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Top investment sales firm NAI Northern California continues expansion in first half of 2019

Leader in Bay Area multifamily, retail, and office investment sales and leasing transactions has aggressive growth plan

SAN FRANCISCO, CA – August 21, 2019 – As the second quarter of 2019 has come to a close, Bay Area commercial real estate brokerage NAI Northern California has continued its expansion with an aggressive growth plan. President James Kilpatrick remarks, “We are well on track to top our total sales volume this year as we expand our team and continue to develop tech-forward strategies to serve our clients.”

NAI Northern California and its brokers were recognized both locally and nationally in the first half of the year. The brokerage was ranked as a Top Sales Firm by CoStar in both the San Francisco and East Bay/Oakland markets, and vice president Tim Warren was named a Top Sales Broker for his work in the East Bay/Oakland market. Investment advisor and rising star CJ Brill was awarded a scholarship for the International Council of Shopping Centers’ RECon conference in Las Vegas. The company’s top-producing agent for Q1 through Q2 was senior investment advisor Rudas Gebregiorgas, followed closely by Mary Alam, Grant Chappell, Alex Barker, Doug Sharpe, Joby Tapia, Tim Warren, Kent Mitchell, Jordan Geller, and Joshua Ballesteros.

The company expanded into the greater Silicon Valley area with the hire of Tod Rudee as Executive Vice President in San Jose. Tod brings nearly 30 years of extensive experience in commercial real estate strategy, transaction services, and brokerage performance management in Silicon Valley. His previous background includes leading the San Jose office as Managing Director for CBRE as well as management roles with Colliers International and Premier Properties. 

The majority of the company’s business was multifamily investment sales for Q1 and Q2. Notable sales included Joby Tapia’s $18 million sale of the Central Valley Homes Apartments, a 24-unit complex in Mill Valley; the Mitchell Warren Team’s $14 million sale of 44 units at 888 Vermont Street in Oakland; and the $11.3 million sale of the Terrace at Fair Oaks complex in Carmichael by Rudas Gebregiorgas and Grant Chappell.

For the first two quarters of 2019, single tenant NNN and multi-tenanted retail center sales were a close second. The $25 million in sales completed by the Mary Alam Team included a $6.7 million Walgreensa $3.8 million retail complex in Tracy, and a $3.65 million Regal Cinemas sold by the Mary Alam Team and Ganga Balebail.

Industrial and office properties rounded out NAI Northern California’s sales for the first half of the year. The most notable assets were a $12 million mixed-use development site in South Beach, San Francisco sold by Alex Barker; a $2 million office/warehouse building in West SOMA, San Francisco sold by the Geller Williams team; and a $2.5 million medical office redevelopment deal in San Jose sold by the Mary Alam Team. Vacant land and mixed-use buildings made up the rest of the properties sold by the brokerage. 

Commercial leasing is an increasing part of the company’s business, with leases to boutique and multinational businesses from a range of industries. Spaces leased by NAI Northern California during Q1 and Q2 ranged from 1,100 square feet to 35,000 square feet, for both office and industrial uses. 

Coming into the second half of the year, NAI Northern California has an aggressive growth plan and is currently hiring commercial real estate agents and senior investment sales advisors for all their offices (San Francisco, Oakland, and San Jose) as well as additional leadership roles for both their San Francisco and Oakland offices. Community outreach and volunteering efforts have also been a key component of company life with volunteer days at Project Open Hand in Oakland and San Francisco.

 

About NAI Northern California

NAI Northern California is a full service commercial real estate firm serving the San Francisco Bay Area and beyond. 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 350 offices worldwide and over 6,000 professionals completing in excess of $20 billion in commercial real estate transactions globally.

Recently on the San Francisco Business Times Book of Lists, NAI Northern California hit the top 5 and 6 spots in San Francisco and the East Bay and top 10 Bay Area wide. NAI Northern California is part of the NAI Global network, recently recognized by Lipsey as the number 4 most recognizable commercial real estate brand.

Transit-oriented development on the rise

Cities across the Bay Area are opening up to transit-oriented development, building high-density housing with ground-floor retail near BART stations, including on BART-owned land. Despite neighbor complaints, cities are revising their zoning restrictions to allow bigger buildings near major transit hubs.

Most of the development is happening in the East Bay, with completed projects near at least eight stations and more under construction including a 402-unit apartment complex at MacArthur Station with 13,000 square feet of commercial space; 94 units at Fruitvale Station; 200 units at Pleasant Hill Station; 410,000 square feet of commercial space at West Dublin/Pleasanton Station; and 596 units at Walnut Creek Station. Planned projects in Millbrae, West Oakland, Lake Merritt, North Concord/Martinez, Balboa Park, and Fruitvale total over 2,300 units and over 2 million square feet of commercial space.

