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.

NAI Northern California Represents $20.5M Sale of Developable Land in Downtown Redwood City

NAI Northern California, the Bay Area presence for NAI Global, the largest commercial real estate brokerage network in the world, is proud to announce the $20.5 million sale of 1180-90 Main Street in Redwood City.

Senior Investment Advisor Kevin Flaherty and Investment Advisor Derrick Reedy represented the seller, Lathrop PARC, LLC, on a lengthy and complicated escrow.

“This is the last piece of undeveloped land of any significance in downtown Redwood City and Premia Capital has a beautiful project they are planning to build. Premia was great to work with and they have a great team leading the charge for entitlements of the 110,000 sq. ft. office building, coming soon,” said Flaherty of NAI Northern California.

The 58,000 sq. ft. parcel of developable office property, in downtown Redwood City, has a 2.0 FAR for the office.

1180 Main Street is located at a key gateway bordering downtown and the El Camino Real corridor, and sits adjacent to the Caltrain corridor. The purposed office building will be designed and located with the intention to revitalize an existing culvert and to create a public park that will be an asset to both the occupants of the building as well as the general public. The outdoor space will be shared with the neighboring residential units.

Flaherty said, “This project will continue the expansion of Redwood City’s downtown office, retail and multi-family world-class real estate. We expect the leasing rate of the new building to rival all major metropolitan areas worldwide.”

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.

City may scrap downtown cap on commercial growth

Planning commission to review council’s proposal to eliminate 350,000-square-foot limit on downtown non-residential growth.

The simmering community debate over how much office space Palo Alto should accommodate is set to flare up again Wednesday night, when the city’s Planning and Transportation Commission will consider abolishing a policy that limits new non-residential development in downtown.

The proposal to scrap the cap was prompted by the City Council’s 5-4 vote in January 2017 to amend the city’s policies for office growth as part of the city’s Comprehensive Plan update, which was completed in November of that year. At the time, the five council members who are more amenable to growth — Liz Kniss, Greg Scharff, Adrian Fine, Greg Tanaka and Cory Wolbach — all voted to abolish the 350,000-square-foot limit on downtown non-residential development, arguing that the policy is no longer necessary given the other restrictions on commercial growth that are already in place.

Palo Alto already has a citywide limit of 1.7 million new square feet of office and research-and-development growth. A citizen initiative to reduce that limit to 850,000 square feet will be on the November ballot.

The council has also recently adopted the annual 50,000-square-foot cap on office development in downtown, around California Avenue and along El Camino Real, which intends to meter the pace of growth.

Even so, the proposal to remove the downtown cap proved deeply polarizing at the January 2017 meeting. Wolbach and Scharff led the charge on removing the policy, with each arguing that downtown’s transit options make it more suitable for commercial growth than other parts of the city.

 

 

Read more on Palo Alto Online

 

 

 

Exclusive: Huge cannabis business campus headed to Oakland

Will this business park near Oakland’s Oracle Arena be California’s next big hub of cannabis innovation?

A sleepy Oakland business park a stone’s throw from Oracle Arena may be transformed into the Bay Area’s next big cannabis business campus.

Mesh Ventures, a venture capital firm focused on investing in cannabis startups, hopes to turn an office complex on Edgewater Drive into a center of the region’s cannabis manufacturing, marketing and production.

“It’s going to look very much like a tech campus,” said Mesh Ventures Partner Parker Berling.

The complex is master leased to Mesh Ventures Partner Martin Kaufman who is making around $20 million in infrastructure and tenant improvements.

California Capital and Investment Group bought the 207,700-square-foot office property in 2013 for $7.8 million, but has struggled to fill it. Kaufman said the Mesh Ventures team saw the opportunity of creating a campus in an area with access to top-tier scientific and technological talent.

“Sure, we could have done this in Fresno or Humboldt and t would have been cheaper but the level of people that we have here are unmatched anywhere else,” Kaufman said. “We have academics, scientists, really trained qualified people who are located here and are looking to enter the industry as it turns from a black market to a white market.”

Kaufman is the co-founder of dispensary Blum Oakland, which was sold in 2016 to Irvine-based cannabis agriculture company Terra Tech.

The center is being built out with the particular security and regulatory concerns of the cannabis industry in mind. Berline said roughly three-fourths of the tenants will be cannabis companies, mainly from the firm’s investment portfolio. Tenants are starting to move into the campus – which already has a functioning grow operation – and the renovations are expected to be completed by the end of the year. Leasing rates are rates around $2 per square foot.

 

 

Read more on San Francisco Business Times

 

 

Oakland’s growing pains could stifle future development

Dozens of cranes dot Oakland’s skyline and thousands of new housing units are in the works, making the current cycle one of the most robust in Oakland’s history.

As more people and businesses turn toward Oakland as a cheaper area to live and work, Oakland has struggled to keep up with both office and housing demand. Downtown Oakland is one of the tightest office markets in the country and multifamily rents have risen 51% since the start of the cycle.

Developers and designers are looking for ways to build more efficiently to keep rents down, but growing community activism, overworked city planning staff and tightening financing could stall future growth in Oakland.

Panelists discussed these topics as well as the impact of modular units and designing housing to meet residents’ changing needs during Bisnow’s Oakland Construction and Development Update event Thursday.

With 900 housing units delivering this year and 2,400 next year, the city is undergoing rapid change.

“Instead of the city [staff] focusing on department stores and auto dealerships, they’re making Oakland a very vibrant place to live,” Junction Properties owner Charles Long said during the event.

The increased development has spurred an anti-displacement movement and a backlash over a lack of affordable housing, which could shut down the future fulfillment of housing that Oakland has in its pipeline, he said.

