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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

 

 

Major S.F. tech company eyes one of Oakland’s largest vacant office buildings

San Francisco-based fintech Square Inc. has eyed Oakland for a big lease, according to the San Francisco Chronicle.

The payments processing company reportedly looked at Uptown Station, a 356,000-square-foot refurbished, mixed-use building that is one of the largest blocks of office space available in Oakland.

“There are large tech tenants looking at Uptown, but none have landed yet,” Edward Del Beccaro, a managing director of Transwestern, told the Chronicle.

Landlord CIM Group has been chasing tenants for the space since it bought the building in December 2017 for $180 million. The approximately $40 million renovation of Uptown Station by Truebeck Construction is expected to finish early next year.

CIM picked up the property at 1955 Broadway from Uber Technologies, which had planned to move up to 2,000 employees into the space, but decided to consolidate in San Francisco instead.

Square has been on a growth tear as of late. Over the summer, it added 104,100 square feet to its San Francisco headquarters at 1455 Market St. for a total of 469,000 square feet there. It is also growing outside the Bay Area and internationally.

In addition to Uptown Station, Oakland has a handful of similar historic rehabs, including projects from TMG Partners and Harvest Properties.

Read more on San Francisco Business Times

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 tops U.S. in new office space, but lags in housing starts

 The Bay Area is a hot place to build cubicles, conference rooms, and office suites. But don’t look for as many hammers pounding out new homes, condos, and apartments.

The region is expected to open 18.2 million square feet of office space in 2018 — tops in the nation and more than New York City and Dallas combined — while home, condo and apartment building has grown only modestly.

More work space, more jobs and more people chasing a limited supply of homes is expected to add more steam to the pressure cooker of the Bay Area housing market.

“It’s encouraging that so many respected employers are investing in Bay Area jobs and immigration growth” said Carl Guardino, CEO of the business-backed Silicon Valley Leadership Group. “But we all recognize that jobs need a place to go home and sleep at night.”

The region created six times as many jobs as housing units between 2010 and 2015, according to a study by the leadership group and the Silicon Valley Community Foundation. The increased housing pressure has forced lower-income workers out of the region at much faster rates than higher paid workers, even as jobs go unfilled.

The run up in commercial development is led by major office openings in the South Bay, according to a survey from real estate data company Yardi Matrix. The big projects in 2018 include the official, complete opening of the 2.9 million square foot Apple Park in Cupertino, Park Tower at Transbay and The Exchange on 16th in San Francisco totaling 1.5 million square feet, and Facebook’s MPK 21, a half-million-square-foot campus designed by Frank Gehry in Menlo Park.

Other major developments underway include the Voyager property developed by Nvidia in Santa Clara, Microsoft and Google projects in Mountain View, the Stoneridge Mall Road project in Pleasanton, and Moffett Towers in Sunnyvale, according to Yardi Matrix.

The real estate data firm estimates that commercial openings in Santa Clara County are up 6.5 percent over the same period last year. The San Francisco and Oakland metro has seen three times as much commercial space open up this year compared to last year.

 

 

Read more on The Mercury News

 

 

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

 

 

 

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