As zoning codes begin to relax near transit, future development opportunities could open up, strengthening the local markets for existing multifamily buildings as well as retail and office assets.

Source: SF Chronicle

NAI Northern California promotes Trey Sells to Investment Advisor

NAI Northern California, a member of the world’s premier managed network of commercial real estate firms, is pleased to announce the promotion of Trey Sells from Market Analyst to Investment Advisor. Trey specializes in multifamily and mixed-use real estate in the Castro and surrounding areas of San Francisco.

“Trey sets a high standard for exceptional client service and this promotion is well-deserved,” said James Kilpatrick, President of NAI Northern California. “As we look toward the future of NAI, we’d like to acknowledge Trey for his contributions and are confident he will be an asset as we continue to develop and expand.”

Trey has a background in entrepreneurship, education, and personal coaching. He studied neuroscience at Brown University, where he mastered the workings of complex and interconnected systems. After graduating in 2010, he started his own tutoring company and used his extensive and broad education to coach his clients and help them achieve their goals. His career in real estate started with a passion for architecture and beautiful homes; he managed the renovation of a luxury home and, in the process, gained an appreciation for the power of investment to change lives.

Trey is interested in building investment opportunities in real estate leasing. He sees huge potential for the growing advancements in technologies and building materials for real estate to redefine the way we live and invest. His acute attention to detail and extensive network of contacts ensure he can provide the best experience and outcome for his clients.

Trey was born in southern California, where he spent his early childhood, and grew up in northern Nevada near Lake Tahoe. He frequently visits and travels with his family, including his four nieces and nephews. He is very involved in service work for populations in need and values lifelong education and healthy living. He enjoys physical fitness and reading and writing creative fiction. Trey can be found enjoying the outdoors all around the Bay Area or writing in cafes on the streets of the Castro.

Market Pulse: North Bay, August 2019

Welcome to NAI Northern California’s “Market Pulse” feature. We checked the pulse of the North Bay commercial real estate market to discover the ups and downs of the office, industrial, retail, and multifamily markets.  Each market has four dimensions: current inventory, 12-month net absorption, under construction, and vacancy rate.

Check out our August 2019 North Bay Market Pulse infographic. If a dimension is on the rise, the pulse goes above the baseline; if it’s on the decline or negative, the pulse will dip below the baseline.

This month the North Bay office market’s inventory is at 40.7 million sq. ft. and holding flat, with 12-month net absorption down at 127,000 sq. ft. of office space. Approximately 17.2 million sq. ft. are under construction with an upward trend. The vacancy rate is at 7.4 percent and expected to drop.

For the industrial market, 105 million sq. ft. of space is in the inventory, with more on the way. The 12-month net absorption is heading up, at 231,000 sq. ft., and the space under construction is also rising, at 1.1 million square feet. The vacancy rate is at 3.4% and holding steady.

There are 65.6 million sq. ft. of retail space available and rising, with a 12-month net absorption rate at 113,000 sq. ft. (a decreasing trend). More is being built, though, with 72,000  sq. ft. under construction. Vacancy rates continue to rise, at 3.7%.

The multifamily market is up to 59,000 units available in the inventory. The 12-month net absorption rate averages just 52 units across the North Bay area and is dropping. Construction is on the upswing here, at 557 units, with a rising vacancy rate of 5.4%.

For more detailed updates or to find out how the North Bay’s submarkets are doing, contact one of our advisors; whether you’re interested in office, industrial, retail, or multifamily properties, we can help.

Market Pulse: South Bay, August 2019

Welcome to NAI Northern California’s “Market Pulse” feature. We checked the pulse of the South Bay commercial real estate market to discover the ups and downs of the office, industrial, retail, and multifamily markets.  Each market has four dimensions: current inventory, 12-month net absorption, under construction, and vacancy rate.

Check out our August 2019 South Bay Market Pulse infographic. If a dimension is on the rise, the pulse goes above the baseline; if it’s on the decline or negative, the pulse will dip below the baseline.

This month the South Bay office market’s inventory is up to 129 million sq. ft., with 12-month net absorption also up at 2.7 million sq. ft. of office space. Approximately 6.2 million sq. ft. are under construction with an upward trend. The vacancy rate is at 8.3 percent and dropping.

For the industrial market, 198 million sq. ft. of space is in the inventory and rising. The 12-month net absorption is on its way up, at 844,000 sq. ft., and the space under construction is also rising, at 771,000 square feet. The vacancy rate is at 5.7% and trending downward.

