Photo by Nolita
Our good friends purchased the gorgeous Vineyard
Knoll Estate where The Bachelor is currently filmed.
We are so looking forward to chillax amongst the 200 acres of Pinot Noir and
Chardonnay grapes this year.
You can rent this when we are not
there. The home is tastefully furnished with 6 bedrooms and 4
bathrooms. Rental rate, subject to availability is:
- Night: $1,675 - $2,100
- Week: $10,575 - $13,225
- Month: $28,175 - $35,225
Without doubt, this is the best
development site available, for those with the appetite to develop in this
low interest rate environment.
There is a lot of history to this site
and it is located directly opposite the Transbay Terminal which the City
of San Francisco has been moving forward to create state-of-the-art
transportation hub for the Bay Area and Northern California to integrate
regional bus service, BART, Muni and the Caltran line, which will
eventually offer high-speed rail service to Los Angeles.
The highly successful Millenium
project is directly across the street which was a joint venture by our
good friends at Sun Hung Kai Properties in Hong Kong with Millenium.
Their chairman & founder of SHKP, now deceased, and my Father's good
friend purchased the site of the Millenium San Francisco moons
ago. He was a far-sighted and kind person. My good
friend Donald put together that joint venture.
Computer renderings show how changes proposed for the Transbay Terminal
area might alter the skyline. The red images are towers higher than 850 feet.
The blue ones are towers now allowed.
The investment market, as indicated by
the transactions below, is still strong despite world economic
uncertainty. Those in the know recognize the long-term
value of investing in San Francisco and it tends to be instiutional
investors or The Seriously Rich.
The Seriously Rich are 'upping' prices in Bay area
Out in the East Bay, the wealthy are congregating in Piedmont and
Alamo. Known for the country like feel right by Mt. Diablo, Alamo saw
their home sales skyrocket by 85%. Neighbouring Oakland, Piedmont also
jumped up their home sales by 56%.
Down in the South Bay, Hillsborough, Cupertino and Saratoga made the
list. While all fifteen cities had median home values over $1 million,
many of them were in the low $1 million range. Hillsborough blew all the
other towns on the list away with a median home value of $2.1 million -
almost twice the values of some of the other communities that made the
cut. This is probably also due to the fact that Hillsborough does not have
any type of multi-family housing - no apartments or condos and your house
- or estate - has to be a minimum size.
In an effort to preserve the stately nature of grand homes, the
incorporated town regulates a minimum house size (which has shifted with
different zoning laws) and a minimum lot size of one-half acre.
Cupertino and Saratoga have benefited from the rising tech riches of
Silicon Valley. Apple is based in Cupertino, and what employee doesn't
want a short commute? Don't forget other tech giants like HP and Oracle
who have started and stayed in the South Bay, and helped the pockets of
employees get fatter.
Significant sales in 2010*
351 California snapped up by Turkish
International, a new San Francisco-based real estate fund backed by
investors from Istanbul, bought 351 California St. at auction today for
$35 million. There were no other bidders.
- 2010 June 10
Everybody knows that the debt of
California is even larger than the debt in Greece so we watch carefully
for trends that could indicate of what's to come next. The population
of California is larger than the whole nation of Canada.
The plan to sell top-notch state-owned office buildings for quick cash could
cost California taxpayers about $1.3 billion over the long haul, according to
documents associated with the proposed sale.
Through a move known as a “sale-leaseback” the state hopes to generate
$2 billion or more by selling 11 office properties, most of them in the
Sacramento region, and lease them from the new owners for 20 years.
The sale, prompted by the state’s budget crisis, would provide some
immediate benefits, such as paying off debts on the buildings, freeing up
about $660 million for the general fund and shifting repair and maintenance
costs to new landlords.
That might provide a modicum of relief to cash-strapped California, but it
also would mean taxpayers would foot the bill for about $5.2 billion in rent
over the next two decades.
Bids from prospective buyers are due Wednesday and the state’s Department
of General Services, which is handling the transaction with CB
Richard Ellis, has said the response has been “tremendous.”
The proposal has raised eyebrows around Sacramento.
“Looking at it from a taxpayers’ perspective, there are question
marks,” said Bob Dean, who heads the Sacramento office of commercial real
estate brokerage Grubb
& Ellis. “What are we obligating ourselves to pay for the next 20
years? Is it a healthy decision?”
