In the News
Things move fast around here, and the most exciting developments – from recent deals and acquisitions to press releases and property highlights – are posted in real time right here.
Things move fast around here, and the most exciting developments – from recent deals and acquisitions to press releases and property highlights – are posted in real time right here.
A public review period has begun for the Draft Subsequent Environmental Impact Report for Phase III of the America Center …
A public review period has begun for the Draft Subsequent Environmental Impact Report for Phase III of the America Center project in Northern San Jose. The comment period ends on July 27 to be followed by Planning Commission and City Council hearings, though the dates aren’t yet confirmed. The project’s developer, SteelWave, has been working with LRG Architecture, BKF Engineers and landscape architect Carducci & Associates Inc. throughout the planning process.
“They had submitted the application in October 2015,” stated Lea Simvoulakis, project manager. “A community meeting and scoping meeting was held on October 11 last year. The next step is to schedule the hearings with the goal of going to the Planning Commission in August and City Council in September.”
America Center is 70.5-acre campus offering office, R&D and retail space just north of Highway 237 at the end Great America Parkway within the Alviso Master Plan area. The development is touted as offering an unparalleled combination of accessible Class A office space, scenic views and competitive amenities. Phase I at 6001 America Center Drive is complete offering two LEED Gold Class A office buildings surrounded by an open space preserve with nature trails.
Construction is already underway for Phase II of the project, adding another two office buildings totaling 457,450 square feet with numerous amenities such as a sports court, fitness center, cafe and entertainment center. Phase III would deliver the fifth and final office building at just under 200,000 square feet, for a full campus buildout of 1.1 million square feet. The building would reach 90 feet in height and utilize an expanded parking garage shared with the other America Center buildings.
“Right now the goal is to get it approved,” said Steve Dunn, senior managing director, SteelWave. “It’ll provide more space for users and result in a larger campus. The floor plates for building five are slightly smaller due to height constraints; they’ll be 33,000 square foot floor plates. The design and amenities are consistent with the rest of America Center, complementing the campus and making it a bit bigger to meet the demand in Silicon Valley.”
Buildings three and four, part of Phase II, are located at 6220 and 6280 America Center Drive, and are anticipated for Q3 2017 delivery. The floor plates are slightly larger than building five at 36,795 square feet. Amenities include a roof deck, and other outdoor areas such as dining, a presentation theater and collaborative meeting areas.
“It’s a premier site and there aren’t many locations like it,” commented Phil Mahoney, vice chairman, Newmark Cornish & Carey. “It has unprecedented views of the Bay with access to the services and amenities at Great America. The buildings feature View Dynamic Glass and are state-of-the art in terms of amenities. It’s a great project for one to five tenants; the demand is definitely there for the fifth building with the growing tech sector.”
The America Center development is situated in a block of land between Highway 237 and the Bay. The modern Aloft Hotel Santa Clara occupies a long stretch of America Center Court. There are also a number of other hotels in the greater vicinity, Levi’s Stadium, California’s Great America and Intel Museum. The project is in close proximity to several bus routes and the Lick Mill light rail station. Both the Lawrence and Sunnyvale Caltrain stations are about five miles from America Center and an AC Shuttle amenity will provide connectivity for employees who use transit for their commute.
Pending confirmation of the Planning Commission and City Council hearings, there is no estimated date set for ground breaking on Phase III.
The lease the Los Angeles Chargers signed for space in Costa Mesa to serve as their new headquarters and training …
The lease the Los Angeles Chargers signed for space in Costa Mesa to serve as their new headquarters and training and practice facility is for 10 years, the city’s top administrator said Friday.
“I think we’ve all got to be Chargers fans moving forward,” City Manager Tom Hatch joked during a joint liaison committee meeting among the city, Costa Mesa Sanitary District and Mesa Water District.
In December, the team agreed to lease part of the Hive — a Costa Mesa office complex north of the 405 Freeway at 3333 Susan St. — and an adjacent parcel if it decided to leave San Diego for Los Angeles. The Chargers announced the move this month.
The team will play its home games at the StubHub Center in Carson until moving into a new stadium in Inglewood that it will share with the Los Angeles Rams, who moved from St. Louis last year. The new stadium is scheduled to open in 2019.
The Hive is “going to be their home, their headquarters, their practice facilities and their training facilities,” Hatch said. “So they’ll be there every day except when they’re either driving to L.A. for eight games a year or they’re in some other city playing somebody else.”
The Hive site contains three two-story office buildings totaling about 184,000 square feet. The Chargers’ lease is for the largest of the three, Building C, which is nearly 102,000 square feet.
The team also plans to lease an adjacent 3.2-acre parcel called “The Corner.”
He acknowledged, however, that it’s possible the team could look for accommodations elsewhere in the future.
“I think we’re going to make them feel welcome,” Hatch said. “I think they’re going to like the area. Could they move somewhere else to a permanent site? Do they want to build their own facility to meet all their needs for the long term? They might.”
In the 1960s, El Segundo made history in aerospace thanks to the insight of its visionary business leaders and engineers. However, …
In the 1960s, El Segundo made history in aerospace thanks to the insight of its visionary business leaders and engineers. However, with this abundance of large, corporate R&D users, the City lacked office serving amenities. Over the past 10 years, the major El Segundo defense tenants have consolidated and/or relocated outside of California. This tectonic tenant shift has offered developers the opportunity to re-position large “horizontal” buildings into cutting edge, highly-amenitized creative campuses. Today, this coastal city enjoys a diversified tenant base and is a hub for creative innovators in design, technology and new media. Additionally, El Segundo has a thriving entrepreneurial community, and offers immediate connections to primary North/South and East/West corridors. Los Angeles and Santa Monica are within easy reach, and LAX is just minutes away.
In April 2015, SteelWave took advantage of this flourishing market and purchased one of the classic industrial buildings. Now known as INSITE, and located at 2030 E. Maple Ave., the project is a compelling adaptive re-use project. SteelWave’s renovation program has preserved the historical industrial elements and retro feel of the building while providing a modern, state-of-the-art creative working environment catering toward professionals in leading-edge industries. SteelWave retained HLW, a leading design architect experienced with similar transformation, to convert the now obsolete, former Raytheon R&D facility into the South Bay’s most-amenitized creative office campus. The project was very capital intensive and the approximately $11M program included: a complete demo of interiors, new roof, façade, parking field, hardscape and landscape, an entirely new central plant, the addition of over 20,000 square feet of mezzanine space, a new signage program, and the addition of extensive shared amenities including a coffee bar/pantry, fitness facility with showers, bicycle storage and repair, firepit lounge, basketball half court, beanbag toss, food truck parking, and a dog run. CBRE’s Bill Bloodgood, Bob Healey and Erin Rierson were hired to assist in the implementation of an aggressive marketing and leasing plan. The project was completed in November, 2016.
101,874 rentable square feet, including 22,389 of mezzanine, located on a 4.8 acre site
A prime “horizontal campus” with an abundant parking ratio of 3.75 per 1,000 SF
Striking, contemporary architecture can accommodate tenant needs for large or smaller spaces, while outdoor seating amid eco-friendly landscaping creates a uniquely intimate, campus-like setting
Extensive windows, solar tubes and skylights permit natural light to flow throughout the interior space at both the ground and mezzanine levels
An architectural “sky-cut” opens the structure to provide an individual entry point for each tenant
On-site amenities include a coffee bar/pantry, fitness facility with showers, bicycle storage and repair, firepit lounge, basketball half court, beanbag toss, food truck parking and a dog run
Ample green space and indoor/outdoor collaboration areas equipped with Wi-Fi provide opportunities for recreation and relaxation
Close to El Segundo’s Main Street retail area filled with abundant shopping and restaurant amenities
The post-Cold War decline of Southern California’s aerospace industry left numerous industrial buildings in El Segundo without occupants. Decades later, …
The post-Cold War decline of Southern California’s aerospace industry left numerous industrial buildings in El Segundo without occupants. Decades later, the spread of Silicon Beach is finally offering a path forward.
