Posts

Oakland housing developers turn to new ways of building to reduce costs

Rising construction costs are pushing Oakland developers to rethink traditional construction methods to make sure much-needed housing continues to get built.

“It is an issue right now that we are all facing increased construction costs,” UrbanCore Development CEO Michael Johnson said during Bisnow’s recent Oakland Construction & Development Update event. “What will happen is some projects will not move forward as a result of that.”

Double-digit increases in the cost of new construction projects are not driven solely by increases in material costs, but also by higher profit margins and greater labor costs as contractors struggle to find a qualified workforce, he said.

Several developers have turned toward using modular units, designing more efficient floor plans and creating new building technologies.

OWow is developing a type of unit that can adjust the number of bedrooms with a push of a button. Mechanized, acoustically rated walls would raise and lower to create up to four bedrooms, oWow founder Danny Haber said. His company has been building macro-units in Oakland that use efficient design to cut down on construction costs.

Other developers have been pursuing modular construction. UrbanCore Development decided to go modular on its Coliseum Connections project about five years ago, Johnson said. Conventional construction was more expensive, and an analysis estimated about a 10% cost savings on a $40M construction budget, he said.

The modular units are expected to be fully in place by Friday and the 110-unit mixed-income housing project is expected to be completed in January.

 

Read more on Bisnow

 

 

 

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

 

 

Modular units make their debut at Oakland housing project

Modular units are being installed at Coliseum Connections in Oakland.

The $53M project, developed by a JV of UrbanCore and Oakland Economic Development Corp., will create 110 mixed-income units on a 1.3-acre Bay Area Rapid Transit-owned parking lot ground-leased to the JV.

The modular units were built by Guerdon Enterprises out of Boise, Idaho. Completion of the modular unit placement is expected on June 29. The project is expected to be completed in January when occupancy also is expected to begin.

Coliseum Connections is one of a handful of modular projects in the works or being planned in Oakland. Panoramic Interests plans to build over 1,000 units in West Oakland next to BART, and RAD Urban is planning two high-rises from steel modular units.

The project at Snell Street and 71st Avenue will have 55 market-rate units with rents ranging from $1,900 to $2,400 for households earning 80% to 120% of the area median income; the other 55 units will be affordable with rents from $1,100 to $1,600 for households earning 50% to 60% of the area median income.

 

Read more on Bisnow

 

 

Modular construction to be used in high-rise housing in Oakland

Oakland will soon have the tallest prefab modular high-rise apartment complex in the country.

RAD Urban is pushing forward with plans to build two 29-story high-rises with 200 units of housing using steel-framed modular units.

Unlike projects built with wood-framed modular units that top off at mid-rise level, projects built with steel-framed modular units can reach much higher, RAD Urban Senior Vice President, Construction and Operations Jason Laub said.

Modular isn’t new to construction and it has been around for decades, Laub said. Modular construction and other emerging construction technologies will be discussed at Bisnow’s upcoming Oakland Construction and Development Update! June 14.

The increased costs of construction has caused more people to look at modular as a solution and cost savings, Laub said.

“Developers are increasingly not able to make projects pencil,” he said. “We need to … look for creative technologies to advance the industry and lower the cost to build and deliver housing.”

Steel modular construction saves 20% on construction costs and time to completion compared to conventional stick-built construction.

Modular construction is quickly becoming an alternative to traditional construction to save time and money throughout the Bay Area.

 

 

Read more from Bisnow

 

 

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

 

 

Shivu Srinivasan of NAI Northern California named a Top 10 NAI Global Top Producer

Bay Area multifamily investment property top producer ranks among NAI Global’s top sales leaders internationally

SAN FRANCISCO, CA – May 15, 2018 – NAI Global, a leading global commercial real estate brokerage firm, recently announced that Shivu Srinivasan, Senior Vice President, NAI Northern California was recognized in its annual recognition program as a top producer for the organization. The award honors individuals who are handling the highest volume of multi-market business within NAI. The awards will be presented at the 2018 NAI Global Convention in Austin, Texas this September.

“This award represents outstanding performance within the organization,” said Jay Olshonsky, President, NAI Global. “We are proud of Shivu Srinivasan’s success, and the dedication and commitment to service excellence he has shown. It underscores the power of NAI Global in building business and showcases the deep local roots and professionalism of our professionals.”