In today’s market, tenants are looking for ways to reduce operating
costs, but the leaseback deal would escalate the state’s annual costs, Dean
The Department of General Services plans to perform a more detailed
analysis of the costs and benefits once the bids come in — one that could
paint a better long-term picture, state officials say. They cautioned it might
be too early to scrutinize the financial implications.
“In the final analysis if it doesn’t pencil, we’re not obligated to
sell the property,” said Gerald McLaughlin, a senior real estate officer
with the department. He noted that the extra money paid in rent over time
could be mitigated by the “time value” of money, meaning that funds in
hand today are worth more than the same amount in the future. It’s a view
shared by others in the real estate business.
“On the surface it may not look like a good deal, but when you understand
the time value of money, it probably is a good deal,” said Chris Strain, who
heads brokerage Cushman
& Wakefield’s Sacramento office.
The sale would provide stability to the state by shifting liabilities to
landlords for major repairs, General Services spokesman Jeffrey Young said.
The office properties include the massive East End Complex on Capitol
Avenue, the Attorney General building on I Street, the Franchise Tax Board on
Folsom Boulevard and properties in San Francisco, Los Angeles and Oakland.
Gov. Arnold Schwarzenegger’s office last year asked General Services to
start examining a possible asset sale as the governor questioned whether the
state should be in the real estate business, Young said. Representatives of
the governor did not return calls seeking comment about the deal.
California owns about 10 million square feet of offices in the Sacramento
region and leases 7 million square feet. It has built or purchased property
with the idea of saving money over time through ownership. But unforeseen
expenses, such as repairs that could run upwards of $40 million at the state
Board of Equalization building in Sacramento, have the state’s experts
rethinking the strategy.
And operating buildings generally costs California more than it would a
private owner, which can farm out services to the lowest bidder.
General Services budgeted $71.9 million in annual maintenance costs for the
11 properties. According to CB Richard Ellis’ financial analysis, the
upkeep, security and landscaping on the buildings would cost a prospective
buyer about $50 million, a 30 percent savings.
The Legislature last year voted to authorize the sale after state workers
determined which assets would make the best sellers. Pressure to sell might
have increased due to the state’s financial condition. The Legislative
Analyst’s Office has said the state must address a general fund budget
shortfall of at least $20.7 billion before the Legislature enacts its next
Under the deal as envisioned, the state would earn about $2 billion through
the sale, then retire debt on the buildings at a cost of $1.3 billion to $1.5
billion. That leaves $660 million left to pay for general fund programs if the
state gets its asking prices.
If the sale goes through, the state would no longer be responsible for an
estimated $1.9 billion for repair and maintenance over the next 20 years;
those costs would become the new landlords’ responsibility.
- 2010 April 9
American Assets purchased the remaining 75% interest in the Landmark at One Market for $528
per square foot, in an off-market transaction.
- 2010 July
'sophisticated' investor appears to be working out their issues
quietly if this article dated 2010 March 2nd is any indication.
Francisco-based Shorenstein Properties has taken ownership of the
distressed Santa Clara Towers from Tishman Speyer in a consensual
Clara Towers consists of twin, 11-story towers totaling
422,485 rentable square feet.
in 1986 (Tower I) and 1998 (Tower II), the buildings feature
striking glass and granite exterior facades which stand out along
Silicon Valley’s 101-Corridor.
Clara Towers is located at the intersection of Highway 101 and
Great America Parkway, one of the most sought after locations by
both high-technology and service and sales related companies.
Highway 101 allows for immediate access to the core of Silicon
Valley and the San Francisco Peninsula, along with a myriad of
& 3965 Freedom Circle
Santa Clara, CA 95054
Santa Clara Towers, L.P.
Santa Clara Towers II, L.P.
|Number Of Floors
Tenants Square Footage
(208,368), Amkor Technologies (19,983), Wayne Mascia
Associates (10,939), Marubeni (9,634)
To Slab Height
To Ceiling Height
1 = 20’
Floors 2-10 = 9’ to t-bar
Floor 11 = 1‘ to t-bar
black glass in aluminum frames
exterior 25’ x 40’
building has 6 elevators.
Amkor Technologies, Wayne Mascia Associates, Marubeni
San Francisco-based Shorenstein
Properties has taken ownership of the distressed Santa Clara
Towers from Tishman Speyer in a consensual transaction.
The deal comes two years after
Shorenstein bought the $51 million mezzanine loan on the
210,000-squar- foot building, at 3945 & 3965 Freedom Circle in
Tishman Speyer spokesman Rich
Matthews said the company and its lenders “explored various ways
to restructure the debt, and ultimately decided that the best
course of action would be for the mezzanine debt holder to assume
ownership of the property.”
“The recent deterioration of
commercial real estate markets across the U.S. has created many
situations where the values of properties have fallen well below
the debt that encumbers them. This is especially true in the
Silicon Valley area and is true for Santa Clara Towers,” said
Tishman Speyer bought the
buildings from Birk McCandless for $213 million in 2007. One of
the two granite towers is 100 percent leased to McAfee Inc.; the
other has several tenants.
A Shorenstein spokesman
confirmed that Shorenstein Realty Investors Nine, L.P., which is
the holder of the mezzanine debt on Santa Clara Towers, has agreed
to assume ownership of the two 11-story office buildings. After
the transfer of ownership, the property will be managed by
Shorenstein Realty Services, an affiliate of Shorenstein
“Consistent with all assets
in its real estate portfolio, Shorenstein intends to invest new
capital to maintain Santa Clara Towers’ premier status and high
occupancy rate and to position the asset to take advantage of the
anticipated recovery in the Silicon Valley office market,”
Other assets currently owned
and operated by Shorenstein Properties and its investment funds in
the Silicon Valley and the mid-Peninsula office markets include
601 California Ave. in Palo Alto; 5000 & 7000 Marina Blvd. in
Brisbane; 1400 & 1500 Seaport Blvd. in Redwood City; the
Oyster Point Business Park in South San Francisco and Cisco Tower
in Santa Clara. Shorenstein Properties owns and manages 24.2
million square feet nationwide. - 2010
March 2 BUSINESS
Nob Hill's Huntington
Hotel is for sale
The Cope family, which has
counted the Huntington
as a family member for some 70-odd years, has placed the iconic San
Francisco hotel on the block in an unusual portfolio deal that also
includes La Playa in
Carmel-by-the-Sea and the ground lease for the Stanford Court Hotel in
This portfolio, which is being sold as a
corporation, has been in the family for years, so this is not a case of
owners needing to shed distressed assets. Rather, this is an estate
management play following the November 2005 death of the family patriarch,
The properties have reportedly been marketed
before, but without fetching a price that met family expectations.
The family's real estate holdings, Nob Hill
Properties, Inc., is currently headed by John Cope, a past president of
the Hotel Council of San Francisco.
The portfolio does not have an asking price.
The Huntington has never been for sale, and La
Playa, situated on almost two acres near the beach in Carmel proper, is
all but irreplaceable.
The Huntington has 140 rooms and 40 suites, the
popular Nob Hill Spa and Big Four Restaurant and bar. It was built as a
residential tower in 1924, and has no brand affiliations.
La Playa is as much a landmark property as the
Huntington. It has 75 rooms, two ocean-view suites and six cottages. Like
the Huntington, it comes unencumbered, which means that the buyer can
choose a brand of its choosing to manage the hotel, which usually commands
a premium. Carmel has made it all but impossible to build new hotel
The Galleria Park Hotel at 191 Sutter St. has
177 rooms and 15 suites and is managed by Joie de Vivre Hotels. The hotel
is not for sale, but rather is offered as a long-term ground lease
agreement through August 2039.
Informed sources say there has been significant
early interest from international buyers, some of whom may be looking to
enter Northern California with trophy properties like the Huntington and
Other sources say that the portfolio may be
challenging to sell because the three properties come as a package and are
being offered as a corporation rather than as a traditional, fee-simple
transaction. - 2010 May
Napa Marriott Hotel sale - $131,386 per
Sunstone Hotel Investors Inc. said
Wednesday it was closing on the sale of a 274-room Marriott hotel here.
The sale price is $36 million. Sunstone paid $21 million for the property
The name of the buyer has not yet been made public. Sunstone says it would
have had to invest $6 million or $22,000 per key in the asset in the near
term in order to comply with Marriott’s brand standards.
Also on Wednesday Sunstone said it would sell about 20.7 million shares of
common stock with which it hopes to generate $100 million to pay off
credit lines and to fund a debt buyback. Taking into account the dilution,
Sunstone’s stock price stood at $5.26 in late afternoon trading
Thursday, down ($0.56) nearly 10% on the day. The share price is down
about 70% over the past year.
