Daily Business Report-March 2, 2016
The renovations to Five Thirty B included the transformation of a patio on the third floor into a 15,000-square-foot Sky Terrace that wraps around the building.
Kearny Real Estate Co. Sells Former Union
Bank Headquarters to Bosa for $53.2 Million
Kearny Real Estate Co. has sold the former Union Bank headquarters at 530 B St. in Downtown San Diego to Bosa Development for $53.2 million.
The company acquired the building in 2014, renamed it Five Thirty B and spent $15 million in renovations, the company said Tuesday in announcing the sale.
The renovations included all new restrooms, a redesigned lobby with artwork designed by Matt Devine, a refurbished conference center with state-of-the-art audio-visual equipment.
The renovations also included the transformation of a patio on the third floor into a 15,000-square-foot Sky Terrace that wraps around the building.
Created by Kearny at a cost of $1 million, it is one of the largest tenant amenities of its kind in Downtown San Diego, according to Jeff Givens, Kearny Real Estate’s vice president.
The outdoor meeting space and roof garden, which took top honors in the San Diego chapter of the California Landscape Contractors Association’s Beautification Awards, features a fire pit, lush planting, walking paths, multiple gathering places, private seating areas and a 30×105-foot mural designed by local artist Maxx Moses.
Kearny Real Estate partner John Bragg said the company was able to increase occupancy in the building from 50 to 78 percent in the two years that it owned it. New tenants include Lewis PR, NCRC Mediation, Nyhart and Smash Lab LLC.
“Through thoughtful renovations and aggressive leasing programs, we were able to meet our five-year objectives in just over two years, and exit the investment knowing that we’ve created strong momentum for the new owners,” said Bragg.
Separately, Kearny Real Estate is re-imaging the former Mission Center Office Park into Mission Center, a 183,692-square-foot low-rise office campus in Mission Valley that was acquired in September 2015. The center will be upgraded with new building entries now, lobbies and re-designed atriums by LdG Landscape Architects.
CBRE’s San Diego office represented both parties in the Five Thirty B transaction.
Trammell Crow Residential Breaks Ground
on The Alexan Tower in Downtown San Diego
Trammell Crow Residential’s Southern California Division has started construction on The Alexan, a 313-unit, mixed-use development consisting of a 19-story tower with 209 apartment units, a four-story residential building with 104 units, subterranean parking for 376 vehicles, and an indoor-outdoor restaurant in a converted 100-year-old church.
The 250,000-square-foot project is scheduled for completion in the third quarter 2017. Located one block from the Downtown Central Library and two blocks from Petco Park, The Alexan will occupy the majority of the block bounded by J, K, 13th and 14th streets.
The project was designed by Joseph Wong Design Associates of San Diego with contemporary loft-style architecture in keeping with East Village’s historic industrial aesthetic, an emphasis on wide expanses of glass and views. The development team also includes Nasland Engineering and landscape architects LandLab, Inc, both of San Diego.
Recreational areas, gathering spaces and lounges are featured throughout the project. The 19th floor will feature a stylish party space, bar and rooftop pool facing southwest to capture unobstructed bay, ocean and sunset views. Apartments will range from 459-square-foot studios to 2,228-square-foot, two-bedroom penthouses. All units feature balconies, floor-to-ceiling windows, gourmet kitchens, spa-like baths, walk-in closets and washer-dryers.
Including The Alexan, the Southern California Division of Trammell Crow Residential is currently developing nearly 3,000 apartment units in Los Angeles, Orange and San Diego counties, valued at more than $900 million.
Marriott Marquis Undergoes
$107 Million Renovation
Marriott Marquis San Diego Marina has a $107 million makeover underway in its meeting and event venues, with completion slated for this summer.
The renovation will include a new, two-level stacked ballroom project and Marina Terrace, an outdoor area on the bay that will include a public walkway, Marina Walk.
Marina Walk is a landscaped walkway where visitors will enjoy beautiful public art, decorative paving and sweeping views of the waterfront. The Walk will feature two public artworks by Los Angeles-based art collective, “After Architecture,” which are “Tide,” an exterior sculpture comprised of a series of LED-illuminated waves, and “Kelp,” an installation constructed of painted steel strips and symbolic of sunlight kelp on the ocean floor. With full wheelchair accessibility and public facilities, Marina Walk’s finishing touches include bike racks and benches.
