Collaboration: A Vital Tool to the Trade

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Building Great Relationships with Collaboration  

Commercial real estate negotiation can be adversarial, even among parties on the same side of the deal. Experienced professionals like TRI agents Scott Vix and Gary Cohen use collaboration to turn the tables on conflict. Recently, they had a chance to demonstrate the power of cooperation and compromise. 

For more than 10 years, Scott and Gary have had a successful relationship with a client who shared ownership of multiple SOMA properties with a group of family members (a total of nine entities). Several months ago, the family decided to sell one of the buildings, with separate ownership groups wanting their own agent-representative involved in the process.  

The situation spiraled into a stalemate, a common issue with family-owned property, and it could easily have derailed the $1.68M sale. To break the deadlock, Scott and Gary volunteered to team up with another agent and share the listing.  

“At the end of the day, it’s all about doing what’s best for your client,” they noted. 

In the end the property closed to the satisfaction of all parties because the brokers put family considerations before their own. 

Success Means Never Giving Up: Scott Vix & The Five-Year Deal

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In a world of 24/7 connectivity and a glut of available high-tech tools and toys, TRI Senior Vice President Scott Vix just proved the enduring value of patience and persistence. Five years’ worth of these virtues, to be exact. Scott is an office and industrial adviser who worked with Hernandez Engineering starting in 2012 to find a location for their sizable San Francisco equipment storage yard.

The San Francisco land/industrial market is tight and finding a large undeveloped lot in the City was a challenge. “There’s not a lot of raw vacant land left in San Francisco and competition is fierce, but I was determined to get my client the space they needed,” he noted.

Just last month, Hernandez finally acquired the perfect 19,728-sf lot in Bayview for $1.55M. The property was formerly a rail spur, where train cars could be loaded and unloaded without disrupting traffic on the main line.

Update: TRI Team Gets 500,000-SF Mgmt Assignment

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“Rocklin and Roseville have benefitted more than any other Sacramento submarket this year”, says Wirt

SACRAMENTO—TRI Commercial/CORFAC International president Tom Martindale, SIOR, recently revealed that John Gallagher, CCIM, CPM and managing director with the firm, led the TRI team that won the 531,273-square-foot commercial property management assignment in the Sacramento suburban community of Rancho Cordova that includes 10 separate properties under one ownership group.

The property owner is Karlin Cap Center LLC and the building addresses for the offices are: 11000, 11010, 11020, 11030, 11040, 11050, 11060, 11070, 11080, 11090 on White Rock Rd., Rancho Cordova, CA.

The buildings were constructed in 1984 and 1985 and the campuses are known as Cap Center II and III. Located in the Highway 50 Corridor of the state capital area, it is the largest submarket in the metro area and comprised of approximately 14 million square feet of office inventory. The submarket is predominantly occupied by large-space office users which include back office operations for several national and regional companies.

“We’re naturally proud to have won the management assignment in a competitive environment and look forward to supporting the occupants of the building as well as the owners to achieve maximum efficiency of building operations and on-going tenant satisfaction with the space they respectively occupy,” Gallagher says.

In fact, Bruce Wirt, SIOR and SVP in TRI Commercial/CORFAC International’s Roseville office, exclusively tells GlobeSt.com that Rocklin and Roseville have benefitted more than any other Sacramento submarket this year.

“We’ve had quite a bit of positive absorption in Rocklin and Roseville the first half of this year for several reasons,” Wirt says. “With the recovering economy and rental rates finally increasing, we had some classic ‘flight-to-quality’ leasing activity. Plus, many of the decision makers live in these communities and they prefer shorter work commutes,” he says.

While the Rancho Cordova/Highway 50 market hasn’t been the busiest submarket in the Sacramento Metro market this year, the Rancho submarket does offer 25,000-to-50,000-square-foot floor plates to users at competitive prices, compared with the tonier neighborhoods in Roseville and Rocklin, says Gallagher.

A few of the bigger deals in Rocklin this year, according to Wirt, are: PG&E expanding into 38,000 square feet (consolidated from several locations); Liberty Mutual taking roughtly 50,000 square feet, relocating from the Point West submarket; and Rocklin Academy leasing about 40,000 square feet (a brand new charter school); they went into a building that had been vacant since 2007.

Some of the recent Roseville deals this year he mentioned include: Rabobank expanding into 83,000 square feet, from about 40,000 square feet; Solar City leasing 55,000 square feet; and SureWest in the process of selling its 200,000-square-foot campus to Bridgeway Church.

Bryan Wirt closes an 82,688-square-foot shopping center in Sacramento

Merlone Geier Makes Shopping Center Play

By Natalie Dolce | Sacramento

“This is one of the most prominent grocery-anchored retail centers on one of the busiest intersections in Sacramento… it is definitely a great piece of real estate,” Wirt tells GlobeSt.com.

SACRAMENTO—The University Village Shopping Center, located at the southeast intersection of Fair Oaks Blvd. and Howe Avenue in Sacramento has changed hands. The seller wasHowe and University LLC, a local investor that acquired the property in 2002.

Merlone Geier Partners, a San Francisco-based investment company, purchased University Village Shopping Center for an undisclosed price, which is reportedly said to be around $20 million.

TRI Commercial/CORFAC International’s Bryan Wirt was the only broker involved in the deal. The 82,688-square-foot shopping center is approximately 97% occupied with only one, 1,700-square-foot space available for lease.

“This is one of the most prominent grocery-anchored retail centers on one of the busiest intersections in Sacramento… it is definitely a great piece of real estate,” Wirt, who specializes in retail real estate investment sales, tells GlobeSt.com.

Wirt adds that it was a “value-add” investment for Merlone Geier Partners and that portions of the property could be redeveloped to add more retail space.

The center, located at 27 University Ave., is anchored by Safeway in approximately 27,000 square feet. Other tenants include CVS, Citibank, Starbucks, AT&T and Bandera Restaurant.

Merlone Geier Partners is a private real estate investment company focused on the acquisition, development and redevelopment of retail and retail-driven mixed-use properties on the West Coast. Primarily focused on community and neighborhood shopping centers, the firm and its predecessor, M&H Realty Partners, has been actively investing in West Coast retail property since 1993.

MacFarlane Partners Grabs Final Vacant Mid-Market Development Site

Date: Thursday, December 20, 2012,  J.K. Dineen , Reporter  –  San Francisco Business Times

MacFarlane Partners, represented by Anton Qiu and Gary Cohen of TRI Commercial/CORFAC International, has purchased the last remaining vacant lot in Mid-Market at 1125 Market Street for $7.8 million. The housing developer plans to construct a 12-story apartment building on the 13,000-square-foot former Embassy Theater site.

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