Sunstone says the moves, including a recent tender offer for outstanding
notes, are designed to help Sunstone weather the recession, which has
lowered tourism and business travel spending. The stock sale proceeds will
be used in part to repay any amounts drawn on the company’s credit
facility and to cover costs related to its tender offer for $123.5 million
[principal amount] of 4.60% Exchangeable Senior Notes due 2027, which
expired this week. The repurchase will be consummated with $85 million in
cash, the company said.
Taiwanese real estate investor Steven Pan has
finalized the purchase of 49 Stevenson St. for $24.2 million, the latest
sign that San Francisco's long-dormant investment market is starting to
come to life.
The $190-a-square-foot sale price represents a
40 percent decline for the value of the property, which the city currently
assesses at $41 million. The seller was Invesco.
The sale price would be consistent with the
other two similar second-tier downtown buildings that have sold in the
last six months. In November the Shorenstein family
bought 188 Spear St. for $170 a square foot, a 56 percent drop from the
$385 a square foot, or $56.9 million, the city assessed the
147,000-square-foot property for the last fiscal year. Another Class A
financial district building that sold last year, 250 Montgomery St.,
traded for $172 a square foot, also a 56 percent drop from its previous
sale in 2006.
Another Class A financial district building that
sold last year, 250 Montgomery St., traded for $172 a square foot, also a
56 percent drop from its previous sale in 2006.
The city's most recent office building sale was
211 Main St., which the CIM Group bought for $112 million, or $300 a
square foot. That building fetched a higher price per square foot because
it is 100 percent leased to Charles Schwab through 2018.
In the mid-1990s Pan cut a wide swath through
downtown San Francisco real estate circles, amassing a 1
million-square-foot portfolio with properties like the 700,000-square-foot
Pacific Center at 22 Fourth St, and the Chevron building at 225 Bush St.
He sold most of his properties between 1998 and 2000, telling the Business
Times at the time that “we’re so used to bargains and now it’s
absolutely impossible to find opportunities here.”
The San Francisco Business Times reported in
December that Pan had the building in contract. At the time TRI Commercial
Managing Director Anton Qiu, who has frequently represented Asian buyers
interested in San Francisco, predicted that the 49 Stevenson St. sale will
be the start of a trend.
“Since last summer I have noticed a lot of the
overseas investors who used to be active in the mid-90s are back,” said
Qiu said the Asian buyers have access to cheaper
debt than U.S. investors do, and thus are willing to settle for lower
capitalization rates, which is the ratio of annual net operating income
produced by a building divided by its value.
“The local guys were looking 9 cap and foreign
buyers looking at a 7 cap,” he said. “The cost of funds makes the
difference. They can pay a little more.”
Pan, which Forbes magazine ranks No. 34 on
Taiwan’s Richest 2009 with a net worth of $650 million, owns hotels and
is chairman of the Formosa International Hotels Group. His father, S.R.
Pan, started out in the Bay Area more than 40 years ago, buying up several
hundred acres along the Alameda shoreline and looking for good deals.
“If you own a bargain, you have to create
value with it,” Pan said in a 1998 Business Times interview. “To
create value, you don’t just sit on it.”
- 2010 January 11 BUSINESS TIMES
Millionaire households in Bay Area
Here's a breakdown by county of Bay Area
households with $1 million or more in financial assets:*
*Includes liquid financial assets such as
checking, savings and retirement accounts, mutual funds, stocks and bonds.
Figures don't add up to Bay Area total cited in text, which is based on a
market research region that doesn't precisely overlap county boundaries.
- Source: Claritas,
Merrill Lynch, Capgemini
2008 June 25
SAN FRANCISCO CHRONICLE
Despite a 40 percent drop in real
estate prices in the Bay Area during the economic
downturn, affordable housing in Marin and other counties remains out of
reach for many working families.
That is the conclusion of a report issued
Thursday, "Priced Out: Persistence of the Workforce Housing Gap in the
San Francisco Bay Area," issued by the Washington D.C.-based Urban Land
Institute Terwillger Center for Workforce Housing.
"Despite this 40 percent drop,
working families are priced out of the housing market, and the rental market
as well," said Kevin Herglotz, spokesman for the center. "And with
the economy getting better the situation will only get worse."
The severity of the problem threatens the
region's future economic viability and, unless policy changes are made, new
home development will leave significant unmet demand, leaving thousands of
working families "priced out" of affordable housing options, the
"The basic need for affordable
housing is, in fact, growing, while the resources available are
diminishing," said Dave Coury, executive director of the Marin
Continuum of Housing and Services. "The old practices of restricting
land available for higher density affordable housing has resulted in an
inequitable and unsustainable situation. We import more than one-third of
our workers in the county at lower paid job levels, which is the fastest
growing segment in Marin."