Shivu Srinivasan is a Vice President at NAI Northern California, specializing in multifamily investment properties and portfolios in the East Bay market.

In 2016, just his second year in brokerage, Shivu was ranked as NAI Northern California’s number one producing broker. With a total sales volume of $38 million, he was also ranked by CoStar as third in the East Bay market as well as third in number of total transactions at 14.

In 2017, just his third year in brokerage, Shivu was again ranked as NAI Northern California’s number one producing broker. With a total sales volume of ~$90 million, he was the number one producing non-institutional broker in Alameda County. His marquee sales of the year included an 88 unit transaction in Fremont for $26.5 million,  a 70 unit transaction he listed in Hayward for $13.2 million, and a high profile portfolio sale in Oakland’s Lake Merritt district, which included three buildings for $13 million.

“Shivu came to NAI Northern California a few years ago with a talented sales background and quickly transformed that into a successful commercial real estate sales machine within our organization,” remarks James Kilpatrick, President and Founder.

On Shivu’s contributions to propelling NAI Northern California forward, James remarks, “Within his first full year he was already in our top 10 agents and dialed his way to the Top Caller of the Year Award. Now Shivu heads up a powerhouse team of agents who dominate East Bay multifamily real estate sales.”

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.

About NAI Global
NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 400 offices strategically located throughout North America, Latin America, Europe, Africa and Asia Pacific, with over 7,000 local market professionals, managing in excess of over 425 million square feet of property.  Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world.

NAI Global was acquired in 2012 by C-III Capital Partners, a leading commercial real estate services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management, CDO management, principal investment, online capital markets, title services and multifamily property management. C-III’s principal place of business is located in Irving, TX, with additional offices in New York, NY, Greenville, SC and Nashville, TN.

To learn more, visit www.naiglobal.com and www.naiglobalnewslink.com

 

 

Oakland’s exclusive deal to sell city-owned land to charter school draws opposition

The City of Oakland is poised to sell a large plot of land it owns in the Fruitvale neighborhood to a private developer for the purpose of building a new charter school campus.

But the project — and the city’s years-long involvement in it — is suddenly drawing criticism from education and affordable housing activists who say it reflects Oakland’s lack of transparency when deciding how to use public property.

Under the proposed terms of the deal, the city will sell a 9,000-square-foot parcel on Derby Avenue between International Boulevard and E. 15th Street for $450,000. The buyer, an Idaho-based company called Pacific West Communities, Inc. plans to construct a new school campus on the site for the Aspire charter organization’s ERES Academy, a K-8th grade school. The campus was approved by the city planning commission last month.

ERES Academy’s staff say the new facility is critical because the building they’re currently in — located one mile away on Courtland Avenue and leased from a church — is too small.

“The physical nature of the classrooms is super-constrained,” Aspire’s Dean of Students Jesse Johnson told the city planning commission last month. “The children are bumping into each other. It’s crammed.”

ERES Academy currently has 217 students, according to state records, but Aspire, which operates 40 charter schools in California and Tennessee, hopes to grow. The proposed new school campus could accommodate more than 600 students.

City staff say the land deal will put the property, which used to be part of an auto dealership, back into productive use, and that new charter school is in the public’s interest. They also say the city is coming out financially ahead by selling the land.

 

Read more from East Bay Express

 

 

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

 

 

Builders, Developers Focus On Ways To Save Costs, Build More Housing Units In Oakland, Bay Area

With rising construction costs, a costly entitlement process and labor shortages, Bay Area developers are looking into new ways to build housing more cost-effectively.

Developers are utilizing density bonuses, adding more efficiencies into construction, exploring modular units and prefab and experimenting with new techniques to keep costs down and get more projects off the ground.

Even though there are 17,000 units at different planning stages in Oakland, many of these units rent in the $3K to $4K range, which is not affordable for a majority of people in the Bay Area, oWow founder Danny Haber said during Bisnow’s Alameda County Multifamily and Mixed-Use event in Oakland.

His company’s focus has been on creating macro-units with efficient design that lead to three- and four-bedroom units that are more cost-effective to build and end up being 50% more affordable than their market-rate counterparts.

“The biggest amenity today … is affordable housing and access to jobs and opportunities to work,” Haber said.

Read more from Bisnow