NAI Northern California Completes $1.925M Land Sale in Berkeley

BERKELEY, CA – APRIL 2016 – NAI Northern California is pleased to announce the recent completion of a $1.925 million sale of a .33-acre commercial land parcel near downtown Berkeley.

A developer group from San Francisco and the South Bay purchased the land, located on 1740 San Pablo Road on the northwest corner of Delaware Street and San Pablo Road in downtown Berkeley.

Mary Alam, Vice President at NAI Northern California’s San Francisco office, represented both buyer and seller in the transaction.  “This was an excellent opportunity for the buyer to purchase a quality site in downtown Berkeley,” said Alam, adding, “the proximity to UC Berkeley, prime retail such as Whole Foods, and overall key demographics make this acquisition a valuable development play for the buyers.”

With a potential residential development of up to 44 units, this recent sale is the latest of several transactions NAI has represented in the Berkeley market demonstrating a clear and continuing demand for multi-family opportunities.

“The acquisition of this parcel was very complex and time-consuming; however Mary’s dedication and commitment to the purchase and sale greatly simplified the process,” noted NAI’s President James Kilpatrick.  “Mary has once again shown her superior skills in providing value to her clients.”  Alam specializes in leased investments with a focus on retail, office and redevelopment opportunities.

About NAI Northern California

NAI Northern California is full service commercial real estate firm in the San Francisco Bay Area and part of NAI Global, the largest managed network of Commercial Real Estate Brokerage Service firms in the World. Recognized as one of the Top 25 Commercial Real Estate Firms by the East Bay and San Francisco Business Times, NAI Northern California provides comprehensive brokerage, leasing, debt, advisory, and property management services for corporate end users, property owners, developers, investors and financial institutions.

Continued Success for New NAI Agents

 

Alex Orloff (L) and Shivu Srinivasan (R) with President James Kilpatrick

Congratulations to two more NAI Northern California agents who just closed their first deals!

Alex Orloff recently closed the Desert Sand Motel, a 42-room independent motel in a prime downtown Sacramento location for $2,000,000. The 11,276 square foot motel includes a cafe and two-bedroomowner’s apartment. According to Alex, “This hospitality investment gave an experienced operator access to the growing downtown Sacramento market in a rare value-add opportunity.”

Alex’s professional career spans both real estate investing and digital advertising. His background brings a uniquely well informed and strategically thoughtful advisory to clients from ownership, operations, and portfolio management perspectives.

Shivu Srinivasan‘s first deal was a multi-family property located on Regent Street in Alameda for $1,400,000. He “represented both the buyer and seller in this off-market transaction. The transaction is only one of three ever recorded in the city of Alameda to sell at or over $280,000 per unit. This was an excellent opportunity to acquire a stable asset  with high rental upside and a market CAP of 5.42%.”

After beginning his career as a commercial analyst with the U.S. the Department of Commerce, Shivu began working for the sales team at LoopNet, CoStar’s marketing platform, immediately establishing himself as the top producer. As a resident of the Bay Area for 7 years, he has an intimate knowledge of the regional market.

Congrats on your first deals at NAI! Interested in a career at NAI Northern California? Click here for more information.


Congratulations on Closed Deals!

We’d like to highlight the accomplishments of two recently-licensed NAI Northern California agents who just closed their first deals!

Brian Skavdahl recently closed 150 Birch Street, a 5-unit Redwood City multi-family property, for $1,950,000 ($150,000 over ask) at 3.03% CAP. According to Brian, “150 Birch Street was a rare opportunity for an investor to own within close proximity to an up-and-coming downtown Redwood City. The location of the property, as well as a lack of inventory in the area, led to extremely competitive offers and a close of escrow after on 33 days on the market. With all leases well below market rents, the new owners can expect immediate upside in cash flow.”

Born and raised in the Bay Area, Brian has grown to become an expert in both the Peninsula and South Bay Markets. His knowledge of the area allows him to provide valuable insight and intelligent advice to both buyers and sellers in these markets.

Peter Hong listed a 3-unit multi-family property located at 43563 Ellsworth Street in Fremont, CA. The 3-bed, 2-bath townhomes in an award-winning school district closed for $1,775,000 at 2.02% CAP! Insight from Peter: “The purchase and sale of 43563 Ellsworth Street was just one of only a handful of multi-unit residential sales in the Mission San Jose neighborhood over the last ten years. The buyer had a rare opportunity to obtain a property in an area where word of mouth helps keep vacancies at consistently low rates. All inspections and contingencies were completed in a timely manner, leading to closing of escrow within forty-five days.”

Peter received a Master of Business Administration degree from the University of Michigan, helping him to better understand the world of commercial real estate.

Congrats on your first deals, gentlemen! We can’t wait to see what the future has in store for you both.
Interested in a career at NAI Northern California? Click here for more information.

Brian Skavdahl (L) and Peter Hong (R) with President James Kilpatrick

Caldecott 4th Bore to Open this Weekend

The fourth bore of the Caldecott Tunnel, a $420 million project begun in January 2010, is finally scheduled to open sometime this weekend. A ribbon-cutting ceremony is scheduled for early this afternoon, and US Secretary of Transportation Anthony Foxx will be in attendance.

The project will add two much-needed lanes to Highway 24 through the Berkeley Hills. Construction of the new fourth bore, located just north of the third, has been 3 years in the making. Since crews completed excavation in August 2012, they have been installing cutting-edge safety features and surfacing the interior. Four lanes will now operate around the clock in both directions, and Caltrans will no longer have to switch the direction of traffic in the middle bore to accommodate rush hour traffic.

