Looking Forward_ Looking Back

Document Sample
Looking Forward_ Looking Back Powered By Docstoc
  Bay aREa REal EstatE JOURNal                             may 2009

             Looking Forward, Looking Back
                     Bay Area’s cities chase redevelopment opportunities
                          Oakland waterfront will soon have a developer
                                         Without Pier 70 in San Francisco
                                San Jose hopes its airport remake will fly
                                                                       pg. 12

                                                  Handsomely Rewarded
                                            Needy landlords offer pricey perks
                                                       to commercial brokers
                                                                         pg. 6

                                                             Project FROG
                                                      Architect uses design to
                                                      give education the jump
                                                                        pg. 18

                                                                    Mills Act
                                                     Grinding through historic
                                                 preservation in San Francisco
                                                                        pg. 22

                                                Final Offer | Diane Filippi
                                                        SPUR’s fresh new digs
                                                                        pg. 36
 hot lot



Today, business needs to squeeze more out of every dollar—
and every square foot. We can help. For more than 30 years,
South Bay Construction has worked with developers to revitalize
spaces and reinvigorate companies. We keep to schedules and
keep the surprises to a minimum. Learn more at 408-379-5500
or www.sbci.com.
                                                                   may 2009

                                                                   4	 News	Desk
                                                                    	 	 summary of recent planning
                                                                      decisions from select cities,
                                                                      news about the industry and
                                                                      people on the move

                                                                   6	 	 ommercial	Market	Report
                                                                      Incentivized lavishly

                                                                   8	 Residential	Market	Report
                                                                      Increasingly affordable
                                                                      luxury homes

                                                                   10	 Health	Care
                                                                      mission Bay hospital
                                                                      among the living

                                                                   12	 Feature	Package:
                                                                      Bay area Redevelopment
                                                                      • oakland Waterfront Poised
                                                                        for Change; Question Now:
                                                                      • Without Pier 70
                                                                      • San Jose Soccer land

                                                                   18	 Design
                                                                      Project FRoG:
                                                                      Designing Education

                                                                   20	 Legal	&	Government
                                                                      Carbon Caps land

                                                                   22	 	 overnment	
                                                                      Forgetting history

                                                                   24	 	 ord	on	the	Street	
                                                                      What is a recent historical
                                                                      renovation you have been a
                                                                      part of and what makes the
                                                                      project unique?

                                                                   25	 	 egal	&	Government	
                                                                      Smoking Gun

                                                                   26	 	 esign	
                                                        Feature:      Colorful Character

                                                                   28	 	 ob’s	REality	

                                                     Bay Area         the market about…Nothing!

                                                                   29	 	 inance	
                                               Redevelopment          Pipsqueak or Superman

                                                                   30	 	 Eal	People		
                                                         pg. 12       Events around town

                                                                   35	 Calendar	of	Events

                                                                   36	 Commercial	Lease	Report

                                                                   38	 	 ommercial	Sales	Report	

                                                                   38	 	 he	Registry/Rofo.com	
                                                                       Small	Business	Barometer
Cover image:
View of San Francisco from Oakland Army Base                       40	Final	Offer
                                                                      SPUR’s Urban Center Director,
This page:                                                            Diane Filippi
Pier 70 area, San Francisco
            Registry              TM

            P.O. Box 1184
        San Mateo, CA 94403

           Mission Statement
 The Registry is a real estate journal
 that aspires to fulfill the need of
 Bay Area professionals for accurate,
 unbiased and timely news, analysis
 and information.

           Vladimir Bosanac

           Heather Bosanac

          Sharon Simonson
     ssimonson@theregistrysf.com             Rob La Eace                Jill Pilaroscia            Scott D. Rogers            Tay C. Via
             408.334.2512                    The Market About…          Colorful Character,        Smoking Gun,               Carbon Caps Land,
                                             Nothing! pg. 28            pg. 26                     pg. 25                     pg. 20
            Creative Director
             Karyn Charm                     Responding to emer-        Jill Pilaroscia has been   Scott D. Rogers is a       Tay C. Via is a partner
            Photographers                    gencies as a firefighter   an international color     senior partner in the      with San Francisco
  Jason Steinberg, Chad Ziemendorf           in a variety of uncer-     consultant since 1984.     Real Estate, Devel-        law firm Coblentz,
                                             tain situations and        She earned her bach-       opment, Land Use           Patch, Duffy & Bass
               Writers                                                  elor of fine arts degree
                                             diverse neighbor-                                     and Finance Group          LLP. She specializes in
     Alfred J. Bru, Heather Fox,
                                             hoods taught Rob           from the San Francis-      of Holme Roberts &         land use and develop-
  Crawford Frazer, Jessica Saunders,
   Sharon Simonson, Irwin Speizer,           La Eace a lot about        co Art Institute and is    Owen LLP. His prac-        ment, with particular
  Aimee Lewis Strain, Sasha Vasilyuk         how people should be       an accredited member       tice focuses on repre-     emphasis on large
                                             treated, not only dur-     of the International       senting institutional      public/private proj-
             Contributors                    ing a crisis, but also     Association of Color       and private real estate    ects, including the
      Rob La Eace, Jill Pilaroscia,
                                             in everyday problems.      Consultants. She has       investors in all aspects   San Francisco Giants’
      Scott D. Rogers, Tay C. Via
                                             Today, these same          been a consultant for      of real estate equity      ballpark, the 303-acre
             Advertising                     skills are an asset to     multiple high-profile      and finance transac-       Mission Bay develop-
            415.738.6434                     those who work with        projects across the        tions. He obtained his     ment, Westfield San
      heather@theregistrysf.com              this San Francisco na-     Bay Area including         bachelor’s degree in       Francisco Centre and
              Printer                        tive in his career as a    China Basin biotech        economics from the         the Academy of Sci-
        Bay Area Graphics                    broker associate with      offices in Mission Bay     University of Califor-     ences’ internationally
      www.bayareagraphics.com                McGuire Real Estate.       for McCarthy Cook          nia, Irvine, and his law   renowned new LEED
                                             The tools he puts to       & Co. and RREEF            degree and master’s        platinum museum.
        news@theregistrysf.com               work as a firefighter      Alternative Invest-        of business adminis-       Via chairs her firm’s
                                             are what makes the         ments; Marin Com-          tration from the           Renewable Energy
               Feedback                      difference to the cli-     mons, a San Rafael         University of Califor-     and Climate Change
                                             ents Rob works with        office campus owned        nia, Los Angeles.          practice and also
             Subscriptions                   as an agent. While it      by the Hines company,      He is chair of the         serves as co-chair of
   subscriptions@theregistrysf.com           may help that Rob is       a developer and prop-      Executive Committee        the SB 375 Task Force
                                             the type of guy with       erty manager; Aven-        of the Real Property       for the San Francisco
              Ethics Policy                  a warm smile and a         tino Apartments            Section of the State       Planning and Urban
 The Registry embraces a strict eth-         friendly attitude, his     in Los Gatos for The       Bar of California.         Research Association
 ics policy for its staff and contributing                              Sobrato Organization,
                                             professionalism, or-                                                             (SPUR). She is listed
 writers, including columnists and free-
                                             ganization and drive       a South Bay office and                                in BestLawyers in
 lance reporters. No person employed
 by or affiliated with The Registry has      to succeed are what        apartment owner; and                                  America for her
 accepted or will accept any compen-         make him stand out         Emeryville’s Bay Street                               expertise in land use
 sation, monetary or otherwise, in ex-       in his career. Work-       townhomes for Regis                                   and zoning. n
 change for editorial content. All infor-    ing in his fifth year in   Homes of Northern
 mation that appears in the magazine         the industry, Rob is in    California. Her firm
 is selected solely for its informational                               recorded sales of
                                             touch with his clients’
 value to readers.
                                             needs and with the         $650,000 last year and
                                             city—putting a local’s     has four employees.
  CORRECTION                                 perspective to work.
  In the April issue that listed the IIDA-
  NC Honor Awards winners, in the
  Work Big Notable category we referred
  to one of the design team members as
  Lucas Brown. His name should have read
  Lucas Martin.

2 theregistrysf.com      M A Y 2009
                                                                                                                                Editorial Board
                                                                                                                 Board members of The Registry serve
                                                                                                                 without expectation of recompense or
                                                                                                                 reward. They advise the magazine’s ex-
                                                                                                                 ecutive team on matters of relevance
                                                                                                                 to the region’s commercial and residen-
                                                                                                                 tial real estate community. The board’s

                                                        Letter from                                              make up reflects the wide readership
                                                                                                                 of the magazine including attorneys,

                                                        the Publisher                                            architects, interior designers, residen-
                                                                                                                 tial and commercial real estate brokers,
                                                                                                                 investors, lenders, general contractors
                                                                                                                 and subcontractors, engineers and oth-
                                                                                                                 er professionals.

Dear Reader,
     Starting in April, there will be one segment       Commercial Market Report, we take a look at
of the US economy that will begin to see marked         how some property managers are rewarding those
improvement—dog breeders, and especially those          with zeal toward deal making. If you can make a
who breed Portuguese water dogs. It is not lost on      deal happen now, you could be rewarded quite
me that after nearly 20 years there is a new Bo that    handsomely, it seems. And some brokers are taking
knows this and that, and I for one think that is a      no prisoners.                                            Heather Bosanac          Meade Boutwell
                                                                                                                      President           Senior Vice President
good thing. Getting that dog to the White House              We at The Registry, however, would like to              The Registry           CB Richard Ellis
somehow felt like life is moving on. In that instant,   focus a little more on the future. I am someone                                    Brokerage Services

all our rational and calculating business minds         who is big on understanding markers of change,
focused on something other than numbers and             and I think one sure way to foretell the future
ratios and markers and signs. We all just took pause    of real estate is by observing the behavior of the
to consider something other than the market, and        buyers. Obviously, a lot of people know that this
the fact that we allowed ourselves to do that is a      is an interesting item to track, however getting to
great thing.                                            it may not be so easy. So, we partnered with San
     Our esteemed colleagues at Wells Fargo and         Francisco’s Rofo.com (www.rofo.com) to compile a         Patrick Crandall         Margot Crosman
Goldman Sachs probably appreciated the refocus,         list of property searches on their Web site. Rofo is      Managing Director         General Manager
                                                                                                                 CIBC World Markets         Unico Properties
too. This was probably the single time in our lives     an online market place where property owners and
when reporting good news like that may have had         consumers meet and transact in commercial space
a slightly different effect. But we should not fault    (including office, retail and R&D) under 5,000
them. I like to think that profitable companies help    square feet, which is typically consumed by small
their shareholders, too, and their shareholders         businesses. We felt that tracking this information
these days are the American people. In a way,           would be a good barometer and predictor of future
hearing that Goldman is doing well gives me             activity. The data is not all encompassing or entirely
comfort. These guys are arguably the best of the        scientific, but we believe it remains compelling. By
best, and if they’re making money then things are       looking at how small business behaves, we can get             Ken Dara                Don Little
                                                                                                                    Executive VP of       Senior Vice President
heading in the right direction. So, don’t feel guilty   a sense of the local economy’s health, so on page        Business Development      Northern California
                                                                                                                  McGuire Real Estate          Opus West
indulging yourself with a little reading up on the      38, please take a look at the weekly stats of the Bay
life of the first pooch.                                Area’s top
     With that good news, it’s obvious to me that       25 cities.
we should also turn our focus on areas where                 Finally, I would like to extend a warm and
future development is likely to occur. As we all        sincere thank you to our outgoing inaugural
know, available land for development around the         Editorial Board members. They have been great
Bay Area is scarce, which forces redevelopment of       ambassadors of this publication, and their help,
spaces whose time and utility have passed. In our       without any doubt, has made our success possible.        David Longinotti             Alan Mark
cover feature starting on page 12, we look at how       We will announce a new board in the near future.              Partner
                                                                                                                 Hanson Bridgett LLP
                                                                                                                                           The Mark Company
redevelopment efforts in San Francisco (Without         As with the first board, this one will also feature
Pier 70), Oakland (Oakland Waterfront Poised for        a good mix of professionals from the industry
Change; Question Now: How?) and San Jose (San           whose perspective on the market will be crucial in
Jose Soccer Land Re-trading) are transforming the       our coverage and understanding of the forces that
landscape of the Bay Area. We hope that reading         guide this business.
about these promising changes injects a little               As always, we welcome feedback and
optimism into our readers’ outlooks.                    comments. Thank you for your support.
     And while some developers are looking way
                                                                                                                    Tim Murray             Robert Tibbetts
ahead into the future, others are more concerned        Regards,                                                    Vice President,          Vice President,
about the very present. On page 6, in our               Vladimir Bosanac                                          Regional Manager          Director Business
                                                                                                                  Alain Pinel Realtors     Development, HOK

                                                                                                                     Tim Tosta                 Leina
                                                                                                                        Partner             Zimmerman
                                                                                                                 Luce Forward Hamilton       Vice President
                                                                                                                     & Scripps, LLP       Skyline Construction

                                                                                                                             M A Y 2009    theregistrysf.com 3
    NEWS                                 Desk
                                           MONTHLy	SuMMaRy                               By Heather	Fox

PLANNINg NEWS from around the Bay
BERKELEy                                                                                        13,750 square feet of ground-floor commercial space, a supportive services office,
                                                                                                rooftop and second floor open space, one loading space and no off-street parking. The
1800 San Pablo Avenue The city has approved the conversion of an existing build-
                                                                                                project is located in several special districts including the Uptown Tenderloin National
ing into 51 residential condominiums and one commercial unit. The residential units are
                                                                                                Register Historic District.
located in the building’s upper three stories, and both the commercial unit and a 50-car
parking garage share the ground floor.                                                          345 6th Street Staff is recommending the approval with conditions of the demolition
                                                                                                of a one-story, 3,000 gross square-foot vacant office building to construct a five-story,
OAKLAND                                                                                         54-foot-tall mixed-use development. The project proposes 36 housing units, 3,000
116 6th Street An approval has been granted for the construction of a six-story                 square feet of ground floor commercial space, 19 off-street parking spaces and five
building with 70 affordable apartment units for seniors. The project site is a vacant lot       below-market-rate units.
but is directly adjacent to several potentially historic structures, which are within the       430 Main Street (429 Beale Street) Staff recommends approval with conditions
7th Street/Harrison Square residential historic district.                                       of a proposal to construct a new eight-story, 84-foot building consisting of up to 113
444 Hegenberger Road An approval has been granted for conversion of an                          dwelling units over a below-grade parking structure with up to 57 spaces. The property
existing commercial property and building to a new K-12 public charter school for               is located in the Rincon Hill Downtown Residential Mixed-Use district.
up to 650 students.                                                                             1960-1998 Market Street Approval is being sought for the conversion of a service
                                                                                                station and construction of a U-shaped mixed-use development with up to 115 residen-
PALO ALTO                                                                                       tial units over ground floor commercial and subterranean parking for up to 91 off-street
488 West Charleston Avenue The City Council has approved a project to include                   parking spaces. Staff recommends approval with conditions and modifications.
35 affordable housing units in a four-story building.
                                                                                                SAN JOSE
SAN FRANCISCO                                                                                   South White Road & Cunningham Lake Court Permission is sought to build
333 Harrison Street (105 Harrison Street) Planning staff is tentatively                         up to 19 single family detached homes on a 3.21 acre site in East San Jose. The property
recommending approval of a new, seven-story, 65-foot building with 308 dwelling                 is owned by Bishop of Church of Jesus Christ. The same property is being considered
units over a below-grade parking structure with up to 204 spaces. The property is               for a new fire station. Staff is recommending approval with minor modifications.
located in the Rincon Hill Downtown Residential Mixed-Use district, and the applicant
seeks special permission to build more than one parking space for every two units as            WALNUT CREEK
well as other variances.                                                                        2275 Overlook Drive An approval has been granted for development of seven
168-186 Eddy Street Staff is recommending approval with conditions of the                       multi-family units at 2275 Overlook Drive.
demolition of an existing surface parking lot to construct a 14-story, 130-foot tall mixed-     1579 and 1587 geary Road An approval has been granted for the Geary/Hall
use building containing approximately 153 affordable dwelling units, approximately              Residential Development to construct a 13-unit condominium development on .98 acres
                                                                                                at 1579 and 1587 Geary Road. n

SENT to us
ZipRealty Ranked in Top 10 for 2008 sales                                                       Kwan Henmi Architecture/Planning Inc. celebrate the topping out of College of San
Emeryville’s ZipRealty Inc., a Web-based residential real estate brokerage, has become          Mateo’s 88,000-square-foot Allied Health and Wellness Building. Completion is planned
one of the largest home sellers in the country, according to an annual survey that calcu-       for early 2010.
lates brokerage size based on the dollar volume of property sales and transaction counts.       In addition, McCarthy and Irvine-based design-build architect LPA Inc. broke ground on
REAL Trends Inc., a Denver publishing and communications company that specializes               the college’s140,000 square-foot Student Services and Faculty Administration Building,
in the residential real estate industry, says Zip is now the ninth largest brokerage in the     also scheduled for completion in early 2011.
country based on transaction volume and 10th largest based on the aggregate dollar              Both buildings will seek LEED Silver certification.
value of properties sold. Both rankings are based on 2008 sales.
                                                                                                Bay Area Real Estate Developments Selected As Finalists In ULI
Zip is the first non-traditional residential real estate brokerage to achieve the ranking
                                                                                                Awards Of Excellence Competition
milestones. The company operates in 35 markets in 21 American states. It has more than
                                                                                                Four Bay Area real estate developments have been selected as finalists in the Urban
2,800 agents on staff.
                                                                                                Land Institute’s Awards for Excellence: the Americas. Winners in each competition
Saratoga-based Alain Pinel Realtors Inc. was ranked as the country’s eighth-largest             become eligible for ULI’s Global Awards for Excellence, announced later this year. The
brokerage based on the dollar-volume of sales it handled in 2008. No other Bay Area             awards recognize the full development process, not just architecture or design. The
brokerage cracked the Top 10 list based on transaction count.                                   award criteria include leadership, contribution to the community, innovations, public/
                                                                                                private partnership, environmental protection and enhancement, response to societal
NAIOP San Francisco Bay Area Chapter Expands Brand as the
                                                                                                needs and financial viability.
Commercial Real Estate Development Association
NAIOP San Francisco Bay Area Chapter announces, in conjunction with NAIOP corpo-                The finalists are: California Academy of Sciences, San Francisco; Devries Place Senior
rate, a new name and brand identity that represents its membership’s expansion into a           Apartments, Milpitas (Mid-Peninsula Housing Coalition); North Beach Place, San
broader scope of commercial real estate development. NAIOP San Francisco Bay Area               Francisco (Bridge Housing; The John Stewart Company; Em Johnson Interest Inc.);
Chapter is one of 56 NAIOP chapters throughout North America. Formerly known as                 Westfield San Francisco Centre, San Francisco (Forest City Enterprises Inc.;
the National Association of Industrial and Office Properties, the association will now be       Westfield LLC)
known solely as NAIOP. A definer, the Commercial Real Estate Development Associa-
                                                                                                California Academy of Sciences Receives LEED Platinum Plaque
tion, complements the name and signifies the association’s strategic shift to encompass
                                                                                                The U.S. Green Building Council presented the California Academy of Sciences in
all professionals in the industry.
                                                                                                San Francisco’s Golden Gate Park with an official LEED Platinum plaque, representing
One Rincon Hill Among World’s Best Tall Buildings for 2008                                      the highest honor in its LEED program. The academy is now the largest public LEED
One Rincon Hill, one of San Francisco’s newest landmarks, was selected among the                Platinum building in the world and also has the distinction of being the world’s
world’s best tall buildings for 2008 by The Council on Tall Buildings and Urban Habitat.        greenest museum.
Based at the Illinois Institute of Technology in Chicago, CTUBH is an international
                                                                                                Argo Insurance Brokers Introduces First green Architects
organization sponsored by architecture, engineering, planning and construction
                                                                                                & Engineers Professional Liability Policy
professionals. It is dedicated to creating the exchange of ideas in all aspects of the
                                                                                                Argo Insurance Brokers, Inc. announced the launch of its exclusive Green Architects &
planning, design, construction and operation of tall buildings.
                                                                                                Engineer’s Professional Liability insurance program that includes a substantial premium
The 64-story residential tower is one of 28 buildings honored worldwide and one of five         discount for USGBC members. Argo has partnered with an A-rated insurer to develop
in North America. Joining One Rincon Hill in the North American region was the new              an exclusive professional liability program that fills gaps in traditional A&E professional
San Francisco Federal Building.                                                                 liability contracts. The exclusive Green Design endorsement broadens the definition of
                                                                                                professional services to include a variety of activities customary to green design. The
McCarthy, LPA & Kwan Henmi Continue Work at College of San Mateo
                                                                                                program includes coverage on a worldwide basis, duty-to-defend and pay-on-behalf
The design-build team of St. Louis-based McCarthy Building Cos. Inc. and San Francisco’s
                                                                                                wording and retroactive coverage. The policy will be available nationwide. n
4 theregistrysf.com         m a y 2009
PEOPLE on the move                                                                                                                                                                       hot& lot
                                                                                                                                                                                         Sun, Light Power

                           Jones Lang LaSalle Announces New VPs                                            Wendel Rosen,
                           for Logistics and Industrial Team
                          Jones Lang LaSalle Inc. announces that Jason Ovadia (left)
                                                                                              the first law firm in the country to
                          and Kevin Ahaesy (right) have joined the San Francisco               be certified as a green business,
                          logistics and industrial services team as vice presidents.
Before joining Jones Lang, Ovadia and Ahaesy worked for Cushman & Wakefield, where
                                                                                                provides a wide range of legal
they were recognized as top performers in the industrial real estate services sector and              services for the real estate                                                    Fillmore Heritage Center

helped expand the firm’s presence in the Central Valley and East Bay.
                                                                                                               industry, including:
Ovadia and Ahaesy’s experience includes tenant and landlord representation, build-to-
suit projects, investment analysis and owner-occupied property sales. Their expertise is
Northern California’s industrial markets with an emphasis on the Central Valley and Bay                                                   Leasing
Area and a focus on distribution, manufacturing and back-office operations.
                                                                                                                       Purchase and Sale
Teamwrkx Construction Announces Hiring of New Associates                                                                                Financing
Daniel Bettencourt, Jim Boylan and Tina Stanifer have joined Teamwrkx Construction, a                                                                                       The Fox Theatre, Friends of the Fox

Bay Area commercial general contractor with offices in San Jose and San Francisco.                             Brokerage Agreements
Bettencourt, who holds the designation of LEED Accredited Professional, joins as a                                                      Land Use
project engineer. He will help the company with a more aggressive LEED certification
effort in 2009. Prior to joining Teamwrkx, he was a project engineer at Milpitas’
XL Construction Corp.                                                                                                               Construction
Boylan will lead the continued development of Teamwrkx’s estimating and precon-
struction services. He has more than 20 years’ experience as an estimator and project
manager with companies such as DPR Construction Inc. and CB Richard Ellis Group Inc.                          Green Building/LEED™
Stanifer has joined the company as a project accountant. With nearly 10 years of indus-
try experience, she will support both the San Francisco and San Jose locations. Prior
to Teamwrkx, she honed her skills in construction accounting and financial reporting at
South Bay Construction Co. in Campbell.
                                                                                                                                                                                           The Swig Company
Carol galante to Join U.S. Department of Housing and
Urban Development
President Obama has appointed Bridge Housing President and Chief Executive Carol
Galante deputy assistant secretary for multifamily housing programs at the U.S. Depart-
ment of Housing and Urban Development. Galante will be responsible for HUD’s financ-
ing support for the development and preservation of privately owned rental housing,
which has a $58 billion portfolio, and will be integral to several initiatives that promote
sustainable development.
                                                                                              1111 Broadway, 24th Floor | Oakland, CA 94607 | 510.834.6600 | wendel.com
The Bridge board of directors has asked Executive Vice President Lydia Tan to serve
as interim president. Tan has worked for Bridge since 1991 and has more than 25 years’
experience in real estate development and finance.

