Daily Business Report — April 7, 2011
Job Growth Good News for Office Market
Encouraging employment news — the addition of 16,500 non-farm jobs in San Diego County in the last year — will positively impact the office market in the coming months, according to a first quarter office report prepared by Jones Lang LaSalle. The majority of the new jobs are categorized as professional and business services and include 3,500 temp jobs, which is a solid indicator of companies beginning to expand their payrolls, the report said.
First quarter leasing activity included the Federal Bureau of Investigation committing to leasing a 248,000-square-foot build-to-suit in Sorrento Mesa. The new building is slated for completion in mid-2013 and will be LEED-Gold certified. The 20-year lease was valued at over $223 million and will be a consolidation of six San Diego facilities, representing a net increase of 100,000 square feet for the FBI, according to Jones Lang LaSalle.
While waiting for the completion of their new 193,000-square-foot Sunroad Centrum II building in late 2012, Bridgepoint Education signed a short-term 80,000-square-foot, direct lease in the former HSBC sublease on Copley Drive. Upon completion of the new building, these employees will likely vacate this site.
Tenants in the leasing market include Nuvasive, seeking 150,000 square feet; A.T. Still University, 135,000 square feet; Northrop Grumman, 100,000 square feet; and Geller Robbins, 100,000 square feet.
Sales activity in the first quarter included the 118,000-square-foot Centrewest Plaza at 9710-9740 Scranton Drive in Sorrento Mesa, which sold to Cruzan|Monroe for $18.4 million.
Significant office projects currently on the market for sale include:
• Columbia Center, a 553,000-square-foot Class A Downtown high-rise.
• Emerald Plaza, a 364,000-square-foot, Class A trophy asset owned by RREEF, in Downtown (pictured).
• 110 Plaza, located at 110 West A Street, a 322,203-square-foot, Class B high-rise Downtown.
• The three-building, 242,592-square-foot Discovery Corporate Center in Rancho Bernardo.
• In Kearny Mesa, the three-building, 125,000-square-foot, Olympia Plaza (pictured).
• The Plaza at Scripps Northridge in Scripps Ranch, a 113,000- square-foot, Class A multi-tenant office project.
Menlo Equities has broken ground on the 83,000-square-foot, Building D at Discovery Corporate Center in Rancho Bernardo. Broadcom, who occupies 75.0 percent of the neighboring three buildings, pre-leased 56,000 square feet late last year. Construction is expected to be complete in the second quarter of this year.
Downtown’s Westin Gaslamp Hotel Sold
The Pebblebrook Hotel Trust of Maryland has acquired the Westin Gaslamp Quarter Hotel — the Westin Gaslamp in Downtown San Diego — for $110 million. The property, currently undergoing a phased renovation, including a completed guest room renovation, will continue to be managed by Starwood Hotels and Resorts. The Westin Gaslamp was originally developed in 1987 and includes more than 32,000 square feet of indoor and outdoor meeting space besides its 450 guest rooms. It has three food and beverage outlets — Horton’s Bar & Grill, Café Express and The Lobby Lounge. Hotel occupancy last year was 72 percent.
San Diego Venture Group Names First Full-Time President
David Titus, co-founder and managing director of Windward Ventures, has joined the San Diego Venture Group as its first full-time president. Since January 2010, Titus has been managing director of strategic initiatives for the San Diego Regional Economic Development Corp. and will continue as a special adviser to the organization. He also is an executive committee member of CONNECT and a former officer of the Western Association of Venture Capitalists. “Dave brings a wealth of experience in leading organizations that foster positive interactions to increase economic opportunities for its members, and his hire is a natural evolution for us,” said Steve Stuckey, chairman of the Venture Group’s board. “With more than 20 years in the San Diego business community, he is well connected and respected within our region.” Titus’s Windward Ventures has invested in 24 Southern California early stage technology companies since 1997, of which five remain active. He is board representative to three of the companies and chairman of one private company.
