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After two projects sank, can San Francisco find developers for decaying waterfront?

The new effort is one of the largest but also potentially costliest redevelopment opportunities in the city.

The Port of San Francisco is seeking ideas for new uses at 13 historic waterfront piers, in one of the largest but also potentially one of the costliest redevelopment opportunities in the city.

The agency wants proposals from both large developers and smaller tenants such as nonprofits, arts groups and retailers to revive the piers, which are now vacant or used for parking or storage.

Some previously renovated piers have been financial successes. Waterfront offices at the Ferry Building and Piers 1 1/2, 3 and 5 have signed tenants for rents over $100 per square foot. Control of the Piers later sold for $103 million in 2016, and the Ferry Building is expected to be sold to Hudson Pacific Properties for around $300 million, according to sources tracking the market.

But two recent redevelopment efforts failed because of the high costs of rehabilitating and seismically protecting piers. A study for the Port found that $74 million to $10 million would be required to bring a single pier up to code. Last year TMG Partners and Premier Structures, Inc. exited an office, event and restaurant space proposal at Pier 38 after the cost to repair the pier was expected to be as high as $122 million.

 

 

 

Read more on San Francisco Business Times

 

 

 

Another 500 apartments on tap amid tiny East Bay city’s housing boom

Emeryville’s former Sherwin-Williams paint factory could begin its transformation into 500 new apartments early next year. 

After a five-year development process, the city approved Lennar Multifamily Communities project in February.

Lennar is expected to file for building permits early next year, said Charles Bryant, Emeryville’s planning and building director. The first homes could be completed by the end of 2021. Lennar didn’t respond to requests for comment.

Despite its tiny 1.28-square-mile size, Emeryville is seeing a number of large multifamily projects as industrial sites give way to mixed-use development. Sherwin-Williams would be the largest.

 

Read more on San Francisco Business Times

 

 

New Oakland law could prevent cannabis companies from evicting tenants

The Oakland City Council will hold a special meeting on Thursday to discuss new legislation that, if passed, could prevent cannabis companies who own real estate from displacing existing tenants.

The proposed amendments to the city’s cannabis ordinances, Oakland Municipal Code Chapters 5.80 and 5.81, prohibit the issuance of any approvals for cannabis businesses seeking to operate in spaces currently occupied by work-live or residential uses.

Oakland council member Rebecca Kaplan, the co-author of the proposed legislation, says the amendments balance the city’s support of the cannabis industry with protections for work-live spaces, thus supporting a diverse industrial sector in Oakland.

Read more from KQED

Exclusive: A 102-year-old East Oakland warehouse has been reborn as offices and artist studios

The project is one of East Oakland’s biggest in years.

The property at 2744 E. 11th St. opened in 1916 as a cannery for H.G. Prince, a company that invented a method to remove pits from fruits – a fitting use in a neighborhood once known for its orchards. Decades later, Lucasey Manufacturing Corp., a maker of television mounts, bought the building and stored products there, part of the blue-collar industry of Oakland.

Another transformation will happen next month, when the building reopens as more than 100,000 square feet of offices, industrial and artist space called Artthaus Studios.

The project will be one of the largest new developments in East Oakland. It is the largest source of modern, renovated artist and maker space in the area, said Riaz Taplin, CEO of Riaz Capital, the project’s developer, general contractor and designer.

“Oakland has really taken this new role within the Bay Area as the home of the creative community. So creating a building to accelerate the innovation of those types of businesses and people and creators and artists was the goal in creating Artthaus Studios,” said Taplin.

Taplin believes the project provides three benefits for smaller businesses and creative companies: It creates collaboration by concentrating various businesses in the same building, it provides a new facility near a BART station and it’s relatively affordable for new space.

“We wanted to tailor the spaces to be for small, young businesses — entrepreneurial, small businesses, ideally in the creative industries,” said Taplin. “We wanted to create an environment, which made them competitive. We want to make it easy to collaborate. We wanted to make it easy for them to seek out customers.”

Read more from San Francisco Business Times

 

 

 

Abandoned Warehouses Are Being Transformed Into Popular Mixed-Use Developments

Outdated warehouses of the past are being resurrected to accommodate a new future. But that future is edging some people out of town.

Now, developers are using the empty vessels as a base to create the much-desired live-work-play dynamic. But this shift may not be good for all, CityLab reports.

Read more from Bisnow

Economy Watch: Industrial Sector on Top in 2017

The industrial sector has emerged as the growth leader in commercial real estate, according to a new report by Morningstar, a notion that’s in agreement with the wider consensus about industrial now leading income-generating real estate. As a darling among owners and investors, apartments may still be strong, but the industrial sector is the rising star.

That’s thanks to Amazon and e-commerce as a whole. Industrial logistics space outperformed office, retail, apartment and even light industrial space in terms of supply, demand, occupancy and rent growth in the first half of 2017, noted the report.

Read more from Commercial Property Executive

Historic Pier 70 In San Francisco 100% Leased

Orton Development’s 280K SF Historic Pier 70 is now fully leased. Gusto, an employee benefits company, just finalized a 10-year lease for 50K SF at the property, the San Francisco Business Times reports. Gusto will be moving from its South of Market office at 500 Third St. into the new office at 113 20th St. next summer. The company’s new lease is about double its current lease in SoMa. Gusto expects to increase its San Francisco workforce to over 400 employees within the next few years.

Read more from Bisnow

Industrial Real Estate Fundamentals Tighten as Sector Keeps Evolving

The fate of industrial real estate is tied to e-commerce. In today’s market, that’s nothing to complain about.

Over the course of Q2 the sector experienced tightening fundamentals, a growing construction pipeline and rising demand from investors and tenants alike. These trends position industrial real estate for continued success over the coming quarters. Yet the sector is not likely to remain static, and from shifting demands to the growing importance of last-mile facilities, industrial real estate is on track to keep evolving.

Read more from VTS Blog

As Amazon moves in, demand for warehouse space climbs

As developers try to keep up with a surge in demand for warehouses driven by online retail, some are considering some unusual solutions. Some have begun to consider constructing multistory warehouses and demolishing struggling malls to make way for sprawling industrial properties.

Read more from San Francisco Busines Times