             BCCI Construction Co. Welcomes Brad gates
              Brad Gates, former president of Oakland’s BBI Construction, has joined
              San Francisco’s BCCI Construction Co. as a vice president. He will be
              responsible for business development in BCCI’s Palo Alto office. He brings
              more than 19 years’ experience in the construction and real estate industry.
As president of BBI Construction, Gates was responsible for developing the organiza-
tional structure and overseeing the day-to-day management of the $35 million
company. Gates has also served as marketing director for The Koll Co., a Newport
Beach real estate company, and Turner Construction Co., where he was manager of
                                                                                                 San Francisco / Santa Clara
business development for Northern California.

                           McDonough Holland & Allen Elevates
                           Egawa and gorton
                           McDonough Holland & Allen PC has elected Tad T. Egawa                 Whether the job is big or
                           (left) as its newest shareholder. In addition, Mark Gorton            small, Skyline dedicates the
                           (right) was elected to the law firm’s board of directors.
                                                                                                 resources necessary to finish
Egawa is a member of McDonough’s Real Estate Practice Group. His practice focuses on
                                                                                                 the project on time and
office and commercial leasing as well as a wide range of real estate acquisition, disposi-
tion and development matters. He served for three years as assistant general counsel for         within the budget.
one of the nation’s largest home builders before joining McDonough Holland in 2007.
Gorton, whose practice focuses on insolvency and bankruptcy matters, is also a                   Stephen Chaitin
member of McDonough’s Real Estate Practice Group. Over the past 27 years, he has                 Managing Director
represented a wide range of clients including municipal and nonprofit agencies, real             Studley

estate owners and developers, lenders and local businesses.

Home Builders Association of Northern California Snags O’Connor                                  Recent Projects
Cheryl O’Connor, a veteran of the San Francisco regional home building industry, has             Jamba Juice Support Center
                                                                                                 35,635 sq. ft.
agreed to serve as the acting chief executive of the Home Builders Association of
                                                                                                 Emeryville, CA
Northern California.
                                                                                                 Rapt, Inc.
She replaces Joseph Perkins, who has been the HBANC chief since March 2005. Perkins
                                                                                                 9,781 sq. ft.
resigned his post effective April 30 for undisclosed reasons.                                    625 Second St, San Francisco, CA
In 2008, O’Connor served as the HBANC’s first female chair person. Most recently, she
                                                                                                 The Trium Group
was vice president of sales for Palo Alto’s SummerHill Homes.                                    7,700 sq. ft.
                                                                                                 909 Montgomery St, San Francisco, CA
             XL Construction Welcomes Rick White                                                                                                                  We’ll take care of it.
             Milpitas’ XL Construction Corp. welcomes industry veteran Rick White
             as a project executive focusing on health care. White brings more than
             35 years’ experience to XL, having helped construct landmark hospitals              License 727637    skylineconst.com     415.908.1020   408.844.0000
             throughout California including Kaiser Permanente’s Los Angeles
             Medical Center and California Pacific Medical Center, a Sutter Health
             affiliate in San Francisco.
                                                                 continued on page 39
CommERCIal maRkEt REPoRt

                                                                      Incentivized Lavishly
                                   landlords woo brokers with extravagant prizes;
                                               free rent seems to get deals done.
                                                                                                                 By Jessica	Saunders

  “the gloves are off,
                                                            ith average Bay Area office vacancy at 15.4      mission and an incentive like a vehicle lease, or the full
                                                            percent and rents stagnant and set to fall,      commission, they usually take the full commission, says
          you know.”                                        the region’s landlords are pulling out all the   an experienced tenant representation broker who has of-
                                           stops. With only a handful of tenants touring the market          fered sublease incentives. Experienced brokers who are in
                      Michael Harrison,    and a sea of space available for review, property owners          business for the long-term tend to do what’s right for the
             Equistone Partners, Oakland   are doing whatever it takes to pull brokers and companies         client regardless of incentives, the broker says.
                                           through their doors. Equity Office Properties Trust, sit-             As sexy as private jet time sounds, $25,000 is not
                                           ting on a huge vacancy in Santa Clara, is offering $25,000        worth the risk of alienating an $80 million client if the
                                           of private jet time to brokers who bring them new ten-            space doesn’t fit the client’s needs, a landlord representa-
                                           ants. Gym memberships and Napa weekend getaways are               tive says. That’s what a tenant could pay to lease Equity
                                           also on the table.                                                Office’s vacant Mission Tower in Santa Clara.
                                               Oakland broker Michael Harrison is preparing to                   “The landlords who have always treated brokers well
                                           shop for his first Rolex, courtesy of a landlord with 60,000      don’t have to play games very much,” he says. “It is the
                                           square feet that Harrison’s company recently filled.              landlords who stiff brokers in good times who have to
                                                “[Landlords] want to make the deals they can make,”          come back around and win some good will back.”
                                           says Harrison, who founded Equistone Partners in Oak-                 Not everyone agrees. Perks help building owners stand
                                           land in late 2007.                                                out in a crowded marketplace, says Equistone’s Harrison.
                                               Bonuses and incentives, which must be disclosed to            The owners and property managers of a Class B building
                                           clients under conflict-of-interest rules, are not new. Bro-       asked him what it would take to lease 60,000 square feet
                                           ker gifts, free rent and other landlord come-ons are part         coming available in the next year, he says. Aware that one
                                           of every down cycle. They are even seen in moderate mar-          of the owners had a connection to Rolex, Harrison sug-
                                           kets because of the public relations value, several brokers       gested offering watches to brokers who brought tenants
                                           say. The more unusual the perk, the more buzz for a va-           to the building.
                                           cant property.                                                        “I knew brokers would say that’s worth their time,”
                                               But, whether incentives in fact clinch deals is debatable.    Harrison says. “No one else is doing that. It’s unique.”
                                               “The only thing that means stuff to anybody is the cost           Harrison and his brokers helped fill the vacancies and
                                           of the space,” says Eugene McGrane, a broker with MCC             qualified for the incentive he suggested. Equistone lives
                                           Realty Group, Inc. in Walnut Creek.                               by its formula. The firm also owns an acquisition com-
                                               If brokers are given the choice of a reduced com-             pany that buys office buildings. At present, it is offering
                                                                                                             ski weekends in Harrison’s Lake Tahoe condo for signed
                                                                                                             leases in its buildings. Another client, who has an 8,000
                                                                                                             square-foot sublease available, has sweetened the deal
                                                                                                             with a weekend at the Carneros Inn in Napa.
                                                                                                                 Broker commissions also are up by as much as 50
                                                                                                             cents a square foot a year of a lease, Harrison says. In
                                                                                                             San Francisco, commissions are usually $1.50 a square
                                                                                                             foot for every year of a lease; they’re now $2, a 33 percent
                                                                                                             increase. In the East Bay, commissions of $1 a square foot
                                                                                                             a year have risen to $1.50, a 50 percent surge.
                                                                                                                 And, Harrison says, “It’s on the way up.”
                                                                                                                 Whether incentives clinch deals or not, it is abun-
                                                                                                             dantly apparent that Bay Area landlords are hurting.

6 theregistrysf.com   m a y 2009
                                                                An All-Star
                                                                California Lawyer                honors Pamela Duffy and
                                                                Harry O’Brien as “2007 California Lawyer Attorneys
                                                                of the Year” and Harry O’Brien and Matthew Bove as
                                                                “2009 California Lawyer Attorneys of the Year”
Average office vacancy rose to 15.4 percent in the fourth
quarter of 2008, the highest since year-end 2004, as more
companies closed or consolidated and new specula-
                                                                        San Francisco Business Times selects
                                                                             Pamela Duffy as one of “The Most Influential Women in
tive construction came to market, according to regional                               Bay Area Business” for five consecutive years
brokerage NAI BT Commercial. Some hard-hit submar-
kets, especially in the East Bay, have vacancy rates as high
as 25 percent, brokers say.
                                                                GlobeSt.com and Real Estate Forum
                                                                select Pamela Duffy as one of “Northern California’s Real Estate
    Rent growth has declined, although the overall
                                                                Women of Influence”
average asking rate was higher at year-end than a year
ago, boosted by higher-priced new construction, NAI
BT found.                                                                                            William Coblentz, Pamela Duffy,
    Adding to the gloom, occupancy and rental rates are                                         Harry O’Brien and Tay Via selected as

expected to continue to decline in the Bay Area over the                   Best Lawyers in America in Land Use
next three years, according to the January 2009 Allen                        & Zoning Law, Environmental Law and Real Estate Law
Matkins/UCLA Anderson Forecast California Commer-
cial Real Estate Survey. San Francisco vacancy is expected
                                                                Chambers           ranks Pamela Duffy
to be just short of 15 percent by the end of next year while    and Harry O’Brien as “Top Tier”
Silicon Valley’s is projected to rise to 17.5 percent. Rental
rates are expected to keep up with inflation, at best.
    In short, it’s a tenants’ market and will be for the                        California Real Estate Journal
foreseeable future.                                                     selects Tejon Ranch as a “2008 Real Estate Deal of the Year”

    Not surprisingly, however, tenant reps and landlords
don’t see the market in quite the same way. Tenant reps                                           California Academy of Sciences and
believe clients are firmly in the driver’s seat, while land-                           Westfield Centre selected as global finalists for
lords downplay the competitive environment.                                          2009 Urban Land Institute
    “Over the next few months do I think landlords
are going to be reducing brokers’ fees? No,” says Mike
                                                                                          Award of Excellence
Field, director of real estate and marketing for The So-
brato Organization, a Cupertino development firm that                   San Francisco Business Times selects
owns offices and apartments in Silicon Valley and the                       633 Folsom St. as “Best Office Lease/San Francisco” and
Pacific Northwest.                                                  California Academy of Sciences as “Real Estate Deal of the Year”

    “Do I think they are going to increase them significant-
ly? No. They are going to keep going along as they are.”
    Incentives are gimmicky but can help in a small way by
generating traffic, Field says. Sobrato is offering no incen-
tives beyond the standard commission package, he says.
    Still, both tenant and landlord reps agree that tenants
with the nerve to sign the line can make great deals, in-
cluding negotiating lengthy periods of free rent and snag-
ging help on everything from moving costs to rewiring
new space.
    “The gloves are off, you know,” Harrison says. n
                                                                         One Ferry Building, Suite 200         n   San Francisco
                                                                         415.391.4800      n   coblentzlaw.com

                           Increasingly Affordable
                                    Luxury Homes
                                            Bay area mega-mansions
                                          deflating; buyers are circling
                                                  but remain cautious.
                                                                         By aimee	Lewis	Strain	

                                                       ven the rich sometimes have to sing the real es-    have divorce, job relocation or financial reasons being the
                                                       tate blues. The housing meltdown began with         driving factors of why people sell. When the market goes
                                                       the market’s most humble—entry-level hous-          down, all those factors are emphasized—there’s more
                                           ing. Now it’s climbing up the income ladder to tweak the        pressure, more job loss, more divorce in a bad economy.”
                                           nose of the ultra rich. The not-quite-so-rich are jumping            In the $5 million-plus market, Haze says the inven-
                                           in to scoop up a bargain.                                       tory is a little scarcer because people in this price range
                                                “We’ve seen prices come down in all facets of the          tend to hold onto their properties longer as investments.
                                           market,” says Butch Haze, luxury property specialist with       They also tend to eschew the public multiple listing ser-
                                           Sotheby’s International Realty in San Francisco, Marin          vices, instead choosing to sell their homes through exclu-
                                           County and the Wine Country.                                    sive agents by word of mouth.
                                                “Price is everything. When the market was crazy and             “People are buying unique, one-of-a-kind proper-

                                                                                                                                                                         toP Photo By	CESaR	RuBiO						mIDDlE Photo By	LiZ	RiSBy						Bottom Photo CoURtESy oF SOTHEBy’S	iNTERNaTiONaL	REaLTy
                                           hot, people overlooked certain flaws. Today those proper-       ties to protect their cash,” Haze says. These very high-
                                           ties with flaws have to be priced even more aggressively. But   end luxury homeowners priced at $10 million and more
                                           when it hits the right price, we’re seeing multiple offers.”    sell and buy for different reasons than traditional luxury
                                                Haze is one of the agents representing the client sell-    homeowners, he says. Homes are sold infrequently and
                                           ing the Wallace Creek Ranch, a unique Sonoma County             usually for estate purposes.
                                           estate. The property was originally on the market for $35            Patrick Barber, a senior vice president and managing
                                           million but is now reduced to $29 million. Haze predicts        broker for Sotheby’s in Northern California, says there
                                           it will be in contract in the next few months because it is     have been very few high-priced estates on the market
                                           such a good value.                                              since Lehman Bros. went under in September.
                                                Meanwhile, the MacFarlane Penthouse, a 20,000-plus              “People in those price ranges [$10 million plus] typi-
                                           square-foot condo atop the tony St. Regis in San Fran-          cally don’t need to sell. People are worried about the mar-
                                           cisco, at one point held the city’s heftiest price tag at $70   ket and how it will be perceived.”
                                           million. Today, the asking price has dropped 30 percent to           In the Silicon Valley, Los Altos Hills and Atherton,
                                           $49 million, according to its listing on the Sotheby’s Web
                        Top to bottom:     site. Although Sotheby’s agents declined to comment on
                 Oakland Hills property    the property, citing a confidentiality agreement with its       “Price is everything.
                 Bridge Road, Berkeley
                                           owner, MacFarlane Partners CEO Victor MacFarlane, a
              The Wallace Creek Ranch,
                                           $21 million price reduction suggests a sobering adjust-
                                                                                                           When the market was
                                           ment with reality.                                              crazy and hot, people
                                                “The high-end market is down everywhere; every
                                           price range is affected,” says Peggy Cortez, with Alain         overlooked certain flaws.
                                           Pinel Realtors. Cortez, who deals predominantly in the
                                           Tri-Valley luxury market, says she’s pricing estates that
                                                                                                           today those properties
                                           went for no less than $10 million in yesterday’s market at      with flaws have to be
                                           the $7 million to $8 million range today.
                                                “People need to be realistic. A down market is a tough
                                                                                                           priced even more
                                           market to sell real estate,” says Cortez. Still, she adds,      aggressively. But
                                           “There are wonderful deals out there, prices are good and
                                           low, and now is the time to buy if you can afford it.”          when it hits the right
                                                D.J. Grubb, president and co-owner of Oakland’s The
                                           Grubb Company, says he sees activity in his area’s luxury
                                                                                                           price, we’re seeing
                                           home market, but it is driven not by a search for finery        multiple offers.”
                                           but by utilitarian needs such as a growing family.
                                                Sotheby’s Haze says the $2 million to $5 million mar-      Butch Haze,
                                           ket is where the most inventory sits. “In this market, you      Sotheby’s International Realty

8 theregistrysf.com   m a y 2009
                                                                     Has the market distorted
                                                                    your real estate business?
few luxury estates are moving, says Alex Wang with Rain-
maker Properties in Palo Alto.
    “In the past six months, there have been about a doz-
en active homes in the high-end range, but nothing is in
escrow, and nothing has sold,” Wang says.
    In the past year, there have been three listings in the
high-end price range, above $5 million, that sold, and
that was in September, before the stock market began its
nosedive in October, Wang says.
    From September 2007 to March 2008, there were sev-
en estates that sold in the range between $5 million and
$8 million compared to eight that sold in the same period
a year earlier, one of which was a $20 million estate in
Palo Alto, Wang says.
    “Relatively speaking, inventory is high, and there are
very few pending sales. I think it’s understandable; people
are scared, a lot of the people were stock-heavy or well
invested in the market, and they may have lost money for
a down payment or a move-up house,” he says.
    A 30,000-plus square-foot English Tudor-style home
in Los Altos Hills has sat on the market for more than a
year now; its price tag reads a whopping $38 million. One
year ago its asking price was $45 million. But, for a bit of
context: In 2001 the mansion was listed at $7 million.
    Real estate agents agree that buyers are circling but
remain cautious.
    Alain Pinel’s Peggy Cortez says that in some cases,
buyers and sellers are getting creative.
    One of her listings is a custom French country estate
located on 25-acres in the heart of Danville’s Blackhawk
Country Club. The 7,650-square-foot, six-bedroom home
features waterfalls, ponds, paths, terraces, gazebos and a
sport court. It is on the market for $8.5 million.
    Cortez has received offers on the property but has
noticed that the offers are not traditional, in most cases
involving seller financing. Back in the 1980s when interest
rates were 16 percent or more, Cortez says she saw a lot of
creative deals, too.
    “If people want a $5 million loan, it’s more difficult to
obtain, and it makes life a lot easier for the seller to carry,”
Cortez says. “Before, we were seeing all high-end offers
in cash, but these days, with the volatility of the stock
market, people don’t want to sell their stocks or liquefy
their assets, so they’re trying to hold on to the stock, and
then when it comes back in five years, they can pay off            With more than 55 years of litigation and trial
the seller.”                                                       experience, RMKB’s Credit Crisis and Mortgage
    Mark McLaughlin, president of Morgan Lane Marin,               Foreclosure Litigation Team is here to assist financial
Inc., says that although he is seeing fewer deals than last        and real estate professionals straighten things out
year, he believes with the stock market rebounding, the                         in these uncertain times.
real estate market should pick up, too.
    One bright spot in his mind came recently in the sale
of a $9 million Tiburon estate, which was purchased by
a Realtor. “Technically, we know the markets better than
the layperson. You wouldn’t buy that property in a declin-
ing environment.”                                                         New York         San Francisco       Redwood City
    At least, that’s everyone’s hope. n                               ph (212) 668-5927   ph (415) 543-4800   ph (650) 780-1611

                                                                        Los Angeles            Boston             San Jose
                                                                      ph (213) 312-2084   ph (617) 973-5720   ph (408) 287-6262

hEalth CaRE

                                                                                        But, this latest gift to UCSF from Atlantic does come
           Mission Bay Hospital                                                     with strings, requiring a 100 percent match from other

              Among the Living                                                      donors.
                                                                                        With plans already approved by the University of
                                                                                    California Board of Regents, the location established, and
                   Fundraising for $1.7 billion UCSF                                construction documents in process, Lima says fundraising
                      hospital is tough, but going.                                 and financing are “the final hurdle.”
                                                          By 	alfred	J.	Bru             In the current financing plan, the UCSF Medical Center

                                                                                    will fund about half of the total cost through equity and
                       t was big news in April 2007 when Mark Laret, chief          bonds. The other half will come from multiple sources
                       executive officer of UCSF Medical Center, announced          including philanthropy, children’s hospital bonds, state or
                       plans for a huge hospital complex on 14.5 acres at           other funding. “We are making good progress on all fronts
                the southern edge of the school’s life-sciences campus at           and are about one third of the way toward meeting our
                Mission Bay.                                                        fundraising target,” Lima says.
                    After all, it had been 40 years since a hospital was built          In the meantime, Wilsey and a star-studded lineup of
                in the city. And with its three-fold focus on children, women       business and civic leaders are casting a wider fundraising
                and cancer, it was to be no ordinary health complex. The            net, venturing out from San Francisco to pepper the well-
                hospital and medical center would turn Mission Bay into an          to-do in Silicon Valley with meetings and dinners, tugging
                “epicenter of advancement in health care” with global reach,        on heart strings to loosen purse strings.
                Laret said. It would be a place for scientists, researchers and         She reminds attendees that odds are that they or
                physicians to collaborate, a “destination medical center” not       someone they love will require serious medical care during
                unlike the famed Mayo Clinic.                                       their lifetimes and that they would only want to go to the     Above:
                                                                                                                                                   Rendering of
                    But six months and a global financial meltdown later,           best hospital and have the best people care for them.          UCSF Children’s
                with far smaller construction projects shelved worldwide, it            Doctors and nurses from the UCSF Children’s Hospital       Hospital at
                                                                                                                                                   Mission Bay
                seems obvious to ask: How well is this vision for an 865,000        come along to relay the miracles and tears of joy that
                square-foot complex and its 289-bed, state-of-the-art               regularly occur and how contributing to the new hospital       Below:
                hospital taking shape, given its eye-popping $1.686 billion         will ensure that children are always accepted and properly     Rendering of
                                                                                                                                                   patient room
                price tag?                                                          cared for—no matter their financial status.                    at UCSF
                    “With difficulty,” concedes Diane “DeDe” Wilsey, the                “It is a real education process for these people because   Children’s
                renowned San Francisco civic leader and philanthropist
                who voluntarily leads the team trying to raise $600 million
                in private donations despite the economy.
                     “I think everyone has felt the impact of the current
                economic crisis,” says Cindy Lima, who is overseeing the
                Mission Bay hospital project on behalf of UCSF. “However,
                                                                                                                                                                     RENDERINGS CoURtESy	oF	aNSHEN	+	aLLEN

                in times like these, bold leaders often emerge and make
                groundbreaking contributions. These people want to invest
                for the long run in something that really matters.”
                    Take The Atlantic Philanthropies in New York City, she
                says. Led by billionaire and founding chairman Charles F.
                Feeney, the organization recently pledged a $125 million gift
                to the new hospital’s development, the biggest grant ever in
                its history. It is the latest in a line of gifts from Atlantic to
                the UCSF Medical Center. Feeney, who earned his fortune
                with a chain of duty-free shops, could not be reached for

10 theregistrysf.com   m a y 2009
                                                                                                                                                    hEalth CaRE

                                                                                                                                        Rendering of UCSF Medical
                                                                                                                                        Center Mission Bay aerial view

