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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

 

 

Millennial migration favors San Jose despite cost of living, says census

The Bay Area is getting more mixed messages on the seemingly perennial question of if and how quickly residents are fleeing the region and the state.

The finance company Smart Asset released a report Friday claiming that San Jose is one of the most popular destinations for millennials on the move despite its high cost of living.

Smart Asset economist Derek Miller sorted through U.S. Census data to figure out which U.S. cities got the greatest inflow—i.e., the margin of new residents relocating to a city over the number of those moving away—with the ever-topical millennial demographic, here defined as anyone between the ages of 20 and 34 in 2016.

Suffice to say, San Francisco did not acquit itself well with the trend, despite previous census analyses revealing that the city’s median age is gradually getting younger with each passing year. Instead, millennial movers reportedly favored San Jose, which came in seventh place on Miller’s list, the only California city to break the top ten.

 

 

Read more on Curbed SF

 

 

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

 

 

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

 

 

Big north San Jose live-work development of offices, shops, homes is proposed

A big mixed-use development is being eyed in north San Jose, an ambitious project that developers tout as a live-work complex of offices, homes and retail which could help ease the region’s traffic woes.

Sand Hill Property, the developer and owner of the project site, has requested a preliminary review of a proposal for 505,000 square feet of offices, 800 residential units and 13,000 square feet of retail on 9.3 acres at the southwest corner of North First Street and Orchard Parkway in San Jose.

“We are looking at a jobs-housing balance with this project,” said Steve Lynch, director of planning and entitlement with Palo Alto-based Sand Hill Property. “This is a significant site right on the light rail line.”

The proposal is in the very preliminary stages and is being floated as a way for Sand Hill and San Jose city officials to consider what sort of project would work at that location. The early stage review is occurring amid a wide-ranging effort by San Jose to establish guidelines for future development in the area.

North First Street is a heavily traveled route with a light rail line and a diverse array of tech companies.

“What Sand Hill is talking about is a mix of offices and residential, with some retail along North First Street,” said Patrick Kelly, a supervising planner with the city of San Jose. “It would be a transit employment center.”

Although considerable review of the proposal is still needed even in this preliminary stage, it’s possible this type of development conforms with the sorts of projects San Jose officials envision in the area, Kelly said.

 

 

Read more on The Mercury News

 

 

San Jose mixed-use apartments eyed west of Google village

Plans for a mixed-use apartment and retail complex have sprouted west of downtown San Jose, a development that would bring more than 100 residences to an area known as the Midtown district.

The proposed development at 259 Meridian Ave. near West San Carlos Street would consist of 110 to 120 residential units and 2,300 square feet of retail, according to documents on file with San Jose city planners.

“The city has been encouraging development within an urban village planning process for this area,” said Jerry Strangis, a principal executive with Strangis Properties, a realty firm that is the project consultant for the development. Strangis wouldn’t identify the principal developer of the property.

 

Read more from The Mercury News

 

 

San Jose mayor counters Evergreen Senior Homes initiative with own proposal

Sam Liccardo is concerned the initiative could open San Jose to new sprawling development.

San Jose City Council’s strategy to fend off a ballot initiative over a development in Evergreen — one it fears could override its general plan for land use — is a ballot measure of its own.

But attorneys for the private residential developers behind an initiative backed by more than 35,000 signatures say the city’s gambit will lose in court.

“We will pursue litigation,” elections attorney Sean Welch warned the council on Tuesday as his microphone was silenced at the end of his two minutes’ speaking time.

Mayor Sam Liccardo’s last-minute agenda addition to put a rival measure on the June ballot to override the one from Ponderosa Homes and developer Carl Berg, which won its ballot place through a petition drive, is yet to win City Council approval. All 10 members present Tuesday voted to delay final consideration until 8:30am on Thursday.

Read more from Silicon Valley Business Journal

 

 

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

 

 

 

Apartment Renters Continue to Dominate Many of the Nation’s Cities

Renter households now make up the majority in 42 of the 100 largest cities in the U.S., according to RENTCafé.

In close to half of the largest U.S. cities, the majority of households now rent rather than own their primary residence, according to a new report from RENTCafé, a Yardi company.

The share of households that own their homes has now declined to the level last seen in the1980s and early 1990s. That’s been great news for the multifamily sector, as those would-be homeowners have filled up apartments.

The homeownership rate is likely to stay at roughly its current level for the foreseeable future due to recent changes in the tax code that favor renting over buying and the high cost of for-sale homes.

Read more from National Real Estate Investor