Building Housing Edwards Theater is Sold
Excel Trust Inc., a real estate investment trust, has acquired the 100,511-square-foot building that houses the Edwards Theater in San Marcos — for a purchase price of $23.6 million. The property is leased by Edwards Theatres, a subsidiary of the Regal Entertainment Group. Excel Trust assumed the existing mortgage of approximately $12.4 million, which bears interest at 6.74 percent. The purchase price, excluding assumed debt, was mostly paid in the form of Operating Partnership Units initially valued at $14 per unit.
CareFusion Acquires Technology to Deal With Pharmaceutical Waste
Medical technology company CareFusion has acquired Irvine-based Vestara and its proprietary technology to automate the segregation of pharmaceutical waste to help hospitals reduce costs and improve the environment. Officials said the acquisition will enable CareFusion to expand its Pyxis medication management portfolio with the Pyxis EcoStation, a hardware and software system that helps hospitals identify, classify and segregate pharmaceutical waste. The company noted that U.S. hospitals purchase more than 4 billion vials, bottles and ampoules containing hazardous materials and generate more than 84,000 tons of hazardous waste annually. A 2008 study, it said, found a vast array of pharmaceutical drugs present in the drinking water of 41 million homes and in 24 major metropolitan areas. Hospitals may be fined up to $37,500 per infraction, per day, for improper disposal of pharmaceutical waste. Recently, a government-owned hospital was fined $51,501 and ordered to spend $500,000 to develop a program for pharmaceutical waste management; another large cancer hospital was fined $372,254 for improper handling and storage of hazardous pharmaceutical waste.
Kaiser Permanente Appoints Chief Operating Officer
Kaiser Permanente San Diego has appointed Edward Littlejohn as chief operating officer, leading the Kaiser Foundation Health Plan and hospital operations in North County. Littlejohn previously was the chief operating officer for Hospital Corporation of America-John Randolph Medical Center in Hopewell, Va., where he oversaw a 147-bed acute care community hospital. During his tenure he developed an urgent care center, established a Hospitalist Program, and launched an ASC joint venture with local physicians. Littlejohn earned a master’s degree from columbia University and a bachelor’s degree from California State University, Northridge.
CityWorks Names New Public Affairs, Marketing Manager
Jon Cross has been hired as public affairs and marketing manager for CityWorks, a partnership between Collaborative Services and Warner Architecture + Design. Cross has more than 10 years of experience in corporate communications, media relations, political marketing and event management. He was most recently a senior staff member to U.S. Senate candidate Carly Fiorina, former CEO of Hewlett-Packard. Cross also served as director of marketing and communications for The Allen Group in San Diego and worked in Arnold Schwarzenegger’s gubernatorial campaign in 2003 and served in the former governor’s administration.
Waterworks Aquatics to Open Swim Facility in Carlsbad
Waterworks Aquatics of Orange County has purchased an industrial building at 2704 Gateway Road in the Bressi Ranch area of Carlsbad for $1.2 million and intends to open a new, state-of-the-art indoor swim facility on April 28. The 8,700-square-foot building will serve the North County. Waterworks Aquatics teaches more than 5,000 children to swim each year at its Orange County location. The new Carlsbad location will provide swimming lessons year round, including private, semi-private, Parent and Me, adult and stroke clinic swim classes. It will also offer youth swim teams, summer swim camps, lap swimming, masters swim team, water aerobics, aquatic therapy, and act as a venue for birthday parties. Classes are offered in two pools, a lap pool heated to 89 degrees and a teaching pool headed to 92 degrees, for children and adults ages 3 months and older. The company will hold its grand opening ceremony on May 7 from 2 to 4 p.m. Dennis Visser and Aric Starck of Cassidy Turley BRE Commercial represented both Waterworks Aquatics and LJR, LLC, the seller, in the transaction.
