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.
SteelWave’s iconic adaptive reuse project, INSITE, in El Segundo, CA was selected as a finalist for Interior Design Magazine’s 2017 …
SteelWave’s iconic adaptive reuse project, INSITE, in El Segundo, CA was selected as a finalist for Interior Design Magazine’s 2017 Best of Year Awards. Congratulations to our architects, HLW International, and our SteelWave team for all the hard work! Thousands entered from 55 countries. INSITE was selected as a finalist, making TOP 4 in this category.
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
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.
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.