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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.

San Jose and Oakland challenge SF in private equity real estate market

California’s largest cities for real estate investment, San Francisco and Los Angeles, are now being challenged by San Jose and Oakland. California holds almost 20% of the private equity real estate (PERE) in the country and 12% of global PERE assets under management, according to a study by accounting and advisory firm EisnerAmper and Preqin. PERE properties include office buildings (high-rise, urban, suburban and garden offices); industrial properties (warehouse, research and development, flexible office/industrial space); retail properties, shopping centers (neighborhood, community, and power centers); and multifamily apartments (garden and high-rise). Less common but still an option are senior or student housing, hotels, self-storage, medical offices, single-family housing to own or rent, undeveloped land, and manufacturing space (via Investopedia). 

So how do the Bay Area cities compare?

San Francisco’s strength is in its office market, with $3.2 billion PERE deals in 2018 (a $1 billion increase over 2017) and another $1 billion already invested this year as the Bay Area’s largest tech companies continue to expand. The overall PERE total for last year was $4 billion,down from $4.8 billion in 2017; according to an article in the San Francisco Business times, “the drop-off in the quantity of large mixed-use transactions compared with recent years is at the heart of the decrease.” San Francisco is also running out of space, which limits growth.

While San Francisco is still the largest market for office transactions in the Bay Area, San Jose is leading in growth. Their office transactions in 2017 and 2018 both reached $1 billion, with a record in 2018 at $1.2 billion. In Q1 of 2019 alone, these transactions reached $500 million, putting San Jose on track to quadruple its PERE deals this year. The overall PERE total for 2018 was another record of $2.7 billion, almost 60% more than 2017 and a sharp contrast to San Francisco. 

Oakland may be emerging as a competitor, with more reasonable housing options for tenants; the tech company Square announced at the end of last year their intent to move 2,000 employees into an Oakland office. Even as a smaller city, it is on track to reach a total of $1 billion in PERE deals this year, with $560 million in Q1 2019 already; $493 million of that was just two office space deals by Starwood Capital Group. The city also has more Opportunity Zones than either of the other two cities.

With San Francisco as the “benchmark,” San Jose as the “growth leader,” and Oakland as the “up and comer” (according to the SF Business Times), all three cities are going strong.

Source: SF Business Times

 

How to take advantage of “Opportunity Zones”

The Tax Cuts and Jobs Act of 2017 created new rules for “opportunity zones,” underdeveloped neighborhoods, sheltering your investments from federal taxes with minimal limits and employment requirements. You only have a few more months to maximize the benefits of this program: so how does it work?

When you sell a property, you can immediately reinvest that gain, tax-deferred, into an Opportunity Zone by depositing it into a qualified Opportunity Zone fund (either one you create or a traditional one). Then you have two choices; buy a property in one of the zones, or invest in a business in the zone. We’ll focus on the property option.

You have 31 months to purchase your new property, whether it’s multifamily, retail, industrial, or office space. Eventually, you need to invest the same amount of money as the property’s structures (not land!) currently are worth; if the current building is worth $100,000, you need to spend $100,000 remodeling, rebuilding, or otherwise upgrading the building. This means if you buy a property with a structure worth very little, you don’t have to do much to get the tax benefits.

Speaking of benefits, not only is the tax on your original gains deferred until 2026, but if you hold it for seven years, 15 percent of that gain will completely avoid federal capital gains taxes. (You only get 10 percent if you hold it for five years.) And if you hold it for ten years and your new investment appreciates? None of that appreciation is taxable under federal capital gains taxes. This is an opportunity indeed!

There are 102 opportunity zones designated around the Bay Area, including in Oakland, Concord, San Rafael, Santa Rosa, and even San Francisco; visit the SF Business Times’ site for maps and stats about the zones, or contact one of our advisors to find a property that matches your investment goals.

Sources: BizJournals.com, Tax Policy Center

Read our June 25, 2019 newsletter

NAI Northern California’s Tim Warren named East Bay/Oakland Top Sales Broker by CoStar Power Broker Awards

Tim Warren recognized with CoStar Power Broker Award as a Top Sales Broker for the East Bay/Oakland

The CoStar Power Broker Award winners for 2018 were recently announced, and one of NAI Northern California’s top producers, Tim Warren, was named a Top Sales Broker for his work in the East Bay/Oakland market.

As a commercial real estate services company, NAI Northern California was also recognized as a Top Sales Firm in both San Francisco and the East Bay/Oakland markets.

Check out all the CoStar Power Broker Award winners here.

 

Lucca Ravioli building asks $1.45M

Famed Valencia Street cornerstone for sale in triple-building package.

The building that for nearly a century housed Lucca Ravioli Company on Valencia Street is, as anticipated, up for sale. It’s part of a three-building package along with the two related buildings, all stuffed with a price tag of more than $8.28 million.

According to to the official history of Lucca Ravioli, the Italian goods store opened its 1100 Valencia Street locale in 1925 (18 years younger than the circa-1907 building it occupies), a family owned-institution that has endured through booms, busts, world wars, depressions, and the ever-changing character of the Mission District.