Pacific Ridge School to Get New Athletic Center
Construction begins this month on a new athletic center for Pacific Ridge School in Carlsbad, a nonprofit, independent school that opened in 2007 and teaches grades 7-12. Officials said the 35,236-square-foot athletic center will be one of the largest and most state-of-the-art high school athletic centers in the county. Construction will include three regulation basketball courts, a training room, dance/yoga studio, state-of-the-art weight and conditioning room, coaches’ offices, locker rooms and showers, kitchenette for concessions, bleachers capable of seating 500 fans, and an outdoor viewing deck of the Astroturf field. The lobby will also act as a hall of fame, showcasing trophies for athletic, academic and arts achievements. The middle school and high school offers 12 sports and 43 teams that include basketball, volleyball, flag football, lacrosse, cross country, soccer, tennis and golf. The athletic center, designed by Carrier Johnson & Culture. Construction will be managed by the Downey Group, and built by J.E. Grant General Contractors Inc. The school launched a $10 million fundraising campaign to support construction of the center and other elements.
SCORE San Diego Small Business Workshops
• April 8 – Import–Export – 9 a.m. to 4 p.m. at National University in Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $69, $79 at the door).
• April 9– Introduction to Starting Your Own Business – 9:00 a.m. to 4:15 p.m. at National University in Carlsbad (705 Palomar Airport Road, Carlsbad 92009; pre-paid registration $69, $79 at the door).
• April 9 – Internet Marketing 201 – Build Your Business through Search Engine Optimization – 9 a.m. to 3 p.m. at National University in Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $69, $79 at the door).
• April 9 – QuickBooks Basic – 9 a.m. to 4 p.m. at National University in Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $69, $79 at the door).
• April 12 – Legal Issues for Small Business – Contacts and Leases – 9 a.m. to noon at SCORE Entrepreneur Center (550 West C St., #550, San Diego 92101; pre-paid registration $49, $59 at the door).
• April 13 – Internet Marketing 303 – Social Media for Small Businesses – 9 a.m. to noon at National University in Carlsbad (705 Palomar Airport Road, Carlsbad 92009; pre-paid registration $49, $59 at the door).
• April 14 – Effective Marketing – Identify and Target Your Customers – 9 a.m. to 4 p.m. at National University in Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $69, $79 at the door).
• April 14 – Business Basics 101 – 9:30 to 11:30 a.m. at SCORE Entrepreneur Center (550 West C St., #550, San Diego 92101; No Charge – Please Pre-Register).
• April 16 – Business Plan 201: How to Write a Winning Business Plan – 9 a.m. to 3:30 p.m. at National University in Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $99, $109 at the door).
• April 19 – Internet Marketing 304 – Cost-Effective Internet Marketing Tools – 9 a.m. to noon at National University in Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $49, $59 at the door).
• April 20 – Buying and Selling a Business – 9 a.m. to 3:30 p.m. at National University in Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $69, $79 at the door).
• April 26 – Introduction to Starting Your Own Business – 9 a.m. to 4:15 p.m. at National University in Kearny Mesa (9388 Lightwave Ave., San Diego 92123; pre-paid registration $69, $79 at the door).
• April 26 – Financial Statements – What They Mean, How to Use Them – 9 a.m. to 3:30 p.m. at SCORE Entrepreneur Center (550 West C St., #550, San Diego 92101; pre-paid registration $29, $39 at the door).
• April 27 – Financing Your Business – 9:30 a.m. to noon at National University in Carlsbad (705 Palomar Airport Road, Carlsbad 92009; pre-paid registration $29, $39 at the door).
• April 27 – Good Governance for Nonprofits: Effective Board Performance – 9 to 11:30 a.m. at The San Diego Foundation in Liberty Station (2508 Historic Decatur Road, #200, San Diego 92106; pre-paid registration $39, $49 at the door).
• April 29 – Business Basics 101 – 9:30 to 11:30 a.m. at SCORE Entrepreneur Center (550 West C St., #550, San Diego 92101; No Charge – Please Pre-Register).
• April 29 – Tax Considerations for Small Business – 9:30 to 11:30 a.m. at National University in Carlsbad (705 Palomar Airport Road, Carlsbad 92009; pre-paid registration $29, $39 at the door).
The Daily Business Report is produced by REP Publishing Inc., publisher of SD METRO, the North Park News, Kensington News and the West Coast Craftsman. Contact: Manny Cruz (619287-1865.