The new construction will increase the meeting, indoor and outdoor event space to 280,000 square feet. The showpiece consists of two 36,000-square-foot ballrooms (Marriott Grand Ballroom & Pacific Ballroom), each capable of accommodating up to 3,700 guests. Both have grand foyers reaching up to 25,000 square feet, offering options to extend the space.
The renovations follow a multi-million-dollar makeover of the resort’s guest rooms and public areas in 2011.
Concierge Auctions to Bring 2
Properties to Auction on March 17
Concierge Auctions will put up two properties to auction on March 17 — a newly constructed, Spanish-style private estate at 14855 Sunset Ridge, and a 1.34-acre parcel of land at 16827 Via De La Valle in Rancho Santa Fe.
The Spanish-style property has ocean and mountain views from almost every room and was previously offered for $3.49 million. The property will sell without reserve on March 17 in cooperation with Nathan Hilbig of Arbor Property Group.
The winning bidder of the Rancho Santa Fe property will have access to such amenities as riding and tennis clubs to art, garden, library guilds and a world-class par 72 golf course. Previously offered at $949,000, the property will sell without reserve in cooperation with Catherine E. Barry of Barry Estates Inc.
Council Approves Initiative to End
Veteran Homelessness in San Diego
The San Diego City Council on Tuesday unanimously approved the 1,000 Homeless Veterans Initiative, a citywide effort to house veterans through landlord incentives, rapid rehousing vouchers and supportive services. Councilman Todd Gloria, who chairs the Regional Continuum of Care Council, the regional planning body for ending homelessness, brought the initiative to the council.
The action approved $4 million in proceeds from the ground lease on San Diego Square Apartments and funds from the pending sale of the Hotel Metro to implement the program. The entire initiative will commit $12.5 million towards homeless veteran assistance from city, federal, and Housing Commission resources.
“No one who served our nation in uniform should be homeless,” said Councilmember Gloria. “The 1,000 Homeless Veterans Initiative provides a path towards ending veteran homelessness in San Diego.
The initiative consists of four major components to implement its goals: landlord outreach, rapid rehousing assistance, Federal Veterans Affairs Supportive Housing (VASH) vouchers, and Federal vouchers and services for homeless veterans that do not qualify for VASH vouchers. These components incentivize landlord participation through providing rent payments, security deposit and utility assistance, and contingency funds.
The 1,000 Homeless Veterans Initiative will be administered by the San Diego Housing Commission as part of Housing First San Diego, the city’s three-year Homelessness Action Plan launched in 2014.
FAA Creating Committee to Determine
Drone Flying Rules Over Crowds
Federal Aviation Administration announced that it is establishing an aviation rulemaking committee of industry stakeholders that will work on constructing a framework that details how certain UAS could be flown over people not involved with the operation.
The committee will focus on micro UAS but instead of focusing on weight classification, the committee will determine which drones are safe over crowds through a performance-based standard. The committee will weigh human injury thresholds, hazard and risk assessment methodologies and acceptable levels of risk for those not involved in the operation.
“Based on the comments about a ‘micro’ classification submitted as part of the small UAS proposed rule, the FAA will pursue a flexible, performance-based regulatory framework that addresses potential hazards instead of a classification defined primarily by weight and speed,” said FAA Administrator Michael Huerta.
The committee will then outline how manufacturers can meet this safety requirement. The committee will submit a report to the FAA by April 1.
(AUVSI is the Association for Unmanned Vehicle Systems International)
Best Reads to Stay on Top of Your Game
San Diego Women’s Week once again welcomes a roster of influential authors to their seventh annual event, held this year March 14 through 18. Amy Cuddy, known world-wide for her 2012 TED Talk (the second-most viewed talk in TED’s history), brings her thoughtful research and down-to-earth charm to both her book, Presence, and her keynote address.
Padma Lakshmi, host of Bravo TV’s Top Chef, discusses topics from her book, Love, Loss, and What We Ate. Attendees will also receive a Gratitude Journal from returning favorite, Kim Coles, comedienne and actress of Frasier, Six Feet Under, and In Living Color. The first 400 attendees of the Inspiration Conference will receive at least one book. Click here for details.