Less than 10 percent of the homes for
sale in the Bay Area are affordable to a family in Marin making a combined
annual income of about $90,000, according to data provided by the report's
"Marin is probably the worst
affected in the entire Bay Area because the housing costs there are very,
very high," said Adam Ducker, managing director with Washington
D.C.-based RCLCO, which developed data for the report.
Approximately 30 percent of the Bay
Area's 2.7 million households fall in the workforce household income range.
That income can range as high as $100,000 annually and includes professions
such as teachers, firefighters and nurses.
The study analyzed the housing market in
Marin, along with Sonoma, Alameda, Contra Costa, Napa, San Mateo, Santa
Clara, San Francisco and Solano counties. It found that only 15 percent of
the existing homes for sale in the Bay Area are affordable to workforce
households earning the median family income. That compares with between 50
and 60 percent in regions across the country similar to the Bay Area.
Every county in the Bay Area ranked as
being one of the least affordable in the country. Only New York City ranked
The report also found that high housing
costs are pervasive in the rental housing market, which serves 42 percent of
workforce households in the Bay Area. Workforce households have a much
higher propensity to rent in the Bay Area, especially among families, than
in similar metropolitan regions across the country.
And expensive Bay Area rents require a
workforce household to pay more than 30 percent of their incomes on housing,
more than in other metropolitan regions across the country.
The report concludes that the Bay Area
suffers from a workforce housing shortage that is among the most acute and
widespread in the nation. Despite the recent housing market downturn, the
high cost of housing remains a critical challenge to the long-term economic
health of the Bay Area because workers cannot afford to live here.
"If current trends continue, new
construction will fail to meet the significant projected demand for
workforce housing in the future," said Jim Wunderman, president and CEO
of the Bay Area Council. "Unless these issues are seriously addressed,
not only will Bay Area families continue to be priced out of housing
options, but the region's future economic viability will be
There are groups working to address
affordable housing in Marin. The Marin Workforce Housing Trust, a
public-private partnership that was founded in 2004 to expand workforce
housing in Marin County, has raised more than $3 million and offers
low-interest loans from both for-profit and nonprofit developers seeking to
build affordable housing in Marin.
In October 2008 the county established an
affordable housing impact fee charged to builders depending on the size of a
And last year the Marin Community
Foundation announced plans for a $10 million, five-year plan aimed at
boosting the supply of affordable housing in Marin.
- 2010 February 18 MARIN INDEPENDENT JOURNAL
The City has floated a concept to
raise the heights of buildings in the Downtown Core. The idea would be to raise height limits on several blocks south of Market
Street to allow two towers as tall as the 853-foot Transamerica building and a
third that would climb at least an additional 150 feet -- to more than 1,000
feet tall. >>MORE
Most expensive House sold
DataSan Francisco HomesSan Francisco Apartment marketSan Francisco WaterfrontPresidio Will Fairmont Hotel Tower become Condos? Nob
Hill Condo Home
in Pacific Heights Japan Town Wine
Map of Napa
Silicon Valley High-Tech Rents Tumble
Rent in Silicon Valley for high-tech commercial real estate fell almost 30
percent in 2002, extending a slide that began a year earlier, according to a
study released on Thursday.
Annual rent for high-tech work space in Silicon Valley averaged $15.24 per square foot in the fourth quarter, down 29
percent from $21.48 per square foot in the first quarter, according to commercial real estate services company Cushman and Wakefield.
Average annual rents in the region had been as high as $50.88 per square foot in the first quarter of 2001.
Silicon Valley, home to scores of big and small technology companies, has been hammered by the high-tech industry's
downturn, sending local commercial rents tumbling as companies consolidated facilities while slashing payrolls.
Silicon Valley had about 30.15 million
square feet of commercial space suited for high-tech companies available for
rent in the fourth quarter of 2002, up 37 percent from 21.96 million square
feet of such vacant space in the first quarter of last year.
The region's vacant high-tech real estate was a low 3.1 million square feet in the third quarter of 2000 when Silicon
Valley's local economy was booming.
The unemployment rate in Santa Clara
County, the region's heart, was 7.8 percent in November, down from 8.1 percent
in the prior month but up substantially from 1.3 percent in December 2000 amid
the dot-com boom and torrid business investment in tech goods and services of
all kinds. - Reuters
2 January 2003