Done Deals: Jul 14, 2023

Friday, July 14, 2023

Levin Johnston closes $14.5 million industrial property transaction in Burlingame, CA

Burlingame, CA – Levin Johnston of Marcus and Millichap, one of the top brokerage teams in the U.S. specializing in wealth management through commercial real estate investments, announces that it closed an industrial property transaction worth $14.5 million in Burlingame, California on behalf of private investor clients.

The 1.58-acre site is home to eight separate industrial suites in two adjacent buildings.

“Industrial properties, particularly ones located near transportation hubs, are in high demand even with the headwinds of economic concern and higher interest rates,” says Adam Levin, Executive Managing Director of Levin Johnston.

Adam Levin

“These assets, located right off the 101 Freeway, minutes from SFO, and a short drive to downtown San Francisco, are an example of a prime investment opportunity in a thriving Bay Area community.”

According to the National Association of Realtors, the region south of San Francisco including Burlingame, San Mateo, Santa Clara, and San Jose has experienced job growth of 3.3 percent which is faster than the national growth rate.

Robert Johnston

Continued demand for workers along with the deceleration of new supply, net new industrial inventory in the first quarter of 2023 was zero compared to -633,616 square feet in Q1 2022, is keeping rent growth elevated at 6.1 percent and an average square foot rent of $27 compared to $25 in the same period last year.

“The market has some bright spots, but they need to be identified,” notes Robert Johnston, Senior Managing Director of Levin Johnston.

“Transaction dollar volume in Q1 2023 was 54 percent of what it was in 2022, so investors need a partner who has the network and experience to find the opportunities, as our team did in this transaction.”

The transaction was comprised of two adjacent properties totaling a 1.58-acre lot and 31,415 square feet of leasable space. Both properties are zoned for warehouse use with flex office space.

Jessica Tomasetti

The properties include on-site external parking, 14-foot ceiling heights, and multiple drive-in bays for warehouse access.

Public transportation is nearby with BART’s Millbrae station less than 2 miles away and CalTrain Commuter rail station 1 mile from the properties. San Francisco Airport is just 3.2 miles away and the Port of Redwood City approximately a 20 minute drive.

The Levin Johnston team of Adam Levin, Robert Johnston, and Jessica Tomasetti represented both the buyer and seller of the properties. The properties are located at 890 Mahler Road and 1550 Gilbreth Road in Burlingame, California 94010.

CONTACTS:

Hanna Kokuashvili / Kiera Moran

The Smart Agency, Inc.

(949) 520-6717

hkokuashvili@thesmartagency.com

www.levinjohnston.com

Alaska Permanent Fund Corp. (APFC) begins $13.4 million renovation of Downtown San Diego, CA office building

Five50West, a 20-story, 362,822-square-footoffice building
located at 550 West C Street in downtown San Diego, CA

SAN DIEGO, CA –– Committed to attracting premier companies, JLL announced Alaska Permanent Fund Corporation (APFC) has started construction on the $13.4 Million renovation of Five50West, a 20-story, 362,822-square-foot office building located at 550 West C Street in downtown San Diego.

A San Diego landmark and symbol of office grandeur, Five50West is best known for its open concept first floor lobby that seamlessly connects to the expansive outdoor concourse.

Bess Wakeman

Five50West is now a hive of activity as it undergoes a comprehensive remodel that was designed by Gensler with construction oversite provided by JLL’s PDS team.

“As the dust settles and the construction nears completion, the transformed Five50West will stand as a symbol of modernity and luxury, attracting top-tier tenants and revitalizing the downtown landscape, said Steve Adams, Senior Portfolio Manager at APFC.

'The investment in Five50West is testament to APC’s commitment to San Diego as well as San Diego’s desirability as a premier market nationally for employers in all sectors.”

Richard Gonor

Leading the office leasing at Five50West are JLL’s Richard Gonor, Tony Russell and Bess Wakeman. Five50West can accommodate a wide range of users from 2,000 to 100,000 square feet.

“Downtown remains one of the most desirable office markets in San Diego with its vibrant energy, walkable amenities and a live-work-play lifestyle,” said Gonor, JLL Executive Vice President.

“The downtown market is evolving and so is Five50West. It will now provide everything today’s employees require from a dynamic workplace – amplified amenities, food & beverage offerings, outdoor collaborative spaces, convenient location, and a safe environment.”

Tony Russell

Inside, the first floor lobby will be infused with hospitality conveniences using modern finishes that will create an atmosphere of sophistication and innovation.

These finishes will carry through to the upper floors offering vibrant and inspiring workspaces and stunning waterfront and city views that will attract top talent.