SteelWave is rehabilitating a former Raytheon research facility at 2030 E. Maple Avenue into creative office space. The one-story structure, located east of Sepulveda Boulevard, was previously used in the development of the B2 bomber and other defense type planes.
The adaptive reuse of the building, which is now known as INSITE, will create nearly 100,000 square feet of commercial office space. The redesign by HLW Architects has reimagined the facility as an indoor-outdoor experience, with lush gardens along the exterior, and a walkway cutting through the center of the building.
Recent years have seen other investors reimagine nearby properties as a mixture of creative offices and retail space. Just down the street from INSITE, the Los Angeles Lakers are building a $80-million, 120,000-square-foot practice facility.
Potential tenants at the building are expected to come from traditional creative industries, as well as bioscience firms.
SAN DIEGO — An affiliate of Alexandria Real Estate Equities Inc. (NYSE: ARE), an urban office REIT based in Pasadena, …
SAN DIEGO — An affiliate of Alexandria Real Estate Equities Inc. (NYSE: ARE), an urban office REIT based in Pasadena, Calif., has purchased Torrey Ridge Science Center in San Diego’s Torrey Pines submarket. Walton Street Capital and SteelWave sold the campus to Alexandria for $182.5 million.
Torrey Ridge Science Center is a Class A life science campus leased to companies such as Regulus Therapeutics, Pacira Pharmaceuticals, Nitto BioPharma, Interpreta and BP Technology Ventures. The three-building, 291,799-square-foot campus was 87 percent leased at the time of sale.
“This was a highly strategic acquisition for Alexandria in Torrey Pines, one of our core San Diego submarkets,” says Daniel Ryan, executive vice president and regional market director of San Diego for Alexandria Real Estate Equities.
Located at 10578, 10614 and 10628 Science Center Drive, Torrey Ridge Science Center was built in 2004 and since 2012 the sellers invested $55 million in base building and tenant improvements. The renovations included upgrading common areas, signage and landscaping, as well as creating a new dedicated central plant and adding chilled water systems for each building. The campus also features newly built tenant amenities including a fitness center, conference center and Wich Addiction café.
“The Torrey Ridge Science Center campus provides us with the opportunity to achieve significant cash flow growth as leases are renewed or rolled over, given that many of the in-place leases are below market,” says Ryan. “The campus also gives us the flexibility to convert traditional office space, which is approximately 22 percent of the project, to wet lab research space in order to respond to strong demand from leading biotech entities in San Diego.”
Louay Alsadek and Hunter Rowe of CBRE were the investment advisors, and Rich Danesi and Ryan Egli of CBRE were the market experts representing the sellers. Alexandria Real Estate Equities represented itself.
San Diego is home to one of the top three life science clusters in the United States, according to CBRE. The San Diego life science direct vacancy rate in the second quarter was 6 percent and in the Torrey Pines submarket the rate was 1.4 percent, according to CBRE.
Founded in 1994, Walton Street Capital is a private equity real estate manager that has invested and managed over $8 billion of commercial real estate on behalf of public and corporate pension plans, foreign institutions, insurance companies and banks, endowments and foundations, trusts and high-net-worth individuals.
SteelWave is a commercial, residential and mixed-use real estate management and operating firm. SteelWave and its predecessor company, Legacy Partners Commercial, have been active in commercial real estate for 44 years in five target markets: Northern California, Southern California, Denver, Seattle and Texas. SteelWave has acquired or developed over $9 billion of commercial assets in these target markets.
Alexandria Real Estate Equities has a total market capitalization of $12.4 billion and an asset base in North America of 24.4 million square feet as of June 30. The asset base in North America includes 18.8 million square feet of operating properties and development and redevelopment projects (under construction or pre-construction) and 5.6 million square feet of future ground-up development projects.
In San Diego, Alexandria has nearly 4 million square feet of office/laboratory space (including development and redevelopment projects currently under construction) in the Torrey Pines, University Town Center, Sorrento Valley and Sorrento Mesa submarkets.
Alexandria’s stock price closed on Wednesday, Oct. 12 at $103.25 per share, up from $92.25 per share this time last year.
— John Nelson
America Center, a 70.5-acre office, R&D, and retail complex in Northern San Jose near Highway 237 is up for an …
America Center, a 70.5-acre office, R&D, and retail complex in Northern San Jose near Highway 237 is up for an expansion from its two existing Class A office buildings and Aloft hotel, which reside on America Center Drive and America Center Court, respectively. Developer SteelWave, LLC already has construction underway for its Phase II project, which will add two more office buildings totaling 457,450 square feet on a 13-acre site. The planning process has just began for Phase III calling for a fifth structure to add another 190,000 square feet of office space to the development.
According to Lea Simvoulaski, City of San Jose Planning project manager, because the original plans for a fifth building had been cancelled, the 190,000 square feet were incorporated elsewhere in the development. Now that plans have been re-ignited, a rezoning is required as the maximum square footage was reached based on the prior rezoning requirements in 1999. The proposed building’s height would remain at 90 feet due to zoning limits and a modification would be made to the development plan area based on the sale of 6.7 acres on the northeastern portion of the property. The current parking garage serving other buildings on the complex will be expanded to serve the fifth building, if approved. The bulk of the square footage is devoted to office-R&D, however up to 10-percent of the total space can be used for retail and personal services.
A community meeting at the Aloft Hotel is scheduled for October 11 to serve as a scoping session for the environmental review process and an opportunity for public commentary on the proposed project. The central focus of the EIR will be analyzing potential impacts for the increased traffic associated with the fifth building. The rezoning will be decided upon by both the Planning Commission and City Council.
“The development is located within the Alviso Master Plan Area,” said Simvoulaski. “It used to be a landfill and was envisioned for office park use. They saw this area as a place for an industrial-office park. It’s helping the City reach one of its goals by creating balance between jobs and housing. The project will add 190,000 square feet of office space and the resulting jobs.”
The America Center Development is nearby an ACE Train Rail route and in close proximity to Caltrain and VTA Light Rail. An AC Shuttle will connect office park riders with Caltrain. America Center amenities include a 14,544 square foot fitness center and cafe topped with a roof deck equipped with miniature golf. The complex also has access to a jogging trail, sports court and bike pathway. The buildings themselves offer panoramic views of the San Fransisco Bay and Silicon Valley. The abundant windows feature Dynamic Glass, which reduces glare and maintains optimal building temperature. Thirty acres of burrowing owl habitat on the property will remain intact and be dedicated to open space. Fully landscaped outdoor collaborative meeting areas are also onsite.
“We are very excited not only about ACII, which features significant amenities such as a sports court, fitness center, cafe and entertainment center and Dynamic View glass — which is midway in construction and has created a lot of buzz in the Valley and a lot of interest from prospective users — We’re seeking ability to move forward on Phase III in order to provide users flexibility with up to 1,100,000 plus square feet,” offered a SteelWave spokesperson.
SteelWave is working alongside LRG Architecture, landscape architect Carducci & Associates Inc, and BKF Engineers for the Phase III project.
The machines were already moving dirt and driving pylons into the ground as the guests were arriving to celebrate the …
The machines were already moving dirt and driving pylons into the ground as the guests were arriving to celebrate the ground breaking of America Center Phase II, a 450,000 square foot, two building office development in North San Jose by SteelWave and partner USAA Real Estate. Executives of both firms were on site to mark the occasion, as was the mayor of San Jose, Sam Liccardo.
Once the structures are completed, the development will feature two six-story office buildings, an amenity center and parking structure that will sit just north of California State Route 237 and next to a 30-acre open space preserve that forms the very south end of the San Francisco Bay. The site is also next to a 175-room Aloft Hotel and just up the street from Levi’s Stadium and an array of amenities that include restaurants, hotels and recreation facilities.
“That is actually what it’s all about, in the end it is having a really nice project and making sure it’s right for the community and working within that,” said Steve Dunn, senior managing director of SteelWave, who opened the ceremony. He was joined by local executives of USAA Real Estate, Justin Hildebrandt and Nawder Alavi.