                                                                                                                                        Rendering of Third Street Plaza
                                                                                                                                        at UCSF Medical Center

they’re not philanthropic, generally. They haven’t had their           While her confidence remains steadfast, Wilsey admits,
money long enough to be comfortable with giving it away,          “If we were in a better [economic] situation, I wouldn’t be
and that is a serious problem because they’re now losing          sweating it the way I am.” Money is also on Lima’s mind.
their money, or it is paper money, it is stock that is not        Every aspect of the UCSF Medical Center is under constant
accessible to them at the moment,” Wilsey says.                   examination to find ways to reduce cost and increase                  “I don’t sense
    Helping Wilsey connect with Silicon Valley are Dick           efficiency without sacrificing function, safety or the unique
Rosenberg, retired board chairman and chief executive             environment they seek to create.                                      from anybody
officer of Bank of America Corp.; Ron Conway, founder of               So far, Lima is pleased to report $50 million in cost            involved in the
Angel Investors LP and an early investor in Google Inc.;          reductions on hundreds of line items to keep the project in
and Douglas W. Shorenstein, chairman and chief executive          budget. One startling example: Changing the type of hinges            project that
officer of San Francisco-based Shorenstein Properties LLC,
one of the city’s and nation’s most-recognized commercial
                                                                  used on 1,800 hospital doors saved $780,000.
                                                                       “We can certainly reduce our escalation assumptions,
                                                                                                                                        there will be a
property owners and operators, just to name a few.                which drive a huge component of the cost. On the other                delay. I think
    Considering historic personal success, failure does           hand, financing is likely to be tighter. I think some people
not appear an option for this group; Wilsey alone is a            hope the economic downturn will result in huge cost savings
                                                                                                                                        we’re going to
formidable force.                                                 on this project, but it’s important to note that the hospital         be on time and
    Over the last 30 years, she has led efforts that raised       construction market in California is a unique niche,”
nearly $450 million to build the Immaculate Conception            Lima says.                                                            on budget. I
Academy on 24th Street, Grace Cathedral on California                  “Not only is there is a shortage of contractors, particularly    may get gray
Street and the new deYoung Museum in Golden Gate                  MEP (mechanical, electrical and plumbing) subs, who are
Park; Wilsey also supports such cultural entities as the San      qualified and or willing to do OSHPD (Office of Statewide             hairs, but I
Francisco Opera and San Francisco Ballet.
    Nevertheless, Wilsey says that these are “horrible”
                                                                  Health Planning and Development) work but, concurrently,
                                                                  several Bay Area and California hospitals are all on the same
                                                                                                                                        think it’s going
economic times and people are increasingly faced with the         timeline to meet the seismic law” deadline of Jan. 1, 2015,           to be fine.”
tough choice of giving to one charity or another instead of       she says.
to both.                                                               Even with such challenges, no one is uttering the dreaded        Diane “DeDe” Wilsey,
     “We have to work harder, we have to be the best story,       five-letter word: Delay.                                              San Francisco philanthropist
and we have to have the best reason,” she says. “As much as            Plans remain firmly on track to start construction
I love these other cultural things, you don’t have to go to the   in January 2010 with demolition of existing buildings.
museum, you don’t have to go to the opera or the ballet, but      Site preparation commences in May of that year, with
chances are you will at some time in your life have to go a       construction of the hospital beginning in December. Work
hospital,” she says.                                              is to be complete in time to comply with state law.
    With $222 million raised to date, the most pressing                “I don’t sense from anybody involved in the project that
goal of the fundraising campaign is to match Atlantic             there will be a delay. I think we’re going to be on time and
Philanthropies’ $125 million grant. So far, $26 million has       on budget. I think this project is going to happen exactly the
been raised, so there is a long way to go before the 2012 end     way it was intended to happen. I may get gray hairs, but I
of year deadline hits and the offer is pulled back.               think it’s going to be fine,” Wilsey says. n

                                                                                                                                       m a y 2009   theregistrysf.com 11
                                    Oakland Waterfront Poised for
                                    Change; Question Now: How?
                                    A decade after feds turn Army base over to city,
                                    property remains undone.
                                    By irwin Speizer

                                            prime parcel of commercial and industrial land on the Oakland waterfront is finally moving toward
                                            redevelopment after years of false starts and setbacks. But two teams vying for development rights
                                            are pushing very different visions, leaving Oakland city officials with a difficult choice as they prepare
                                    for hearings this summer.
                                         The old Oakland Army Base was carved up and parceled out for development a decade ago. Now the city
                                    is trying to move ahead with redevelopment plans for 108 acres that it controls beside the Port of Oakland.
                                    Although times are tough just now in commercial and industrial real estate, the city has managed to attract
                                    two aggressive and experienced teams, both eager to lock up rights. The city hopes to select a winner in the
                                    next few months.
                                         On one side is Federal Oakland Associates LLC, a joint venture between Washington, D.C.-based Federal
                                    Development and its local partner, San Francisco’s Em Johnson Interest. Federal is an international developer
                                    with 400 building sites currently under development in the United States, the Caribbean, Europe and
                                    Asia. Its projects include office, industrial, retail and residential space, and it has worked on 16 waterfront
                                    developments. Em Johnson, its partner, is primarily an urban residential developer, although it has worked
                                    on a number of mixed-use projects, including San Francisco’s Fillmore Heritage Center.
                                         The partners have submitted a plan to put more than 700,000 square feet of retail on the site. The plan
                                    includes a multi-plex theater, a ferry landing, R&D office space and a hotel and conference center looking
                                    across the bay at San Francisco. The Federal theme is to transform the long-neglected site into a
                                    gathering spot that can also generate jobs and sales tax for the city.
                                         “We think that one of the things that make cities strong is good, fun, people-
                                    places,” says David Gazek, a project executive for Federal. “Providing another
                                    one of those to Oakland is going to help the city.”
                                                                                                          the site be
                                                                                                   700,000 square
                                                                                          feet of retail or should it
                                                                                                                                                         Photo By cHad Ziemendorf

                                                                                            be designed to create
                                                                                                  long-term, good-
                                                                                                      paying jobs?”
                                                                                                                                      Phil Tagami,
                                                                                                                                 California Capital
                                                                                                                                  Group, Oakland

12 theregistrysf.com   M A y 2009
                                                                  Kwan Henmi Architecture/Planning Inc., MBH          is to make its decision and start negotiation on a           Tagami wholeheartedly agrees with retail’s
                                                              Architects and Powell & Partners Architects are all     development contract with the winner in June, and       minor role.
                                                              working with Federal Oakland Associates.                the debate promises to be lively.                            “Oakland has a retail development strategy,
                                                                  On the other side is AMB Property Corp. of San          The council’s decision is complicated by            and it is not here,” Tagami says. “We see this area
                                                              Francisco and its partner, California Capital Group     policy objectives already established for the site.     as part of the working waterfront.”
                                                              of Oakland. AMB is a global industrial developer        In its lengthy request for proposals, the Oakland            That the proposals offer such different solutions
                                                              active in 15 countries that specializes in building     Redevelopment Agency identified a series of goals       highlights the difficulty of integrating the RFP’s
                                                              and operating seaport and airport distribution          that developers must strive to meet. The first is       divergent goals. An industrial site populated with
                                                              facilities. California Capital is the development       purely aesthetic: A desire to create something of       forklift drivers is a very different place from a retail
                                                              company of Phil Tagami, a well-known Oakland            beauty and drama befitting the site, which sits on      center where consumers can shop for shoes or sip
                                                              developer who redeveloped Oakland’s Fox Theater         prime waterfront at the base of the Oakland Bay         cappuccino.
                                                              and is working to restore the abandoned West            Bridge.                                                      Whichever side wins development rights, it
                                                              Oakland train station.                                      That is precisely what Federal Development          faces years of planning. For one thing, Caltrans uses
                                                                  For AMB/CCG, the obvious theme for the              has made its focus, with a plan that draws on other     part of the site as a staging area for the Oakland
                                                              former base is to make it an extension of the           waterfront redevelopment projects around the            Bay Bridge construction project. It is not expected
                                                              Oakland port, which it views as far too powerful        country that are heavy on retail, leisure and office    to clear out for six or seven years. The site also
                                                              an economic engine to ignore. Its plan focuses          uses. For comparison, Federal’s Gazek points to         needs seismic work, including 140,000 cubic yards
                                                              on building warehouses, cold storage and other          waterfront developments in Boston, Seattle and          of fill. Much of the infrastructure expense will fall
                                                              facilities related to cargo storage and movement,       San Francisco that have become destinations for         on the city, which will have to tap multiple sources
                                                              and it envisions incorporating transportation           locals and tourists. Industrial sites simply don’t      to pay the estimated $150 million to $200 million
                                                              access for trucks and freight trains.                   have the same appeal, Gazek says.                       tab. Developer investment could run as high as
                                                                  While the plan also includes two office                 “Look at the Tagami plan,” Gazek says.              $600 million. City planners figure that under the
                                                              buildings and a hotel in later phases, its principal    “Those are large-format, single-story industrial        best circumstance, full development of the site
                                                              aim is to build industrial space and create new         buildings.”                                             could take 15 years.
                                                              port-related jobs that pay higher wages than retail.        But if those aesthetic design goals seem to              Still, as selection of a master developer
                                                              Indeed, AMB and California Capital have broader         put the California Capital and AMB project at a         progresses, it renews hope for a project that has
                                                              development aims that include land owned by             disadvantage, the project’s economic goals tilt         seen its share of setbacks.
                                                              the port, and they see the city site as part of an      the other way. From the RFP: “The site should                 The base closed in 1999 as part of post-Cold
                                                              overall port expansion project. Turning the city        be developed with strategic industries that             War military downsizing, and the property was
                                                              property into a shopping mecca ignores the site’s       are expected to grow over time and provide a            carved up for redevelopment, with 164 acres going
                                                              fundamental character, they believe.                    range of sustainable, well-paying jobs.” Several        to the city. A number of development proposals
                                                                  “Should the site be 700,000 square feet of retail   emerging business sectors and types are named           came and went over the years: a hotel and casino, a
                                                              or should it be designed to create long-term, good-     as good candidates, including film and media            ballpark for the Oakland A’s, an auto mall.
                                                              paying jobs?” Tagami says. “There is a lot more         creation, innovative green technologies, bio-tech            Over the last year, the city’s redevelopment
                                                              to be gained from slinging container boxes than         and food-related businesses. But topping the list       agency has tried to get the project back on track.
                                                              boxes of popcorn or trinkets.”                          of compatible industries is port-related cargo          The new plan for the city’s old army base included
                                                                  A city redevelopment review committee started       movement and storage.                                   several parts. The agency set aside land for the
                                                              digging into the two plans in March, holding                While the RFP mentions retail development as        Oakland Film & Media Center, conceived as a state-
                                                              separate interviews with the development teams. A       a possible component of final design, it is relegated   of-the-art film and media production facility; the
                                                              city council subcommittee will recommend one of         to secondary status “to complement the desired          Oakland Terminal Produce Market, now at Jack

                                                              the two plans to the full council in May. The council   commercial and industrial uses.”                        London Square; and a planned truck parking and
                                                                                                                                                                              service area. There are also 16.5 waterfront acres
                                                                                                                                                                              designated for public open space.
                                                                                                                                                                                   The remaining 108 acres became the Gateway
                                                                                                                                                                              Development Area. Early last year, the agency
                                                                                                                                                                              put out a request for qualifications to developers
                                                                                                                                                                              on the project; thirteen answered. That list was
                                                                                                                                                                              whittled down to four last June. ProLogis/Catellus
                                                                                                                                                                              Development Corp. and First Industrial Realty
                                                                                                                                                                              Trust subsequently dropped out, leaving the
                                                                                                                                                                              current finalists.
                                                                                                                                                                                   By this summer, one of them should have
                                                                                                                                                                              captured the prize. n

                                                                                                                                                                              The Oakland Army Base in its current state
                                                                                                                                                                              of existence

                                                                                                                                                                              Federal Oakland Associate’s proposed site plan

                                                                                                                                                                                                     m a y 2009     theregistrysf.com 13
         Bay area
                                                                                                             Without pier 70
                                                      Port maneuvers to save historic San Francisco shipyards.
                                                                                                                                       By Jessica	Saunders

         “I didn’t think
                                                         ithin about 65 acres along San Francisco’s          in San Francisco to agree the sun is shining,” says Michael
                                                         Central Waterfront, the city’s maritime past        Covarrubias, chairman and chief executive of TMG
        you could get                                    can be seen in the largest collection of historic   Partners.
                                              industrial buildings west of the Mississippi.
         68 percent of                             At the Union Iron Works Machine Shop Building,
                                                                                                                 With approval of the additional financing tool, the
                                                                                                             port is working to complete a master plan. A draft is
         the people in                        built in 1883, light streams through huge windows              expected in May, with a final version due by year’s end
                                              into the high-ceilinged, cathedral-like space. Across          or early 2010.
      San Francisco to                        the street, BAE Systems San Francisco repairs ships                A key part of the developing plan is preserving Pier
        agree the sun                         at the West’s oldest continuously operating shipyard,          70’s history. From 1885 to 1941, its yards produced
                                              which boasts the only commercial dry dock on the               Navy ships used during the Spanish-American War,
             is shining.”                     West Coast capable of serving ships too large to pass          some of the Navy’s first submarines, as well as warships,
                                              through the Panama Canal. Mega-liners like the 952-            merchant ships and destroyers used in World Wars I and
                       Michael Covarrubias,   foot Star Princess can be hauled out of the water there        II. Pier 70 manufacturers also produced gold-mining
                              TMG Partners
                                              for mechanical, navigational and interior work.                machinery, ships’ ropes, rail equipment and locomotives.
                                                   Now the Port of San Francisco is finalizing a plan        Shipbuilding ended in 1965, but the Potrero yard
                                              to create a unique new neighborhood that would                 continued to make large barges and the large steel tubes
                                              incorporate Pier 70’s present and the historic uses            that convey BART trains under the San Francisco Bay.
                                              that made San Francisco a world-class waterfront city.             In 1982, Bethlehem Steel sold the Potrero property
                                              The port’s vision includes a national historic district        to the port of San Francisco for $1. The company’s
                                              preserving dozens of structures, 20 acres of waterfront        machinery and other assets were purchased and are
                                              open space and a new segment of the San Francisco Bay          used for ship-repair operations by BAE Systems on 15
                                              Trail, plus up to 8,000 new jobs and three million square      acres leased from the Port of San Francisco. That use will
                                              feet of mixed-use development.                                 continue to be incorporated into the revitalization, says
                                                   There are daunting challenges, including cleaning         David Beaupre, planning project manager for the port.
                                              up more than a century of industrial pollution replacing           The port hopes to save about three dozen Victorian-

                                                                                                                                                                           PhotoS By	JaSON	STEiNBERG	|	STEiNBERG	iMaGERy
                                              ancient infrastructure and, not least, financing. The          era industrial buildings and structural features and
                                              port estimates revitalizing Pier 70 would take $1.9            create a National Register Historic District. But time is
                                              billion, including $425 million in public funds; ongoing       of the essence. Some buildings are already too unsafe to
                                              environmental assessments could push the costs higher.         allow people.
                                                   Yet big investments can mean bigger rewards in time.          Besides historic preservation and existing industrial
                                              More than a dozen developers have indicated interest           uses, development at Pier 70 is also constrained by state
                                              in the project, including TMG Partners, Build Inc.,            law that restricts tidelands’ use to maritime activities
                                              Wilson Meany Sullivan and Pacific Waterfront Partners,         or activities that enhance public enjoyment of the
                                              all San Francisco companies. And city voters showed            waterfront. Housing, non-maritime office and local retail
                                              their support for the proposal in November, approving a        are generally not considered public-trust uses.
                                              charter amendment to provide additional public finance             The public-trust restrictions are one reason open
                                              for Pier 70’s redevelopment. The measure passed with           space is proposed for a substantial portion of the master-
                                              68 percent of the vote.                                        plan area. The plan proposes waterfront and shoreline
                                                   “I didn’t think you could get 68 percent of the people    parks plus significant internal open spaces that would

14 theregistrysf.com    m a y 2009
                                          connect the parks and the Bay Trail.                        field work, historic preservation, waterfront open
                                              Community demand is another reason for the              space and waterfront development, with demonstrated
                                          proposed 20 acres of parks, trails and view corridors.      financial and management capability.
                                          “The Eastern Neighborhoods of San Francisco are                  Among the interested companies is 25-year-old
                                          expected to see big growth in housing but they would        TMG Partners, one of San Francisco’s largest mixed-use
                                          lack open space,” Beaupre says. Another planning issue      developers, which won the first LEED neighborhood
                                          is the miles of streets, sidewalks and utilities that are   platinum certification in September for its Emeryville
                                          150 years old, in poor condition and unable to support      Marketplace.
                                          anticipated uses, Beaupre says.                                  Pier 70 is “the epitome of what we do,” says
                                              In addition, some level of environmental remediation    Covarrubias.
                                          will be required, but not all of the property has been           With its opportunities for adaptive reuse of historic
                                          assessed.                                                   buildings, creating new open space and utilizing mass
                                              Getting the site ready for new development will take    transit through the Third Street light-rail system, the
                                          a substantial investment. The port estimates it would       project could be another opportunity for achieving LEED
                                          cost more than $600 million to deliver the open space,      neighborhood certification, Covarrubias says.
                                          rehabilitate 700,000 square feet of historic buildings,          Lou Vasquez, president of Build Inc. in San Francisco,
                                          provide new infrastructure and clean up contamination,      is interested in the project but has concerns about how
                                          Beaupre says.                                               infrastructure and environmental issues will be resolved.
                                              Developers are expected to add three million square     “There are too many obstacles for any one developer to
                                          feet of new leasable space, hoping to leverage Pier 70’s    bid on this realistically,” Vasquez says.
                                                                                                                                                                      Opposite and above:
                                          proximity to Mission Bay to lure new business.                   One developer that had expressed interest in Pier
                                                                                                                                                                      Dilapidated Pier 70
                                              Private investment will pay for a portion of the site   70 in October, Catellus Development Corp., changed
                                          prep costs, as well as development of new space, plus       its mind due to the worsening recession, spokeswoman            Below:
                                                                                                                                                                      Pier 70 Site Plan
                                          entitlement, design and permitting, and debt interest,      Jessica Crow says in an email.
                                          plus a 12 percent return to the developer, totaling              “Right now the company is focused on value creation
                                          approximately $1.5 billion, Beaupre says. Build-out is      and cash generation. It’s not glamorous, but it’s reality,”
                                          expected to take 10 years to 15 years after a three-year    she wrote.
                                          entitlement process.                                             The same can be said about Pier 70. The port’s
                                              It’s the kind of project, timeline and price tag that   planners must find a way to take reality—crumbling
                                          scares off all but the most ambitious developer. But even   buildings, polluted land, ancient infrastructure and
                                          with the poor economy, more than a dozen companies          ongoing industry—and turn it into shoreline parks and
                                          have continued to express interest. The port is still       trails, an historic district and water-view office buildings.
                                          working on its selection process, Beaupre says, but it      They have a lot to work with and a lot working against
                                          expects at minimum to require experience in brown-          them. n

                                                                                                                                                                               m a y 2009   theregistrysf.com 15
          Bay area

                                    San Jose Soccer Land re-trading
                                    Developer lew Wolff and partners want the city of San Jose
                                    to back off a $2 million-an-acre price.
                                    By Sharon	Simonson

                                                                                  he collapse in asset values is forcing the city of San Jose to re-price
                                                                                  66 acres it owns on the western edge of its international airport.
                                                                                  Last July, developers Lew Wolff, Deke Hunter and Ed Storm agreed
                                                                            to pay the city $132 million for the property. Now, the men say the price
                                                                            of 10 months ago is too high and the terms too onerous. They want to re-
                                                                            negotiate, and the city is mulling their request. Wolff, who co-owns the
                                                                            Oakland A’s, wants the site to build a soccer stadium for his other sports
                                                                            venture, the San Jose Earthquakes. Hunter and Storm, successful regional
                                                                            developers, propose a huge office complex, shops and hotels.
                                                                                The property, if by virtue of nothing else, is notable for its size and
                                                                            location. It’s also notable for the people who want to develop it and what
                                                                            they wish to put there. But the land is important for another reason. Along
                                                                            with a proposed BART station, the new development is the centerpiece of

    “It’s arguably the best                                                 a 432-acre plan to re-form a dirty, mostly industrial tract—reminiscent of
                                                                            Silicon Valley 30 years ago—into a modern, connected, urban node.
    piece of real estate                                                        Not only is the San Jose airport undergoing a $1.5 billion renovation
                                                                            and expansion, set to be completed next year, but the area is slated to
    left in Santa Clara                                                     become a huge transit hub with rail links to the peninsula, San Francisco,
    County because of                                                       the far South Bay, the East Bay and all of Silicon Valley.
                                                                                Besides the stadium, the cities of San Jose and Santa Clara, which
    the transportation                                                      share the 432 acres, anticipate adding more than 2,500 homes and another
    infrastructure.”                                                        five million square feet of offices and commercial space. To build transit
                                                                            ridership, housing densities in some locations will be 90 units an acre,
                                                                            pushing heights to those of downtown San Jose.
    Deke Hunter,
    Hunter Storm, Cupertino                                                     The San Jose council’s vote May 5 will reflect the high hopes it has
                                                                            for what it calls the Airport West site and the confidence that members
                                                                            have that Wolff, Hunter and Storm can deliver on their promises. The
                                                                            terms should lend insight into how quickly and smartly three prominent
                                                                            developers expect Bay Area economic recovery, and at the crux of the deal
                                                                            will be money.
                                                                                                                                                            PhotoS By	CHaD	ZiEMENDORF

                                                                                The city owes more than $100 million to the U.S. Department of
                                                                            Housing and Urban Development as well as others on the land. It’s paying
                                                          Top to bottom:
                                         Airplane coming in for landing     the annual $7.5 million in estimated debt service from its general operating
                                        at San Jose International Airport   and airport funds, both of which are cash strapped. The city’s goal will be
                                       with redevelopment land that has
                                           been cleared for construction
                                                                            to push as much of the annual debt cost to the developers as it can while
                                                                            keeping alive the hope that they can profitably buy and transform the land
                                         Santa Clara train station on the
                                           right and downtown San Jose
                                                                            once the economy rebounds.
                                                     in the background          That wait could prove a long one.
16 theregistrysf.com   m a y 2009
                                              In exchange, the developers are promising the city $7 million up front                                                                                                                                                                       to oversee land planning around the station in anticipation of BART’s
                                         to buy 14 acres for the stadium, which they plan to begin by 2012. That’s                                                                                                                                                                         arrival. A draft environmental impact report is to go public in late April,
                                         $500,000 an acre, or 25 percent of what the city had hoped to get for the                                                                                                                                                                         after which it should be adopted by both San Jose and Santa Clara, likely
                                         same land as recently as May 2008. The developers also will forward $7                                                                                                                                                                            later this year, he says.
                                         million in option payments to hold the remaining 50.5 acres for four more                                                                                                                                                                              But the Santa Clara station construction is not on the VTA’s priority
                                         years. The option payments are non-refundable and do not apply to the                                                                                                                                                                             list. Instead, the agency is focused on getting an initial round of $750
                                         purchase price.                                                                                                                                                                                                                                   million in federal funds to complete the first two South Bay BART stations
                                              “It’s arguably the best piece of real estate left in Santa Clara County                                                                                                                                                                      to Milpitas and east San Jose’s Berryessa neighborhood, Slayer says. At $2
                                         because of the transportation infrastructure,” Hunter says. It also benefits                                                                                                                                                                      billion, this 10-mile extension is relatively cheap compared to the $4 billion
                                         from access to cheap power and redundant Internet connections.                                                                                                                                                                                    cost of the remaining six miles—five miles of which are underground and
                                              For the stadium, the airport means valuable naming rights, says Wolff.                                                                                                                                                                       very expensive to build.
                                         Besides road traffic, a sponsor with a roof ad could reach the 10 million                                                                                                                                                                              Still, Slayer says the Santa Clara BART station will happen, even if it
                                         passengers that fly in and out of San Jose annually. His partnership is                                                                                                                                                                           isn’t fast. “It may take longer than planned, but it will get built,” he says. “It
                                         relying on the sale of such rights to help finance the stadium construction,                                                                                                                                                                      would be political suicide for VTA if it didn’t.”
                                         Wolff says.                                                                                                                                                                                                                                            Meanwhile, San Jose real estate appraiser and consultant Jeff Fillmore
                                              But neither developer is looking to move fast. “Right now, sponsors                                                                                                                                                                          of The Fillmore Group says there is no question that valley land values are
                                         are hard to come by,” Wolff says. The offices, shops and hotels he imagines                                                                                                                                                                       falling across the board. Weak tenant demand, lots of new construction
                                         for the city’s site could take another decade or more to materialize, Hunter                                                                                                                                                                      and investors’ search for higher returns are pushing Silicon Valley
                                         adds.                                                                                                                                                                                                                                             industrial land prices down, too. He counts more than five million square
                                              Hunter and Storm already own 24 acres between the proposed Santa                                                                                                                                                                             feet of new Class A office and R&D space in Silicon Valley that is either
                                         Clara BART station and the city’s property, making them an even more                                                                                                                                                                              standing, nearly up or permitted. Hundreds of thousands of square feet

                                              ACE TRAIN                           Y.
                                         obvious—and perhaps compelled—buyer.  PW
                                                                                                                                                                                                                                                                                           of new buildings in various valley locations have no signed tenants at all,

                                            TO STOCKTON                      EX
                                                                                                                                       SED B

                                              But nothing in that ownership speaks of speed, either. The 24 acres are                                                                                                                                                                      he says. A notable exception is a 562,000-square-foot campus built by
                                                                                                                                        ART EX


                                         occupied by an older R&D building leased to British defense, aerospace                                                                                                                                                                            Hunter and Storm in North San Jose. Brocade Communications Systems

                                         and security company BAE Systems Inc. until 2021, Hunter says. After
                                                                                                 101                                  680                                                                                                                                                  Inc. is planning to take all of it and may buy more.
                                         that, he expects his company would go forward with redeveloping the
                                                                             SAN JOSE
                                                                             AIRPORT                                                                                                                                                                                                            “We have had rental rate declines of 10 percent to 15 percent, and cap
                                         site, but he is not emphatic. He jokes that the investment might benefit his
                                                                                 CO                                                             AV
                                                                                                                                                   E.                                                                                                                                      rates have gone up 10 to 15 percent. That’s a tremendous change, and all of
                                                   Clara                            LE
                                                                                        AN                                                 RO
                                         grandchildren more than himself or his children.
                                                EL CAMINO REAL
                                                                                              E.         San Jose                    AL
                                                                                                                                        UM                                                                                                                                                 that needs to come out in land value,” Fillmore says. Cap, or capitalization,
                                              Indeed, the timeline for the Santa Clara BARTT. station is vague, says
                                                                                                                           D BA
                                                                                                                                                                                                                                                                                           rates are an expression of yield based on the ratio of annual net operating
                                                                                                                      RO      RA
                                         Oxo Slayer, a consultant to the Valley Transit CAuthority who is helping
                                                                                                                                                                                                                                                                                           income to purchase price. Beyond that, holding costs and development

                                                                                                                                                                                                                                                                                           risks are rising, pushing land prices lower still.
                                                                         880    CALTRAIN                                 San Jose                                 280
                                                                                                                                                                                                                                                                                                Given such dynamics, it’s very hard to predict how soon a developer

                                             N Map not to scale                 TO GILROY
                                                                                 ACE TRAIN                                        PW
                                                                                                                                        Y.                                                                               101

                                                                               TO STOCKTON                                      EX
                                                                                                                                                                                                                                 SED B

                                                    CalTrain                                             MO
                                                                                                                                                                                                                                                                                           would be able to justify putting shovel to dirt on new office buildings,
                                                                                                                                                                                                                                   ART EX


                                                                                                                                                                                                                                                                                           he says.

                                                    ACE Train

                                                                                                                                                                                                                                                                                                Properly juggling such factors and, most importantly, pricing them

                                                    Proposed BART
                                                                                                                                                                      101                                                                                                                  680
                                                    Bus Routes                                   AIN
                                                                                                                                SAN JOSE
                                                                                                                                AIRPORT                                                                                                                                                    right, is the difference between a successful developer and one who is
                                                                                                          S   F
                                                    Proposed                          Santa                                            CO                                                                                                                                                  decidedly less so. n
                                                    BART Stations                     Clara                                              LE

                                                    Santa Clara Transit
                                                                                  EL CAMINO REAL
                                                                                                                                                              E   .                                  San Jose                                                                          AL
                                                                                                                                                                                                                                                                                          U   M

                                                    Station (ACE,CalTrain)                                                                                                                                                                   T
                                                                                                                                                                                    87                                                     AR
                                                                                                                                                                                                                                        DB     T.
                                                                                                                                                                                                                                   RO       AS
                                                                                                                                                                                                                                RG        AR

                                                    Proposed                                                                                                                                                                  DE       CL
                                                                                                                                                                                                                           UN        A                                                                                                                                                                                                         Draft Station Area Plan

                                                    Redevelopment Area                                                                                                                                                         SA
                                                                                                                                                                                                                                                                                                                                                                                                                                               July 30, 2008

                                                                                                                                                                                                                     REED ST
                                                                                                                                   880                         CALTRAIN                                                  San Jose                                 280
                                                                                N Map not to scale

                                                                                                                                                               TO GILROY                                                                                                                                  101                                     Pedestrian connection to Downtown Santa Clara with retail
                                                                                                                                                                                                  LA C

                                                                                                                                                                                                                                                                                                                                                                                                                                                             Medium Density

                                                                                                                                                                                                                                                                                                                                                  and public activity nodes

                                                                                                                                   REED ST                                                                                                                                                                                                                                                                                                                   (12-20 hu/ac)


                                                                                                                                                                                                                                                                                                                                                  Mixed-use development with hotel focus                                                                     Medium/High Density

                                                                         Top to bottom:                                                                                                                                                                                                                                                                                                                                                                      (20-50 hu/ac)

                                                                                    ACE Train


                                                                                                                                                                                                                                                                                                                                                                                                                                                             High Density

                                                                  The airport site is the BART

                                                                                                                                                                                                                                                                                                                                                  Courtyards/pocket parks within residential development

                                                                                                                                                                                                                                                                                                                                                                                                                                                             (50-90 hu/ac)

                                                                   epicenter of various                                                                                                                                                                                               COLEMAN AVE                                                 Potential East-West Connection
                                                                                                                                                                                                                                                                                                                                                                                                                                               Mixed Use

                                                                                    Bus Routes
                                                                  rail and bus systems.                                                                                                                                                                                                                                                                                                                                                                      Industrial/Commercial/



                                                                                                                                                                                                                                                                                                                                                                                       Central boulevard/pedestrian

                                                                                       BART Stations                                                                                                                                                                                                                                                                                                                                                         Commercial/Hotel
                                                                  Redevelopment plan

                                                                                                                                                                                                                                                         BART                          CE
                                                                                                                                                AL                                                                                                                                         NT
                                                                                                                                         RE                                                                                                              Station                              ER
                                                                                                                                                                                                                                                                                                                                                                                       connection (conceptual alignment)

                                                                                                                              IN                                                                                                                                                                        ET                                                                                                                                                   Residential
                                                                                       Santa Clara Transit
                                                                                                         C                 AM
                                                                                                      EL                                                                                                                                                                                                                                                                                                 Norman Y. Mineta
                                                                                       Station (ACE,CalTrain)                                                                                                                  Caltrain                                                                                                                                                                    International

                                                                                                                                                                                                                            EL Station                                                                                                                                                                        Airport

                                                                                                                                                                                           E A



                                                                                                                                                                                                                                                                                                                        SANTA CL AR A

                                                                                                                                                                                                                                   M                                                                                                                                        CO

                                                                                                                                                                                                                                    IN                                                                                                                                           LE                                                            Non-Residential
                                                                                       Redevelopment Area
                                                                                                                                                                                                                                                                                                                          SAN J OSE


                                                                                                                                                                                                                                             O                                                                                                                                        MA

                                                                                                                                         T                                                                                                           R                                                                                                                                                                                                   Ground Floor Retail



                                                                                                                                                                                                                    ST                                                                                                                                                                        E


                                                                                                                                                                                                            N                                                                                                                                                                                                                                                Light Industrial
                                                                                                                                                                                                                                                                                                                                                                                                                                                             Future BART Facilities
                                                                                                                                                                                                                                                                                                                                        BART Maintenance
                                                                                                                                                                                                                                                                                                                                        Facility                                                                                                             Public/Institutional/
                                                                                                                                                                                              T                                                                                                                                                                                                                                                              University

                                                                                                                                                                                                                                                                                                                                                                                                                                                             Parks & Open Space


                                                                                                                    Santa Clara                                                                                                                              Mixed-use                                                                                                                                                                                       Caltrain
                                                                                                                                               RD                                                                                                            development
                                                                                                                                       EAD                                        ST
                                                                                                                              M  EST                                        N                                                                                with residential                                               Stephen Schott
                                                                                                                           HO                                            TO
                                                                                                                                                                      ING                                                                                                                                                   Stadium (SCU)                                                                                                                    Automated People
                                                                                                                                                                LEX                                                                                          component                                                                                                                                                            88

                                                                                                                                                                                         ST                                        ST                                                                                                                                                                                        TE
                                                                                                                                                                                   RA                                          T                                                                                                                                                                                          A


                                                                                                                                                                               LA                                           KE                                                                                                                                                                                           T

                                                                                                                                                                            AC                                       MA
                                                                                                                                                                                                                                                  TH                                                                                                                                                                  RS                                     Activity Node

                                                                                                                                                                        T                                                                                E                                                                                                                                                         TE


                                                                                                                                                                                                                                                             AL                                                                                                                                                  IN
                                                                                                                                                                                                                                                                            Station A ius


                                                                                                                                                                                                                                                               AM                                                                                                                                                                                            Potential East-West
                                                                                                                        E S



                                                                                                                                                                                                                                                                   ED                                                                                                  BE


                                                                                                                                                                                                                                                                            ½ Mile Ra                                                                                                                                                                        Connection




                                                                                                                                                                                                                                                                                                                                                                                  E                                                                          Below Grade


                                                                                                                                                                                                                                                                                                                   Area of scale/




                                                                                                                                                                                                                                                                                                                   density transition
                                                                                                                                                                                                          E S



                                                                                                                    5                                                                                                                                                                                                                                            LL                                                                                          Primary Arterial
                                                                                                                                                                             0 100         350                700                             1400                                                                                                             HA
                                                                                                                    10 Acres                                                                                  FEET                                                                                                                                          EW
                       Designing Education
              the stunningly green prefabricated
                      buildings of Project FRoG.
                                                                By Crawford	Frazer

                                                        he Bay Area has steadily built a      ultimate expression of “smart building,” a        Top to bottom:
                                                        reputation for leading the coun-      new buzzword in the construction indus-           City College of
                                                                                                                                                San Francisco
                                                        try’s green-building revolution.      try to describe a standardized construction       Ocean Campus
                                             Now, one San Francisco design firm aims          process that is user-centered, energy-effi-       at the Ofalea
                                                                                                                                                Family Center
                                             to take environmentally friendly design to       cient and largely green.
                                             even loftier heights—improving education             A venture capital-backed startup, Proj-       The Jim Russell Racing
                                                                                                                                                Drivers School and
                                             by re-inventing how school buildings are         ect FROG announced in November that it            Audi Experience at
                                             designed.                                        had closed an $8 million round of funding         Infineon Raceway
                                                                                                                                                in Sonoma

                                                                                                                                                                         toP PhotoS By	JaCOB	ELLiOTT							Bottom Photo By	JaSON	STEiNBERG	|	STEiNBERG	iMaGERy
                                                 Project FROG is the brainchild of ar-        led by RockPort Capital Partners, a venture
                                             chitect Mark Miller, the company founder.        firm that specializes in clean-tech compa-
                                             While Miller describes his background as         nies. RockPort has offices in Menlo Park
                                             conventional, his company’s designs are          and Boston.
                                             anything but.                                        Miller conceived the Project FROG
                                                 “We make kits,” Miller says, “a catalog      model because he wanted to “develop a
                                             of interchangeable parts” that can be mixed      value system around proven facilities that
                                             and matched to create an environmentally         are fast, inexpensive and high quality.” He
                                             and structurally sound building, theoreti-       began with steel frames able to withstand
                                             cally of any size, to meet a client’s specific   110 mile per hour sustained winds. He says
                                             needs. There are also choices of color, types    they are “the most advanced and safest of
                                             of windows and exterior materials such as        any classrooms.” Of equal importance was
                                             wood, metal and glass.                           the desire to design buildings that interact
                                                   Rather than actually supplying the         positively with the environment. The pro-
                                   Below:    parts, Project FROG supplies the license         cess is intended to leave as small a footprint
                Mark Miller, architect and   for its design. “Every piece of our system is    as possible from the beginning, by eliminat-
                 founder of Project FROG
                                             digital,” Miller says.                           ing excessive transportation of materials, to
                                                 Project FROG sends the design infor-         the end. “All of our materials are recyclable,”
                                             mation electronically. Then local compa-         Miller says.
                                             nies produce the parts themselves, and con-          Moreover, the buildings are designed to
                                             struction workers snap the parts together        help children learn better.
                                             on-site. There is nothing to cut or hammer.          The intended effects are partially
                                             “All of the parts precisely fit,” Miller says.   achieved by what Miller calls “passive de-
                                             “Thousands of manufacturers around the           sign.” The company investigates every facet
                                             country can make these.”                         of a new building’s site to determine what
                                                 Project FROG says its products are the       will work best.

18 theregistrysf.com   m a y 2009

    “We look at the macroclimate of tem-         FROG may help in perhaps the biggest              of the U.S. Green Building Council’s Green-
perature, latitude and longitude. We study       challenge facing schools: money. NBCC             build International Conference and Expo in
data about solar performance,” he says.          raises funds by any means possible, from          November 2008.
    They might then determine, for exam-         the California Board of Education to private           Project FROG’s abbreviated construc-
ple, the appropriate window configuration        foundations and corporate grants.                 tion time is a competitive advantage no
to work with natural light for both vision           “When you look at what North Bay Chil-        matter the application, Fisher says. When
and heating purposes, and which windows          dren’s Center is doing and who we appeal          you custom-design a structure there is a
should open to create the best airflow. The      to,” Gilmore says, “I think Project FROG          long pre-construction process. With Proj-
process even goes so far as to determine         will help expand our donor base.”                 ect FROG, “all of the design and engineer-
that a kindergarten classroom might need             NBCC’s goal is to have a 15,000-square-       ing has been done,” he says.
shaded windows to keep students focused          foot campus with 10 FROG buildings.                     “You would probably double, if not tri-
inward. Fred Yeager, the assistant director          While FROG is concentrating on edu-           ple, the [construction] time for a similarly
of the School Facilities Planning Division       cation initially, their buildings are in no way   specified structure” that was built entirely
for the California Board of Education, says      limited to that sector. The word FROG is an       on site, he says.
research has shown that existing classrooms      acronym that stands for “Flexible Response             Contrary to popular belief, Fisher says
often suffer multiple flaws: insufficient day-   to Ongoing Growth.” Alex Fisher, business         construction firms do not want to linger on
light, bad acoustics and poor sightlines.        development director for Fisher Develop-          every project to boost profit. “We like to get
     “A lot of the schools are old…and may       ment Inc., a national general contractor          in and get out, so our people can move on”
not be energy-efficient,” he adds.               and construction manager headquartered            to complete other jobs.
    But an even bigger problem is the num-       in San Francisco, says his company sees                Fisher breaks ground this spring on its
ber of portable classrooms, he says. He          economic opportunity in the Project FROG          first Project FROG installation at the Wat-
estimates that 30 percent to 40 percent of       offering and is working to put the product        kinson School in Hartford, Conn. It will
California students are taught in portables.     in front of potential clients.                    have three interconnected FROG class-
That needs to change, he says.                       “I think there is a tremendous opportu-       rooms totaling 5,000 square feet.
    Project FROG building plans are pre-         nity for FROG in retail and across the com-            One might expect the current economic
approved by the Division of the State Ar-        mercial market. I see office, biotech—the         climate to seem daunting to any design firm,
chitect. With the certification, the company     applications are almost unlimited,” Fisher        but Miller remains optimistic. He notes that
can get a permit to construct a new school       says. “They are focusing on education, but        schools—or any customers—may or may
building in two weeks, Miller says.              these structures excel in any application         not want to go green, but if they do, Project
    Still, whether the state’s schools adopt     where human performance matters.”                 FROG “is the least expensive, best option.”
Miller’s vision on a wholesale basis remains         Fisher’s clients include big names in         He sees the current decline in building as
to be seen. Budget projections for school        the retail world including San Francisco’s        an advantage in one sense: extra time to
facilities are determined in each district,      Williams-Sonoma Inc. and German retailer          explain their product and vision before the
Yeager says, and they plan building needs        Hugo Boss AG.                                     next wave of construction begins.
anywhere from five years to 10 years in ad-          Fisher constructed a Project FROG                  “Environmental issues are here to stay,”
vance. That means very limited funds are         demonstration classroom outside the Bos-          Miller says. “We have a farther horizon”
available when schools suddenly discover         ton Convention Center to greet attendees          than today’s economy. n
they need more classrooms for an upcom-
ing school year.
    “That’s why we have these portables,”
Yeager says.
                                                 “I think there is a tremendous opportunity
    Susan Gilmore, main campus executive         for FRoG in retail and across the
director for the North Bay Children’s Cen-
ter in Novato, a private nonprofit childcare     commercial market. I see office, biotech—
agency, says they have high hopes for the        the applications are almost unlimited.
benefits of their new Project FROG build-
ings. Their current facilities are used por-     they are focusing on education, but these
table classrooms. She expects the Project
FROG design to provide “a much healthier
                                                 structures excel in any application where
environment.”                                    human performance matters.”
     Gilmore plans to use the actual Project
FROG buildings as a learning tool about the      Alex Fisher,
environment. But she also believes Project       Fisher Development Inc.

                                                                                                                               m a y 2009    theregistrysf.com 19
lEGal & GoVERNmENt

       Carbon Caps Land
       New laws reducing greenhouse-gas emissions control
       how land can be developed in California.
       By Tay	C.	Via

                   he nation is watching California as it implements Senate     gets based on quantifiable measures. Together with other pending
                   Bill 375, the state’s new anti-sprawl measure. Governor      changes to CEQA, it begins to supplant traditional transportation
                   Schwarzenegger calls the law “the most sweeping revi-        studies and levels of service analysis with a new approach based on
       sion of land-use policies since Gov. Ronald Reagan signed the Cali-      vehicle miles traveled.
       fornia Environmental Quality Act.” Detractors say that it invites            However, many experts emphasize the legislation’s limits and
       litigation, creates more bureaucracy and does not do enough to           the compromises made to gain broader support. The legislation
       curb greenhouse-gas emissions. It is too early to declare a debate       only requires that a transportation project be consistent with the
       winner, but here are highlights and issues to watch.                     regional plan and does not assign priority for the long list of proj-
            The law implements the state’s major greenhouse gas emission        ects competing for the state’s annual $5 billion in transportation
       reduction law, AB 32, adopted in 2006. AB 32 proposes carbon-            funds. Local elected officials also run regional planning agencies
       emission reductions by increasing new vehicles’ fuel efficiency,         and are subject to significant political pressure in making funding
       cutting the carbon content of fuels and altering land use and trans-     decisions, all of which may undermine SB 375.
       portation patterns to reduce vehicle miles traveled. SB 375 focuses          The CEQA exemption is limited. To qualify, a development
       on land use by giving local government and developers incentives         must, among other things, be consistent with the regional plan,
       to build high-density projects near public transport through the         be located within a half mile of a major transit stop or high-quality
       following process:                                                       transit corridor, contain a minimum 50 percent residential compo-
       • The California Air Resources Board sets regional targets for           nent, consist of fewer than 200 residential units, be located on a site
          greenhouse-gas emissions linked to land uses;                         of not more than eight acres and meet specified affordable-housing
       • Each regional land-use authority (the Association of Bay Area          or open-space requirements. While eligibility for the streamlining
          Governments and the Metropolitan Planning Commission in               process is broader, it is also subject to numerous caveats.
          the Bay Area) creates a plan to meet the targets;                         What is next? Expect at a minimum fascinating political and
       • Transportation projects and programs must jibe with the region-        legal theater. The California Air Resources Board is required to
          al plan to receive state transportation funding. The regional plan    produce the draft targets by June 30, 2010 and to adopt the final
          is also coordinated with the regional housing-needs allocation        version by September 30, 2010. The key issue is how aggressive
          process;                                                              the targets for each region will be, and lobbying will be intense.
       • CEQA streamlining, and, in some cases, exemptions are available        Many observers believe that the board will take political cover by
          for projects consistent with the regional plan.                       focusing on other aspects of AB 32 and adopt conservative targets,
            The legislation reflects compromises made to win the support of     particularly with respect to the more recalcitrant regions.               Below:
                                                                                                                                                          San Jose
       environmentalists, home builders, local governments, the Califor-            One of the most efficient ways to meet the law’s objectives           Diridon
       nia League of Cities and the California State Association of Coun-       would be to prohibit or substantially restrict growth in a large          development
                                                                                                                                                          with the train
       ties and affordable-housing representatives. These groups success-       number of cities that are not located near transit or jobs. While         entering
       fully lobbied for limits on CEQA streamlining, quicker rezoning of       that would coincide with the no-growth stance of some jurisdic-           the station
       identified housing sites, retaining local control and affordability as
       a requirement for CEQA relief. The California Chamber of Com-
       merce and commercial builders oppose the law because it does not
       address commercial projects, and certain local authorities are re-
       sisting the move toward regional decision-making.
            SB 375 contains novel provisions. It is the first legislation to
       address carbon emissions from the demand side and marks the
       first time that transportation and planning will be subject to tar-
                                                                                                                                                                           Photo By	CHaD	ZiEMENDORF

                      Regardless of whether
                        SB 375 lives up to its
                    promise, developers face
                    a changing environment.

20 theregistrysf.com    m a y 2009
                                                                          New Name – More Member Benefits
tions, others will vigorously oppose growth limits. There are some
metropolitan-area cities that should grow, but that resist additional
                                                                              NAIOP San Francisco Bay Area Chapter
density. The law’s emphasis on development that is more urban and
                                                                            membership includes more benefits than ever
transit friendly is not universally embraced, and the Internet is re-
                                                                          before. Our organization provides access to issues
plete with blogs decrying the “elitist, anti-suburban” measure. The
                                                                                        vital to your business:
targets will be met with opposition and possibly with lawsuits.
    Once the targets are adopted, the regional agencies will prepare
the regional plans to coincide with the next Regional Transporta-         •     Response to the credit and capital crisis
tion Plan update, scheduled for adoption in March 2013. This is           by providing trends and studies to the
where local jurisdictions will work with the regional agencies to         government on the vital role commercial real
identify preferred development patterns and locations. Again, we          estate plays in the economy
can expect opposition, and possibly litigation, as the plans are de-      •      Protecting your interests with strong
veloped and approved.                                                     advocacy efforts that safeguard you from
    Various groups are working on legislation to address the law’s        public policies adverse to commercial real
shortcomings, and this may present an opportunity. Commercial             estate
interests are working on a bill to extend CEQA benefits to com-
mercial projects. Urban-infill advocates are considering how to
                                                                          •     Timely economic insights and
                                                                          information on surviving tough markets and
broaden the CEQA exemption and provide other legal and financial
                                                                          being prepared for the upswing, presented by
incentives for developing infill near transit. The major environmen-
                                                                          seasoned industry veterans who have endured
tal groups have fiercely opposed CEQA streamlining, and for now,
                                                                          past downturns
will likely resist further reforms. However, the concern over car-
bon emissions and the promise of infill development may ultimately        •     Exceptional member services including
create an alliance for additional reform.                                 professional development resources and
    Many states and localities across the nation are beginning to         support during the uncertain economic climate
look at California’s law as a potential model. Advocates are at-
tempting to elevate the legislation to the national level, where it
could be leveraged by prioritizing federal transportation money.                 42 Years of Partnership with
    Regardless of whether SB 375 lives up to its promise, develop-                  Successful Developers
ers face a changing environment. Especially in metropolitan areas,
constituents are slowly beginning to counter not-in-my-back-yard             Chapter membership is comprised of the Bay
sentiment about density with concerns about the impacts of vehicle           Area’s leading owner/developers and a wide
miles traveled. For projects not located sufficiently close to transit,     variety of service providers. We offer members
developers will encounter increasing pressure to fund transit links            access to the following areas of interest:
to extend the regional system. These factors, in combination with
growing market preferences for green and transit-friendly housing
products, will continue to increase the value of infill sites.               • Networking
    In the short-run, however, concerns over the economy and the             • Education
extent of the credit crunch threaten to undermine SB 375. Devel-             • Legislative Affairs
opment is at a stand-still, and the risks and costs of infill devel-
opment create special challenges that SB 375 alone will not solve,
even when the market recovers. This is the time to lobby federal,
state and local governments to encourage infill development by re-
                                                                             For more information on membership, go to
ducing exactions and/or deferring the payment period, minimizing
                                                                             www.naiopsfba.org or contact Rob Bickel at
the length and risk of the entitlement processes and implementing
creative financing mechanisms. For developers, this is the time to
influence federal and state-level follow-on legislation to SB 375 and
work with local jurisdictions on these reforms so that infill devel-
opment can be accelerated as the economic climate improves.
    The fluid regulatory landscape presents new challenges for real
estate professionals. While most land-use decisions will remain
primarily local, the regional, state and federal planning and appro-
priations processes have increased relevance. With transportation
funding and CEQA incentives tied to a larger process, we will all
need to understand and influence where regional plans encourage
growth, how transit funds are allocated, and where transit facilities
are located. The outcome of the law’s implementation is uncertain,
but the playing field has expanded, and to succeed, we will need to
develop new knowledge, skills and relationships. n

Tay C. Via can be reached at 415.391.4800 or TCV@cpdb.com.

                                                Forgetting History
                                         San Francisco makes restoring historic
                                           properties difficult and expensive.
                                                                 By 	Sasha	Vasilyuk

                                                or the last 13 years, owners of San Francisco’s historic buildings have been
                                                entitled to a significant tax break touted as the most important in California.
                                                But with pricey entry fees, lack of publicity, layers of bureaucracy and
                                      alleged resistance from within the city government, only four property owners
                                       have been able to receive it.
                                             Adopted in San Francisco in 1996, The Mills Act was created by the state
                                          to provide qualified historic properties with a reduction in property taxes—
                                           up to whopping 50 percent—in exchange for owners’ agreements to
                                            restore and preserve the buildings. While the city only garnered four
                                             applicants during those years, in Los Angeles over 400 properties
                                              benefited from the program in the same time. Even in Oakland,
                                               where the Mills Act had been adopted only last August, the

                                     “If your building doesn’t already have
                                    a historic status, it’s quite an application
                                                                                                                                  PhotoS By JaSON	STEiNBERG	|	STEiNBERG	iMaGERy

                                    process. It took me over three years to
                                     get it, which is why nobody bothers.”
                                                            Chris Yerke, Restoration Workshop

22 theregistrysf.com   m a y 2009
city received 21 applications and is currently considering 10 of them.
    So, what’s amiss in San Francisco? According to Charles Chase of the Historic
Preservation Committee, city officials concerned about their cash-strapped coffers
purposefully don’t advertise the program.
    “The concern has been that this would be a large reduction in their revenue, when
in fact the type of properties that take advantage of this is relatively small in number in
comparison to taxable properties in the city,” says Chase.
    Historical properties qualified for the act’s benefits include designated city landmarks
pursuant to Article 10 of the San Francisco Planning Code and structures listed in the
National Register of Historic Places. Out of roughly 150,000 buildings in San Francisco,
3,000 of them, or 2 percent, are qualified. Properties that are not currently qualified may be
submitted to the National Register of Historic Places prior to applying for the incentive.
    Unfortunately, that step makes an already arduous process even longer, according to
Chris Yerke, who received the tax break for the Spencer House, a Victorian home at 1080
Haight St., previously used as a bed-and-breakfast.
    “If your building doesn’t already have a historic status, it’s quite an application process,”
says Yerke, a general contractor who also owns a historic restoration company, Restoration
Workshop. “It took me over three years to get it, which is why nobody bothers. You have to
put up front a $3,800 application fee, which is not exactly a very user-friendly way of getting     THE	MiLLS	aCT		
going. Once you’ve done that, you have to wait and wait and wait for them to take in the            iN	SaN	FRaNCiSCO
application. It’s an extremely cumbersome process.”
                                                                                                    • The Mills Act contracts are for a
    Since Yerke applied for The Mills Act four years ago, the application fee has gone up
                                                                                                     minimum of 10 years during which
dramatically. It now costs $16,817 for commercial properties and $8,412 for residential
                                                                                                     time the owner is entitled to an
properties. Meanwhile, in Oakland, the application fee is a mere $400. Former applicants
                                                                                                     annual reduction in property taxes
say a sliding scale would make more sense as the financial benefits of The Mills Act vary
widely with the size of the property.                                                               • Application fee is $16,817 for
    “Our fees are based on full cost recover. It takes some time to complete the process,”            commercial properties and $8,412
says Mark Luellen, the planning department’s preservation coordinator.                                for residential properties

    Yet even with such a long, costly process, former applicants agree that The Mills Act is        • The Mills Act provides for as much as
worth it. The city’s pioneering applicant, Alice Carey, who owns the historic preservation            a 50% reduction in property taxes
architecture firm Carey & Co. Inc., has been promoting it to many of her clients. “I                • There have been four successful
think it’s really important for us to have any incentive that’s available for us,” she says.          applicants in San Francisco since the
“I think it should be used more than it is. It’s definitely worth it.”                                city adopted The Mills Act in 1996
    Carey, who saved more than 40 percent in property taxes, found out about the Mills
                                                                                                    For more information, call the Planning
Act while researching incentives available for 460 Bush St., the old San Francisco Fire
                                                                                                    Department at (415) 558-6377 or visit
Department Engine Company No. 2 building constructed after the 1906 earthquake.
                                                                                                    their web site: sfgov.org/site/planning_
    “I took every single incentive for historic buildings and used it on this building, so it       index.asp?id=77300
became a laboratory for incentives,” she says. “I want people to take advantage of what
incentives are available. I was determined to get this Mills Act, so I persevered, but it
was hard.”
    Now, one of Carey’s clients, Martin Building Co., is applying for tax relief under The Mills
Act in hopes of restoring a 19th century warehouse at 178 Townsend St. and converting it
from a parking garage to condominiums.
    Although the project has been approved by the Historic Preservation Committee, many
worry that the Board of Supervisors, which has the ultimate say, will not look kindly upon
giving up tax dollars during a budget deficit.
    “We’re a city that ought to care about preserving some of our history,” says Supervisor
David Chiu. “That being said, the fact is the city is faced with the most significant budget
deficit in decades.”
    But Carey disagrees. “I don’t think it really costs the city anything,” says the architect
who has been talking to city officials about improving how the Mills Act works. “Initially,
the city loses some tax dollars, but to have historic buildings preserved for the city and to
keep up declining neighborhoods, it enhances the city.” n

                                                                                          Top :
                                                                  Chris Yerke photographed in
                                                                    front of the Spencer House

                                                                    Below and opposite page:
                                                      Parking garage at 178 Townsend under
                                                   consideration for condominium conversion

  What is a recent historical renovation you have been
  a part of and what makes the project unique?

                                                           anchors the historic core, and the Jose activates         Ken Kay Associates was able to safe guard
                                                           Second Street and has been wildly successful              the most critical components of the original
                                                           with name comedy acts. Revitalizing buildings             1950s Modern-era campus originally built
                                                           is the most rewarding and satisfying part of our          by IBM. This rezoning allowed the original
                                                           construction business.                                    332-acre campus to be divided into a smaller,
                        Craig Allison                                                                                intensified industrial campus and a vibrant
                        Co-General Partner,
                        Plant Construction Company, L.P.                                                             new mixed-use transit village. It has opened
                                                                                                                     the campus’ historic pedestrian-focused core
  For me personally, and for our company, the                                                                        to be experienced by both campus employees
  2002 renovation of the Ferry Building in San                                                                       and the public alike. RAMAC Park, a newly
  Francisco stands apart from the others. The                                                                        completed 10.6-acre public park that our firm
  finished space is magnificent, a tribute to                                                                        also designed, now shares the campus’ original
  the vision of Chris Meany and Cathy Simon.                                     Kurt Schindler                      pedestrian spine and surrounds a remaining
  And, where the other buildings benefit                                         Principal,
                                                                                                                     3.2-acre historic parcel.
                                                                                 ELS Architecture and Urban Design
  their immediate neighborhoods and guests,
  visitors or club members lucky enough to                 One of my favorite projects is St. Mark’s
  use them, the Ferry Building touches the                 Lutheran Church in San Francisco, on O’Farrell
  lives of thousands of people each week. In               Street near Franklin Street. In this case our
  addition to its restored use as an important             success is measured by the fact you can’t see
  transportation hub, the unique mix of local              what we did. The church was an unreinforced
  food-related retail stores and restaurants               masonry building built in 1894 with a mix
  on the ground floor have made the Ferry                                                                                                  David Wessel
                                                           of Romanesque and Gothic elements. The                                          Principal
  Building an important destination for visitors           exterior brick, slate roof and decorative spines                                Architectural Resources Group
  and locals alike.                                        along with the interior decorative plaster and
                                                                                                                     One of my favorite preservation projects has
                                                           paint, elaborate wood trim, wood floor and
  In short, when people ask me what sort                                                                             been the restoration of the window mural at
                                                           stained glass window were all very important
  of work Plant does, and I tell them, “We                                                                           the Masonic Center, visible from California
                                                           to the congregation. So where do you place the
  renovated the Ferry Building,” there’s never a                                                                     Street. Most people think the window is
                                                           seismic reinforcement?
  follow-up question.                                                                                                glass, but it is made of acrylic and polymers
                                                           Our solution was to hide the seismic upgrade              developed during World War II. It tells the
                                                           inside the existing fabric of the structure.              story of Freemasonry in California and is filled
                                                           That involved stabilizing brick walls from the            with Masonic iconography. The original artist,
                                                           inside with pneumatically applied concrete. To            Emile Norman, is still alive and working in
                                                           preserve interior decorative finishes, we used            Big Sur. We interviewed him and visited his
                                                           center-core reinforcing in the brick columns              home in Big Sur to understand how he made
                                                           between the stained glass. A new horizontal               this mural, which helped us restore it.
                        Jim Salata
                        Founder,                           steel structure weaves through the existing
                                                                                                                     It is a curious contrast to Grace Cathedral
                        Garden City Construction           wood trusses to reinforce the roof. We inserted
                                                                                                                     across the street. There you have poured-
                                                           a seismic diaphragm beneath the tile floor and
  Singling out one historic renovation that has                                                                      in-place concrete, a modern material, made
                                                           the sanctuary’s wood floor to preserve them.
  contributed most to the community is difficult                                                                     to look gothic and stained glass windows
                                                           In most places, our work was invisible, so
  as each structure has its own merits. Of primary                                                                   designed in a historic tradition within a
                                                           we were leaving the spotlight on the
  importance to all is saving a piece of history.                                                                    dark, mystical space.
                                                           nineteenth-century craftspeople that created
  Placing a building back in service also activates
                                                           this incredible building.                                 The Masonic Center, built in the late 1950s,
  a block where a once-defunct building sat, often
                                                                                                                     is full of light with a piece of art composed
  for years. Three examples—all in downtown
                                                                                                                     of new materials. We are now working on a
  San Jose—we have had the fortune to work on
                                                                                                                     protective screen to filter sunlight and
  exemplify the different community contributions:
                                                                                                                     preserve the panels. n
  the Jose Theatre (circa 1904), which houses the
  Improv Comedy Club; the St. Claire Building
  (circa 1927), better known as home to Original
  Joe’s; and the Wilcox Block (circa 1867), formerly                             Jason Victor
                                                                                 Associate Principal,
  the Crescent and Lean & Jung Jewelers building,
                                                                                 Ken Kay Associates
  now home to Billy Berk’s and Mezcal restaurants.
  The St. Claire anchors the gateway to the SOFA           As part of the rezoning of the Hitachi Global
  (South of First Street) district. The Wilcox             Storage Technologies’ San Jose campus,

24 theregistrysf.com    M A Y 2009
                                                                                                                             lEGal & GoVERNmENt

                                                                            Smoking Gun
          Property owners fear liability for harm caused by
                      common-area smoking regulations.
                                                                                              By Scott	D.	Rogers

A                                                                                                                          It does not seem
           California appellate-court ruling has opened        conditions and prevented people from using the com-
           the path for commercial property owners of          mon space as they chose. The conditions also had to
           all stripes to find themselves liable for second-   affect substantial numbers of people at the same time,      unreasonable to
hand smoke puffed in their buildings’ common areas.            and an ordinary person would have to be reasonably
    The case, Birke v. Oakwood Worldwide, began when           bothered. There also had to be a substantial cause of
                                                                                                                           expect that
an apartment resident, Birke, sued a property owner,           the alleged harm, and the harm itself had to be different   numerous legal
Oakwood, because smoking was permitted in the out-             from that suffered by the public at large.
door common areas of the apartment complex in which                 The appellate court found that each of the required    actions through-
Birke lived.
    Oakwood owns and operates an apartment complex
                                                               elements of the cause of action had been adequately
                                                               pled. In particular, the court held that the aggravation
                                                                                                                           out California will
in which Birke, a 5-year-old girl, and her parents reside.     of Birke’s allergies and chronic asthma was different in    be filed against
Oakwood prohibits smoking in all indoor apartment              type from the harm to the general public of increased
units and indoor common areas but allows smoking in            risk of developing heart and lung cancer. The court also
areas around the barbecue, pool, playground and other          suggested that where the injury is a private nuisance as    owners and
outdoor common space where it also provides ashtrays           well as a public nuisance, the special injury requirement
and permits its own employees to smoke.                        is inapplicable. The court further found that Oakwood’s     managers based
    Oakwood is alleged to have made a business deci-
sion to allow smoking in hopes of attracting interna-
                                                               alleged conduct in permitting the smoking in the com-
                                                               mon areas, providing ashtrays and refusing Birke’s re-
                                                                                                                           upon similar
tional tenants.                                                quest to ban smoking was sufficient to support the nui-     allegations.
    Further, Oakwood declined Birke’s repeated re-             sance claim.
quests to ban smoking in the outdoor common areas                   The case now goes back to the trial court for a de-
because she suffered allergic reactions from asthma and        termination on its merits. The cost of prosecuting and
three bouts of pneumonia, presumably as a result of her        defending the action will be substantial, since the vari-
exposure to the second-hand smoke.                             ous factual and medical issues will be complex and con-
    After reviewing the facts and the legal arguments          tested.
made in the case, the trial court determined that Birke             Regardless of what happens at the trial court level
lacked sufficient legal grounds to support an action           in this case, however, the appellate opinion provides a
against Oakwood and ruled in Oakwood’s favor. On re-           roadmap to other potential plaintiffs and their counsel.
view, however, the California Court of Appeal reversed         Consequently, it seems reasonable to expect that nu-
the trial court and determined that the facts as pleaded       merous legal actions throughout California will be filed
by Birke were sufficient to support a public nuisance          against apartment owners and managers based upon
cause.                                                         similar allegations.
    The appellate court expressly refrained from com-               Apartment owners and managers, however, are
menting on the merits of the factual allegations or the        not the only likely targets. The same allegations can be
potential difficulties in proof, leaving these issues to the   made with respect to office buildings, shopping centers,
trial court and many questions unanswered for the com-         resort properties and virtually any other real property
mercial real estate community.                                 occupied by multiple persons for extended periods or
    The appellate court opined that to adequately plead        on a regular basis. The pathway has been created to test
a cause of action for public nuisance based on second-         new legal theories, and the consequences could be far-
hand smoke in an apartment’s common areas, seven fac-          reaching and significant. n
tors had to be present. For instance, the apartment had        Scott D. Rogers can be reached at 415-279-1990 or
to be managed in such a way that it created unhealthy          scott.rogers@hro.com.

                                                                                                                             m a y 2009   theregistrysf.com 25

                                                                                             Colorful Character
                                                                                             the right mix of colors can renew and
                                                                                             reposition a struggling building.
                                                                                             By Jill	Pilaroscia

                                                                                                      hrinking cash flows and scarce tenants have      environment and getting warm bodies in the door.
                                                                                                      commercial property owners looking for               For residential rental properties, routine mainte-
                                                                                                      ways to inexpensively reposition their hold-     nance can afford an excellent opportunity to upgrade
                                                                                             ings to improve competitiveness in a tough market.        color schemes. With existing construction, choosing
                                                                                             Some are finding that the right new color scheme          the right colors means considering the color of such
                                                                                             can make that big difference affordable.                  elements as roofs, railings, window mullions and
                                                                                                 As a color consultant based in San Francisco, I’ve    frames, as well as site topography and landscaping.
                                                                                             been fielding a number of calls recently from Bay             Most apartments are constructed with aluminum
                                                                                             Area owners of apartment buildings, smaller sub-          windows whose proportions make them look under-
                                                                  de ra
                                           er tie s, Co rt e Ma                              urban office buildings and even large institutional       scaled on the elevations. Trimming windows in a
                       Wo od Mo nt Pr oP
Ma de ra Va lle y by
                                                                                             owners wanting to make an impact at low cost.             contrasting hue adds heft. Undersides of eaves, decks
                                                                                                 Our clients tell us that adding the right colors      and ceilings at entryways can be used to brighten and
                                                                                             can improve financial performance with a relatively       augment surface texture. Differentiation of unit entry
                                                                                             minimal investment, an outcome widely welcomed            doors creates individuality. A conscious decision to
                                                                                             in today’s economy.                                       either contrast or blend the buildings with the sur-
                                                                                                 A year and a half ago, Woodmont Cos. of Bel-          rounding landscape can result in a palette that feels
                                                                                             mont successfully integrated color changes on a 94-       validated by its site.
                                                                                             unit apartment property in Corte Madera. Its main             For a more affluent demographic, the color
                                                                                             goal was to help improve rents, and this mission has      scheme can be ambitious. The Sobrato Organization,
                                                        at ion , lo s ga to s
                                 so br at o or ga niz                                        been accomplished.                                        based in Cupertino, was looking for solutions for its
           aV en tin o by tH e
                                                                                                 “We find that color offers the single most dra-       Willow Lake apartment community in San Jose, a set
                                                                                             matic impact for the least cost,” says Greg Galli of      of one-, two- and three-bedroom townhomes built in
                                                                                             Woodmont. “Along with renovations, we have been           1990. All building roofs needed replacement, and the
                                                                                             able to achieve 15 percent higher rents.”                 owners initially planned to engage in architectural
                                                                                                 Some of the questions with which I start may          renovation, as well. Given the current economy, they
                                                                                             not be obvious. I try to find out what are the demo-      decided to stick with repairs and to upgrade the paint
                                                                                             graphics of the group that they are trying to attract;    with a new color scheme.
                                                                                             where the property is located, in foggy San Francisco         The approach involved three or four different
                                                                           eM on t           or sunny downtown Sunnyvale; what the existing            color palettes for the 508-unit complex, each consist-
                                                   by re gis Ho Me s, Fr
                          irV ing to n Vil la ge                                             landscaping looks like. In the end, it’s all about dis-   ing of four to five colors, to create sufficient diversity
                                                                                             tinguishing clients’ properties from those of their       to appeal to Silicon Valley’s high-income renters, to
                                                                                             competitors, enhancing people’s experience of the         compete with several newly upgraded adjacent prop-
                                                                                                                                                       erties and to deal with the range of conditions of the
                                                                                             Top to bottom:
                                                                                                                                                       balconies, stairs and decks.
                                                                                             Middle income rental properties can improve                   On the other side of the bay a development of 27
                                                                                             occupancy with dynamic color palettes.                    new homes called Peridot at Niles in Fremont was
                                                                                             Higher end rentals are colored with several distinct      getting completed in 2008. The owner, Regis Homes
                                                                                                                                                                                                                    PhotoS By PaTRiK	aRGaST