Although a fourth bore will not alleviate bottleneck conditions faced by regular commuters, it should eliminate the headaches and guesswork that reverse commuters have had to endure. Since there is neither a fast nor easy alternative to the Caldecott, congestion has been an invariable annoyance. It’s about time these constant worries were laid to rest: the tunnel’s daily vehicle count has nearly tripled since the third bore opened nearly 50 years ago.

Unlike the new eastern span of the Bay Bridge, which debuted over Labor Day weekend, the fourth bore of the Caldecott has been completed on time and several million dollars under budget. Almost $200 million of federal stimulus money has gone into its construction. A streamlined and predictable journey to outer East Bay cities will be a welcome change for businesses, restaurants, residents, shoppers, and real estate developers on both sides of the Caldecott. Decreased congestion will also have a positive impact on the environment by reducing pollution and carbon emissions.

This is not the first time that Bay Area residents have anxiously awaited the opening of a new tunnel. In the 1890s, the Kennedy Tunnel, later known as the Broadway Tunnel, was built 300 feet higher than the Caldecott’s current position. This original one-way tunnel was timber-lined, pitch-dark, and only seventeen feet wide. When the Art Deco twin bores of the Broadway Low-Level Tunnel opened nearly 80s years ago, they resulted in huge growth for Contra Costa.

Since its inception, the tunnel has been plagued with traffic jams. The two original lanes in both directions simply could not handle the ever-increasing volume of vehicles travelling to and from new suburban cities. In 1960, California approved plans for a third bore to help alleviate traffic congestion, and the tunnel was renamed for long-time Alameda Country district highway supervisor and president Thomas Caldecott. The tunnel allowed inland areas to develop from farmland into thriving suburban communities, while still maintaining close contact with San Francisco.

Oakland, CA – Our New Office and Address

Oakland, CA – As of August 2013, our Oakland office has a new location!

This location is a class A building with a brand new build out at city center, just steps away from BART. Our new space includes: double door entry off the elevator, private kitchen, copy room, large conference room, small conference room and larger working areas! We are excited to be here!

You’ll see this address updated in our emails, on the website, and in our other communications.

New Address:

475 14th Street, Suite 700

Oakland, CA 94612

http://goo.gl/maps/RoNPW

About the Team

Our Investment Specialists include:

Gary Aulakh: specializing in multi-family

Ethan Berger: multi-family focus in Contra Costa & Solano Counties

Kent Mitchell: facilitates apartment transactions in central areas of Berkeley and Oakland

Grant Chappell: specializes in multi-family and retail properties in the East Bay.

Industrial Specialists include:

Dante Guazzo and Allen Valdellon

Office Specialists include:

Douglas Sharpe and Patrick Shurr

For more information on our team you can visit:

https://www.nainorcal.com/Default.aspx?tabid=10869

Hope to see you at our new location!

Remember to like us on Facebook https://www.facebook.com/NAINorthernCalifornia
and follow us on Twitter https://twitter.com/NAINorCal

East Bay office leasing perks up in slow market

Office leasing in the East Bay has yet to pick up speed, with vacancy remaining flat in most areas or at best inching up during the second quarter.

The largest office deal during the second quarter involved John Muir Health taking 144,000 square feet at 1450 Treat Blvd. in Walnut Creek. The move, however, had little impact on vacancy since the tenant is moving from space within the same market.

Leasing activity in the inner East Bay was relatively quiet with the only major deal being the University of California, Berkeley, taking about 93,000 square feet in Berkeley Crossing, a 120,000-square-foot building at 1608 4th St. in downtown Berkeley, owned by Strada Investment Group, primarily to house administrative operations.

“To date, the East Bay has not benefited from a significant spillover effect from San Francisco,” said Tom Maloney, managing director of Jones Lang LaSalle in the East Bay. The San Francisco office market has been brisk, due largely to a robust technology sector that gobbles up space at a premium.

Vacancy in the Interstate 80 and 880 corridor dropped slightly to 18.5 percent during the second quarter from 18.9 percent during the first quarter, according to CBRE. In the Interstate 680 corridor, vacancy was 20 percent and in the Tri-Valley, it reached 18.4 percent.

Bishop Ranch in San Ramon experienced a strong flow of leases during the second quarter with several deals, including KB Home taking 17,000 square feet, Kraft taking 25,000 square feet, and a division of Nestlé taking 13,000 square feet.

As with most deals in the East Bay in recent months, many of the last quarter’s deals involved relocations from inside the market, but that could change soon as leasing rates rise in other parts of the region.

“As San Francisco rents reach more than $50 a square foot — prices not seen since prior to the recession — and technology tenants continue to expand their space requirements, we expect that traditional, non-tech users will be priced out of the San Francisco market,” Maloney said.

Leasing rates for Class A space in Oakland range from about $28 to $35 per square foot — a bargain compared with San Francisco, according to Cornish & Carey Commercial Newmark Knight Frank.

Most of the prospective tenants shopping for space in the Interstate 680 corridor of late had requirements ranging from 3,000 to 25,000 square feet, said Andy Schmitt, a broker with CBRE in Walnut Creek.

“There are currently fewer large 50,000-square-foot active users in the market when compared to fourth quarter 2011 through second quarter 2012, but we continue to see large user interest in the remaining big blocks of space in the I-680 corridor.”

In Oakland, Clorox put 150,000 square feet of office space in its companyheadquarters on the market for lease after moving hundreds of workers to Pleasanton.
That has pushed up vacancy in the inner East Bay, said Bill Nork, a broker with Cornish & Carey.

Wareham Development recently unveiled its new, vacant 99,000-square-foot EmeryStation Greenway building in Emeryville.

With rents in the Peninsula and San Francisco soaring, Nork said, “we’re hoping that trickles down our way.”

Blanca Torres – San Francisco Business Times