The development’s earlier rendition, America Center Phase I was completed in 2009 and today is 88 percent occupied, with the largest tenants being Polycom and Flextronics.
Mayor Liccardo and Dunn underscored the importance of this neighborhood for the city of San Jose as well as the region more broadly. “We recognize that this corridor is becoming so vitally important, as we see headquarters for companies like Polycom here next door. It is clear that this is where the growth opportunity is,” said Liccardo. “San Jose is a place where companies want to come to scale. We know there are plenty of challenges of growing in some of our smaller neighbors to the north.”
“We just happen to be at the center of technology. And that’s what’s exciting about being in the Bay Area, specifically in San Jose,” added Dunn.
The leasing is led by a veteran team of Silicon Valley brokers from Newmark Cornish & Carey, Phil Mahoney, an executive managing director who works out of the firm’s Santa Clara office, and Randy Gabrielson, executive vice president, who is in the company’s Palo Alto office. While no tenants have been signed to the development as of yet, a broad group of companies is looking at the site.
“It’s a wide range. Anything from semi-conductor to network storage, networking companies, cyber security. We’re probably not going to get Twitter to come down here, this is probably not a social media site, but for hard core Silicon Valley engineering it’s ground zero,” said Mahoney.
Gabrielson pointed out the location of the site and its appeal to many possible tech tenants. “There is such natural beauty at the site. There’s never going to be anything built in front of us. You’ve got the wetlands and the jogging trails all through the site. It really is a special place,” he said.
The team acknowledged the development cycle, but underscored continued strong interest in the building. “We know we’re going a little bit, what we consider to be late in the cycle, but we know on a long term basis this is going to be a fantastic project,” said Dunn.
“The market is still pretty robust. It’s maybe not as energetic as it was in ’15 or ’14, but that’s almost unsustainable at those levels. Neither of us have seen that in 30 years, including ’99 and 2000,” added Mahoney.
The development promises to deliver a number of amenities to help spur interest in the location. These will include a sport court, a 16,000 square-foot fitness center, a restaurant, and an entertainment venue to name a few things. On top of that, the LEED Gold project developers also announced that View Glass will install 100,000 square feet of dynamic glass on the building, making this the largest installation of electrochromic glass in the world.
“The America Center project is designed to be a leading state of the art campus,” said Dunn in a statement. “View Dynamic Glass has been key in enabling us to realize that goal by providing a technology that improves occupant comfort, wellness, and productivity. Energy efficiency was also a major driver, and View helped us reach ambitious sustainability targets and become pre-certified at the LEED Gold level.”
Construction is planned to last for roughly 16 months, with occupancy anticipated at the end of 2017.
View®, the leader in dynamic glass, today announced it has completed more than 200 projects in North America, with more …
View®, the leader in dynamic glass, today announced it has completed more than 200 projects in North America, with more than 100 additional projects currently in development. With over 12,000 occupants enjoying View Dynamic Glass across 7 million square feet of space, there is significant increase in market adoption and awareness. The installations span virtually all key geographic markets in North America in workplace, education, hospitality, and healthcare segments.
View also announced today that it will install 100,000 square feet of View Dynamic Glass at SteelWave & USAA Real Estate Company’s America Center 2, developed by SteelWave and located in San Jose, California. This project will mark the largest installation of electrochromic glass in the world. This landmark installation underscores View’s continued momentum, growth, and innovation as it scales its technology to larger projects.
“The America Center project is designed to be a leading state of the art campus,” said Steve Dunn, senior managing director at SteelWave, the project’s owner/developer. “View Dynamic Glass has been key in enabling us to realize that goal by providing a technology that improves occupant comfort, wellness, and productivity. Energy efficiency was also a major driver and View helped us reach ambitious sustainability targets and become pre-certified at the LEED Gold level.”
Research suggests that views and natural daylight help increase productivity and wellness for building occupants. Additionally, View Dynamic Glass reduces HVAC and lighting energy consumption by as much as 20 percent, and HVAC peak load by 25 percent, in a typical commercial installation.
“After a year of working in CenturyLink’s Technology Center that is surrounded by View Dynamic Glass, our 750 employees continue to thrive in this building of the future,” said LaRae Dodson, vice president of real estate and fleet for CenturyLink. “The ultimate aim of our Technology Center in Monroe, Louisiana, is to inspire employees to develop the next generation of innovative communications products and services for our customers, and View helps fuel this inspiration by preserving our perspective of the outdoors and permitting natural daylight to permeate the office.”
SteelWave today announced the acquisition of Capitol Center, a 100% occupied, two building office complex in a prime location in …
SteelWave today announced the acquisition of Capitol Center, a 100% occupied, two building office complex in a prime location in downtown Denver, CO. The property consists of a 22,857sf landmark building 100% leased through 2028 to The Colorado Trust, a 131,291sf 12 story office building 100% leased to 18 tenants, and an adjacent 234 space parking structure. The acquisition marks the first joint venture between SteelWave and Empire Square Group.
Located in vibrant Uptown, which is known as the city’s financial, energy and legal center, due to its close proximity to the State Capitol and other state and local government offices, the location is also easily accessible to public transportation, both light rail and bus routes are nearby, as well as an abundance of nearby amenities.
According to Peter Llorente, SteelWave’s Managing Director for Denver, Seattle and Texas regions, the company plans to invest over $4M in capital upgrades to the LEED Gold Certified property, including improvements to common areas, landscaping entries and elevators.
SteelWave Acquires Development Sites in Southern California and Colorado. SteelWave, a full-service commercial, residential and mixed-use real estate management, operating company …
SteelWave Acquires Development Sites in Southern California and Colorado.
SteelWave, a full-service commercial, residential and mixed-use real estate management, operating company and investment management firm, announced it has acquired two multi-family development sites in Aurora, CO and Westchester, CA.
“This is a new chapter for our firm. We’re not abandoning what we’ve done so well in the commercial arena for the past 40+ years, but rather we’re adding to it by broadening our scope,” said Barry DiRaimondo, Steelwave’s CEO. “In today’s world there is a confluence of ‘live, work, play,’ and the idea of mixing residential alongside commercial in a single project is compelling. It’s creating value by adding multi-use capabilities to projects that used to stand alone.”
SteelWave, formerly Legacy Partners Commercial, was for years traditionally focused in the commercial realm. However, since last year when they separated from Legacy Partners to launch SteelWave, the firm has moved full steam ahead in to the residential-multi-family arena. SteelWave has formed a strategic alliance with the Cavallari Group out of Los Angeles to execute the entitlement and development of these two projects. More projects will likely follow as part of this alliance.
Future deals will be location driven, with the firm targeting its existing markets: Seattle, Portland, the San Francisco Bay Area, Los Angeles, Orange County, San Diego, Denver and Austin.
SteelWave’s first residential development acquisition includes 1.2 acres in Westchester, CA, located at La Tijera and 74th Street, just west of Interstate 405 near the Los Angeles International Airport.
SteelWave expects to break ground in May with completion anticipated in the first quarter of 2018. The project will include 140 one- and two-bedroom units, a pool, a club/sports bar and a state-of-the art gym. It will also include 13 below market units to help support the broader LA Basin’s need for affordable housing.
In addition to the site in Westchester, SteelWave acquired 15 acres in Aurora, Colorado for the development of 424 market rate apartments. Development costs will be approximately $100M.
“Aurora, Colorado needs more housing and our transit oriented project will bring a best in class apartment community to serve the area’s expanding workforce,” said DiRaimondo.
The development will target individuals and families employed by nearby companies: Fitzsimons Medical Center (45,000 employees), Denver Tech Center (75,000 employees) and Buckley Airforce base (17,000 employees). The site is also located directly adjacent to the newly constructed Iliff Station train station that will provide quick access to all parts of the Denver Metro area. Construction is slated to begin in June.