                                                                                             color palettes. The owners are willing to manage          of Northern California, wanted to make them stand
                                                                                             the palettes as they distinguish their properties.
                                                                                     Fa el                                                             out before they went on the market. The high-end
                                                             by Hin es , sa n ra
                                       Ma rin Co MM on s                                     Higher end for-sale properties use multiple palettes      homes, offering five floor plans up to 2,700 square
                                                                                             to lend a sense of individuality to the homes.
                                                                                                                                                       feet, had been designed in three different styles,
                                                                                             Office complexes in suburban locations can                Spanish, Craftsman and Queen Anne. Eleven differ-
                                                                                             successfully reposition themselves with minor
                                                                                                                                                       ent palettes were carefully arranged on the site for
                                                                                             architectural improvements and significant
                                                                                             changes in color.                                         optimal visual variety and to enhance the experience

         26 theregistrysf.com                          m a y 2009

of the buyer particularly during the crucial first 30     way the building sits on its site.
seconds it is viewed.                                         In an era of statewide budget crunches, public
     Color can also help reposition suburban office       institutions are also looking for the cost-conscious
buildings by giving them a distinctive look that con-     solutions that color can provide. The University of
trasts with often drab surroundings. Last year, San       California, San Francisco, recently initiated a project
Francisco-based Union Property Capital purchased          to upgrade eight miles of corridors in a complex of
a vacant three-story office building in downtown          several buildings at its Parnassus Heights Campus          In the end, it’s all
Walnut Creek and started renovating it as a medi-         in San Francisco. Visitors have always struggled to
cal office building. Although the building occupies a     find their way in this setting because the structures      about distinguishing
major intersection, its original colors—bronze-tint-      are linked to each other in an ad hoc manner. Ini-         clients’ properties
ed windows, dark-bronze mullions, tan stucco and          tial plans for architectural renovations have been
red/brown face brick cladding—did not stand out in        tabled in favor of paint and repair work, which does       from those of
a downtown where shades of brown predominate.
Its monolithic presence did nothing to engage the
                                                          not require lengthy government approval processes
                                                          and is more economical. The new color scheme will
                                                                                                                     their competitors,
community and welcome visitors.                           give each building its own color. Corridors will have      enhancing people’s
     After a detailed site survey looking for architec-   one wall painted in that color, with the opposite wall
tural opportunities to add colors, score lines were       painted white to relieve monotony and help people          experience of the
identified that could be used as color transition         orient themselves. Elevator lobbies will have colors       environment and
points. Working with the existing brick cladding lim-     tying into their building’s palette.
its, Union Property Capital wanted to communicate             It seems to me that color is not a luxury but a ne-    getting warm bodies
that this is a professional, upgraded medical office
building. Wanting to keep the costs contained, they
                                                          cessity in a tough real estate market. It’s the one part
                                                          of first impressions that you can change easily and
                                                                                                                     in the door.
started with minimal intervention, doing detailed         inexpensively. And as we all know, there’s no second
placement of two or three colors on stucco. The           chance to make the first impression. n
more aggressive alternate, painting the brick face
cladding, is also in the wings, allowing for a wider      Jill Pilaroscia can be reached at 415.292.6376 or
range of colors and more dramatically altering the        info@colourstudio.com.
 BOMA ad for Mark:Layout 1          9/9/08    3:35 PM     Page 1

                                                                                                                         W     ith a 100-year history,
                                                                                                                          BOMA is the most influential
                                                                                                                          and effective advocacy,
                                                                                                                          recruitment and training
                                                                                                                          organization for the U.S.
                                                                                                                          commercial real estate industry.
                                                                                                                          BOMA San Francisco represents
                                                                                                                          more than 73 million square
                                                                                                                          feet of office space in San
                                                                                                                          Francisco, San Mateo, Marin and
                                                                                                                          Sonoma counties.To find out
                                                                                                                          how BOMA can build power for

                                                                                                                          your organization, call us today
                                                                                                                          at 415-362-2662 X115 or visit
                                                                                                                          our website.

                                                                                                                          BUILDING OWNERS &
                                                                                                                         MANAGERS ASSOCIATION
                                                                                                                               W W W. B O M A S F. O R G
                                                         The Market About…Nothing!
                                                         by Rob	La	Eace

                                                                 ’ve got tennis elbow, an increasing amount of       O.K., the Herb Caen style is sort of fun. But
                                                                 hair growing from my ears, and I’m starting     maybe I could write for the Coors-lites instead of

                                                                 to go to bed at 10 p.m. to ensure eight hours   the socialites. A bit of spin on the Jeff Foxworthy,

                                                         of sleep. I must be closer to 40 years old than 30!     “You might be a redneck if…” shtick.
                                                         Well, my birthday is this month, and believe it or

                                                                                                                 yOu	MiGHT	BE	a	REDNECK	REaLTOR	iF…	

                                                         not, I’m older than I was this same time last year.
                                            l   u   mn                                                           • You think folks at the title company are your
                                 tia   l Co              Mind you, I didn’t say I was any wiser. What’s worse
                    es   i   den                         than my physical ailments, it appears I’ve come           fishin’ buddies
                 aR                                                                                              • If you think earnest money belongs to…Ernest
                                                         down with a case of writer’s block. I don’t wish this
                                                         upon anyone, but it is particularly bad when one        • If you think a mechanic’s lien comes from workin’
                                                         happens to be a writer.                                   on your Camaro too long
                                                              So, my boss man, the publisher, threw out an       • If you thought a tenancy in common was when
                                                         idea for my piece this month. “Rob,” he says, “why        your buddy had the same RV as you
                                                         don’t you do some research to see if there are any      • If your brokerage has a “No Shoes, No Shirts,
                                                         hot neighborhood trends developing?”                      No Service” sign in the entryway—you might
                                                              Rather than just talk to my Realtor peeps, I         be a redneck Realtor
                                                         thought I’d change it up a bit and talk to some         • If you thought a sandwich lease was when you
                                                         title company reps. So, I got on the horn to make         borrowed money for lunch
                                                         a few calls. Lo and behold, several of them are
                                                                                                                 • If you thought the 1031 Exchange connected
                                                         now unemployed. I took this as an omen that
                                                                                                                   Montgomery to Birmingham
                                                         I wasn’t going to find any new hot developing
                                                                                                                 • If Lessee seems like a good name for a dog
                                                         neighborhood trends out there to write about yet.
                                                                                                                 • If you’ve found yourself looking for probate in a
                                                         After a few swift laps around the office, and two
                                                                                                                   tackle shop
                                                         cups of complimentary coffee (we proudly serve
                                                         Starbucks), it occurred to me. I’ll write an article    • And you might be a redneck Realtor if
                                                         about nothing. Genius! After all, Larry David got         you’re fixin’ to set an offer date on your
                                                         away with producing a show about nothing for nine         double-wide listing
                                                         seasons. And though Jerry’s white tennis shoes,         yOu	MiGHT	BE	a	SaN	FRaNCiSCO	
                                                         straight-leg jeans and sport-coat look may be dated,    REaLTOR	iF...
                                                         that Seinfeld humor still kills me.                     • Your Mercedes AMG has an Obama-Biden
                                                              So, what type of nothing shall I expound upon?       bumper sticker, Crocs and a yoga mat in the trunk,
                                                         It’s a broad genre. Perhaps I could get anecdotal         and a glove box full of double-parking tickets
                                                         like our beloved Herb Caen with a real estate slant.
                                                                                                                 • If you’ve picked up a new buyer at a
                                                         Something along the lines of:
                                                                                                                   Code Pink event
                                                         aND	THE	GRaMMy	GOES	TO…	                                • If you’ve given bottomless chaps as a closing gift
                                                         An ever-vigilant building security guard shared         • If you’ve written off a Grateful Dead show under
                                                         with me this gem he overheard from one chatty             entertaining clients on your taxes
                                                         agent working the lobby at a lightly attended           • And you definitely might be an S.F. Realtor if
                                                         Sunday Open House. “Yeah, umm, I wasn’t even              you had to adjust your open house time to work
                                                         really sure I should hold my Open today—you               around a bicycle-rights rally
                                                         know, with the Grammy’s being tonight.” What
                                                                                                                     Well, that was quite a catharsis. I feel like
                                                         the…? You got that for next year, everybody? Never
                                                                                                                 I’ve recaptured my gift to gab. I hope to have
                                                         mind waiting until after the Super Bowl to bring
                                                                                                                 something on a grander scale of importance to
                                                         that chic 3/2/2 on the market. It’s all about waiting
                                                                                                                 address next month, but in the meantime, I hope
                                                         until the Grammy’s are over, so that you can
                                                                                                                 I’ve cracked a smile. We could all use a few more of
                                                         introduce your property to a market with focused
                                                                                                                 those around the office, no doubt. n
                                                         buyers. That’s right. Until our little Baghdad by the
                                                         Bay has been treated to three commercial-laden          Rob La Eace can be reached at 415-290-7228
                                                         hours of Britney Spears lip-syncs and pyrotechnics,     or rob@roblaeace.com.
                                                         no homes shall be sold!

28 theregistrysf.com   m a y 2009

Pipsqueak or Superman
has the federal government hit the right notes with PPIP, taRP, talF?
By Sharon	Simonson

            n March 23, U.S. Treasury Secretary Timo-                            Whether PPIP turns out to be a pipsqueak, Superman
            thy Geithner announced the Public-Private                        or something in between is yet to be seen. What is clear
                                                                                                                                               “those borrowers
            Partnership Investment Program, or PPIP.                         is that commercial lending markets remain drastically             aren’t doing
That day, the Dow Jones Industrial Average gained nearly                     smaller than during the boom and continue to be dys-
500 points.                                                                  functional, despite new federal programs, including not           anything because
   At last, the federal government seemed to have as-
sembled a legitimate plan to help financial institutions rid
                                                                             only the PPIP but also the Term Asset-Backed Securities
                                                                             Loan Facility, or TALF.
                                                                                                                                               they can’t. they
themselves of bad loans and weakened securities that were                        “Essentially the banks have exited the market, the pen-       are living on
undermining new lending.                                                     sion funds have exited the market except for high-quality,
   With PPIP, investors reasoned, banks would return to                      well-leased assets, and when you take those two sources
                                                                                                                                               hope—hope that
health and could do their jobs again. The economy, fueled                    out of market, only opportunistic capital is left,” and it is     the financial
by new investment, would recover and grow. Best of all,                      very expensive, said Michael Parker, managing partner for
PPIP was aimed squarely at lenders’ real estate-related                      ExTerra Realty Partners LLC in Pleasanton.                        markets change
debt problems, at both housing, where the trouble started,
and at commercial real estate, where deeper troubles are
                                                                                 The company owns Sunnyvale’s Java Metro Center, a
                                                                             150,000 square-foot office completed late last year but still
                                                                                                                                               [before their debt
widely viewed to be heading.                                                 unoccupied, as well as other Northern California com-             comes due].”
                                                                             mercial properties.
  FAlliNG kNiFE                                                                  The lack of debt has led to a steep fall in property sales,   Jeffrey A. Weidell,
                                                                             contributed to falling prices and is creating big worries         Northmarq Capital
   Occupancy, rents in Bay Area commercial                                   that as property loans come due, owners will be unable to
   properties fell sharply in the first quarter.                             find new financing, even on well-performing assets. The
                                                                             result would be forced sale, default or foreclosure, causing
        AvAilABiliTy RATE ’08 vs ’09                                         property values to fall further still.
                                                                                 For owners with the luxury, the solution has been
                                                                             simply to wait and to hope for a better day. But commer-
                                                                             cial real estate mortgages are different from residential.
                                                                             They are typically much shorter term, ranging from five to
                                                                             10 years and have balloon payments at the end. Construc-
                                                                             tion loans, which typically remain on banks’ books, are
                                                                             even shorter.
                                                                                 A class of zombie-like buildings is emerging, said
                                                                             Jeffrey A. Weidell, an executive vice president and manag-
               Silicon         San          East Bay     Peninsula           ing director for Northmarq Capital, Inc. in San Francisco.
               Valley       Francisco                                        They are properties that traded at the top of the market at
                                                                             yesterday’s prices and with yesterday’s debt but have no
                                                                             clear financial path forward.
  MONTHly ASkiNG RENTS ’08 vs ’09                                                “All of those deals are under stress and under water”
                                                                             with mortgage values that are higher than the property
  $4                                                                         values, he said. Their cash flow is sufficient to service the
                                                                             mortgage, sometimes because the owners are paying only
  $3                                                                         interest. But when the debt comes due in the next several
                                                                             years, most believe that the owners will be unable to pay.
                                                                                 “Everyone knows all of this, but no one knows when
                                                                             the bomb is going to hit,” Weidell said. “Those borrowers
                                                                             aren’t doing anything because they can’t. They are living
                                                                             on hope—hope that the financial markets change” before
                                                                             their debt comes due.
 sq. ft.
               Silicon             San      East Bay     Peninsula
               Valley           Francisco                                        That hope-and-see strategy seems less and less likely
                                                                             to be a good one. Commercial real estate fundamentals
        2008             2009                                                are sagging badly, and without employment growth, they
                                                  Source: CB Richard Ellis
                                                                             have no chance at recovery. In the Bay Area, office and
                                                                                                                        continued on page 39

                                                                                                                                                m a y 2009    theregistrysf.com 29

       S C E N E              o F   t h E        S E E N


       Stars of the Bay Area’s architecture and
       design community came together to celebrate
       a unique double feature at Oakland’s Fox
       Theater on March 26 for the annual Pioneers
       in Design and Honor Awards. Sponsored
       by the Northern	California	Chapter	of	the	
       international	interior	Design	association,
       the event drew more than 700 guests.
       The program included a film celebrating
       the theater’s miraculous restoration led by
       the Friends of the Oakland Fox. Fae Urban
       earned this year’s Chapter Honor Award for
       her work as a volunteer. Four local design
       students were granted scholarships, and 19
       awards were presented to professionals for
       exemplary interior design. With the Cathedral
       of Christ the Light winning the evening’s Best
       of Show award, this year’s event underscored
       the significant strides downtown Oakland
       continues to make toward its place as a
       modern metropolitan city.                                                               Above (l-r): Darius Zubrickas, Grubb & Ellis;
                                                                                               Eric Ibsen, FME Architecture + Design &
                                                                                               Bill Groth, BCCI Construction

                                                        Above top (l-r): Terry De La Cuesta,
                                                        RMW Architecture and Interiors &
                                                        Michael Vanderbyl, Vanderbyl Design

                                                        Above bottom: Honor Awards/
                                                        Pioneers in Design Committee Members

                                                                                               Above (l-r): Tom DiRenzo,
                                                                                               CRI & Brian Graham,
                                                                                               Graham Design
                                                                                                                                               PhotoS By	TRiSH	TuNNEy	PHOTOGRaPHy

                                                                                               Left (l-r):
                                                                                               Gi Paoletti, Gi Paoletti Design Lab; David
                                                                                               Meckley, Huntsman Architectural Group &
                                                                                               Jim Kaylor, BraytonHughes Design Studio

                                                                                               Christine Moy Harmon, GCI General
                                                                                               Contractors & Jude Wellington,
                                                                                               Responsible Wood Products, Inc.

                                                                                               Terry De La Cuesta, RMW Architecture
                                                                                               and Interiors & Scholarship Winner
                                                                                               Tanvi Shah, Academy of Art University

30 theregistrysf.com   m a y 2009
                                                                                                                                                                         REal PEoPlE

                                                                          Right (l-r): Greg Shean,
                                                                             Jonathan Lemberg,
                                                                           Karen Jue, Matt Lewis
                                                                                and Tony Ratner,
                                                                           Farella Braun + Martel

                                                                                                                                FAREllA BRAuN + MARTEl’S
                                                                                                                                ANNuAl DEvElOPERS CONFERENCE

                                                    Above: Keynote speaker
                                                    Michael Cohen, Director,
                                                                                                                                Farella	Braun	+	Martel hosted its 3rd Annual
                                                Mayor’s Office of Economic &                                                    Developers Conference “Moving Forward
                                                   Workforce Development                                                        in Tough Times” at its San Francisco office.
                                                      Right: Marcia Smolens,                                                    The conference took a detailed look at the
                                                            HMS Associates;
                                                                                                                                local real estate market and how you can
                                                     Joel Roos, Pacific Union
                                                     Development Company                                                        leverage the current economic environment
                                                                                                                                for growth and position your company for
                                                                                                                                long term success.

                                                                        Above left: Steven Vettel, Farella Braun + Martel

                                                                           Above middle: Nat Taylor, Lamphier Gregory;
                                                                                      Bob Lalanne, The Lalanne Group

                                                                                     Above right: Janill Richards, California
                                                                                                 Attorney General’s Office

                                                                                John Clawson, Equity Community Builders;
                                                                                               David Prowler, Prowler, Inc.

                                                                                                                                                           m a y 2009   theregistrysf.com 31

                                                                                                           Left (l-r):
                                                                                                           Winfield Roney,
                                                                                                           Reel Grobman;
                                                                                                           Dan Shore,
                                                                                                           Shore Associates
                                                                                                           & Eric Samuli,
                                                                                                           Skyline Construction

                Above (l-r): Leina
             Zimmerman, Skyline                                    SkyliNE CONSTRuCTiON’S MARDi GRAS
               Construction; Bob                                   AND MARCH MADNESS CElEBRATiONS
          Kraiss, Adaptec; Jamie
          Ergle, CB Richard Ellis;
            Catherine Vekich, CB
                                                                   The	Silicon	Valley	office	of	Skyline	
          Richard Ellis & Winfield
           Roney, Reel Grobman                                     Construction recently held a
                                                                   Mardi Gras themed open house to
                                                                   showcase their newly renovated
                                                                   office space. The event was held on
                                                                   February 24th, Fat Tuesday, at
                                                                   2384 Walsh Avenue in Santa Clara.
                                                                   Guests enjoyed hurricane cocktails
                                                                   and heavy appetizers in celebration
                                                                   of the new space.

                                                                                                                        Above (l-r):
                                                                                                                        Jeff Tremolada,
                                                                                                                        Axiant; Rose young,
                                                                                                                        young Office &
                                                                                                                        Doug Zucker, Gensler
                         Skyline	Construction’s	San	Francisco	                                                          Left (l-r):
                             office hosted its 4th Annual March                                                         James Mason,
                                                                                                                        Al Gonzales &
                           Madness Party on Friday, March 20,
                                                                                                                        Arne Ericson,
                         2009 at 731 Sansome Street. Clients,                                                           Skyline Construction
                            brokers and architects gathered to
                            watch the first round of games and
                       participate in the betting brackets while
                          enjoying a BBQ lunch and jello shots.
                                                                                                                                               PhotoS By aLi	BuRGER	|	SKyLiNE	CONSTRuCTiON

                                                                     Left (l-r):
                                                                     Charlie Withers, The CAC
                                                                     Group; Nathan Zoucha,
                                                                     Cushman & Wakefield;
                                                                     Jon Dishotsky,
                                                                     Cushman & Wakefield
                                                                     & Matt Shewey,
                                                                     Cushman & Wakefield

                                                                                    Right (l-r):
                                                                      Mike Freeman, McCarthy
                                                                         Cook & Howard Fish,
                                                                          Skyline Construction

32 theregistrysf.com   m a y 2009
                                                                                                                                                  REal PEoPlE

                                      Above left (l-r):                                              Above (l-r):
                         Leif Glomset & Sarah Devine,                                                David Galullo,
                               POLLACK Architecture                                                  POLLACK Architecture;
                                                                                                     Vivian Vales,
                                  Above middle (l-r):                                                Sun Microsystems
                                 Leif Glomset, James                                                 & Raymond Chan,
                                Pollet, Sarah Devine,                                                Sun Microsystems
                              David Galullo & Richard
                                Pollack, Principals of
                              POLLACK Architecture

                                                                                                      On Feb. 26, POLLaCK	architecture
                                                                                                      opened the doors of its San Francisco
                                                                                                      office to more than 500 clients,
                                                                                                      colleagues and real estate brokers to
                                                                                                      express appreciation for their support
                                                                                                      and to prove that you can still have
                                                                                                      fun when times are tough.

                                                                                                      POllACk ARCHiTECTuRE’S ANNuAl
                                                                                                      CliENT-APPRECiATiON PARTy

                                                                                      Right (l-r):

                                                                    James Pollet & David Galullo,
                                                                        POLLACK Architecture

                                                          Richard Pollack, POLLACK Architecture
                                                               & Jeffrey J. Vines, McKesson Corp.

                                                                                                     Left (l-r):

                                                                                                     Lana Gosnell, Union Bank California &
                                                                                                     Steve Lawler, POLLACK Architecture

                                                                                                     Richard Pollack, POLLACK Architecture
                                                                                                     & Michael Huaco, Kaiser Permanante

                                                                                                                                    m a y 2009   theregistrysf.com 33

                                                                                     PARAGON REAl ESTATE GROuP’S
                                                                                     GRAND OPENiNG

                                                                                     On March 19th Paragon	Real	Estate	Group
                                                                                     celebrated the grand opening of their new
                                                                                     neoclassical office building at 1400 Van Ness
                                                                                     Avenue in San Francisco. Guests enjoyed
                                                                                     champagne, live music and festive company.

              Above left (l-r):
                   Sally Stull,
                 Anita Head,
                Bob Dadurka,
            George McNabb &
                 Randy Zinn,
                Paragon Real
                Estate Group

                 Above right:
               Dawn Hocevar,
                 Peter Monti

                                            Leah McKern &
                                              John Macon

                                                 Below (l-r):
                         Lisa Miller, Tiffany Hickenbottom,
                          James Kastner & Wendy Storch

                                                                                                                                     Stuart Wilson &
                                                                                                                                     Jane Poppelreiter

                                                                Above: Lisa Miller
                                                                & Michael Penn
                                                                                                                                                         P h o t o S B y 	 R E F L E x 	 i M a G E S	

                                                                                                           Right (l-r): Laura Gray
                                                                                                                 & Sandra Maher

34 theregistrysf.com   m a y 2009
hot lot

         09 Calendar                 january	february march april may june july august september october november december

  1                                                        11                                                       20
  iFMa	Silicon	Valley will host its Annual Golf            Build	it	Green will host an educational event called     NaiOP	San	Francisco	Bay	area	Chapter will host
  Tournament starting at 10 a.m. at Cinnabar Golf          “Whole Systems Integrative Approach” from 9 a.m.         a Developing Leaders brown bag luncheon from
  Course, 23600 McKean Rd., San Jose. Members and          – 12:30 p.m. at Fireman’s Fund Insurance Company,        12 p.m.-1 p.m. at Marcus & Millichap, 750 Battery St.,
  non-members cost $250. Call Ralph Buchanan at            777 San Marin Dr., Novato. The cost is $295. For         5th floor, San Francisco. This event is a members-
  408.226.0190 or email admin@ifmasv.org                   more information call 770.805.8665 or register           only event and drinks and dessert will be provided.
  with questions.                                          online at eco2smart.com/wsip-ffic.html.                  Register online at naiopsfba.org.

