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SF Planning To Consider Proposed Mixed-Use Development At Market And Duboce

Developers of a proposed eight-story, mixed-use building at the intersection of Market and Duboce streets are seeking approval today for plans to utilize the state’s density bonus by including on-site affordable housing units.

The project at 1965 Market St., as proposed by Keller Grover Properties, LLC, would utilize the California State Density Bonus Law to exceed the site’s 50-foot height limit.

The project sponsor is the law firm housed in the building currently on site.

Read more from Hoodline

What Do Single-Tenant Net Lease Deals Offer High-Net-Worth Investors?

HNW investors are especially attracted to single-tenant net lease deals in the retail sector.

For more and more high-net-worth (HNW) real estate investors, dollar stores and drugstores make for a winning combination, although these assets can turn into losers if the sole tenant leaves.

Office and hotels still draw a lot of attention—and dollars—from HNW investors. But a rising number of them are betting on single-tenant net lease properties such as dollar stores, drugstores and fast-food restaurants to help round out their portfolios.

By and large, net lease properties are magnets for HNW investors because they’re viewed as safe, recession-proof assets that preserve cash flow and yield.

Read more from National Real Estate Investor

What’s Up With Retail?

Rent, online shopping, regulations, and a higher minimum wage reduce the brick-and-mortar presence.

Omar Mughannam of Beauty Center faced a 30 percent rent increase at one location.

For local retailers, whose inventory costs are high and whose profits depend on foot traffic and fickle consumer demand, even small increases in rent can be difficult to bear. And when rent increases hit double digit percentages, owners are often forced to relocate to a more affordable space, consolidate multiple outlets, or close altogether.

Empty stores are everywhere, in Rockridge where Itsy Bitsy, Cotton Basics, Rockridge Home, and See Jane Run once seemed to thrive; in Elmwood where the corner of College and Ashby looks sparse without Jeremy’s, and in Montclair Village, too, where the local bike shop and Daisy’s are no more.

Uber sells Uptown Station HQ to Oakland firm

Uber announced in August that it was putting Uptown Station—the new mixed-use development right downtown in the onetime Sears building on Broadway that only recently shed the white plastic cocoon that enshrouded it during rehab—up for sale without ever moving a single employee into its planned headquarters.

But it didn’t take long for an interested buyer to start making eyes at the circa 1929 Beaux-Arts building.

Back in October, the San Francisco Business Times reported that the Oakland-base investment firm CIM Group planned to buy the whole 356,000-square-foot building for $175 million.

As Tuesday morning, CIM announced the sale via press release. The announcement doesn’t include the sale price, and spokesperson Karen Diehl tells Curbed SF “CIM never discusses financial arrangements.”

Uber previous paid $123.5 million for the place, putting millions more into the rehab.

Read more from Curbed SF

Grocery-Anchored Shopping Centers Begin to Experience Retail Headwinds

Conventional wisdom posited that grocery-anchored shopping centers would be immune from the Amazon effect. While that might be the case for now, industry insiders say grocers need to adapt—not just in light of a potential threat from e-commerce players, but also because of the increasing number of competitors in the space.

So far, online shopping—while taking a toll on department stores and the brick-and-mortar apparel retailers in particular—has not hit grocery stores as hard. Recent analysis from Morningstar Credit Ratings, which focused on Campbell’s soup, noted that online purchasing of grocery products hasn’t gained a lot of traction: it accounts for “a low-single-digit percentage of total sales.”

Read more from National Real Estate Investor

Malls Spending Big on Renovations, Evolving into Mixed-Use Properties

When architect Victor Gruen designed Southdale Center – the nation’s first fully-enclosed, climate-controlled shopping mall – he envisioned a communal gathering place that eventually would incorporate a medical center, schools, offices, homes and apartments – not just a parade of glitzy stores.

The mall boasted fountains, tropical plants, sculptures and even a large bird cage. It was quite the attraction in the mid-1950s.

Now 61 years after Southdale opened, Gruen’s original vision is becoming a reality. Southdale, a Simon Property Group-owned mall in Edina, Minn., now includes luxury apartments constructed in part of the mall’s parking lot, a Homewood Suites by Hilton that broke ground in June, a Life Time going into a former JC Penney store, and even a government center. Also, a new Restoration Hardware and a proposed Shake Shack will round out Southdale’s last two parking-lot redevelopment sites.

Read more from VTS Blog

 

San Jose: Vacant Nob Hill store will be home to a new church amid community concerns

A vacant former Nob Hill grocery store at the center of a debate over whether the city should step in when commercial landlords let empty storefronts fester will soon become a church.

But community leaders who protested other plans to fill the site that had become blighted and infested with rodents over the last two years said the latest proposal is hardly an improvement for the struggling retail center.

“I was disappointed, I think it’s inappropriate for a church to be inside an anchor store in a strip mall,” said Issa Ajlouny, who’s lived in the neighborhood for 33 years and spearheaded a push to get the space filled. He fears the church will attract homeless people to the shopping center.

“Will that make things worse?” Ajlouny asked. “Is that fair to the other stores in the center?”

Read more from The Mercury News

Ground-Floor Retail Remains Empty In San Francisco As Developers Hunt For Ideal Tenants

Activating Market Street through new residential developments has not gone as smoothly as San Francisco city officials would have liked. Over the past five years, 20 new housing developments were completed on or a few blocks off Market Street, but 17 vacant ground-floor retail fronts remain, the San Francisco Chronicle reports.

The city requires residential developments to include ground-floor retail, but that is not always an easy feat for developers in a city that encourages more small retail than large chain stores. Many developers have said not all sites are ideal for retail. Developers prefer higher credit tenants that can provide long-term tenancy instead of the newer mom-and-pop businesses neighbors want. Grocery stores have anchored many developments throughout the Bay Area, but they require more space than some of the projects will allow.

Read more from Bisnow

Food Halls Help Urban Retail Landlords Maintain Competitive Edge

More than one-third of consumers, 34 percent surveyed in a recent AlixPartners study, said they look forward to dining out more often in the next 12 months, according to the research firm’s November 2017 update on the sector. That sounds like encouraging news for landlords around the country who are rapidly expanding food halls in urban shopping districts.

Dining out has been on an upward swing since the National Restaurant Association found that in December 2014, for the first time on record, Americans’ spending at restaurants exceeded their spending at grocery stores. Just as dining establishments are seen as a viable use to backfill vacant anchor spaces, food halls are considered the newest and hottest way to combine dining, entertainment, and even locally sustainable eating in one place.

Read more from National Real Estate Investor

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