SteelWave is a full-service commercial, residential and mixed-use real estate management, operating company and investment management firm. SteelWave and its predecessor companies, Legacy Partners Commercial and Lincoln Property West, have been active in commercial real estate for 44 years. As a vertically integrated leader in the industry, we source, entitle, design, finance, develop, renovate, lease, manage and sell real estate investments on behalf of many well-known institutional clients. Since its inception, SteelWave has acquired, developed or managed over 125 million square feet of commercial property in the western United States.
ABOUT THE CAVALLARI GROUP
The Cavallari Group, headed by President & CEO Dennis Cavallari, develops and procures entitlement approvals for residential land and multifamily properties in the western US. Previously, Mr. Cavallari was the lead development partner in Southern California for SteelWave’s former sister company, Legacy Partners Residential. During his time with Legacy, Mr. Cavallari was responsible for developing some of the most noteworthy luxury apartment communities in all of Southern California. Prior to his tenure at Legacy, Mr. Cavallari was based in Denver, Colorado as a partner in charge of development for JPI, a national apartment community developer. Preceding JPI, Mr. Cavallari was a partner on the east coast running the northeast office of the former national apartment development group, Property Company of America. To date, Mr. Cavallari has overseen the development of 6,000 units in the western United States at a cost of $1.5 billion.
SteelWave announced today the acquisition of an 180,000 square-foot office campus located at 3333 South Susan Street in Costa Mesa. …
SteelWave announced today the acquisition of an 180,000 square-foot office campus located at 3333 South Susan Street in Costa Mesa. The acquisition is another addition to the firm’s joint venture platform with Goldman Sachs, which also includes The Arbors in Thousand Oaks and InSite in El Segundo. Situated on 14.24 acres, the campus features 656-space surface parking and an additional 3.2 net acres, zoned for office and retail, for future development. It is located near numerous amenities, including South Coast Plaza, SoCO/OC Mix, Metro Pointe at South Coast and Segerstrom Center for the Arts, with access to the 405, 55, and 73 freeways. Building C, the largest building in the three-building, Class A, two-story office campus will continue to be occupied by Emulex Corporation.
The former Emulex campus represents a compelling creative reposition opportunity, and SteelWave plans to convert the corporate campus into Orange County’s first large scale creative office project. “We are extremely excited about this deal”, said Seth Hiromura, SteelWave’s Managing Director for the Orange County and San Diego regions. “The location, directly next door to the future repositioned LA Times site and Van’s corporate headquarters development, and within the Greater Airport Area submarket, with one of the lowest vacancy rates in Southern California at 9.7%, couldn’t be better.”
SteelWave announced today the acquisition of an 18 building portfolio within Canyon Park in Bothell, Washington. The buildings are located …
SteelWave announced today the acquisition of an 18 building portfolio within Canyon Park in Bothell, Washington. The buildings are located in one of the premier master-planned business parks in Seattle’s Eastside market, at the intersection of Interstate 405 and the Bothell-Everett Highway, adjacent to a major transit center and retail services. The acquisition, totaling 717,702 sf, was acquired in a joint venture with NorthStar Realty Finance.
The 17 buildings in Canyon Park Business Center consist of flex buildings totaling 632,591 square feet, currently 71.3% leased, allowing for significant value creation. The buildings have a diversified tenant roster with a broad range of uses including office, medical-office, bio-technology, warehousing, manufacturing, retail, dining and hospitality.
The Woodlands Campus Building, located within Canyon Park, was developed in 2007 and is the newest and highest quality multi-tenant office building in the Bothell submarket. Woodlands is a three-story, Class A property currently 84.2% leased. The property is strategically situated at the entrance to Canyon Park offering tenants high visibility to the Bothell highway.
SteelWave will immediately begin significant upgrades to the project including renovating the landscaping & signage, as well as the building exteriors and interiors.
In one of the largest commercial transactions in San Francisco this year, New York City-based Tishman Speyer finalized a deal …
In one of the largest commercial transactions in San Francisco this year, New York City-based Tishman Speyer finalized a deal with SteelWave to acquire 160 Spear St. in downtown San Francisco. The purchase price is reported to be around $200 million, or approximately $683 per square foot.
160 Spear St. is a 289,253-square-foot, Class A office tower located in the South Financial District’s Spear Street corridor. Built in 1984, the building is 95% leased to a tenant roster that includes The Regents of the University of California, Workday, Conversant, and the GSA.
SteelWave, formerly known as Legacy Partners Commercial, put the 19-story high-rise on the market in early 2015 after originally acquiring the asset in 2006 for $86.5 million, according to CoStar information.
Tishman Speyer, which now owns seven properties in the market, plans to upgrade the building’s lobby and plaza.
Representatives with Eastdil Secured coordinated the disposition on behalf of SteelWave.
It’s been an incredible couple of weeks for Debra Smith—she was just promoted to COO of SteelWave, responsible for running …
It’s been an incredible couple of weeks for Debra Smith—she was just promoted to COO of SteelWave, responsible for running its property management, leasing, marketing, construction and architectural design divisions. She’s been with the firm—then Lincoln Property—since the late ‘80s. (It was renamed Legacy Partners in ’98 and SteelWave in April.) Among its recent deals: completing the renovation on the 300k SF, three-building Torrey Pines campus it acquired with Walton Street Capitol from Pfizer in 2012; and recently acquiring with Goldman Sachs a 100k SF Sorrento Canyon building it plans to turn into creative office space.
The Toledo, OH, native wasn’t in the industry when she moved to Palo Alto with her husband 35 years ago; she took a marketing job with Amarok in Menlo Park to support him in grad school, and that’s where she caught the real estate bug. Her advice: Create a network of women, be a collaborator, and seek out opportunities—don’t wait for them to be dropped in your lap. Outside of work, she’s an avid runner, fiction reader and traveler, especially to Turks and Caicos, Tahoe and Europe.
SteelWave today announced the acquisition of Twenty30 Maple located in El Segundo, California. The acquisition is part of the firm’s …
SteelWave today announced the acquisition of Twenty30 Maple located in El Segundo, California. The acquisition is part of the firm’s joint venture platform with Goldman Sachs, which also includes The Arbors in Thousand Oaks.
Twenty30 Maple represents a compelling adaptive re-use opportunity for the firm. Located in the strong infill market of El Segundo, SteelWave plans to convert the vacant, 90,000 square foot former Raytheon R&D facility into one of the South Bay’s most amenitized creative office campuses.
The transformation is very capital intensive and will include: modernizing the building exteriors (wall treatment, unique entry and roof features, storefronts, etc.); introduction of native drought tolerant landscaping; many amenity areas (bike storage/repair, coffee bar, Cross Fit, fire pits, bocce); the addition of over 20,000 square feet of mezzanine space; and a new signage program. New roofs and a new central plant (HVAC, building control systems) are also part of the planned renovations. SteelWave has hired HLW, a leading global architecture and creative design firm, to provide architectural services.
According to Gregg Hall, Managing Director of the Greater Los Angeles Region for SteelWave, “El Segundo was historically a major defense and aerospace headquarters location where much of the world’s great defense technologies were developed. With the presence of large, corporate R&D users, this mostly “big box” market lacked office serving amenities. Over the past 10 years, the major El Segundo defense companies have consolidated and/or relocated outside of California. This tectonic tenant shift has offered landlords the opportunity to re-position large “horizontal” buildings into cutting edge and highly-amenitized creative campuses. The total of all creative conversions to date (over 2M square feet) have witnessed robust leasing and rent growth and currently offer only 9% vacancy. Therein, the opportunity for SteelWave to create an inspiring workplace at Twenty30 Maple.”
SteelWave today announced the acquisition of 225 Hillcrest located in Thousand Oaks, California. The acquisition is part of the firm’s …
SteelWave today announced the acquisition of 225 Hillcrest located in Thousand Oaks, California. The acquisition is part of the firm’s growing joint venture platform with NorthStar Realty Finance.
225 Hillcrest consists of a 157,508 square foot office building, currently 100% leased long term to Bank of America. Situated off the 101 Freeway, the property benefits from an amenity-rich location and offers a unique 14.6 acre campus environment. 225 Hillcrest is walking distance to both the Oaks Mall and Janss Marketplace and is only 2.5 miles west of the Lakes at Thousand Oaks; the three primary destination retail centers in Thousand Oaks.
This is the second time around for SteelWave at 225 Hillcrest, having previously owned the asset in the late 1990’s with Whitehall (Goldman Sachs).
Sometimes a name change is just a name change. Other times, it indicates something a bit more significant. So it …
Sometimes a name change is just a name change. Other times, it indicates something a bit more significant. So it is with SteelWave, née Legacy Partners Commercial. On Wednesday, the Foster City-based real-estate firm revealed why it changed its name — something a very observant Registry noted April 16, based on a flurry of LinkedIn page edits.
In a news release, the company said it had reorganized its ownership structure, buying down the controlling interest of Preston Butcher — the legendary real estate player who started Legacy Partners Commercial and Legacy Partners Residential in 1998 after splitting off from Lincoln Property Co. and was, until recently, the majority owner of both entities.
Butcher is now a non-managing member in SteelWave, the release stated; the deal was completed last year, and does not affect Legacy Partners Residential, which retains its name and management structure. Investing in the recapitalization were NorthStar Realty Finance and SteelWave’s senior management team. Executives declined to discuss the terms or value of the transaction. (Read our profile of Butcher, at the genesis of Legacy Partners, here.)
The change is not just cosmetic. While both SteelWave and Legacy Partners Residential currently share office space, they will no longer share back-office functions as they did previously, and SteelWave will also be freed up to compete in the multifamily space, Barry DiRaimondo, CEO of SteelWave, told me in a phone call. (Legacy Partners Residential will also be able to enter the commercial market.)
“We didn’t think two groups operating under a similar flag with competing strategies was all that clear to the marketplace,” he said, explaining the need for a new name.
Linking up with NorthStar also facilitated the raising of a series of $250 million equity pools to acquire high-yielding assets, focusing on secondary locations rather than pricey core Silicon Valley submarkets, DiRaimondo said. He expects to assemble a portfolio worth somewhere in the range of $750 million to $1 billion.
Geography is also expanding, with recent deals done in Texas; SteelWave will also focus on Portland, Seattle, Southern California, Northern California and Denver. Since 1972, SteelWave or its predecessor companies has acquired and developed more than 400 properties worth about $10 billion. SteelWave will continue to play in all sectors — including financing, development, renovation, leasing, and property management — but will now be doing more in mixed-use development than it had previously.
Locally, SteelWave says it is gearing up to start building the second phase of America Center, which will include about 400,000 square feet of office space in North San Jose, next to the Polycom and Flextronics headquarters. The project is being done in conjunction with USAA. DiRaimondo said early site work should start in the next few months.
“We’re moving forward with both buildings and the parking structure,” he said. Legacy, in partnership with Principal, is also off and running on a 200,000-square-foot project at 2503 Orchard Parkway.
On the dispositions side, Legacy is currently selling SV Towers at 75 E. Santa Clara St. and 4 N. Second St. The downtown San Jose complex is home of the San Jose Mercury News and is about 50 percent leased. CBRE is marketing the project.
As for the name? DiRaimondo says he recognizes it’s definitely unique. “We didn’t want a name that sounded like an investment bank or even a real estate company,” he said. “We wanted something a little younger and trendy.”
SteelWave continues to operate out of the same Foster City location as before alongside Legacy Partners Residential, but DiRaimondo said SteelWave would likely seek its own office space in the future.
Legacy Partners Commercial LLC, formerly the commercial division of San Francisco Bay Area-based Legacy Partners, a full-service real estate investment …
Legacy Partners Commercial LLC, formerly the commercial division of San Francisco Bay Area-based Legacy Partners, a full-service real estate investment management company, announced today their new brand SteelWave.
Historically, Legacy Partners Commercial and its sister company, Legacy Partners Residential, operated as separate and distinct companies but shared a common investor, Preston Butcher, who owned a controlling interest in both entities.
Last year, the SteelWave senior management team reorganized the Legacy Partners Commercial ownership structure with Butcher’s ownership position now a minority non-managing membership interest and with new equity investment provided by NorthStar Realty Finance, a New York-based publicly traded, diversified commercial real estate investment REIT.
Legacy Residential shares the same address with SteelWave at 4000 East Third Avenue in Foster City, Calif., but was not involved in the transaction. “The new SteelWave brand opens a significant new chapter for us and it comes at an opportune time as our core markets — West and Southwest — are expanding and providing plenty of solid investment opportunities,” said Barry DiRaimondo, former Legacy Partners Commercial CEO and now SteelWave CEO.
“Our goal is to grow our value-added business while expanding further into core-oriented strategies across office, industrial, multifamily, and mixed-use product lines.” SteelWave and its predecessor companies, Legacy Partners Commercial and Lincoln Property Company West, have been active in commercial real estate for 43 years and have built a reputation for successful execution in the field by sourcing investment opportunities in five key target markets: Northern California, Southern California, Denver, Seattle, and Texas and for financing, developing, renovating, leasing, managing and selling real estate investments on behalf of many well-known institutional clients. Since 1972, SteelWave has acquired and developed more than 400 properties at a cost of approximately $10 billion.
Headquartered in Foster City, Calif., SteelWave is a San Francisco Bay Area-based full-service commercial, residential, and mixed-use real estate management and operating company, including investment and asset management, disposition services, marketing and leasing. The company is active in the Bay Area as well as Southern California, Denver, Seattle and Austin, and has more than 12 million square feet of office space across the four western states of California, Washington, Colorado, and Texas.
Please visit www.steelwavellc.com (website coming soon).
Legacy Partners Commercial announced today the acquisition of a six building, 420,000 sf portfolio purchased from Westcore Properties. The assets …
Legacy Partners Commercial announced today the acquisition of a six building, 420,000 sf portfolio purchased from Westcore Properties. The assets were acquired in a joint venture with NorthStar Realty Finance.
The Portfolio, scattered throughout the greater Denver Metro area, consists of:
105 Technology Single-story office building located in the Interlocken Advanced Technology Business Park, one of Denver’s premier business parks. The asset is currently 89% leased to two publicly traded tenants. The building offers tremendous views of the Rocky Mountains and Boulder Flatirons.
Centennial Valley II Two-story 69,145 sf building located minutes from both Boulder and Interlocken Advanced Technology Business Park. Currently 96% leased to four tenants, with nearby amenities that include McCaslin Boulevard retail corridor, Coal Creek a Golf Course, numerous hotels, and thousands of acres of protected open spaces.
Highland Park 72,610 sf building 100% leased to Elavon, a subsidiary of U.S. Bancorp. The asset is walking distance to the Park Meadows Mall, a 1.6 million square foot super-regional retail destination.
5350 Roslyn Located in the heart of the prestigious Greenwood Plaza sub market in Southeast Suburban Denver, The Roslyn building is currently 98% leased to various tenants. The asset is adjacent to The Landmark: a $500-million mixed-use development 175,000 sf of luxury retail and two 15-story high end residential towers.
400 Inverness 111,482 sf Class A project located in the Inverness Business Park in Southeast Suburban Denver – within steps of the Light Rail Station. The asset is conveniently located near amenities such as Park Meadows Mall, Colorado Athletic Club and dozens of retailers/restaurants.
141 Union Located in the Union Square sub market in West Denver. The 63,573 sf Class A asset is 86% leased and within walking distance of the new West Light Rail line. It’s adjacent to Union Square Park offering walking/ jogging trails.
Legacy plans to undertake a range of cosmetic renovations to the portfolio, including: exterior landscape enhancements, general site improvements, project signage, and building interiors.
The Irvine Co. has purchased Tech Park at Freedom Circle, a 12-building, Class A office and R&D park totaling 427,873 …
The Irvine Co. has purchased Tech Park at Freedom Circle, a 12-building, Class A office and R&D park totaling 427,873 square feet in Santa Clara, Calif., it was announced Thursday by HFF, which had represented Legacy Partners, the seller.
Legacy Partners had purchased the asset in a joint venture with AllianceBernstein’s Real Estate Group in 2013.