  1                                                        12                                                       20
  uSGBC	Northern	California	Chapter will host a            uSGBC-NCC	Silicon	Valley will host a 1st Birthday        NaiOP	Silicon	Valley	Chapter	will host the 2009
  Succeed at LEED workshop from 8:30 a.m. – 4:30           Celebration and Green Building Expo from 5:30            Developer Hall of Fame dinner from 6 p.m. – 9:30
  p.m. at StopWaste, 1537 Webster St., Oakland.            p.m.- 8:30 p.m. at Santa Clara University, 500           p.m. at Hyatt Regency Hotel, 5101 Great America
  Members cost $245 and non-members $295. Con-             El Camino Real, Santa Clara. Members cost $15            Pkwy., Santa Clara. Visit naiopsiliconvalley.com
  tact Alicia Peman-Dupier at Alicia@usgbc-ncc.org         and non-members $30. For more information                for more information.
  with questions or register online at usgbc-ncc.org.      contact Paul at paul@usgbc-ncc.org.

  4                                                                                                                 21
  CREW	Silicon	Valley will host a Sangria &
                                                           13                                                       uSGBC-NCC	Pleasanton	will host “Successful LEED
                                                           BOMa	San	Francisco will host the 23rd Annual             Projects- Lessons Learned” from 6 p.m.–8 p.m. at
  Sombreros Shotgun Golf Tournament starting at
                                                           Spring Golf Classic starting at 8:30 a.m. at Sil-        Dahlin Group Architecture Planning, 5865 Owens
  10 a.m. at La Rinconada Country Club, 14595 Clear
                                                           verado Country Club, Napa. This is a members-only        Dr., Pleasanton. Members cost $15; non-members
  View Dr., Los Gatos. Cost is $225 per golfer, $900
                                                           event and the cost is $250. Registration includes        $30. Contact Paul at paul@usgbc-ncc.org with
  per foursome, and $65 for awards dinner only ticket.
                                                           golf and dinner reception with bar sponsored by          questions or register online at usgbc-ncc.org.
  Register online at crewsv.org or call Chris Blair at
                                                           Standard Parking. Register online at bomasf.org.
  785.832.1808 or email chrisb@crewnetwork.org for                                                                  BOMa	San	Francisco	will host a membership
  more information.                                                                                                 luncheon from 11:30 a.m.-1:30 p.m. at The City Club,
                                                           BOMa	San	Francisco will host a Wine Tour at
                                                                                                                    Main Dining Room, 155 Sansome St., 11th floor,
                                                           the 23rd Annual Spring Golf Classic at Silverado
  5                                                        starting at 10:30 a.m. departing and returning to
                                                                                                                    San Francisco. Members cost $55 and non-members
  NaiOP	San	Francisco	Bay	area	Chapter will host                                                                    $70. Register online at bomasf.org. 	
                                                           the Silverado Country Club Resort, Napa. This is a
  the 20th Annual Real Estate Challenge from 11:15
                                                           members-only event and the cost is $250. Visit           CREW	Silicon	Valley	will host a monthly program
  a.m.-1:30 p.m. at Four Seasons Hotel, 757 Market
                                                           local wineries in the comfort of a luxury tour           and luncheon at Hotel Valencia, 368 Santana Row,
  St., San Francisco. This event is a real estate
                                                           bus and return for dinner reception. Registration        Ste. 1020, San Jose. Visit crewsv.org for more info.
  development competition between Stanford and
                                                           includes lunch, visits to wineries and dinner.
  UC Berkeley graduate students. The event will
                                                           Register online at bomasf.org.                           CREW	East	Bay	will host an event featuring “In-
  feature a luncheon with a special presentation of
                                                                                                                    novation & Technology: BIM” at Scott’s Seafood,
  these two rival universities presenting competing        14                                                       Walnut Creek. Visit eastbaycrew.org for more info.
  development plans for Piers 19-23 in San Francisco.      BOMa	San	Francisco’s young Professionals will
  Members cost $65 and non-members $80. Contact            host the 2nd Annual Spring Boat Cruise from 5:15         27
  Lisa Brown at admin@naiopsfba.org for more               p.m.- 8:15 p.m. at South Beach Harbor, Pier 40,          iFMa	Silicon	Valley	will host its monthly meeting
  information or register online at naiopsfba.org.         San Francisco. This is a members-only event and the      featuring “Sustainability and LEED Certifications”
                                                           cost is $40. Price includes 2 drinks, appetizers, two    from 5 p.m. – 8 p.m. at Palm Inc., 950 W. Maude,
  6                                                        hours cruising the bay and raffle prizes. Register       Sunnyvale. Members are free and non-members
  iFMa	Silicon	Valley will host a special event called     online at bomasf.org.                                    cost $40. Call Ralph Buchanan at 408.226.0190 or
  “Business Etiquette” with speaker Tiffany Smith-                                                                  email admin@ifmasv.org with questions.
  Nielsen from 11:30 a.m.- 1:30 p.m. at Holiday Inn/       BOMa	Oakland/East	Bay will host a luncheon on
  Mediterranean Center, 1740 N. First St., San Jose.       LEED Revisions in Walnut Creek. Visit bomaoeb.org        28
  Members cost $40 and non-members $50. Call               for more information.                                    SPuR	will host the Urban Center Grand Opening:
  Ralph Buchanan at 408.226.0190 or email                                                                           SPUR Members Party starting at 5 p.m. at SPUR
                                                           iFMa	Silicon	Valley will host a 4-day FMP Class          Urban Center, 654 Mission St., San Francisco. Visit
  admin@ifmasv.org with questions.
                                                           called “The Business of FM” from 8 a.m.- 5 p.m. at       spur.org for more information.
  uSGBC	Northern	California	Chapter will host              SAP, 3412 Hillview Ave., Caribbean Rm., Palo Alto.
  a LEED for Commercial Interiors v2.0 Exam                The dates are May 14, 15, 21 and 22. Members cost        CREW	San	Francisco	will host a brown bag series
  Preparation workshop from 8:30 a.m.- 5 p.m. at           $500 and non-members $700. Call Ralph Buchanan           luncheon featuring “Investment Opportunities in
  AIA-SF/USGBC-NCC, 130 Sutter St., Ste. 600,              at 408.226.0190 or email admin@ifmasv.org                Today’s Market and How to Finance Them” from
  San Francisco. The cost is $245 for members and          with questions.                                          11:45 a.m.- 1 p.m. at Reed Smith LLP, Two Embar-
  $345 for non-members. Contact Alicia Peman-                                                                       cadero Center, Ste. 2000, San Francisco. Bring
                                                           iPMG will host its monthly meeting from 8:00-            your own lunch; cookies and refreshments will be
  Dupier at Alicia@usgbc-ncc.org with questions            9:30 a.m. at the St. Francis yacht Club, 700 Marina
  or register online at usgbc-ncc.org.                                                                              provided. Register online at crewsf.org.
                                                           Blvd., San Francisco. Contact Stephen Pugh at
  7	                                                       415.814.6691 for information.                            29
  uLi	San	Francisco will host a South Bay brownbag                                                                  uSGBC	Northern	California	Chapter	will host a
                                                           15-16                                                    LEED NCv2.2 Exam Preparation workshop from
  featuring “Job Seekers Coaching” from 12 p.m. –
                                                           Build	it	Green will host a Certified Green Building      8:30 a.m.- 5 p.m. at AIA-SF/USGBC-NCC, 130 Sutter
  1:30 p.m. at Skyline at Tamien Station, Penthouse,
                                                           Professional training from 8 a.m.-5 p.m. at North        St., Ste. 600, San Francisco. The cost is $245 for
  1375 Lick Ave., San Jose. This is a free event and for
                                                           Coast Builders Exchange, 1030 Apollo Way, Santa          members; $345 for non-members. Contact Alicia
  members only. Call 800.321.5011 with questions or
                                                           Rosa. Members cost $400 and non-members $450.            Peman-Dupier at Alicia@usgbc-ncc.org with ques-
  register online at ulisf.org.
                                                           For more information call 510.845.0472 ext. 603 or       tions or register online at usgbc-ncc.org.
  BOMa	Silicon	Valley will host a membership               email training@builditgreen.org.
  luncheon from 11:30 a.m.- 1 p.m. at Holiday Inn,
                                                           19                                                       29	
  San Jose (Mediterranean Room). Visit                                                                              SPuR	will host the Urban Center Grand Opening:
                                                           CREW	San	Francisco	will host a members-only
  boma-sv.org for more information.                                                                                 Public Open House from 10 a.m.- 5 p.m. at SPUR
                                                           Mentorship Program Kick-off meeting starting at
                                                                                                                    Urban Center, 654 Mission St., San Francisco.
  8	                                                       8 a.m. at the offices of Holme Roberts & Owen LLP,
                                                                                                                    Visit spur.org for more information.
  CREW	East	Bay will host a members-only Peer              560 Mission St., 25th floor, San Francisco. Register
  Advisory Group meeting at Miller Starr Regalia           online at crewsf.org.
  Conference Room. Visit eastbaycrew.org for                                                                        30
                                                           19-20                                                    SPuR	will host the Urban Center Grand Opening:
  more information.
                                                           Build	it	Green	will host a Green Building Profes-        SPUR Community Day from 10 a.m.-5 p.m. at SPUR
  11	                                                      sional training from 8 am.–5 p.m. at Sacramento Mu-      Urban Center, 654 Mission St., San Francisco. Visit
  BOMa	Silicon	Valley will host a Mediterranean Mix        nicipal Utility District - Energy & Technology Center,   spur.org for more info.
  & Mingle event from 5:30 p.m. – 8 p.m. at Siena          6301 S. St., Sacramento. Members cost $400 and
  Mediterranean Bistro, 1359 Lincoln Ave., San Jose.       non-members $450. Call 510.845.0472 ext. 603 or
  This event is for Principal members only and the         email training@builditgreen.org with questions.
  cost is $15. Appetizers, wine and raffle prizes are
  included in the registration fee. Register online at

                                                                                                                                  m a y 2009     theregistrysf.com 35
 address                   City
                                           Lease		   Tenant/Rep/Brokerage                              Landlord/Rep/Brokerage
                                                                                                                                            COMMERCiaL	LEaSE

                                           Sq.	Ft.

 alameda	County
                                                     Macy's Department Stores, Inc/Jay Hagglund,
 1200 Whipple Rd           Union City      257,500                                                     AMB Institutional Alliance Fund II, LP                    36 months
                                                     NAI BT Commercial
                                                     Patio World/Richard Keely,
 23768 Eichler St          Hayward         36,000                                                      UBS/Jay Hagglund, NAI BT Commercial                       63 months
                                                     Colliers International-Oakland
                                                     Stanislaus Funding, Inc./Richard Keely,                                                                     Direct Lease,
 23768 Eichler St          Hayward         35,604                                                      UBS Realty Investors/Cornish & Carey Commercial
                                                     Colliers International-Oakland                                                                              63 months
                                                     Sipix Imaging/Vince Machado &                                                                               R&D
 47485 Seabridge Dr        Fremont         30,000                                                      Prologis/Andrew Stoddard, ProLogis
                                                     Thomas Taylor, CB Richard Ellis                                                                             Renewal

 2091 Williams St          San Leandro     29,400    Ariana/John Cook, Townsend Commercial             Borel Bank & Trust/Jay Hagglund, NAI BT Commercial        60 months

 1250 45th St              Emeryville      27,703    Pixar/Tony Beatty, NAI BT Commercial              Fordham Properties/Jeff Silberman, Fordham Properties     24 months

                                                     Olmar Supply/Michael Lloyd, SIOR Colliers         2140 Research Partners LLC/Michael Lloyd, SIOR,           Light
 2140 Research Dr          Livermore       20,000    International-Pleasanton                          Colliers International-Pleasanton                         Industrial
                                                                                                       Picetti Enterprises LP/Dan Bergen,                        Light
 1000 Beecher St           San Leandro     18,000    Pacific Group International/CB Richard Ellis      Colliers International-Pleasanton                         Industrial
                                                     Regional Center Of East Bay/Christopher Johnke,   Creekside Associates, LLC/Barry Cohn,
 1000 San Leandro Blvd     San Leandro     16,593                                                                                                                240 months
                                                     Grubb & Ellis                                     NAI BT Commercial
                                                                                                       Tishman-Speyer/Ted Helgans, Brian Lagomarsino &
 4160 Dublin Blvd, #100    Dublin          16,262    Calpine Corporation/Cushman & Wakefield                                                                     Office
                                                                                                       Gabe Arechaederra, Colliers International-Pleasanton
 48430 - 48438                                                                                                                                                   Manufacturing
                           Fremont         15,247    AlterG/Chris Brown, CresaPartners                 AMB/Joe Kelly, CB Richard Ellis
 Milmont Dr                                                                                                                                                      Direct

                                                                                                       HARSCH Investment Properties, LLC/Joe yamin,
 32950 Alvarado-                                                                                                                                                 Expansion,
                           Union City      12,973    KBA Docusys/Bob Ferraro, CB Richard Ellis         Sean Sabarese & Greig Lagomarsino, SIOR,
 Niles Rd                                                                                                                                                        63 months
                                                                                                       Colliers International-Oakland
                                                     Positive Image Video Production Group, Inc        AMB Property Corporation/Tom Damaschino,
 2960 Alvarado St          San Leandro     12,108                                                                                                                60 months
                                                     and Int/Todd Klinger, All Phase Real Estate       NAI BT Commercial

 5749 Horton St            Emeryville      12,083    Pixar/Tony Beatty, NAI BT Commercial              Eric Schmier                                              60 months

                                                     Furniture Outlet/Tom Damaschino,
 2950 Alvarado St          San Leandro     12,054                                                      Legacy Partners/Jeff Starkovich, NAI BT Commercial        36 months
                                                     NAI BT Commercial
                                                     Controlco/Todd Severson, SIOR,
 985 3rd St                Oakland         11,505                                                      Duwo Partners, LLC/David Englert, NAI BT Commercial       62 months
                                                     Colliers International-Oakland
                                                     Controlco/Brennan Carpenter & Todd Severson,      Duwo Partners/David Englert & Barry Cohn,                 Direct Lease,
 985 3rd St                Oakland         11,505    SIOR, Colliers International-Oakland              NAI BT Commercial                                         62 months

 6140 Stoneridge Mall                                                                                  TIAA-CREF/Ted Helgans, Marshall Snover,                   Class A
                           Pleasanton      7,677     Morgan Stanley & Co Inc/CB Richard Ellis                                                                    Office,
 Rd, #100                                                                                              Colliers International-Pleasanton                         Renewal
                                                     Fremont Cycle Salvage & Accessories/              Salwan Property Management/Rene Brochier,
 41533 & 41535 Albrae St   Fremont         7,447                                                                                                                 Retail
                                                     Rene Brochier Colliers International-Pleasanton   Colliers International-Pleasanton                         Showroom
 7060 Koll Center Pkwy,                                                                                Walton CWCA Sierra 18, LLC/Mike Carrigg,                  Office/Flex,
                           Pleasanton      6,595     Tri-Reme Medical Inc
 #300-304                                                                                              Colliers International-Pleasanton                         Renewal
 7020 Koll Center Pkwy,                                                                                7L Northcreek/Mike Carrigg,                               Office/Flex,
                           Pleasanton      6,251     Bally Gaming Inc
 #118-126                                                                                              Colliers International-Pleasanton                         Renewal
                                                     Rankin, Sproat, Mires, Beaty, & Reynolds/
 1970 Broadway             Oakland         6,160                                                       Tower Associates/Bob Maderious, Grubb & Ellis             61 months
                                                     Marc Ward, NAI BT Commercial
 47444 - 47460                                       Falconstor Software Inc./Vince Machado,
                           Fremont         6,000                                                       Prologis/Andrew Stoddard, ProLogis                        R&D Direct
 Fremont Blvd                                        CB Richard Ellis
                                                     Newsway Services/Doug Pearson, Lee &              Hanover Properties, Ltd./Joe yamin,                       Direct Lease,
 23675 Foley St            Hayward         5,846     Associates                                        Colliers International-Oakland                            24 months
                                                                                                       RREEF America REIT II Corp./Sam Higgins,
 3462 Diablo Ave           Hayward         5,830     H2J Corporation Dba: Kem-Mill-Co                                                                            60 months
                                                                                                       NAI BT Commercial
                                                                                                       Metrovation/Ken Meyersieck, Mike Corbett &
 620 3rd St                Oakland         5,722     East Bay Express/Jon Elder, Jones Lang LaSalle                                                              N/A
                                                                                                       Trent Holsman, Colliers International-Oakland
 7300 Central Ave          Newark          5,621     Signa West Systems                                7300 Central Partners/Chip Sutherland, CB Richard Ellis   Renewal

 6601 Koll Center Pkwy,                              Echopass/Justin Grilli,                           Park Lake Apartments/Ted Helgans & Marshall Snover,       Class A
                           Pleasanton      5,468
 #180                                                Colliers International-Pleasanton                 Colliers International-Pleasanton                         Office
 30502 - 30514                                                                                                                                                   Warehouse
                           Hayward         5,200     Tru Furniture/Dan Dowd, CB Richard Ellis          WSB Properties/Mike Conn, CB Richard Ellis
 San Antonio St                                                                                                                                                  Direct
                                                     Orson Mechanical Company/Chris Van Keulen,
 33370 Croatian Wy         Union City      5,120                                                       Wiener, Gregory M./Sam Higgins, NAI BT Commercial         60 months
                                                     NAI BT Commercial
 40455 - 40491                                       Compair USA Distribution LLC/Terry Healy,                                                                   Manufacturing
                           Fremont         5,028                                                       SF Property MGMT Co./Nick Whitstone, CB Richard Ellis
 Encyclopedia Cir                                    Colliers International                                                                                      Direct

 San	Francisco	County
                                                     Horsley Bridge Partners/John Cecconi,             RREEF/Scott Harper, Carter Beim,
 505 Montgomery St         San Francisco   21,057                                                                                                                Office Lease
                                                     The CAC Group                                     Colliers International-San Francisco
                                                     Workshare Technology, Inc./Marc Trovato,          The Lionstone Group/Marty Melbardis,                      Office
 208 Utah St               San Francisco   15,812    Cornish & Carey Commercial                        Colliers Intrnational-San Francisco                       Renewal
                                                     CMG Mortgage/Nick Slonek,                                                                                   Office
 22 Fourth St              San Francisco   11,782                                                      Jamestown Properties/Karen Wells, Jones Lang LaSalle
                                                     Cornish & Carey Commercial                                                                                  Renewal
 149 New Montgomery St     San Francisco   11,335    Nimblefish, Inc/Tim Kazul, CB Richard Ellis       Monahan Parker Inc/Carlos Ramirez, Hawthorne              Renewal

36 theregistrysf.com       m a y 2009
      address                    City                              Tenant/Rep/Brokerage                                Landlord/Rep/Brokerage                                         Notes
                                                     Sq.	Ft.

      San	Francisco	County       continued

                                                                   American College Of Traditional Chinese
      555 De Haro St             San Francisco       11,093                                                            Jerry A. Hettinger (Tr)/David Klein, NAI BT Commercial         60 months
                                                                   Medicine/Bryan Courson, NAI BT Commercial
                                                                   Women's Funding Network/Frank Fudem,                Pyramid Investment Corporation/Margaret Duskin,
      505 Sansome St             San Francisco       7,921                                                                                                                            84 months
                                                                   NAI BT Commercial                                   Cushman & Wakefield
      1 Front St                 San Francisco       7,665         MCI/Kristin Liening, CB Richard Ellis               One Front Assoc/Wes Powell, Jones Lang LaSalle                 Renewal
                                                                   Citizens Housing Corp/Tom Christian,
      26 O'Farrell St            San Francisco       7,233                                                             Leon Lee/Steve Newhauser, Starboard Commercial                 36 months
                                                                   NAI BT Commercial
                                                                   Tomra Pacific, Inc/Scott Mason,
      185 Bayshore Blvd          San Francisco       6,717                                                             Peter Royce/Scott Mason, NAI BT Commercial                     59 months
                                                                   NAI BT Commercial

      425 Barneveld Ave          San Francisco       5,800         TyT Trend USA, Inc/Harrigan Weidenmuller            Harrigan Weidenmuller/Scott Mason, NAI BT Commercial           36 months

                                                                   Ad Pac/Joe Giordani & Jak Churton,                                                                                 Office
      22 Battery St              San Francisco       5,704                                                             Dateline Properties/Elaine T. Ko
                                                                   CB Richard Ellis                                                                                                   Renewal

      San	Mateo	County
                                                                                                                       Cranston Investment Co/Jason Cranston,
      500 Valley Dr              Brisbane            50,000        DataLok/Grubb & Ellis                                                                                              121 months
                                                                                                                       NAI BT Commercial

      245 Spruce Ave             S San Francisco     30,000        NewZoom, Inc/Marc Pope, NAI BT Commercial           AMB Property Corp/Randy Keller, NAI BT Commercial              12 months

                                                                   Cort Furniture/Marshall Hydorn,                     Rice Trust c/o Boston Property/Marshall Hydorn,
      430 Rozzi Place            S San Francisco     20,000                                                                                                                           24 months
                                                                   NAI BT Commercial                                   NAI BT Commercial
      2600 Campus Dr             San Mateo           14,459        Gemini Mobile/Alex Wilson, CB Richard Ellis         Equity Office/Ben Paul, NAI BT Commercial                      Renewal
                                                                                                                       Sares Regis/Tim Gran, James Lees & Sandy Rodriguez,
      2121 S El Camino Real      San Mateo           11,516        RedSeal Systems/Hugh Scott, Jones Lang LaSalle                                                                     Office Direct
                                                                                                                       CB Richard Ellis
                                                                   Applied Strategies Consulting/Erich Sollman,
      951 Mariners Island Blvd   San Mateo           8,247                                                             Equity Office, Peninsula/Mike Moran, NAI BT Commercial         60 months
                                                                   NAI BT Commercial
      1300 Island Dr             Redwood City        6,850         12C/Jon Moeller, CB Richard Ellis                   Strongmail Systems/Randy Keller, NAI BT Commercial             Sublease
                                 Redwood                                                                               Westport Office Park, LLC/Kevin Waldman,
      1300 Island Dr                                 6,850         CONFIDENTIAL/Jon Moeller, CB Richard Ellis                                                                         24 months
                                 Shores                                                                                NAI BT Commercial

      Santa	Clara	County

      240 -270 S Milpitas Blvd   Milpitas            142,272       Flextronics/Steve Pace, CPS Corfac International    Invesco/Chip Sutherland & Reed Payne, CB Richard Ellis         Renewal
                                                                   Dal Tile Distribution/Jim Kovaleski,                                                                               Warehouse
      2549 Zanker Rd             San Jose            55,612                                                            Trig Investments/Brian Matteoni, CB Richard Ellis
                                                                   NAI BT Commercial                                                                                                  Expansion

      150 East Trimble Rd        San Jose            55,612        Dal-Tile/Craig Kovaleski, NAI BT Commercial         Trimble Investments/Brian Metteoni, CB Richard Ellis           74 months

                                                                   BioImagene/Jeff Arrillaga,
      919 Hermosa Ct             Sunnyvale           25,259                                                            Archon/Jeff Houston, CB Richard Ellis                          R&D Direct
                                                                   Cornish & Carey Commercial
      611 - 617 River Oaks                                         MicroProbe Inc/Steve Hunt,                          Montague Oaks Associates/Thomas Taylor,
                                 San Jose            23,860                                                                                                                           R&D Direct
      Pkwy                                                         Colliers International-San Jose                     CB Richard Ellis

      1094 W Maude Ave           Sunnyvale           22,029        Synopsys                                            Panattoni/Jeff Houston, CB Richard Ellis                       R&D Direct

      2350 Mission College                                                                                             2350 Mission Investors, LLC/Kari Cullivan,
                                 Santa Clara         19,371        Chegg, Inc/GVA Kidder Matthews                                                                                     N/A
      Blvd                                                                                                             NAI BT Commercial
                                                                   State of California/Michael Grado,
      2665 N First St            San Jose            18,186                                                            2665 N First St, LLC/Byron Renfro, Orchard Commercial          Office Direct
                                                                   CB Richard Ellis
                                                                   The Lanier Law Firm/Michael Frost,
      2200 Geng Rd               Palo Alto           9,075                                                             Equity Office/Cherie Wittry, Cornish & Carey Commercial        Office Direct
                                                                   CB Richard Ellis

      2150 N First St            San Jose            8,880         Fuji Film/Vince Machado, CB Richard Ellis           TBI/Jon Decoite, CPS Corfac International                      Office Direct

                                                                                                                       Sleepy Hollow Management/Dale Green,                           64 month,
      100 Century Center Ct      San Jose            7,833         Internap/Hugh Scott, Jones Lang La Salle            Sleepy Hollow Management                                       Renewal
                                                                                                                                                           Source: First American Title Insurance Company

                                                                      360 Residences, San Jose, California
                                                                                                                                                   Have you been to our website lately?
                                                                                                                                               broad coverage
                                                                                                                                                  of bay area
                                                                                            architecture
                                                                                                                                               real estate news.                          relevant.

                                                                                                                        www.theregistrysf.com
                                                                                        interior design

                                                                                                                                            current.

                                                                                                                                                                                   breaking news.
                                  

                                                                                                                    T HE
                                                                                          www.scb.com
 address                   City
                                                Property	               Buyer                                             Seller                                             Price
                                                                                                                                                                                                       COMMERCiaL	SaLES

                                                                                                                                                                                                  Product	               Brokers
                                                Size                                                                                                                                              Type	

 alameda	County
                                                                                                                          William Connors,
 1995 University Ave       Berkeley             170,355 sq ft           Regents of University of California                                                                  $53,000,000          Office                 N/A
                                                                                                                          Golden Bear Center
 444 Hegenberger                                                                                                          Eliseo Median, Unity Health Care                                                               Jessica Stewart, Aegis
                           Oakland              64,842 sq ft            Jill Dodd, Light Keepers, LLC                                                                        $8,350,000           Office
 Rd                                                                                                                       Workers Corporation                                                                            Realty Partners
                                                                                                                          Sandip Jariwala, Hayward
 829 W A St                Hayward              34,350 sq ft            Jayesh Patel, Mainstay Suites                                                                        5,100,000            Hospitality            N/A
                                                                                                                          Hospitality, LLC
                                                                                                                                                                                                                         Craig Chiappone,
                                                                        Robert Imhoff, Shoreline
 1901 Shoreline Dr         Alameda              31,088 sq ft                                                              Bill Raymond, R/E Shoreline, LLC                   $7,400,000           Multi-Family           Apartment Realty
                                                                        Apartments, LLC                                                                                                                                  Advisors

 Contra	Costa	County

 934 Dewing Ave            Lafayette            7,957 sq ft             Harold Michelson                                  Jeffrey Taggart Holmes                             $2,562,500           Office                 N/A

 Marin	County
                           San                                          Robert Imhoff, Romar Court                        William Raymond, Romar Limited
 6 Romar Ct                                     2.1 acres                                                                                                                    $9,175,000           Multi-Family           N/A
                           Rafael                                       Apartments, LLC                                   Partnership

 San	Francisco	County
                           San                                                                                                                                                                                           David Perry, McGuire
 2405 Washington St                             .07 acres               Patrick Meade                                     Donald C. Langley                                  $2,450,000           Multi-Family
                           Francisco                                                                                                                                                                                     Real Estate
 717 Battery St                                 32,667 sq ft            Michael Birch                                     Bill Poland, 717 Battery Street, LLC               $7,250,000           Multi-Family           N/A
 3500 Fulton St                                 9,195 sq ft             Dennis Hamby                                      Petr Kirtchenko                                    $2,280,000           Multi-Family           N/A
                           San                                          Alan Varela, 706 Sansome Street
 1331 19th Ave                                  8,760 sq ft                                                               Ralph Bunje, REVX-613, Inc                         $4,380,000           Multi-Family           N/A
                           Francisco                                    Partners, LLC

                                                                                                                                                   For-Sale Transaction Data provided by:

                                                                   The Registry/Rofo.com Small Business Barometer measures small business activity by monitoring its interest
                                                                   in office space. It is a leading indicator of small-business formation and health in the nine-county Bay Area.
                                                                   Rofo.com, founded in mid-2008 by former Bay Area commercial real estate brokers Alan Bernier and Garrett
                                                                   Krueger, is an online marketplace linking landlords with businesses seeking up to 5,000 square feet of space.
                                                                   It tracks searches by businesses for all property types (office, R&D, industrial, warehouse and retail) in 126
                                                                   Bay Area cities. The Registry presents the data as a window into the local health of one of the most-important
        Tomorrow’s Titans Today                                    business sectors in the U.S. economy.

   WEEkly RANk OF SEARCHES By CiTy                                                                                           4000                                                                                            Searches
                           Jan    Jan     Jan     Jan     Feb     Feb     Feb     Feb     Mar     Mar     Mar     Mar                                                                                                        4-Week Average
    CiTy                                                                                                                     3000
                            04     11      18      25      1       8       15      22      1       8      15      22
    San Francisco         1,436   1,075   1,139   1,039   1,078   1,073   1,056   1,261   1,255   1,178   1,334   1,245
    Oakland                573    503     491     594     479     770     654     529     522     632     641     664
    San Jose               568    417     426     476     434     495     508     521     513     563     499     604        1000                                     4000
    Fremont                502    332     413     409     427     439     441     501     474     483     392     480         500                                     3500
    Santa Rosa             265    251     211     236     336     221     268     335     270     257     264     312           0                                     3000
                                                                                                                                    FEB FEB MAR MAR MAR MAR                                                     3500
                           230    200     185     227     225     193     263     230     210     237     251     298                16  23  2   9   15  23
    Palo Alto                                                                                                                                                         2500
    Berkeley               213    175     169     218     198     181     230     182     209     234     205     247                NORTH BAy                                                                  2500
    Santa Clara            201    146     157     196     172     160     186     177     207     224     203     236                                                                                           2000
    Sunnyvale              186    139     142     184     171     156     177     171     206     218     189     226                                                                                           1500
    Mountain View          179    120     138     175     170     154     164     155     185     205     183     219                                                    0
                                                                                                                                                                             FEB FEB MAR MAR MAR MAR             500
    Hayward                176    111     129     175     137     148     156     149     175     200     159     214                                                         16  23  2   9   15  23
                           151    103     114     154     133     129     137     139     162     182     154     205                                                                                                  FEB FEB MAR MAR MAR MAR
    San Mateo                                                                                                                                                            SAN FRANCiSCO                                  16  23  2   9   15  23
    Redwood City           143     94     110     140     113     124     131     132     162     156     146     179
                                                                                                                                                                                                                          EAST BAy
    Emeryville             137     91     104     133     103     123     131     127     159     134     130     166
    Alameda                134     89     102     117     101     117     121     122     159     128     123     164
    San Leandro            133     87      96     110      99     111     118     122     153     126     121     159                                                                            4000
    Menlo Park             129     82      88     100      97     108     112     111     135     119     121     149                            2500

                           127     81      87      98      93      95     111     106     110     113     118     148                                                                            3000
    Milpitas                                                                                                                                     2000
    Newark                 123     78      86      95      91      87     110      91     109     107     108     142                            1500
                           119     77      73      94      80      83      99      89      97     104     101     136                            1000
    Concord                                                                                                                                                                                      1500
    Walnut Creek           118     75      72      91      78      81      98      87      96     103      92     132                                                                            1000
    Petaluma               113     74      67      91      77      79      96      79      94      97      90     117                                   FEB FEB MAR MAR MAR MAR                   500
                                                                                                                                                         16  23  2   9   15  23
                           112     73      62      85      75      78      95      75      91      93      90     114                                                                               0
    Livermore                                                                                                                                                                                           FEB FEB MAR MAR MAR MAR
                           92      68      60      84      72      75      93      74      85      87      85      98
                                                                                                                                                          PENiNSulA                                      16  23  2   9   15  23
    S. San Francisco
    Napa                   88      64      55      81      70      72      86      73      77      84      80      89                                                                                     SOuTH BAy

   All search data is for space under 5,000 square feet. Data includes office, retail and industrial searches. North Bay: Marin, Sonoma, Napa and Solano counties; East Bay: Alameda
   and Contra Costa counties; San Francisco: San Francisco County; Peninsula: San Mateo County, including Palo Alto and Los Altos; South Bay: Santa Clara County.

38 theregistrysf.com              m a y 2009
Pipsqueak or Superman                                      continued from page 29

industrial landlords saw nearly nine million square feet of space come back to              tors to use the federal money to buy high-quality commercial mortgage-backed
market for lease in the first quarter alone, according to CB Richard Ellis Inc. That’s      securities whose prices have fallen.
the same amount that they saw in all of 2008. Rents are falling across the board.               “Our advice to borrowers has been to refinance today. We think the problems
    Meanwhile, delinquency rates on commercial debt are rising rapidly. Accord-             are going to accelerate. You can only stem the tide so long,” said Michael Singh,
ing to the most recent report from RealPoint Research, delinquencies on com-                West Coast managing director for Jones Lang LaSalle’s Real Estate Investment
mercial mortgage-backed securities rose nearly 250 percent in the 12 months                 Banking arm.
through February.                                                                               Clearly, not enough time has passed for PPIP, or TALF, to be fairly evaluated.
    Of the $837.8 billion in CMBS debt that RealPoint tracks, $11.99 billion, or            The idea behind both is to match investor money with government equity or debt
roughly 1.5 percent, was delinquent at February’s end. The company predicts that            backing to encourage investor interest. But questions are emerging: Will banks
as much as $39 billion could be delinquent by December.                                     and other lenders in fact sell their faltering real estate loans and mortgage-backed
    Of particular concern are loans originated from 2005 through 2007, said                 securities to third-party investors, as PPIP and TALF envision, or will they resist,
Frank Innaurato, managing director for RealPoint, when underwriting clearly be-             bothered that someone else will capture the upside returns that they could right-
came more aggressive and unsustainable. More than 67 percent of all delinquency             fully view as theirs?
comes from loans originated in these three years, RealPoint research shows.                     And will banks be able to balance the need to maintain capital reserves even
    This year, $83 billion in CMBS loans are to mature, though about                        as they sell the damaged assets and presumably take further write-downs?
$13 billion have already been defeased, or secured by another asset such as cash                Count Ernst & Young Partner Chris Seyfarth in San Francisco an optimistic
or U.S. Treasuries.                                                                         realist. Programs like PPIP can work, he said, citing his experiences resolving
    Several industry efforts are underway to try to alleviate problem loans within          troubled debt transactions across the globe over the last eight years.
CMBS pools. The companies that handle troubled CMBS debt, known as special                      But he concedes that banks sometimes have to come to grips with the notion
servicers, have started to allow third parties to buy struggling properties at a dis-       that someone else can do a better job restructuring their troubled debt or selling
count to their remaining debt, Innaurato said.                                              foreclosed properties.
    “The buyer is assuming 65 percent to 75 percent of the loan, and that is the                “The one issue you see everywhere is from the bankers’ perspective, the inves-
discounted price of the loan and the property,” he said.                                    tors are making too much money,” he said.
    Special servicers also are pushing for the power to originate loans on fore-                But, while it’s a generalization, in his experience investors are faster and bet-
closed properties in CMBS pools, according to published sources. In addition,               ter at resolving problems and liquidating assets than banks, he said.
some industry representatives are pushing the federal government to extend the                  And at the end of the day, that’s all that matters. n
terms of loans available through the TALF program to make it easier for inves-

PEOPLE on the move continued from page 5
Cornish & Carey Names Three New Executive Vice Presidents                                   R&D properties. She has spent the last five years with CRESA Partners, where she
                                                                                            represented tenants on more than a million square feet of life-science and medical-
             Brokerage Cornish & Carey Commercial/ONCOR International has
                                                                                            device space.
             promoted three to executive vice president. The company board of
             directors has recognized Chief Financial Officer Jay Belquist (top)
             and office/R&D leasing experts Randy Gabrielson (middle) and                                greg Stone joins Commercial Brokerage Colliers
             Jeff Rodgers (bottom) for their contribution to profits and commitment                   Colliers International has hired Greg Stone as its director of construc-
             to C&C and its philosophy of knowledge and integrity.                                    tion management and procurement. Stone will offer Colliers’ clients a
             Belquist joined Cornish in 2000 as senior vice president and chief                       full range of project management services including strategic planning
             financial officer. He is responsible for accounting, finance, marketing                  and programming, budget and schedule management, construction
             and information technology. He also co-created and currently manages           and move management, cost segregation and local energy rebate execution.
             the Financial Advisory Group within the company’s Client Solutions             Prior to joining Colliers, Greg worked as a project executive for commercial real
             division, the corporate real estate practice within C&C. Belquist is also      estate advisor Newmark Knight Frank in San Francisco. His real estate career began
             chief financial officer of Cornish & Carey Capital, an affiliate of C&C that   in commercial leasing and investment brokerage in Northern California before he
             specializes in all areas of commercial real estate finance.                    transitioned into development and construction.
             Gabrielson joined C&C’s Palo Alto office in 1986 after graduating from
             the University of Southern California; he is currently co-manager of the                    Smithgroup Adds Flick, Hu to Healthcare Interiors Studio
             office. In 2009, he was inducted into the Association of Silicon Val-                       and O’Brien to Science & Technology Studio
ley Brokers’ Hall of Fame. He has leased or sold properties representing more than                        Architecture and engineering firm SmithGroup Inc. is pleased to an-
seven million square feet, totaling more than $1.5 billion in consideration.                              nounce the addition of Christine Flick and Hsiao-Lin Hu to the health
Rodgers began his real estate career in 1986 as an office-leasing specialist in San                       care interiors studio of the company’s San Francisco practice. Flick
Mateo County. In 1989, he accepted a position with C&C, where he has leased prop-           brings 30 years experience and joins SmithGroup as a lead interior designer on the
erties representing more than 11 million square feet. He has achieved top ten status        California Pacific Medical Center, a Sutter Health affiliate—Cathedral Hill Hospital
companywide each year from 1993 through 2002. The ASVB honored Rodgers as                   project. Her responsibilities include development and implementation of interior de-
Broker of the year in recognition of his accomplishments.                                   signs for the future 910,000 square-foot urban hospital in the heart of San Francisco.
                                                                                            Hu, who has 14 years of experience, joins the firm as interior architect on the Depart-
                           Two Brokers Join gVA Kidder Mathews                              ment of Veterans Affairs Polytrauma Center project in Palo Alto. Before joining
                                                                                            SmithGroup, Flick and Hu were designers at Anshen + Allen for eight years.
                           GVA Kidder Mathews has added two established commer-
                           cial real estate brokers to its growing life science practice    The company also announces the addition of Marianne O’Brien (above, left) to its
                           in Redwood Shores. Mary Hines (left) and Jennifer Berrueta       San Francisco office as a principal and member of the Science & Technology Studio.
                           (right), previously with CRESA Partners, will continue to        O’Brien brings more than 25 years of planning, architectural and management
collaborate on life-science, medical-device and clean-tech real estate in the Bay Area.     experience as she transitions from the company’s Minneapolis office to her new
                                                                                            base in San Francisco. She is a member of the American Institute of Architects and
Hines, who will be a senior vice president, has specialized in the life-science sector      has earned the designation of accredited professional for the LEED building rating
for more than 10 years and was an executive vice president at CRESA. She has                system from the U.S. Green Building Council. Prior to joining SmithGroup in 2005,
represented early-stage, late-stage and Fortune 500 life-science companies.                 O’Brien was director of the higher education practice for Ellerbe Becket Inc., an
Berrueta will be a vice president specializing in life-science, clean-tech and office/      architectural, engineering and construction company based in Minneapolis. w

                                                                                                                                           m a y 2009    theregistrysf.com 39

Heart of San Francisco                                        By 	Sharon	Simonson

In July 2002, Diane Filippi joined the San Francisco Planning + Urban
Research association as its first Urban Center director. She was to
lead the effort to get the new SPUR headquarters built. a native
Californian who has lived in the city for 35 years, Filippi brought to the
position a deep experience and personal interest in architecture and
urban design. In may, SPUR opens its 14,500-square-foot, five-story
building at 654 mission St., and Filippi takes a moment to explain its
significance for the city and beyond.

What	led	you	to	this	career,	and		          of life can come to learn, debate and     work over the past 50 years. There is
how	did	you	find	yourself	involved	         participate in civic life. In the past,   a very long list of accomplishments
with	SPuR?                                  SPUR has communicated in the              and areas where SPUR has had direct
Before joining SPUR, I was a manag-         written and spoken word, today we         impact. I think a good way to measure
ing partner at SMWM, an architectural       are adding another component—             impact and success is through our
and urban design firm in San Fran-          exhibition galleries—a three-dimen-       steady increase in membership, the
cisco. My role there was primarily in       sional opportunity to view planning       ongoing commitment from our donors
the areas of business, administration       projects and subjects in more depth       and funders, and our sold-out events.
and strategic marketing. I have always      and with a broader perspective.           All three of these indicators imply that
loved architecture. My father was a         The Urban Center also offers SPUR         our work is important and has impact.
developer—as a family we spent all          a unique opportunity to reach out         We are also now the only Urban
of our vacations and every Sunday           to other like-organizations in            Center west of the Mississippi. I
afternoon exploring new construction        San Francisco, the Bay Area, the          have been invited to speak about it
projects. When I got older, I               state, the nation and beyond. you         in Boston, New york, Chicago and
actually joined my father and his           are inevitability dealing with the        Venice, Italy. Our director, Gabriel
partners when they were hiring              Bay Area region when you deal             Metcalf, has been to Ireland and
architects for their projects. I think it   with economic development,                New Orleans and many other
was at this very early stage in my life     transportation and a host of other        locations. So because of the Urban
when I got totally immersed and             questions. We just got a grant to hire    Center, we have gotten the attention
fascinated by the built-environment.        a regional policy director who will       of people all over the world.
From my interest in buildings and           lead that effort. We have also started
architecture I quickly gained a             an open dialogue with the city of         With	this	mission	accomplished,		
passion for cities—large, vibrant,          Los Angeles and have been working         how	do	you	perceive	your	driving	
walkable cities!                            with them for three years on projects     mission	going	forward	as	the		
                                            and forums to discuss the future of       director	of	the	urban	Center?
What	does	the	urban	Center	mean	            California. We are obviously very         I feel honored to have had the
                                            different cities and cultures, but we                                                Photo By	JaSON	STEiNBERG	|	STEiNBERG	iMaGERy
for	SPuR	and	the	citizens	of		                                                        opportunity to have this role and to
San	Francisco	and	the	Bay	area?             are inhabitants of the same state,        have helped build the Urban Center.
                                            and we have common state issues           I have been inspired by all the
For SPUR, the Urban Center means
                                            such as the high-speed rail line          San Franciscans who have come
the future forever. With the purchase
                                            and drinking water.                       forward and given to make the
of the site at 654 Mission, we have
secured our future. We will no longer                                                 SPUR Urban Center happen. I am
be at the mercy of economic up and          How	do	you	measure	the	impact	of	         looking forward to helping launch
down turns. From the very beginning,        what	SPuR	does	and	of	what	the		          the programmatic vision for the
it became very clear that the Urban         urban	Center	hopes	to	achieve?            Urban Center through exhibitions,
Center is for San Francisco and San         Measuring impact is always difficult.     new collaborations, class offerings,
Franciscans, as well as for SPUR. The       SPUR can point to numerous civic          expanded lecture series and
Urban Center will be a destination          achievements that have been               other avenues. n
resource where people from all walks        accomplished through its committee

40 theregistrysf.com   m a y 2009
      1st Annual Commercial Interiors Contractors Awards
                                                                      Come join us on 9-9-09 for the 1st annual commercial
                                                                      interiors contractors awards (cica) in San Francisco.

                                                                      Be part of a far-reaching event that will recognize
                                                                      excellence and achievement amongst the commercial
                                                                      contracting industry in the San Francisco Bay Area.

                                                                      When: 9-9-09
                                                                      Where: Masonic Auditorium
                                                                      1111 California Street, SF, CA 94108
                                                                      Time: 5:30pm ~ 9:30pm

                                                                      Proceeds from this event will go to the cica-sf foundation, which
                                                                      will give back to the community through renovation / upgrade of
                                                                      public facilities in the San Francisco Bay Area.

                                                                      For further information, please contact Michael Ma (event chair)
                                                                      at mma@tcco.com, (415) 830-7870

                                                                      Check us out on the web at www.cica-sf.com; and the LinkedIn
                                                                      CICA group at http://www.linkedin.com/e/gis/1756567

                                                                      General Contractor Award Submissions are due on 6-26-09

                                                                                                                In-Kind Sponsors:
                                                                                                                Asian Commercial Professionals
                    commercial interiors                                                                        BOMA San Francisco
                    contractors awards                                                                          Building Industry Conference Board
                                                                                                                Cassidy Shimko Dawson Kawakami
                    www.cica-sf.com                                                                             Davis and Associates Communications
                                                                                                                East Bay CREW
                                                                                                                Hart Event Marketing
                                                                                                                IFMA San Francisco
                                                                                                                Society for Marketing Professional Services
                                                                                                                Studio 891
                                                                                                                Vernon Sales Promotion
                                                                                                                Media Sponsor:
For sponsorship opportunities, visit www.cica-sf.com/sponsors.html.                                             The Registry
                                                       Caltrain Station, San Carlos, CA
                                                       Mixed-Use Transit Orientated Development Project

Ha n s o n B r idg e t t . c o m   More Info:   RealEstate@hansonbridgett.com

Shared By: