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After Blockbuster, Hudson Pacific Launches Satellite Office

1 Jul 2015, 11:05 pm

By Alex Girda, Associate Editor

Following a blockbuster deal that greatly expands its Bay Area footprint, Hudson Pacific Properties has opened an office in Foster City to manage its new assets.

Metro Center

Metro Center

Hudson Pacific’s new location is 22,000 square feet at 950 Tower Lane, a 22-story, Class A office tower and part of the 730,000-square-foot Metro Center complex owned by the company.

The decision to ramp up operations stems from the company’s recent $3.5 billion deal with the Blackstone Group to buy Equity Office Properties’ San Francisco Peninsula and Silicon Valley portfolio, said the company’s chairman & CEO, Victor Coleman, in a statement. Since most of the 26 newly acquired properties and two development parcels are located along the Highway 101 corridor, Foster City offers an attractive location for the new office.

The asset provides an amenity package that includes 2,570 parking spots, free shuttle service to the Hillsdale Caltrain station, as well as proximity to dining and retail. Other noted tenants include QuinStreet, a marketing company, and the global investment banking firm Jefferies.

Of note, the expansion will not affect the firm’s Northern California headquarters, which is located at the Rincon Center in San Francisco’s South Financial District. Hudson Pacific also owns that two-building, 487,000-square-foot complex.

Image courtesy of hudsonpacificproperties.com

Equity One’s Mall Makeover is Ready to Launch

30 Jun 2015, 5:41 pm

By Alex Girda, Associate Editor

Equity One Inc. will launch a $109 million expansion of its regional mall in Daly City in the next several weeks following the project’s approval by the city council, the company announced on June 29.

The project will add 200,000 square feet to the 895,438-square-foot Serramonte Center, the largest property in Equity One’s portfolio.

Serramonte Shopping Center

Serramonte Center

By February, when North Miami Beach, Fla.-based REIT revealed the expansion plan, it was in talks with the center’s tenants about their space needs. Officials estimated that the expansion would increase the property’s NOI about 40 percent.

According to Equity One CEO David Lukes, the groundbreaking will take place in the next several weeks on the retail center’s 80-acre site at Highway 280 and Serramonte Boulevard.

Lukes said in a statement that the project would move the company “towards achieving our goal of delivering $100 (million) to $150 million of redevelopment and development projects annually.” The Serramonte Center project brings Equity One’s project pipeline to $275  million, Lukes noted.

Image courtesy of facebook.com/SerramonteShoppingCenter

Terreno Finds Big Upside in Fremont

29 Jun 2015, 10:19 pm

By Alex Girda, Associate Editor

As we previously noted, Silicon Valley’s industrial sector has enjoyed a period of strong investment volume. In the latest sign of the market’s performance, an asset in Fremont has commanded $13.4 million.

Seller Terreno Realty Corp. had owned the property at 48603-48622 Warm Springs Blvd. since 2010, when it acquired the property for $7.3 million. According to the seller, the two buildings’ 141,000 square feet of rentable space are currently fully leased to six tenants. In a statement, Terreno estimated that its investment generated a 15.1 percent unleveraged internal rate of return.

The purchase price, the occupancy level and Terreno’s return on investment all suggest a market on the rise. Although Fremont’s activity during the first part of 2015 was slightly below average for Silicon Valley, fundamentals are generally positive and the city should catch up to the rest of the local market.

Aging Population Sparks Senior Housing Company’s California Expansion

23 Jun 2015, 8:20 pm

By Alex Girda, Associate Editor

As the vast majority of the baby-boomer generation inches closer to retirement age, American cities are finding that focusing on senior housing is a necessity. This also means that senior housing companies have a great opportunity for growth—one that Sunrise Senior Living is acting on. The company is ready to unveil its latest community in Burlingame on the San Francisco Peninsula.

Sunrise of Burlingame is the 41st community built by the senior housing company in California. The 80-unit property will offer residents assisted living, as well as memory care programming and services for those suffering from Alzheimer’s disease.

Burlingame of Sunrise

Burlingame of Sunrise

The four-story property is located on Trousdale Drive in Burlingame, near shopping spots, dining locations and health care facilities. The 65,000-square-foot building has a resident capacity of 97, and will provide more than 80 jobs to the community. The space will include Sunrise Terrace Club Neighborhood, which will provide residents with tailored programming aimed at those experiencing the early stages of memory loss. The amenity package at the property includes complimentary Wi-Fi connectivity, electronic health record systems, as well as interior design elements meant to help residents with their limited mobility.

The need of programs catering to sufferers of the memory loss disease is growing, with the Alzheimer’s Association estimating that the number of those affected will grow in the U.S. by 193 percent by 2050. The number of Americans projected to suffer from the syndrome will be roughly 14 million by 2050. Factor that into an increasingly aging population, and the need for more extensive care and facilities catering to seniors is becoming apparent.

Image courtesy of sunriseseniorliving.com

Milpitas Refi Points To Industrial Surge

22 Jun 2015, 1:39 am

By Alex Girda, Associate Editor

In a sign that Milpitas’ industrial market could be getting ready to surge,  Stephens & Stephens .L.LC. is refinancing a Class B research and development asset in the area. The company recently completed a financing deal with  Los Angeles-based Calmwater Capital, netting $26.2 million in funding.

The credit facility comprises a $12.4 million short-term loan, as well as a future funding of $13.8 million for a host of improvements, capital expenditures and other expenses at the 181,000-square foot R&D facility. The refinancing reflects improving local fundamentals, as availability and vacancy been declining dramatically in the Milpitas R&D market for the past few quarters.

Stephens & Stephens, an affiliate of D.R. Stephens & Co. launched in 1999 invests in office, industrial and R&D properties in the San Francisco Bay area. The entity’s current portfolio consists of 30 properties.

Calmwater Capital is the new corporate handle of Karlin Real Estate Lending, part of a repositioning process that features a more aggressive investment strategy for the five-year-old company. Backed by Karlin Asset Management, Calmwater has arranged $900 million in financings for a diverse portfolio of real estate assets. During the first quarter,  Calmwater arranged loans worth a total of $161 million and is on track to complete $93 million in financings by the end of the second quarter.

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