The transaction closed Jan. 9, an Irvine Co. spokesperson told Commercial Property Executive. The company declined to disclose how the $136.5 million acquisition was financed.
The park’s 12 one- and two-story, steel-reinforced buildings are sited on 25.74 acres at 2518–2560 Mission College Blvd. and 3900–3990 Freedom Circle at the intersection of Highway 101 and Great America Parkway.
The property is 95 percent leased to 28 tenants in the telecommunications, hardware manufacturing, software, networking, publishing and biotechnology/life sciences sectors, including Samsung Research America, Netflix and electronic textbook publisher Chegg.
Amenities at Tech Park at Freedom Circle include an outdoor bocce court, outdoor meeting areas, an on-site café with corporate catering and electric vehicle charging stations. The property is within walking distance of Santa Clara Valley Transportation Authority bus service for easy connection to light rail.
The HFF team that represented the seller included senior managing director and co-head of HFF’s San Francisco office Steven Golubchik and senior managing director and co-head of both the San Francisco office and HFF’s national office investment sales platform Michael Leggett. Directors John Simerlein and Ben Bullock and senior analyst Josh DiSalle also assisted with the deal.
“This sale is a win/win for both sides,” Steve Dunn, Legacy Partners senior managing director, said in a release. “With our strong local team in place, Legacy capitalized on market momentum, successfully and swiftly executing a project upgrade and strategic leasing plan well ahead of schedule.”
“We are seeing strong demand across our Silicon Valley portfolio driven by the strength of the region’s innovation economy,” Hanns Lee, regional senior vice president overseeing Irvine’s Northern California office portfolio, told CPE. “Santa Clara is one of Silicon Valley’s most attractive workplace locations, with net absorption of 1.16 million square feet in 2014.”
Legacy Partners Commercial announced today the acquisition of 5505 Morehouse, located in San Diego, California. The asset was acquired in a joint …
Legacy Partners Commercial announced today the acquisition of 5505 Morehouse, located in San Diego, California. The asset was acquired in a joint venture with NorthStar Realty Finance.
5505 Morehouse is a 71,016 square foot, 3-story office building that is 100% leased to Qualcomm, a world leader in 3G, 4G and next-generation wireless technology. The building has recently been improved to accommodate Qualcomm’s occupancy and includes new modern, state-of-the art office space and small electronic laboratories. 5505 Morehouse is directly adjacent to Qualcomm’s global headquarters and less than a block away from numerous dining, retail services and hospitality amenities. Located on the west side of Sorrento Mesa, one-half mile east of Interstate 805 via Mira Mesa Boulevard and one mile south of Interstate 5, the property is conveniently located to access all of San Diego County.
SteelWave today announced the acquisition of Sorrento Canyon Technology Center in San Diego, California. The asset was acquired in a …
SteelWave today announced the acquisition of Sorrento Canyon Technology Center in San Diego, California. The asset was acquired in a joint venture with Goldman Sachs and purchased from Embarcadero Capital.
Sorrento Canyon Technology Center, is a four building lab project situated on a 6.58-acre lot in the Sorrento Mesa sub-market of central San Diego. The asset consists of four, single-story buildings totaling 98,987 square feet; 70% leased to life-science and high-tech companies. The project is located at the western edge of Sorrento Mesa, near the confluence of I-5/I-805 – and with recently completed major highway improvements, it provides exceptional access to these main thoroughfares. The asset is also ideally located so as to be in walking distance to some of the best amenities in Sorrento Mesa.
Legacy Partners Commercial plans a significant transformation, with capital improvements that will transform the project into a creative campus environment. Improvements to include exterior facade and landscaping modernization, lobby upgrades and a new amenity “necklace” — an outdoor amenity area that traverses through the buildings with activity areas and seating nodes.
Legacy Partners Commercial today announced the acquisition of what’s known as the First Range Portfolio located in Boulder and Denver, …
Legacy Partners Commercial today announced the acquisition of what’s known as the First Range Portfolio located in Boulder and Denver, Colorado. The assets were acquired in a joint venture with NorthStar Realty Finance.
The First Range Portfolio consists of one building in downtown Denver, and three buildings in Boulder.
1900 Grant, located in the Uptown submarket of downtown Denver, is a 12-story, class B+ office building totaling 126,789 square feet; 97% leased at acquisition. The Uptown district has transformed from the eastern edge of the CBD to a desirable, trendy place to live and work, with apartments, restaurants and retail being developed at a rapid pace. This asset has historically been occupied by a high concentration of legal firms, however recently its tenant base has been expanding to include corporate users and technology firms. The four-level parking garage has above average parking ratio for downtown (2.2 / 1,000 sf) and will provide an exceptional source of increased revenue.
The three Boulder assets are 2-story, class B buildings that range from 29,000 square feet to 44,000 square feet with a variety of tenants that include a life science company & financial and technology firms. Located just 25 miles north of Denver, Boulder is a compelling real estate submarket. Situated at the base of the Rocky Mountains, Boulder offers a desirable “quality of life” experience, as well as an excellent transportation infrastructure, a well-educated labor force, proximity to the University of Colorado, a strong retail amenity base, and residential diversity – making it one of the most coveted submarkets in the Denver metropolitan area. Boulder also has a reputation as an outdoor playground, with over 45,000 acres of open space and more than 150 miles of biking and hiking trails.
According to Peter Llorente, Legacy’s Managing Director for its Denver, Seattle & Texas regions, the firm plans significant renovations for the Portfolio, including: landscaping, various site improvements, project signage, and building interiors.
Legacy Partners Commercial announced today the acquisition of The Arbors at Thousand Oaks, located in Thousand Oaks, California. The asset …
Legacy Partners Commercial announced today the acquisition of The Arbors at Thousand Oaks, located in Thousand Oaks, California. The asset was acquired in a joint venture with Goldman Sachs and Texas Pacific Group (TPG).
The Arbors is a Class A suburban office project that consists of four, two-story office buildings totaling 275,329 square feet. The project is currently 88% leased to seven tenants including Agmen, Skyworks Solutions, Sage Publications and Verizon. Located in the highly desirable Conejo Valley market, along the Los Angeles/Ventura County line, the project has access to endless recreational hiking, biking and equestrian trails as well as nearby amenities including national retailers, restaurants, performing art centers, the Sherwood Country Club and spectacular views of the Santa Monica and Santa Susana Mountains.
SteelWave plans a capital upgrade program that includes the creation of outdoor decks, a bocce ball court, fire pit, multiple seating groups and a trellised grilling station. Site improvements will include a major signage upgrade, landscaping upgrades, as well as parking lot repairs.
There is continued focus on the impact businesses have on the environment and the communities that surround them, starting with …
There is continued focus on the impact businesses have on the environment and the communities that surround them, starting with the locations developed for their operations. For Legacy Partners, this has inspired a greater commitment to finding ways to align investment goals with an approach to development that adopts sustainability and eco-conscious design as a guiding influence.
The Devil’s In The Details
The story of America Center begins with the conversion of a former landfill site to a viable, safe and productive asset that offers both social and economic benefits to the community. Site restoration involved regrading then placing a protective seven-foot clean soil cover beneath the site to isolated landfill materials from the public and environment. (The soil thickness exceeds the state landfill closure cap minimum of four feet.)
The majority of landfill debris at America Center is benign construction material. Out of 61 soil and waste samples collected in exploratory borings at the site, asbestos was only detected at concentrations of one-to-two percent in three samples, and less than one percent in six samples. Although it is highly unlikely that any landfill gases will migrate from the soil into the buildings, a vapor barrier membrane was installed beneath each building to mitigate intrusion. Each building has passive and active venting systems which extract vapors from beneath the building. In addition, gas blowers will be activated if the sensors detect gases above trigger levels.
The location for America Center was identified in 1998. Legacy Partners was developing a neighboring site, Tech Park at 237, which featured a two-story office campus style product. While reviewing site aerials, the development team recognized that directly adjacent to this site was a parcel of land featuring a significant swath of hilltop open space. This was a compelling discovery in the supply-constrained realities of the maturing Silicon Valley submarket. Upon further investigation, it was found to be a site of more than 60-acres, not zoned or entitled for development. The Legacy Partners development team discovered that this land, owned by Cargill Salt at the time, was uniquely suited for an office property development. The site was directly adjacent to an existing base of commercial office properties, with access to major regional freeways and public transit options. It held a prominent position on the area’s only hilltop, with 360-degree views of its surroundings — views that offered an amazing juxtaposition between the site’s urban neighbors and an extensive natural environment. Cargill had attempted to entitle the land for office use, but had been unsuccessful due to the complexity of the site’s former use as a construction debris landfill and the challenges of a restoration program to close and restore the natural environment for new development.
Rising from a bluff above San Francisco Bay, Legacy Partners’ America Center waits for a sluggish market to turn and …
Rising from a bluff above San Francisco Bay, Legacy Partners’ America Center waits for a sluggish market to turn and find its way to one of the “greenest” office projects in Silicon Valley.
Wile the slow market has shown signs of picking up, the challenge of finding tenants seems small compared to the challenge of constructing the project in the first place.
The two six-story buildings now surrounded by tall palms and 35 acres of lush open space bear no resemblance to what it was in the late 1990s when developer Ed Thrift first saw it. Back then the 70-acre site, which was owned by salt maker Cargill Inc., was an eyesore that had served for decades as a dump for construction debris.
But Thrift, then president of Legacy Partners, believed the site located at the end of Great America Parkway and just off Highway 237 had potential.
“Legacy had successfully developed and leased a number of projects in the North First area/Highway 237 over the years, and I felt this location was going to create the ‘Campus of the Future,’ i.e. a signature site and a focal point for creative growth,” Thrift said in an e-mail.
Steve Dunn, who worked for Thrift, knew his boss sought challenging projects. But Dunn, who is now Legacy’s senior managing director, thought the abandoned dump stretched even Thrift’s definition of challenging.
“My first reaction was the obviously this was an immense undertaking,” Dunn said. “I had reservations because of the time commitment and the dollar commitment that would be required.”
Dunn was right on both accounts. It took 2 1/2 years to entitle the project and another two years to clean the site, considered a brownfield, including capping it with 500,000 cubic yards of dirt. Long before even one beam of steel was hoisted, Legacy was out $20 million.
But Thrift was also right. America Center, which cost roughly $200 million to complete the two-building first phase totaling 427,600 square feet, has turned out as Thrift envisioned it — offices where people can work, open space where the public can stroll, a sanctuary for birds and burrowing owls. The completed project will include four buildings.
Legacy Partners announced today that Riverpark Towers II, Legacy’s recently developed 318,372 sf office building in downtown San Jose, received …
Legacy Partners announced today that Riverpark Towers II, Legacy’s recently developed 318,372 sf office building in downtown San Jose, received LEED GOLD for Core and Shell certification by the U.S. Green Building Council. The USGBC endorses a whole‐building approach to sustainability by evaluating buildings in numerous categories, including: sustainable sites, optimization of energy performance, materials and resources, innovation and design, indoor environmental quality, and water use reduction. Riverpark Towers is the first and only building in San Jose to date to receive LEED Gold certification.
Owner and developer Legacy Partners, with the help of their architect, Dallas‐based HKS Architects, planned the building with the objective of going green. “Today’s tenants demand sustainability and energy efficiency,” said Gregg Hall, Legacy’s Director of Acquisitions,“ and it’s the smart and forward‐thinking way to go when designing a new building.” In addition to featuring numerous green building upgrades that utilize state of the art technology, a portion of the development was built incorporating previously purchased materials that Legacy had kept in storage in anticipation of the development.
“The vision we had for this development was to exemplify everything a LEED building is: high‐performing, resource‐efficient, environmentally‐friendly and productive,” said Steve Dunn, Managing Director for Legacy Partners. “We are very proud of the results, including this Gold certification.”
This is Legacy’s second development to achieve LEED gold status: its 103,176 sf office building in Redmond, Washington qualified last year. America Center, Legacy’s 427,600 sf newly‐developed corporate campus in San Jose is pre‐certified LEED Gold.
Riverpark Towers is a 16‐story, Class A office tower situated alongside the Guadalupe River in the heart of downtown San Jose. The building’s striking granite‐clad exterior, high‐end interior finishes and sweeping views provides a first class Silicon Valley business address. Swinerton Builders was the general contractor for the development.
When it’s complete, the America Center will rise above the intersection of Great America Parkway and Highway 237 in San …
When it’s complete, the America Center will rise above the intersection of Great America Parkway and Highway 237 in San Jose. The office development will have four buildings and be surrounded by a 30-acre wildlife preserve.
Owner and developer Legacy Partners of Foster
City brought the inspiration of the panoramic surroundings and bike trails into their plans when they designed the environmentally-friendly building. To encourage future tenants to use the trails, they included bicycle parking, showers and changing rooms on the ground floor plans for the buildings.
“That’s become a standard in all of our projects, because people like to work out, so we like to support some form of exercise at the facility,” said Steve Dunn, senior vice president of acquisition and development at Legacy Partners. “And obviously, we want to encourage people to use other modes of transportation.”
Legacy is also setting aside preferred parking for low-emission and fuel-efficient vehicles in the parking lots.
The two six-story buildings that are currently being built on the America Center’s 32.-acre site, totaling 427,600 square feet, are scheduled to be complete in April 2009. The complex has been precertified as meeting Leadership in Energy and Environmental Design standards at the Gold level by the U.S. Green Building Council.
Lusardi Construction Co., based in San Marcos, is the contractor for the project. Architecture was done by Dallas-based HKS Architects.
The green building design goes beyond the structure of the building itself and extends into the longterm daily use of the facility.
To that end, Legacy plans to offer guidelines to tenants to encourage sustainable use of the buildings’ interiors. The company will provide a menu to the tenant that suggests options for painting, carpeting and lighting that meet LEED standards at the Silver, Gold or Platinum level.
“The whole theory behind it is that since the community, and the United States, is trying to go green, the guidelines are there for a tenant to help sustain a level of LEED certification,” said Jeff Ramirez, vice president at Cornish & Carey Commercial/ONCOR International, the company that is representing the property for lease.
While building the core of the structure, builders used low-emission paints, sealants, adhesives and carpeting. All of the wood used was certified by the Forest Stewardship Council. And at least 10 percent of the materials used came from renewable resources.
“This is kind of the wave of the future, and any new construction is coming out with LEED certification,” Ramirez said. “It’s just a pressing need that’s not going to go away, and tenants and companies, they’re always looking to do their part.”
The team also found ways to reduce the building’s light pollution, by installing low-pressure sodium fixtures in the parking lot, which emit a yellow light, and by making sure all the lights face downward, rather than up into the sky.
“The tenants in the marketplace appreciate LEED. That’s really why we’re doing it,” said Dunn. “We feel responsibility as a developer to build the right way in today’s market.”
Legacy Partners, a San Francisco Bay Area-based full service real estate investment management company, announced the final closing of its …
Legacy Partners, a San Francisco Bay Area-based full service real estate investment management company, announced the final closing of its third value fund having raised $451,150,000 in capital commitments. Legacy Partners Realty Fund III, LLC will focus on investing in office, research and development and industrial properties in select western U.S. markets (Northern California, Southern California, Seattle and Denver).
Based on Legacy’s long-established local real estate relationships, the Fund has acquired nine properties, totaling $785M of assets during its first twelve months of operation. The Fund garnered a well-diversified investor base, including public and corporate pension plans, endowments, financial institutions and family offices. Barry DiRaimondo and Paul Meyer, the President and C.F.O. of Legacy Partners, respectively, will be co-portfolio managers of the Fund. John Faust, Legacy’s Managing Director, led the marketing of the Fund. Legacy closed its first $331M real estate fund in July 2005 and its second $457M fund in October 2006. Both value-added funds are fully invested.
