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Multifamily owners jump in the short-term rental game

When Harold Wu moved from Toronto to Baltimore for a new job, the first thing on his to-do list was to get a place to live.

As he embarked on his apartment search, the T Rowe Price senior vice president of procurement decided to book a hotel in Baltimore for a week in September.

“I looked at the usual suspects: Hilton, Marriott, Brookshire Suites, Residence Inn and so on. Then I stumbled upon WhyHotel on the internet.”

WhyHotel operates temporary hotels within multifamily buildings during a lease-up phase of a new apartment building.

Wu liked the idea of having a place with a full kitchen for the week as a home base. He never thought he’d actually end up living in that very apartment complex.

His weeklong experience at 225 Calvert ended up being the ultimate try-before-you-buy. As he looked around at other apartments — he shopped 36 in total — he found himself appreciating his temporary digs more and more. He liked the amenities, the closet space, the lockers for packages and the security. The ultimate test was of the soundproofing, and it passed.

“I wanted to see if this was a cheap renovation. You don’t hear your neighbor.”

The short-term stay aspect of the property made him nervous at first.

“Frankly, I was concerned that they had a hotel on multiple floors. I didn’t want to have a transient population walking around in my building if I were living there.”

But he has embraced it. He ended up signing a lease for a one-bedroom instead of two — he no longer has to host guests, as he has a hotel directly in his building now.

Other than seeing people with luggage around the elevator banks, Wu said he barely notices his short-term neighbors. Other apartment dwellers haven’t reported the same experiences, citing disturbances and crowded amenity spaces with the temporary guests.

Short-term rentals may not be widely accepted as a viable long-term option for a multifamily owner. Subleasing is generally not accepted, and short-term visitors can be disruptive to residents and create potential liability issues, market experts say.

 

Read more at Bisnow

 

 

New hotel proposal beefs up Mid-Market’s development pipeline

The new proposal will join a party of other sites looking to take advantage of the area’s powerful corporate presence.

Another hotel team has thrown their hat into Mid-Market’s development ring with a plan to cater to the neighborhood’s rising corporate and extended-stay demand.

San Francisco-based Stanton Architecture has submitted a preliminary project assessment application for a $40 million, 16-story limited-service hotel slated to deliver 162 rooms to the corner of Mission and Ninth Streets. The proposal would include the demolition of two existing buildings: a vacant commercial property at 1310 Mission St. and a mixed residential-tourist hotel at 80 Ninth St.

With Twitter, Uber, Dolby Laboratories, and Square headquarters just a block or two away, principal Michael Stanton said the project’s location and oversized rooms are a perfect fit.

“With several corporations headquartered there, it’s seen as a business hotel in the week and a family and visitor hotel on the weekend,” he said. “It will be a terrific plus for the area.”

 

Read more at San Francisco Business Times

 

 

Neighbors rise against plan to replace Red Cottage Inn with bigger hotel

Owner wants to tear down small hotel for Hampton Inn with three times as many rooms in Menlo Park, but residents call it too massive.

The owner of a Menlo Park hotel who wants to replace it with three times as many guest rooms is facing fierce opposition from a neighborhood group that threatens to appeal the project if the city approves it.

Sagar Patel, who owns the 28-room Red Cottage Inn at 1704 El Camino Real near the Atherton border, said his proposal to raze the hotel and build a taller, 68-room Hampton Inn in its place checks off all the city’s approval boxes. He’s also made a number of concessions sought by nearby residents, such as better screening for privacy, after meeting with them over the past 16 months, he said.

“I was under impression that we meet (Downtown) Specific Plan requirements and that’s the holy grail,” Patel said. “Not only did we meet them, we exceeded them.”

Residents say they aren’t pleased because after Patel came forward with a proposal in the spring that would have placed all parking underground and set back the building 36 feet from their homes, he later scrapped it saying the concessions would be too costly and without warning, presented a different plan to the Planning Commission during an October study session.

In the latest proposal, parking would be at ground level and setbacks reduced to 10 feet.

“He decided he couldn’t afford underground parking and he changed everything,” said Deborah Melmon, a member of Park Forest Plus, the group opposing the new hotel.

Melmon said the current proposal places the edge of the three-story building 17 feet from her master bedroom window and living room on Buckthorn Way.

“He’s gone from a hotel that a lot of time and effort was spent on trying to compromise with the neighbors … and suddenly changed it up on us,” she said. “If the Planning Commission votes to approve the plan, we’ll appeal it; if it doesn’t, he will. Either way it’s going to end up at the (City) Council.”

Patel said he is tweaking the proposal to possibly put the parking back underground, though in a less expensive fashion, before going back for possible approval in February.

 

 

Read more on The Mercury News

 

 

San Francisco readies for convention boom as $500 million Moscone Center expansion opens

Nearly two years after it closed for a $550 million renovation, San Francisco’s larger Moscone Center reemerges on Jan. 4, aiming to take the city’s convention business into a new era.

Expanded by 350,000 square feet, Moscone’s north and south wings are now fully connected, creating up to 500,000 square feet of flexible and contiguous convention space and allowing San Francisco to host simultaneous conventions.

For the city’s hospitality industry, which bore the brunt of Moscone’s closure, its return has been a long time coming.

Hotel room bookings, which fell by more than half a million while Moscone was closed, are now set to rebound to an all-time high in 2019. Restaurants and other businesses that feed off the convention trade are eager to eat their fill again. Moscone is expected to attract 175,000 net new visitors annually who will spend a projected $180 million a year and, for the city, generate an additional $20 million in hotel tax.

 

Read more on San Francisco Business Times

 

A sample of SF waterfront redevelopment concepts

The Port of San Francisco’s “request for interest” for 14 waterfront structures within the Embarcadero Historic District is an outgrowth of a larger effort to update the port’s Waterfront Land Use Plan.

That effort began in 2015 and should move to environmental studies next year. The goal for the requests is to try and begin making plans to revive specific piers, so work could begin soon after an update is approved.

Respondents include restaurateurs seeking space, cultural entrepreneurs, and developers or design firms eager to take part in future projects. The full set of 52 responses can be found at www.sfport.com, but here are six examples that show the range of ideas.

 

Read more on the San Francisco Chronicle

 

 

New SF hotels, WeWork-backed waterfront school among ideas for historic piers

Developer Simon Snellgrove has an idea: A new 65-room boutique hotel just south of the Ferry Building.

The problem: Hotels are illegal on Port of San Francisco land unless voters authorize them.

Snellgrove’s concept is one of 52 responses received by the port to revitalize 13 historic waterfront piers that dot the city’s scenic Embarcadero.

For the past three years, the port has sought public uses to bring new life for the piers, some of which were built over a century ago. The projects have big financial hurdles, requiring millions of dollars in renovations to withstand future earthquakes and sea level rise. But previous projects like the renovated Ferry Building and AT&T Park are a testament to the public’s love — and the lucrative business — of waterfront development.

The port received a diverse mix of ideas, including basketball and tennis courts, art galleries, an Italian Innovation Hub, and an International House of Prayer of Children. Boston Properties, the city’s biggest office owner and majority owner of Salesforce Tower, said it was open to operating nonprofit, maker and research space.

 

 

Read more on SFGate

 

 

 

 

Downtown San Jose developer drops hotel, apartments from massive Museum Place project

The developer behind Museum Place, a 1.4 million-square-foot downtown San Jose mixed-use development and Tech Museum expansion, is simplifying the project, shedding the previously planned hotel and residential units in the project.

Plans submitted this week to the city of San Jose show that investor and developer Gary Dillabough, who took over the project from Insight Realty earlier this year, is looking to reconfigure the previously approved tower by increasing the office space from 250,000 square feet to 850,000 square feet on the 2.3-acre site at 180 Park Ave., where Parkside Hall currently sits.