But as Eater SF reported in January, the neighborhood received shocking news that Lucca Ravioli will sell its last batch of tagliarini on April 20.

According to the San Francisco Chronicle, no one will take over the family business once 50-year proprietor Michael Feno retires. The sale of the off-the-market building will certainly finance quite a retirement in today’s market.

1100-1118 Valencia St. is presented for sale by Jordan Geller and J.B. Williams of NAI Northern California. Click here for more details on this listing.

 

Read more at Curbed SF

 

 

 

Jordan Geller and J.B. Williamson on SFGate: Want to be the owner of Lucca Ravioli Co.?

Jordan Geller and J.B. Williams of NAI Northern California represent the sale of  1100-1118 Valencia Street. They recently talked to SFGate.com on the sale of the iconic Lucca Ravioli location: “The family will of course review offers with the hope to find buyers who will respect the current feeling and history of the property….”

After nearly a century, San Francisco’s well-loved Lucca’s Ravioli Company on a busy Valencia Street corner will close, and the property–all total, three buildings–is for sale at $8.285 million.

….

Lucca’s is a San Francisco institution…Michael Feno has made the store part of his daily life for over 50 years.

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After trying to figure out a way to keep the business in the family, Feno has decided, with mixed emotions, to put the storefront and adjacent company-owned buildings up for sale.

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The Lucca’s storefront and mixed-use structure is only one part of this package. Also for sale are associated buildings at 1102-1110 and 1114-1118 Valencia Street.

These buildings were formerly part of the Lucca Ravioli Company’s production and operations. Now, they could be just about anything: This portion of Mission District land is zoned as NCT, which stands for Neighborhood Commercial Transit district zoning.

….

Listing agents Jordan Geller and J.B. Williams indicated that Lucca’s last day of operation will be Easter of this year.

It’s hard not to want to know now what will become of the store, but Michael Feno doesn’t want to control its future. “The family will of course review offers with the hope to find buyers who will respect the current feeling and history of the property,” Geller told SFGate. “But he has no plans to limit or put conditions on the sale.”

Perhaps after almost 100 years, the family feels, finally, ready to let go.

1100-1118 Valencia St. is presented for sale by Jordan Geller and J.B. Williams of NAI Northern California. Click here for more details on this listing.

Read the full article on SFGate.com

 

Lucca Ravioli Co. slated to close as old San Francisco family divests its real estate holdings

Pair of buildings that host beloved deli, seven housing units, readying for sale.

“It’s very important that the marketing photos make the units look good,” tenants told in letter.

The building on the corner of 22nd and Valencia Streets that houses Lucca Ravioli Co., the last commercial outpost of the Feno family, which has done business in San Francisco for nearly 100 years, appears to be readying for sale.

No, not the parking lot next door that already sold for around $3 million in October — the actual building where the ravioli magic has happened since 1925.

That’s not all: The six-unit apartment building next door at 1102-1106 Valencia, which the Feno family also owns, is apparently up for sale, too.

Residential tenants of both buildings received a letter in mid-December stating that representatives of the commercial real-estate firm NAI Northern California — along with Lucca’s owner, Michael Feno — would walk through their apartments for inspections and photos. Their places, the letter said, must be “clean without personal belongings strewn about.”

“These are marketing photos,” the letter reads. “It’s very important that the marketing photos make the units look good.”

The letter adds: “To help incentivize the tenants, we would like to offer those that do a gift-card.”

Of course, this raises questions over whether these tenants will be shooed out of their places to raise the value of the buildings. Tenants, who declined to be interviewed for this piece, are discussing their options.

A Lucca employee confirmed that the deli will close in spring 2019.

1100-1118 Valencia St. is presented for sale by Jordan Geller and J.B. Williams of NAI Northern California. Click here for more details on this listing.

Read more at Mission Local

 

NAI Northern California Presents the Opportunity to Acquire the Lucca Ravioli Buildings Located on Valencia St.

1100-1118 Valencia St. Portfolio Sale.

 Jordan Geller and JB Williams of NAI Northern California are pleased to present as exclusive advisors, the opportunity to purchase jointly or as a portfolio, the three mixed-use properties located at 1100, 1102-1110 and 1114-1118 Valencia St. The associated business, Lucca Ravioli Co., has been operated from the retail storefront located at Valencia and 22nd Streets by owner Michael Feno for 53 years and has been in business for 94 years. After exploring many possibilities and having reached retirement age with no successor generation to continue the business, he and his family have made the difficult decision to close Lucca Ravioli effective Easter 2019. He would like to thank the many customers for their continued patronage and enthusiasm for the business over the years.The sellers understand that for generations Lucca has been a prominent local business and its absence will be felt by many, including San Francisco’s Italian American Community. They hope that Lucca Ravioli will be remembered fondly and that its location will continue to serve the neighborhood in a productive way.*The image above is a rendering of a potential conversion of two of the street level commercial spaces to a new retail use and is not representative of the current building configuration for the two non-corner buildings.

Contact NAI Northern California Vice President Jordan Geller and Investment Advisor J.B. Williams for more information. 

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.www.nainorcal.com