The state-of-the-art, fitness and wellness center, with anticipated completion of November 2023, will feature the finest cardio, exercise, circuit-training and strength-extension equipment, towel service, and spa like shower and locker facilities to encourage a healthier lifestyle for the building’s occupants.

The increased capacity conference center will support larger meetings as well as include social media sound rooms. Outside, Five50West is being adorned with new features to enhance the tenant experience.

The expanded concourse will offer a serene escape from the hustle and bustle complete with comfortable seating areas, collaborative outdoor workspaces and an open concept café.

Other enhancements underway include a tenant lounge, enriched exterior landscape and LED lighting program, and improved parking garage and way finding signage throughout the project. Completion of the full renovation is anticipated for Q12024.

Five50West is ideally located in the heart of downtown San Diego with panoramic views of San Diego Bay, San Diego International Airport and Balboa Park.

It is adjacent to the Santa Fe Depot (Amtrak, Coaster & Trolley), providing immediate access to neighbouring communities and is walking distance to the San Diego Bay, County and Federal Courthouses, Little Italy and other retail amenities.

CONTACT:

David Ebeling

Ebeling Communications

949.861.8351

949.278.7851 (Cell)

david@ebelingcomm.com

Member of the National Association

of Real Estate Editors (NAREE)

“PR Strategist for the Commercial Real Estate Industry: I do what I love and love what I do.”

FIDELITY BANCORP FUNDING Hires John Omori as Senior Vice President of Construction Financing

John Omori

SANTA ANA, CA, July 14, 2023 — Fidelity Bancorp Funding, Inc., a leading financial institution specializing in commercial real estate, multifamily, single-family residential bridge loans, and permanent financing, is pleased to announce John Omori has joined the company as Senior Vice President of Construction Financing.

Omori will be tasked with launching the company’s construction financing division.

“With traditional banks being capital constrained especially for construction lending, it’s important that we provide a platform to our clients to alleviate those pressures,” stated David Frosh, CEO of Fidelity Bancorp Funding. “We are confident that John will be a great asset to our clients and team as we continue to expand our business.”

David Frosh

Omori joins Fidelity Bancorp Funding following tenures at Bank of Hope, First Foundation Bank and Umpqua Bank where he specialized in multifamily and commercial real estate loan originations and underwriting of complex ground up projects.

Frosh added, “John understands the architectural, development and construction process as well as the lending business. Because he can put himself in the shoes of both builders and lenders, he knows how to successfully put complex deals together.”

“Despite all the concerns with the economy there continues to be a housing shortage,” stated Omori. “MLS resale listings are at 20-year lows. Rental occupancy is still strong in many markets, especially California.

"First time buyers need housing. Current homeowners are not moving because they do not want to part with their 2-3% interest rate loans.

"Local small to mid-size scale developers producing rental inventory or speculative housing have had their typical capital financing resources withdrawn from the market.

"We believe the construction business will remain strong despite an uncertain economy, and are expanding our focus to provide capital to developers to execute their plans.”

CONTACT:

David Ebeling

Ebeling Communications

949.861.8351

949.278.7851 (Cell)

david@ebelingcomm.com

Member of the National Association

of Real Estate Editors (NAREE)

“PR Strategist for the Commercial Real Estate Industry: I do what I love and love what I do.”

Ware Malcomb Announces Construction is Complete on DECISIO Health's Corporate Headquarters in Houston, TX

Heather Griffin

HOUSTON ,TX -- Ware Malcomb, an award-winning international design firm, announced that construction is complete on DECISIO Health, located at 520 Post Oak Blvd. Suite 600, in Houston.

Ware Malcomb provided interior architecture and design and branding services for the 15,000 square foot interior office renovation.

“DECISIO’s new headquarters will allow for seamless employee integration as they continue to scale,” said Heather Griffin, Director, Interior Architecture & Design at Ware Malcomb. “Our Interiors and Branding teams worked to create a cohesive space that brings company culture to the forefront.”

Jill Nesloney

Notably, Ware Malcomb’s in house Branding Studio played a pivotal role in the successful outcome of the project by providing custom branded graphics for key spaces within the office.

By interpreting the essence of DECISIO’s brand and integrating it throughout the space, the team successfully captured the company’s identity and values.

Edward Edson

Ware Malcomb worked closely on the project with the building owner/developer, Griffin Partners.

Headquartered in Houston, Griffin Partners is a commercial real estate investment, development, and property management firm that owns and operates properties throughout Texas, Colorado, Arizona, Utah, Tennessee, and North Carolina.

General contracting services for the project were provided by Crest Builders. The tenant was represented by Edward Edson with Colliers and the building was represented by Jill Nesloney with Lee & Associates.