Developers need to be more cognizant of working with the city and other stakeholders to better address the anti-displacement backlash, he said.

 

Read more on Bisnow

 

 

The future of the shopping mall is not about shopping

When Cirque du Soleil announced plans this week for a “family entertainment” concept inside a Toronto mall, it said a lot about the future of shopping centers.

The 24,000 sq.ft. space, called “Creactive”, will be a circus-inspired playground with a range of activities from juggling to high-wire – allowing fans to “peek behind the curtain and imagine themselves stepping into our artists’ shoes”, according to Marie Josée Lamy, producer of Creactive. “Hanging at the mall” will take on an entirely new connotation as shoppers take to the flying trapeze. And that’s the point.

No longer is it good enough for malls to be passive places to buy stuff – they have to be engaging places to do stuff. Otherwise, this particular retail format will be relegated to relic status – “a historical anachronism, a 60-year or so aberration that no longer meets the public’s, the consumer’s or the retailer’s needs”, as developer Rick Caruso mused.

With that point in mind, I draw your attention to Exhibit A: Randall Park Mall in Ohio. When it opened in 1976, Randall Park Mall was briefly the world’s biggest shopping center. It quickly lost relevance however, and by 2000, Randall Park Mall’s vacancy rate was 92%. Fast forward to 2017 when it was revealed that Amazon was constructing a 855,000 shipping center on the same site. Online triumphs over offline, or “software eats retail” as Netscape founder and venture capitalist Marc Andreessen memorably put it. But it doesn’t have to be that way.

 

 

Read more on Forbes

 

 

Oakland, A’s begin Coliseum ballpark negotiations

The Oakland A’s now have the blessing to study both the Coliseum and Howard Terminal in their quest to build a new ballpark in Oakland.

The Oakland City Council on Tuesday night approved an “exclusive negotiating agreement” with the A’s, allowing the two to begin talks about constructing a ballpark at the Coliseum, the MLB team’s home for 50 years.

In vote taken just before midnight, the council entered into an agreement to negotiate with the A’s over the next nine months, while President Dave Kaval studies if the 112-acre East Oakland site is the right fit. The city can extend the negotiations for an additional three months.

“This decision about a new privately-financed ballpark is a really important moment not only for the A’s but our community,” Kaval told council. “We look forward to working together not only this year but for many years to come.”

Last month, the A’s and the Port of Oakland agreed to study Howard Terminal, located near Jack London Square and the estuary. Kaval has called the study of two sites “parallel paths” to keep the team in Oakland.

Though an aging complex, the Coliseum has had some bites from developers lately. Walnut Creek developer Mark Hall approached the city to build a 15,000-18,000 seat soccer stadium for a United Soccer League franchise. The city said another person proposed to build a corporate campus at the Coliseum.

While Howard Terminal needs environmental review and has access issues, an environmental review for the Coliseum is already completed. It’s also favored for its proximity to BART, Interstate 880 and the Oakland International Airport.

 

 

Read more from East Bay Times

 

 

Housing high-rise breaks ground outside Oakland’s MacArthur BART station

The tallest building of BART’s biggest residential development broke ground Wednesday in Oakland, promising to house hundreds of families feet from the MacArthur station when it opens in 2020.

The 24-story, 402-unit high-rise dubbed Skylyne will be one of the largest apartment buildings in the city. It had been in the making for more than a decade, and developers in recent years sought to more than double the tower’s height as demand for housing surged.

The neighborhood’s zoning doesn’t allow buildings above 90 feet, but developers McGrath Properties and Boston Properties got an exemption for setting aside 45 units for affordable housing and making investments in local parks and community programs. At 260 feet tall, the building will include 13,000 square feet of commercial space on the ground floor.

“Unleash the mammoth!” developer Terry McGrath said at a groundbreaking ceremony.

 

Read more from SFGate

 

 

The only one in the room: How the Bay Area’s real estate industry is grappling with diversity (Video)

Many in the commercial real estate industry often find themselves “the only one in the room” who is different.

White males still dominate in many professional settings in commercial real estate and especially in the executive ranks. While the tech industry has come under intense scrutiny for a lack of diversity in its workforce and investing millions into addressing the problem, commercial real estate has largely received a pass.

How to Move the Needle on Diversity

Industry groups including CREW, NAIOP, the Urban Land Institute and the Building Owners and Managers Association are looking at how to address the lack of diversity.

The San Francisco chapter of BOMA has been working with San Francisco State University, where the study body is more than 70 percent female and/or people of color, on a certificate program in real estate for finance majors and a fellowship program that places students in internships and provides mentorship.

Many commercial real estate executives say diversifying their staffs is a top priority. here are some best practices employees shared:

“Creating a diversity task force or committee to help steer recruiting and operations policies to be more inclusive and sensitive can be effective. Adding a diversity liaison and incorporating diversity goals into company culture and core values is key. The latter takes time and commitment. Supporting groups that help boost women such as CREW and other groups within the industry is also important.”

James Kilpatrick, President
NAI Northern California, a commerical brokerage firm

 

Read more from San Francisco Business Times

 

 

AI is Changing the CRE Game: Here’s 5 Ways

CRE industry leaders using artificial intelligence to analyze and apply data to decision making saw productivity increase of up to 6% compared to competitors.

In a study by Harvard Business Review about the revolution of big data as a management tool, it was found that artificial intelligence used to analyze and apply data to decision making by those at the top of the CRE industry saw an increase of up to 6% in productivity compared to their competitors.

AI is changing the CRE game in several different ways and in turn, having an impact on all CRE sectors in different ways.

Read more from NAI Global