciences.”

 

 

Read more on Curbed SF

 

San Francisco landlords warm to the power of pop-ups

As San Francisco rents continue to soar, retailers have become hesitant about committing long-term to brick-and-mortar space. One solution: popping in temporarily.

Landlords once scoffed at the deals shorter than the typical 10-year term. But as tenants become increasingly wary of San Francisco’s rising rents and shifting retail climate, many are realizing the benefits of shorter leases may outweigh the drawbacks.

The Bay Area has been a landing pad for tenants looking to test the market, but hesitant to commit to long-term deals.

Union Square in particular has been home to temporary deals with online luxury consignor the RealReal, the Kylie Jenner cosmetics pop-up and the Museum of Ice Cream, which recently decided to make its temporary installation a permanent San Francisco fixture.

 

 

 

Full article on San Francisco Business Times

 

 

Business fees to fund housing will be studied in San Jose

The concern, even for some council members who voted for the study, is that despite its housing shortage, San Jose still has many more residents than jobs, which is the opposite of the situation in many surrounding cities.

The imposition of commercial linkage fees to fund below market-rate housing is still alive in San Jose after Tuesday’s 9-2 City Council vote to add a discussion of them to next week’s agenda.

The vote came on an item of how the city should respond to a Santa Clara civil jury report issued in June that included among its findings that the fees are overdue and would increase housing.

Five council members, including Mayor Sam Liccardo, wrote memos changing the staff-authored response of disagreement with the finding to say the city would consider a study to confirm the causal relationship between job creation and an increased need for housing and a second study of the feasibility of enacting fees.

 

 

Read more on Silicon Valley Business Journal

 

 

 

BART picks developers for huge housing and office development at Lake Merritt in Oakland

Bay Area Regional Transit officials selected a development team to revamp three city blocks above the Lake Merritt BART Station in Oakland.

The agency picked Strada Investment Group and the East Bay Asian Local Development Corp. to develop 1.4 acres into two high-rise towers with 519 homes and 517,000 square feet of commercial space.

EBALDC is one of Oakland’s top nonprofit housing developers with 27 communities in the city. San Francisco-based Strada has owned multiple office buildings in downtown Oakland and has developed multiple projects in various Bay Area cities.

The winning team beat out proposals from global real estate investor Hines, Menlo Park-based Lane Partners and a partnership of Oakland-based McGrath Properties Inc. and Canadian investor Brookfield Residential. Lane Partners came in second, according to a BART staff report.

The BART board will formally vote to select the Strada/EBALDC Team at its meeting Thursday and start a two-year exclusive negotiating agreement to finalize the project. if the two sides fail to negotiate a project in that time frame, BART could then give Lane Partners a shot without having to do another selection process.

BART has wanted to develop its land above the Lake Merritt Station for years. The goal is to boost BART ridership and attract more residents, businesses, and pedestrians to a relatively quiet stretch of Oakland nestled between the city’s core downtown and the lake.

 

Read more on San Francisco Business Times

 

 

 

Mayor wants to lure modular housing factory to SF to provide both homes, jobs

As San Francisco officials continue to scout locations for a factory that can churn out modular housing units, Mayor London Breed is lining up the city to be the first customer.

Breed is expected to announce Monday that the city is prepared to spend $100 million on hundreds of modular apartments that would grow the city’s stock of affordable housing.

Who will run the modular housing factory won’t be known for some time, though the leading plan is to seek a private operator on city-owned or city-leased property. And even after a site is selected, it will take years to get a factory up and running.

But Breed and other officials hope the early — and sizable — promise to buy will entice interested operators to set up shop in San Francisco.

Read more on SF Chronicle

Co-working space costs nearly 15% more than office space, study says. Is it worth it?

More than 1.7 million people will work in co-working spaces by the end of 2018, according to the Global Coworking Survey, and a staggering 29 percent of such spaces were opened over the last year.

Growth of this new workplace trend is most impressive in San Francisco, the city of seemingly infinite startups, many of which aren’t large enough to warrant an office space, but too big for the CEO’s living room.

San Francisco has 51.45 co-working spaces for every 100,000 people — more than any other city in the country — according to a new survey from business development tool SimpleTexting. The study compiled data from Yelp, the U.S. Census Bureau and multiple office-space rental websites.

The cost of co-working space for a single employee is actually more expensive than traditional office space, by about $400 a year in San Francisco, the study found. A years-long co-working pass in the city is about $4,572, compared to $4,200 in an office. Nationally, co-working rent costs an average 14.8 percent more per employee than traditional office space.

 

 

 

Read more on SF Gate

 

 

Facebook is bingeing on Bay Area real estate

As Wall Street frets over a slowdown, the social media giant’s expanding property empire suggests Mark Zuckerberg has few doubts about the future.

Since Facebook Inc. arrived in Menlo Park, California, seven years ago, the town has been overrun by construction cranes, orange safety cones and truckloads of building materials to transform a former industrial area into a sprawling campus that can support a $500 billion tech giant.

So big are the ambitions that the company plans to redevelop whole swaths of the land it holds in the Silicon Valley city, potentially doubling its workforce there over the next decade to 35,000 people—more than Menlo Park’s current population.

Even that won’t be enough for its expansion plans.

“We continue to grow,” John Tenanes, the company’s head of facilities, said in a conference room overlooking a salt marsh in Facebook’s newest Menlo Park office, a Frank Gehry-designed building called MPK 21 that opened last week. “We’re at a point where we needed more space, and this area couldn’t keep up.”

For all the turmoil surrounding Facebook and investor concerns about a slowdown, the company’s gone on a real estate binge that suggests that its optimism about its future knows no limits. Menlo Park is just the start. In the past year alone, the company has signed agreements that could vastly expand its footprint in the San Francisco Bay Area. It’s been one of the most active leasers in the region’s already hot office market, spurring brokers and analysts to do math on just how it will fill so much space.

 

 

Read more on Bloomberg

 

 

 

Exclusive: East Bay’s NewPark Mall pushes plan for 1,500 homes next to stores

As malls across the country struggle to stay afloat in the face of stiff competition from online retailers, NewPark Mall in Newark is pushing ahead on a $1 billion redevelopment project.

Brookfield Retail Properties, which took over NewPark when it acquired the mall’s previous owner, Rouse Properties, in 2016, wants to redevelop the mall and surrounding land into a vibrant community of apartments, parks, hotels, office space and event centers.

“We want to see the mall repositioned to take it to the next level,” said Terrence Grindall, Newark’s assistant city manager.

 

 

Read more on San Francisco Business Times