There are 79.9 million sq. ft. of retail space available and dropping, with a 12-month net absorption rate of 78,000 sq. ft. (a decreasing trend). More is being built, though, with 1 million sq. ft. under construction. Vacancy rates continue to drop, at 3.3%.

The multifamily market is holding strong, up to 144,000 units available in the inventory. The 12-month net absorption rate is 2,500 units and rising. Construction is on the upswing here, at 1,000 units. The vacancy rate is at 4.3% and dropping.

For more detailed updates or to find out how the South Bay’s submarkets are doing, contact one of our advisors; whether you’re interested in office, industrial, retail, or multifamily properties, we can help.

Market Pulse: East Bay, August 2019

Welcome to NAI Northern California’s “Market Pulse” feature. We checked the pulse of the East Bay commercial real estate market to discover the ups and downs of the office, industrial, retail, and multifamily markets.  Each market has four dimensions: current inventory, 12-month net absorption, under construction, and vacancy rate.

Check out our August 2019 East Bay Market Pulse infographic. If a dimension is on the rise, the pulse goes above the baseline; if it’s on the decline or negative, the pulse will dip below the baseline.

This month the East Bay office market’s inventory is up to 112 million sq. ft., with 12-month net absorption down at 819,000 sq. ft. of office space. Approximately 1.4 million sq. ft. are under construction with an upward trend. The vacancy rate is dropping, at 8.2 percent.

For the industrial market, 265 million sq. ft. of space is in the inventory and rising. The 12-month net absorption is almost even, dropping to -1,100 square feet. The space under construction is also dropping, at 6 million square feet, and the vacancy rate is rising to 4.9%.

There are 124 million sq. ft. of retail space available, on an upward trend, with a 12-month net absorption rate of 29,000 sq. ft. (a decreasing trend). Over 340,000 sq. ft. are under construction, with more in the pipeline. Vacancy rates continue to rise, at 3.5%.

The multifamily market is holding strong, up to 170,000 units available in the inventory. The 12-month net absorption rate is 2,000 units. Construction is on the upswing here, at 9,400 units, with a rising vacancy rate of 4.5%.

For more detailed updates or to find out how the East Bay’s submarkets are doing, contact one of our advisors; whether you’re interested in office, industrial, retail, or multifamily properties, we can help.

Market Pulse: San Francisco, August 2019

Welcome to the NAI Northern California’s “Market Pulse” feature. We checked the pulse of the San Francisco commercial real estate market to discover the ups and downs of the office, industrial, retail, and multifamily markets.  Each market has four dimensions: current inventory, 12-month net absorption, under construction, and vacancy rate.

Check out our August 2019 San Francisco Market Pulse infographic. If a dimension is on the rise, the pulse goes above the baseline; if it’s on the decline or negative, the pulse will dip below the baseline.

This month the San Francisco office market’s inventory is up to 176 million sq. ft., with 12-month net absorption at 2.2 million sq. ft. of office space and dropping. Approximately 6.6 million sq. ft. are under construction with an upward trend. The vacancy rate is rising, at 6.2 percent.

For the industrial market, 95 million sq. ft. of space is in the inventory and rising. The 12-month net absorption is at 6,800 sq. ft. and rising. The space under construction is also rising, at 2.5 million square feet. The vacancy rate is at 3.7% and trending upward.

There are 82 million sq. ft. of retail space available, and more coming, with a 12-month net absorption rate of 244,000 sq. ft. heading upward. More is being built, about 433,000 square feet. Vacancy rates have started to drop, at 2.5%.

The multifamily market is holding strong, up to 164,000 units available in the inventory. The 12-month net absorption rate is 2,200 units and rising. Construction is on the upswing here, at 6,200 units, with a decreasing vacancy rate of 3.9%.

For more detailed updates or to find out how San Francisco’s submarkets are doing, contact one of our advisors; whether you’re interested in office, industrial, retail, or multifamily properties, we can help.

How retailers are succeeding in San Francisco

San Francisco’s changing demographics, tricky economics, and transforming neighborhoods are requiring retailers to adapt, but many are rising to the challenge. The city has become one of the most popular destinations for “clicks-to-bricks” retail stores; San Francisco is tied with Los Angeles in second place for where e-commerce retail opens their first physical location (as of 2018). 

One characteristic of successful stores is that they have a story in addition to a popular product; examples include Warby Parker, with 2 SF locations, and Allbirds. Both started as online-only retail (eyeglasses and shoes respectively) and then opened flagship brick-and-morter stores. 

Another winning strategy is anything that will get millennials in the door: experiential retail, pop-ups, fitness centers, and quality food and drink stores like Onedome, CorePower Yoga, and Barry’s Bootcamp are doing well enough to open new locations.

The downtown area is strongest, with stores targeting millennial workers in locations a little off of Market but still within easy reach. The Marina and Pacific Heights are also profitable locations, loci for millennials and far away from centers of homelessness.

 It may soon get much easier to open retail stores in the city; Mayor London Breed has announced a new initiative to speed up the permitting process for small business. The ordinance eases zoning codes, eliminates duplicative inspections, and standardizes local laws to match state regulations. In addition, according to the Mayor’s office, “The proposed investments for Fiscal Years (FY) 2019-20 and 2020-21 include $9 million to provide small businesses with access to capital through low-interest loans, resources for storefront and tenant improvements, and new funding to provide small businesses with financial assistance for regulatory fees.”

Source: Bisnow

NAI Northern California Presents: Record-Breaking Sale of 25 Units in Lafayette

Sale of 3535 Brook Street in the East Bay Area by NAI Northern California sets record price per unit and per sq. ft.

LAFAYETTE, CA –  August 6, 2019 –  NAI Northern California is pleased to announce the sale of 3535 Brook Street in Lafayette for $12 million, which shatters the previous pricing record by more than $50,000 per unit and $44 per square foot. The Mitchell Warren Team and Berger Mandel Team represented both the buyer and seller, delivering an unsolicited all-cash offer. This 25-unit apartment building is blocks from Mt. Diablo Boulevard and from the Lafayette BART station.

“The buyer was looking for assets in the Lafayette market, and our team was able to secure a property that he had wanted to purchase for many years,” according to Vice President Tim Warren. “This was definitely a win/win transaction for both the buyer and seller.”

3535 Brook Street is a fully leased 25-unit apartment complex, a rare multifamily asset in the Lamorinda market. It features an on-site laundry, swimming pool, spacious garden, and generous parking. The site is conveniently located just a block away from Lafayette Square and the downtown shopping district and within walking distance of local schools, library, restaurants, and other amenities.

Lafayette is known for its pastoral rolling hills, good schools, and wealthy inhabitants. In 2016, the median household income in Lafayette was over $140,000, more than twice the statewide average and about two and half times the national median.

It is rated #5 in “Best Places to Live in Contra Costa County” and boasts a thriving nightlife without sacrificing the “small town” feeling and pleasant weather for the variety of outdoor amenities in the vicinity.

Lafayette is also near several local attractions, including but not limited to the Lafayette Hillside Memorial, Lafayette Reservoir Recreation Area, and Briones Regional Park.

The Mitchell Warren Team is comprised of Kent Mitchell, Tim Warren, Randell Silva, and Alex Lin. The Ethan Berger Team is comprised of Ethan Berger, Benjamin Mandel, and Garrett Blair.

 

About NAI Northern California

NAI Northern California is a full service commercial real estate firm serving the San Francisco Bay Area and beyond. 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 375 offices worldwide and over 6,000 professionals completing in excess of $20 billion in commercial real estate transactions globally.

Recently on the San Francisco Business Times Book of Lists, NAI Northern California hit the top 5 and 6 spots in San Francisco and the East Bay and top 15 Bay Area wide. NAI Northern California is part of the NAI Global network, recently recognized by Lipsey as the number 4 most recognizable commercial real estate brand.

Investor confidence in multifamily real estate begins recovery

According to a survey by National Real Estate Investor, confidence in multifamily properties appears to be recovering after a dip in 2018, though all other classes of commercial real estate have been neutral or dropped slightly. The survey asked respondents to rate the attractiveness of the major commercial real estate markets on a scale of one to ten. Most investors prefer multifamily and industrial properties over hotels, office, and retail; last year multifamily and industrial were tied for desirability, but this year multifamily pulled ahead at a 7.9 and industrial fell to a 7.5. They are both still well ahead of the other categories, though; hotels are a 5.9, offices are a 5.8, and retail is just a 4.8. 

Compared to 2018’s rankings, hotels dropped .2 points, offices dropped .1 point, retail held steady, and industrial dropped .2 points. Overall, multifamily has been a rock in the current real estate cycle, despite cap rates being driven lower by the high demand for multifamily. 

While desirability doesn’t necessarily reflect actual sales and purchases, sentiment can be a useful data point in the commercial real estate market. For more information about the current state of the market and how the San Francisco Bay Area differs from the nation as a whole, contact one of our advisors; we have specialists in multifamily and industrial properties as well as office and retail.

Source: National Real Estate Investor