Legacy Partners is a privately-held real estate company providing investment management services that encompass all aspects of property ownership. With 36 years of experience acquiring, developing and managing assets, the firm has invested over $4.5 billion across 127 million square feet of commercial space in its target markets since inception. Legacy has established a solid track record of acquiring high-quality product, out-performing the market and providing its clients with strong, risk-adjusted returns.
800 – 900 Corporate Pointe, a newly constructed office project in Culver City, California recently received two outstanding awards: the …
800 – 900 Corporate Pointe, a newly constructed office project in Culver City, California recently received two outstanding awards: the Los Angeles Business Council 2008 Architectural Award for Sustainability in the Commercial Category; and, Leadership in Energy and Environmental Design Gold Certification for New Construction by the US Green Building Council. Originally developed by Symantec Corporation and designed by HOK as a two-building Southern California Headquarters Campus, the project is the only LEED-New Construction Gold certified campus in Culver City.
The Los Angeles Business Council’s 2008 Architectural Awards were presented at a gala event at the Beverly Hilton on June 19 to development teams whose project design contributes to sustainability, improving architecture and enhancing the urban landscape of Los Angeles. The project was awarded the Arden Realty Sustainability award; architect HOK, developer Symantec and general contractor Webcor Builders were present to accept the award.
The Campus achieved LEED Gold certification by the US Green Building Council on May 5. Points were granted in the categories of erosion and sedimentation control, site selection, public transportation access, storm water management, landscape and exterior heat reduction design, water use reduction, optimization of energy performance, waste management, recycling, use of local materials, indoor environmental quality, and innovation of design.
800 – 900 Corporate Pointe totals 527,231 rentable square feet on 5.58 acres of land. 900 Corporate Pointe, totaling 285,675 sf, is owner-occupied by Symantec Corporation. 800 Corporate Pointe, totaling 241,556 sf, was purchased in February of 2008 by Legacy Partners. Newly named Legacy Corporate Pointe, the 4-story building is available for lease and is the only new office project in the marketplace offering 5:1,000 parking.
Legacy Partners Commercial Inc., with a presence throughout the Western United States, aims to add value in each of its …
Legacy Partners Commercial Inc., with a presence throughout the Western United States, aims to add value in each of its target markets – one building at a time – while continuing the legacy it started more than 35 years ago. With headquarters in Foster City, the full-service commercial real estate company has regional offices in Long Beach, Los Angeles, Irvine, San Diego, San Francisco, San Jose, Denver and Seattle. Legacy finances, develops, renovates, leases and sells commercial real estate for its investors, and currently manages a $4.1 billion, 16.5 million-square-foot portfolio.
In 1968, CEO C. Preston Butcher founded Legacy Partners Residential, whose portfolio includes the development of more than 58,000 apartment homes in Clifornia, Arizona, Colorado, Washington and Texass, as well as management of more than 20,000, which is led by President Dean Henry. Four years later, Butcher launched Legacy Partners Commercial, headed by President Barry DiRaimondo. Legacy’s commercial influence is evident in Long Beach today.
“We’re not trying to be like Donald Trump,” says Regional Vice President Charles McClure, who oversees the leasing and management operations in the L.A. South region, which includes 29 buildings totaling 2.1 million square feet. “The goal is not to be the biggest, but just to be the best at what we do – make smart purchases, make money for our investors [and] keep us all employed.”
Two Internet companies recently soaked up two-and-a-half floors in the upper half of 160 Spear St., a 19-story, 290,000-sf office …
Two Internet companies recently soaked up two-and-a-half floors in the upper half of 160 Spear St., a 19-story, 290,000-sf office tower that not long ago was vacant from the 10th through 16th floors. The building owner, Legacy Partners, acquired the asset with the vacancy at the end of 2006 for $86.5 million, which is just under $300 per sf. PlayFirst, an online gaming company inked a 5.5-year lease for 25,024 sf on the 12th and 13th floors that will be its headquarters. ValueClick, an online marketing company, signed a long-term lease for the entire 15th floor, which totals 15,869 sf. Both leases are scheduled to commence in June.
Situated just one block south of Market Street, 160 Spear St. overlooks both the San Francisco Bay and the Transbay Terminal. Ellis Partners acquired the leasehold interest in the building in spring 2005 from Hill Cos. LLC for $57 million. Current availability in the building is about 45,000 sf, including the entire 14th floor and two-thirds of the 17th floor. Leasing activity suggests that vacancy in the building will shrink further in the near-term.
One of the tenants in the building is the IRS, for which the US General Service Administration in 2006 inked a 33,000 sf lease that runs through 2016. The negotiated lease rate is currently $36.19 per sf, according to the GSA, which tells GlobeSt.com that negotiations are underway for an expansion of its leasehold within the building. Other tenants in the building include Hemming Morse Inc., which in May 2005 leased 28,774 sf on the 18th and 19th floors for 7.5 years, and McGraw-Hill Cos., which signed a long-term lease for 47,460 sf on the lower floors of the building in 2003.
The negotiated lease rates for PlayFirst and ValueClick were not released by the parties involved. Local industry sources tell GlobeSt.com that recent lease deals in the upper half of the building were at lease rates in the low-to-mid $40s per sf per year, fully-serviced.
Chris Holland of the Staubach Co. represented PlayFirst in the transaction. Janna Luce of Prudential CRES Commercial Real Estate represented ValueClick. The listing brokers—Mark McGranahan, Mark Anderson and Josh Gladding of Cushman & Wakefield—could not be reached for comment.
Legacy, which owns the building and leases the land, has been aggressive in its efforts to lease-up the building. It is currently offering brokers a $1 per-sf bonus for plus-five-year deals executed before the end of June.
In August, Geoffrey Dohrmann, publisher and editor-in-chief of The Institutional Real Estate Letter, met with Barry DiRaimondo, president of Legacy …
In August, Geoffrey Dohrmann, publisher and editor-in-chief of The Institutional Real Estate Letter, met with Barry DiRaimondo, president of Legacy Partners Commercial. The following is an excerpt from that conversation.
Dohrmann: How did Legacy get started?
DiRaimondo: The roots of the company go back nearly 40 years to the late 1960s, when Preston Butcher moved from Texas to the San Francisco Bay Area to develop apartments on behalf of Lincoln Property Co. in partnership with Mack Pogue and Trammell Crow. The commercial group, which encompasses office, R&D and warehouse, came into being about four years later. At that time we were your prototypical developer. We developed assets and, for the most part, hung onto them in joint ventures with life companies or syndicates. It was a build-to-hold program. Today, we don’t emphasize the fact that we’re developers because, candidly, we have morphed away from that — at least in the commercial company. The commercial company is now an investment manager rather than a developer.
Dohrmann: Why did you transition away from development?
DiRaimondo: You can really only prudently develop through 15 percent to 20 percent of the cycle. So if we wanted to be in business across the continuum of the cycle, we had to figure out something else to do for the other 85 percent to 90 percent of the time. That led us into buying real estate and playing strategies based upon where we are in the real estate cycle.
Dohrmann: Why did you go into investment management?
DiRaimondo: As we came into this cycle around 2002, we came to the realization that we wanted to control our own destiny. Historically, we’d find a piece of real estate and then find the money. In the past few years, we realized that we did not want to be reliant on other investment managers and advisers to capitalize our real estate needs. We’ve been in business a long time, and we knew we had the infrastructure and reporting platforms to deal directly with the investors, and it’s worked out well.
Dohrmann: Do you still do any developing?
DiRaimondo: We do some, but it makes up less than 10 percent of our investment equity. When we do a development deal, for example, we’ll invest 25 percent of the equity from our fund and we’ll go out and find a joint venture partner to put up the rest, and then we’ll generate a promote structure off that, which flows through to the fund. This, in effect, provides a reverse engineering of the dreaded double promote structure back to our investors.
Dohrmann: Where are you focused geographically?
DiRaimondo: Up through the early ’90s, we were in all the western region markets. About 15 years ago, we consolidated into four primary markets: Seattle, Northern California, Southern California and Denver. So the focus has become more concentrated as opposed to expanded.