“The reality of the situation is that when you are trying to build a hotel, residential space and office, you can’t do all three in a world-class fashion, and our belief is that we want to build a world-class office tower,” Dillabough told the Business Journal in an interview Thursday morning.

That means the previously planned 184-room Kimpton Hotel and the 306 residential units that San Jose-based Insight Realty had gotten approved by the city last year would be no more. The project is now estimated to rise to about 19 stories — down from the currently approved 24 stories — and would still include parking and between 15,000 square feet and 20,000 square feet of retail space on the ground level.

Dillabough, who has become a major property owner in Downtown San Jose over the last year-and-a-half after setting off on a buying spree in the area, says he is still interested in hotel and residential projects in the city, just not at Museum Place.

“We still think the city needs housing and hotel uses, but we think they would be better in standalone buildings,” he said.

Read more on Silicon Business Journal

Crane Watch update: More than 22,000 residential units have flooded into San Jose’s development pipeline

More than 22,000 new residential units have been proposed in the city of San Jose — the largest city in the housing-starved Bay Area — according to city records and Business Journal reporting over the past year.

Those number have been gathered over the past year and a half and detailed in the Silicon Valley Business Journal’s Crane Watch map, which is a compilation of every large development project that has arrived at the San Jose city hall.

When the Silicon Valley Business Journal’s Crane Watch map launched in 2017, it detailed 30 of the biggest projects in San Jose. But a little more than a year later, the number of projects we’re tracking has ballooned to 107 proposals. These include developments that are anywhere in the city’s development pipeline, from an early vision submitted to the city for feedback all the way to a recently completed structure.

Crane Watch shows industrial, office, residential, hotel, health care, education, retail and mixed-use proposals, and active projects that are 90,000 square feet in size or larger throughout the city of San Jose.

Read more on Silicon Valley Business Journal

 

 

 

Why Hudson Pacific’s development plans near San Jose airport could be a big deal

The nine-story development would add to the developer’s already extensive portfolio in North San Jose, an area of the city that’s experiencing a flurry of commercial real estate activity.

Hudson Pacific Properties Inc. is looking to expand on a slew of existing office campuses it owns near Mineta San Jose International Airport by building a nine-story office building paired with a big parking garage.

The Los Angeles-based developer submitted a proposal to the city of San Jose last month that lays out a plan to build a new 350,000-square-foot office building and a 1,052-spot, five-story parking garage on 5.29 acres along Technology Drive that are vacant. A single-story office building appears to be attached to the proposed garage in a rough rendering that was submitted to city planners in September.

Hudson Pacific is calling the project “Cloud 10.” The site at 1601 Technology Drive is already entitled for either a 350,000-square-foot office or a 400-room hotel, per a city-approved general development plan for the land. It appears Hudson Pacific has opted to go with office space over the hotel.

 

Read more on Silicon Valley Business Journal

 

 

Milpitas’ Great Mall unveils major revamp as Silicon Valley shopping centers up the ante

As retail sputters in some places around the country, Silicon Valley retailers and property owners are facing a different challenge: How to compete in a market where investment is still hot in the retail sector.

The Great Mall in Milpitas is one of those looking for a competitive edge in a region where the traditional malls are either going by the wayside or upping the ante to create a space that offers not just shops, but experiences.

Indianapolis-based Simon, an international shopping center and mixed-use property owner, last month wrapped up an extensive, two-year renovation project for the massive shopping center, which has more than 200 stores. (For fun facts about the revamp, click through the slideshow above.)

The revamp added or expanded some of its stores, but also redesigned what it is calling a “dining pavilion” that has 10 restaurants.

“Our goal is to provide the best shopping and entertainment experience for our guests and this transformative renovation makes that possible,” Angela Pyszczynski, general manager at the Great Mall, said in a statement.

Read more on Silicon Valley Business Journal