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Daily Business Report-Nov. 16, 2017

Daily Business Report-Nov. 16, 2017

PupBox sells the doggie treats, but not the dog. (Photos from the PupBox website,

Petco Acquires Pet Subscription

Service Company PupBox

Petco has acquired PupBox, a puppy- and life stage-focused subscription service company that delivers customized products and training information to new puppy and dog parents based on their pet’s current stage of development and physical characteristics. Details of the deal were not disclosed. PupBox’s four staffers will join Petco.

PupBox Treats (Photo from PupBox website)

PupBox Treats (Photo from PupBox website)

PupBox’s core subscription offering is designed to help new pet parents navigate the many joys and challenges of puppyhood and beyond. The company delivers monthly bundles filled with developmentally appropriate products that range from toys and treats to grooming tools and accessories. Each PupBox also includes a training guide filled with information to help pet parents keep up with their pet’s changing training, developmental and physical needs.

Besides announcing the acquisition, the companies launched the PubBox “Holiday Box,” a bundle of toys, treats and holiday training tips that can be used as holiday gifts.

PupBox was co-founded by Ben and Ariel Zvaifler in 2014 after they adopted a new Goldendoodle puppy, Maggie, and then struggled to find products that were perfectly suited for her constantly changing needs. After success as an early stage start-up, the San Diego-based company appeared on ABC’s Shark Tank in November 2016, where they secured funding from investor Robert Herjavec, and have since gone on to more than double their sales.


Aerial view of FedEx shipping facility.

Aerial view of FedEx shipping facility.

FedEx Shipping Facility

in Carlsbad Sells for $24.5 Million

Berdan Holdings LLC has acquired a 109,807-square-foot FedEx shipping facility, located at 2495 Faraday Ave. in Carlsbad, for $24.5 million. The seller was the Leonard Living Trust.

Built in 1999, the facility consists of a single-story industrial property situated on 7.96 acres. The facility is fully leased on a net lease basis to FedEx, which is a longtime tenant of the property. Other key property features include 32-feet clear height, 10,900 square feet of office space, and nine dock and nine grade level doors.
Cushman & Wakefield represented the seller and SD Realty Partners represented the buyer.


U.S. Coast Guard Veteran Selected to Head

Local Chapter of the American Red Cross

Sean Mahoney

Sean Mahoney

Sean Mahoney, a Coast Guard veteran who launched a nonprofit that helps military families transition from the military to civilian life, has been named the new regional chief executive officer of the American Red Cross of San Diego/Imperial Counties, effective Dec. 18. Mahoney will replace Charlene Zettel, who has served in the interim regional executive role since July. She will return to her seat on the agency’s board of directors.

“Sean’s skills and experience align with many of the Red Cross services including the emphasis on supporting our military and effective disaster response, as well as fundraising to be able to fulfill our mission,” said local Red Cross Board Chair Dave Geier.

Mahoney most recently serving as the executive director of zero8hundred, an organization he formed in 2015 that helps military members and their families as they transition to civilian life following the completion of military service.

Mahoney is a veteran himself, having retired at the rank of captain after 27 years of service in the United States Coast Guard. His Coast Guard assignments included piloting helicopters in Cape Cod, Mass., Astoria, Ore., San Diego, and Houston.

Mahoney has experience in disaster response as he managed hurricane responses while assigned as the commanding officer of Air Station Houston. He also previously directed governmental and public relations efforts for the Coast Guard’s 40-state Atlantic Area.

Mahoney has lived in San Diego since 2011. His final assignment in the Coast Guard was as captain of the Port and Commander of Coast Guard Sector San Diego, where he supervised personnel and assets that completed missions throughout southern California, Arizona, and southern Utah and Nevada.


Eastgate Exterior.

Eastgate Exterior.

Affirmed Housing Opens Mixed-Use,

Affordable Apartments in San Marcos

Affirmed Housing on Wednesday celebrated the grand opening of Eastgate, an affordable apartment project in San Marcos serving low-income families and veterans.

Eastgate, located at 16 Creekside Drive, consists of 42 units in studio, one-, two- and three-bedroom designs. The affordable units, ranging from 577 to 1,546 square feet, are designated for those who earn 50-60 percent of San Diego’s area median income. Units feature plank flooring and plush carpeting, fully equipped kitchens with stainless steel appliances, and ample windows for natural light.  Shared amenities include a clubhouse with kitchen, tech stations, a tot lot, barbecue areas, and laundry facilities.  Residents will have case management services and access to educational programming.  The urban infill project also features eight commercial spaces for local businesses. Eleven residences are designated as HOME units targeting income-qualified veterans. The project was designed by Dahlin group and built by Wermers Construction. Landscape design was by Darsono Design Associates and the civil engineer was Masson & Associates.


Appeals Court Upholds Verdict Ordering

Removal of Lead Paint from Homes

A federal appeals court has ordered three paint manufacturers to get the lead out of San Diego homes that were built before 1951. In the 17th year of a landmark case over lead paint toxins, a three-justice panel of the California Sixth District Court of Appeal unanimously upheld a lower court decision ordering the paint manufacturers to clean up lead paint in homes in San Diego and nine other California cities and counties.

Tuesday’s ruling held Sherwin-Williams Company, NL Industries Inc., and Con-Agra Grocery Products Company liable for the public nuisance caused by lead paint found in pre-1951 homes and upholds a vast majority of the lower court’s decision.

“This is a resounding victory for the thousands of children endangered by lead paint in their homes,” City Attorney Mara W. Elliott said. “My office aggressively protects the public against harmful products and holds accountable the responsible parties.”

This case was filed in 2000 by then-Santa Clara County Counsel Ann Ravel. San Diego was among nine cities and counties to join the litigation, filed on behalf of the People of California.

The Center for Disease Control and the Childhood Lead Poisoning Prevention Branch report that lead paint is the primary cause of lead exposure for children who live in older homes.


San Diego Ranked Third Nationally

for Digital Innovation in Local Government

Times of San Diego

San Diego was ranked third nationally for digital innovation in a survey of local government services offered by cities of different sizes. The ranking announced last week by the Center for Digital Government was based on being “open, mobile, engaged, collaborative, secure, staffed/supported, connected, efficient, resilient” while innovating and using best practices.

San Diego came in third among cities of over 500,000 population. Los Angeles was first, and Albuquerque second.

“This year’s top digital cities are using technology to ensure citizens can meaningfully interact with city government more easily than any other time in history,” said Todd Sander, executive director of the center.

The ranking reflects San Diego’s implementation of a variety of technology-related initiatives, from the Get It Done app for reporting problems to online police reporting and the PerformSD dashboard for citizens.


Discovery May Show Earliest Stage of Alzheimer’s

A new way to detect Alzheimer’s disease at the earliest stages has been reported in a study led by researchers at the Sanford Burnham Prebys Medical Discovery Institute.

Read more…


Renowned Surgeons Launch Acoustic

Neuroma Program at UC San Diego Health

UC San Diego Health has expanded its treatment of rare brain tumors by launching a specialized program in the diagnosis and treatment of acoustic neuromas and complex skull base tumors. The new program will be led by Rick Friedman, MD, and Marc Schwartz, MD, internationally recognized authorities on the effective treatment of these challenging cases. Patients are currently being accepted into the program.

Read more…


Personnel Announcements

Allen Chitayat and Nate Pepper Join CBRE

Allen Chitayat

Allen Chitayat

Nate Pepper

Nate Pepper

Allen Chitayat and Nate Pepper have joined CBRE’s Capital Markets team in San Diego. Chitayat joins as first vice president, Pepper as associate. They

will focus on enhancing the firm’s private client and institutional multifamily investment sales presence in San Diego and adjacent Southern California areas.

Chitayat has more than 30 years of experience in the real estate field. He joins CBRE from Berkadia Real Estate Advisors, a division of Berkshire Hathaway and Leucadia National, where he held the position of senior director. He was also one of the founding partners of ACI Commercial, a San Diego-based multifamily boutique brokerage and investment firm.

During his career, Chitayat has completed more than $1.25 billion in multifamily sales.

Since 2015, Pepper exclusively worked with Chitayat as a multifamily analyst at Berkadia, gaining exposure to both brokerage and private equity transactions involving middle-market and institutional quality assets. During his tenure, Pepper has been involved in the sale and purchase of more than $75 million of multifamily properties. Prior to beginning his career in commercial real estate, Nate spent time in the public accounting industry representing clients in real estate, health care and technology.


Attorney Gregory Daniels Joins Duckor Spradling Metzger & Wynne

Gregory Daniels

Gregory Daniels

Attorney Gregory P. Daniels has joined the Healthcare Practice of law firm Duckor Spradling Metzger & Wynne. Daniels provides regulatory compliance and litigation advice to health care clients relating to fraud and abuse issues, including the Stark law and the Anti-Kickback Statute. This also includes representation relating to the False Claims Act (FCA), HIPAA/patient privacy, Medicare/Medicaid, and patient consent. Daniels also conducts and assists in internal investigations and advises clients on employment and medical staff issues, internal audits, theft, and other regulatory issues.

Previously, Daniels served as general counsel for a large multi-specialty, nonprofit health care organization based in San Diego, and as chief compliance officer for an acute-care medical center in Imperial Valley. He has also worked in the Litigation and Regulatory Sections in the San Diego office of a national health care law firm and as a litigation attorney for a regional law firm.  Prior to joining the private sector, Daniels worked in the Office of the District Attorney in Riverside.

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Voice Your Opinion

We Want Your Opinions on San Diego’s Big Issues In the coming months, Probosky Research (one of California’s leading opinion research firms) will continue its partnership with SD METRO to survey San Diego residents about topics of interest to our readers. We’d like to throw open the door for suggestions for topics. What do you want to know? What do you think you know, but aren’t sure? What are you certain you know, but want to prove it beyond doubt? Ideally, we’d like to see questions that have to do with public policy.

Some areas may include Mayor Filner’s first 100 days job performance, should the city be responsible for economic growth and the creation of new jobs, how important are infrastructure improvements to our daily lives (streets and bridges, etc.), how important is water independence, how satisfied are residents with public transit or how do city residents value Balboa Park and other open spaces? Do you believe the City Council should revive the Plaza de Panama plan for Balboa Park?

You can email Probolsky Research directly with your ideas: