Publication: Globest.com
BY Lisa Brown

2 West Santa Clara was built in 1910 as the headquarters of First National Bank and most recently was the offices of lumber company, Pacific States Industries, with a Walgreens on the ground floor. In 2017, DivcoWest acquired the value-add investment in the part of downtown where Google has accumulated a large number of properties.

Later that year, DivcoWest began a renovation of the building, which will be ready for occupancy in the first quarter. The renovation includes updating the facade and office interiors to appeal to a more creative tenancy.

“DivcoWestrs comprehensive modernization program has transformed 2 West Santa Clara into an unmatched creative office location in the heart of downtown San Jose,” Jeff Arrillaga of Newmark Knight Frank tells GlobeSt.com.

The 100,000-square-foot building has been a single-tenant location in the past, and possibly could be again. However, the opening up of each of the 10 floors and connecting of the first and second mezzanine floors means that the property should appeal to a broad range of tenants including smaller users looking for a full floor of space. Floorplates run from about 7,000 square feet to 12,000 square feet, and the first and second floors together could provide up to 21,500 square feet if taken together and interconnected. The renovation opened up the space to provide higher ceilings, more natural light and minimal column lines.
One of the highlights of the renovation is the private roof deck located on the fifth floor, which creates an outdoor workkommunity space with views of the hills and downtown.

Another key selling point of the building is its location near many existing planned major public transit options. It sits next to a Valley Transit Authority light rail station, allowing quick access to the airport, Diridon Station (the epicenter of Googlers proposed campus) and surrounding areas including Mountain View. It is also near the proposed site of the future BART station in downtown San Jose. And, it is surrounded by retail, restaurant, hotel and other amenities including the San Jose Art Museum two blocks away.

The brokers marketing the space are Arrillaga and Michael Saign of Newmark Knight Frank.
“The combination of customizable, creative interiors and a private roof deck are two of the project features we have received the most excitement about to date,” Saign tells GlobeSt.com.

Office activity in Silicon Valley remained strong in the third quarter of 2019, posting positive net absorption for the eighth quarter in a row and bringing the year-to-date total absorption to just under 1 million square feet, according to a third quarter office report by Newmark Knight Frank. The office market showed a slight slowdown with net absorption of 129,780 square feet compared with the second quarters 461,828 square feet. Moreover, the total square feet leased increased by more than 1.8 million to 4.45 million square feet, says NKF.

Publication: Commercial Property Executive
BY Lisa Brown

Kairoi Residential of San Antonio, Lincoln Property Co. of Dallas and DivcoWest of San Francisco have formed a partnership to develop the 6xGuadalupe project, a mixed-use tower in downtown Austin, Texas. The site preparation will begin with the demolition of the existing Extended Stay America hotel located at 600 Guadalupe St., scheduled for October 29.

The LEED Gold-seeking AAA-Class project will rise 66 stories high, totaling 587,780 square feet and will comprise 349 multifamily units on floors 33 through 66, office floors between levels 14 and 32, as well as 11 floors of parking and 14,550 square feet of ground-floor retail space. Office floor plates will range from 30,241 to 35,501 square feet. The office portion is slated for completion in late 2022, while the delivery date for the residential portion has yet to be announced.

The building will feature private outdoor terraces totaling 35,000 square feet, an on-site fitness center and high-speed elevators. The residential units will include a number of penthouses with access to a private rooftop club room, dining room, outdoor amenity deck and swimming pool.

Lincoln Property Co. is the developer of the commercial segment, while Kairoi Residential will handle the construction of the multifamily component. Gensler is the project’s architect.

NEW YORK – August 8, 2019 – DivcoWest purchased 540 Madison Avenue, a Class A, 39-story, ~291,000 square foot, boutique office tower in Midtown Manhattan’s Plaza District.

Convenient to multiple subway lines and a short walk from Grand Central Terminal, the building’s floor plates range from +/-7,000 – 11,500 square feet, customizing to full-floor users.

“DivcoWest continues to like New York’s fundamentals as an innovation hub,” said Ariel Aber, Senior Director-Acquisitions, “We are pleased to add 540 Madison Avenue to our portfolio and believe its core and central location, surrounded by transportation and amenities and strong tenant roster make it an attractive building.”

DivcoWest plans to locate its New York office at the property.

Publication: Globe Street
By Lisa Brown

DivcoWest recently purchased West Lake Union Center, a 10-story class-A office building at 1505 Westlake Ave. North in Seattle’s popular South Lake Union submarket for an undisclosed price. West Lake Union Center was constructed in the early 1990s and offers 218,454 square feet of office space as well as subterranean parking for more than 450 cars. Tenants enjoy the building’s 10-story atrium and views of Lake Union and downtown Seattle.

“Our focus on Seattle is based on strong tenant demand across a wide range of innovation and supporting industries, “said DivcoWest’s Beau Heidrich. “South Lake Union is a particularly desirable location for many of the tenants we regularly interact with and we are excited to begin investing in this property to bring it to its full potential as a meeting place on the lake for tenants large and small.”

 

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SEATTLE, WA – June 6, 2019 –DivcoWest has purchased West Lake Union Center, a 10-story Class A office building at 1505 Westlake Avenue North in Seattle’s popular South Lake Union submarket.

Commenting on the market, DivcoWest’s Beau Heidrich said: “Our focus on Seattle is based on strong tenant demand across a wide range of innovation and supporting industries.” “South Lake Union is a particularly desirable location for many of the tenants we regularly interact with and we are excited to begin investing in this property to bring it to its full potential as a meeting place on the lake for tenants large and small,” he added.

West Lake Union Center was constructed in the early 1990s and offers 218,454 square feet of office space as well as subterranean parking for more than 450 cars. Tenants enjoy the building’s 10-story atrium and sweeping views of Lake Union and downtown Seattle.

Publication: San Jose Spotlight
BY Janice Bitters

One of downtown San Jose’s most prominent office towers, known as 50 West, or the KQED building, is set to sell to developer Jay Paul Co. in a deal that industry insiders say will break records and set a new high-water mark for commercial space in the city’s urban core.

“It certainly as recognizable a Class A building as exists from that era,” Phil Mahoney, executive vice chairman for Newmark Knight Frank, who has represented Jay Paul in transactions for decades, said in an interview Tuesday. “It will add to the Jay Paul ecosystem of downtown really in an accretive way.”

Mahoney declined to reveal the price the 18-story building at 50 West San Fernando is expected to command when it officially trades hands, likely in the next 30 days. But industry insiders with knowledge of the deal say the transaction has gone “nonrefundable,” meaning Jay Paul has already placed some money on the deal. Today the building is about 75 percent occupied, filled with prominent tenants like Accenture, Silicon Valley Capital Club and broadcasting company KQED, which has its call letters displayed at the top of the building.

The rumored price, confirmed by several sources with knowledge of the negotiations, sits around $235 million, or $640 per square foot for the 367,000-square-foot tower. That’s far above the current $544.31 price per square foot record in San Jose’s downtown when it comes to office building sales.

San Francisco-based DivcoWest and Boston-based Rockpoint Group purchased the building in December 2015 for $165.5 million, or about $493 per square foot. A representative for DivcoWest declined to comment on the pending sale Tuesday.

But the estimated price for the building doesn’t come as a shock to most industry onlookers. The KQED tower has long been considered the premier office building in the city, according to Mark Ritchie, president of San Jose-based real estate brokerage Ritchie Commercial.

At the same time, investor interest in the city has grown significantly, said Rick Jensen, communications director for the San Jose Downtown Association.

“Downtown San Jose is closer to realizing its potential more than ever, and others are realizing the potential is here now and that it’s time to invest,” he said. “Some of the bigger players are coming down here and Jay Paul is one of them.”

Indeed San Francisco-based Jay Paul Co. is considered a top player in the market, though the group entered the downtown San Jose real estate scene less than a year ago, when it unexpectedly swooped in last July to buy the city block-sized CityView Plaza across the street from 50 West for $283.5 million.

Immediately, rumors swirled around what Jay Paul Co. — the developer behind many of the offices and campuses that the biggest tech titans in the world lease today — would do with the aging property.

In April, Jay Paul Co. unveiled a plan to build 3.4 million square feet of office space in place of the existing 600,000-square-foot mixed-use CityView campus along San Jose’s prominent Market Street. Tenants in the campus have already started moving out of the existing buildings.

“That’s something that I don’t know you can find almost anywhere, where you have 600,000 square feet of leases you are trying to get terminated,” Ritchie added. “The size of the building they’re trying to drop in there — that tells you how large the forces are that are trying to come here.”

Jay Paul last year also bought the former Lincoln Law building at 1 North First St. for $46 million, signaling a broader interest in the growing downtown San Jose market where tech giants like Google and Adobe are making plans to grow significantly and real estate investors from around the world have picked up steam in scouting deals.

News that Jay Paul now plans to purchase 50 West may be a sign its interest in downtown San Jose real estate hasn’t yet been satiated. Industry insiders say the company has shown interest in several other properties near CityView Plaza and in other parts of the urban core.

So far Jay Paul Co. has spent nearly $330 million on real estate in the area, but once its newest purchase of the 50 West building closes, that number is set to shoot up to about $574 million.

“What he is doing is as bold as it gets,” Ritchie said of Jay Paul, owner and namesake of Jay Paul Co. “The money that he is committing [to downtown San Jose] is just a towering amount.”

SAN FRANCISCO, CA – June 4, 2019 –DivcoWest has announced the hiring of industry veteran Gregg Walker as Senior Managing Director and Head of Business Development.

In his new position, Walker will work closely with the CEO to oversee DivcoWest’s leasing relationships and strategy throughout the U.S.

Gregg has over 19 years of experience in leasing commercial properties, including eleven years as a Managing Director at JLL and eight years at BT Commercial/Cushman and Wakefield, where he was a Partner.

He has represented a diverse group tenants in his career, with a primary focus on tenants in the technology (Facebook, SAP and VMWare), biotechnology (Merck and AstraZeneca) and financial services (JP Morgan Chase) industries.

On joining DivcoWest, Gregg said, “I am excited to be part of the DivcoWest team. Both DivcoWest and I have been focused on the innovation and life science influenced markets for many years. Our collective experience and relationships will hopefully lead to further leasing opportunities and value creation for the company.”

Walker received his Bachelors in Political Science and Minor in Business Administration from the University of Oregon and is a licensed California Real Estate Salesperson as well as member of the Association of Silicon Valley Brokers (A.S.V.B.).

Cambridge, MA, (May 29, 2019) – DivcoWest announced today that Puritan & Co. Chef and Owner Will Gilson will expand his presence to Cambridge Crossing (CX), the new and connected neighborhood at the intersection of Cambridge, Somerville, and Boston. By Q1 2020, nearby employees, residents and visitors will experience Gilson’s creative, flexible space comprised of an all-day café, full-service restaurant, and cocktail bar with a rooftop terrace overlooking the Common at CX in a new retail building referred to as The Shed that is now under construction.

“We couldn’t be happier to welcome Will Gilson, whose award-winning culinary talent and active role in the local community makes him a perfect fit to introduce the first restaurant and kick off the public spaces at Cambridge Crossing,” said Mark Roopenian, Managing Director at DivcoWest. “His innovative concepts embody the kind of creative East Cambridge spirit we inspire to have at CX, and further our goal of creating a diverse and authentic place that attracts people from throughout the community and keeps them coming back again and again.”

Building on his success in nearby Inman Square with award-winning Puritan & Co. and the new Café Beatrice pop-up in the Zone 3 Project Lower Allston, Gilson will add to his portfolio with the delivery of three new concepts at CX. For the growing number of employees, residents, and commuters on the move seeking a quick and casual option at all hours of the day, the all-day café will offer baked goods, breakfast sandwiches, and a variety of healthy options, supplemented by a grab-and-go component. Adding to Cambridge’s rich variety of dining options, there will also be a 60-seat full-service restaurant featuring tables for an additional 20 diners seasonally on the patio adjacent to the Common. An approachable menu will embody a neighborhood feel and offer a combination of main and small plates. And at night, those looking to grab an after-work drink, a quick bite with friends, or host large parties can enjoy crafted drinks and a locally-sourced food menu at the second-story cocktail bar with its large terrace overlooking the park.

“We are proud to introduce the first dining experience to Cambridge Crossing, which is designed to be not just a restaurant but rather a destination within a growing and inclusive community,” said Gilson. “We want to build a place that accommodates everyone from morning commuters grabbing a coffee, to residents and tenants in need of a quick bite, to friends enjoying a night out.”

Guests will experience Gilson’s new concepts within one of CX’s most distinct and approachable buildings. Designed to foster community connections and to be a gathering place, The Shed is a stand-alone retail building centrally located at the heart of Cambridge Crossing and is surrounded by green space, a waterway with granite blocks (reused from the 150-year old seawall excavated at the site), a picnic grove with grills available to the public, and outdoor games like bocce ball. “We believe that this new place with something for everyone will create a unique community where the vibrancy of East Cambridge radiates and the new experience inspires people of all ages. Will’s concept is just the start of what we believe will be one of the most diverse destinations in Greater Boston and we are thrilled to have Will join the CX community,” said Roopenian.

The restaurant is slated to be complete by early 2020 when Philips brings its North American Innovation Center to 222 Jacobs Street. Will Gilson is a two-time James Beard semi-finalist and Puritan & Company was listed on Bon Appetit’s “50 Best Restaurants” shortly after it opened in late 2012. More details on his newest concepts will be released later this year.

Washington, DC (November 8, 2018): Divco West Real Estate Services, LLC, (DivcoWest) a leading vertically-integrated real estate investment firm, has opened an office in Washington, DC at 1620 L Street, NW.

San Francisco-headquartered DivcoWest also has offices in Boston, Los Angeles and New York.

The Washington, DC office will be led by Managing Director Ryan Friend. The office will focus on sourcing regional acquisition opportunities and management of the firm’s existing portfolio. “This new office demonstrates our commitment to the Washington, DC market, which we believe to be one of the most attractive growth markets for the innovation economy,” said Chief Executive Officer, Stuart Shiff.

“We look forward to leveraging DivcoWest’s relationships throughout the country to continue the growth of our platform in the region,” Friend added.

Since March of 2017 DivcoWest has completed four acquisitions in the Washington, DC area on behalf of multiple investment partners. These investments include 1620 L Street, NW, a 171,000 square foot office building in the CBD submarket, 1133 15th Street, NW, a 213,000 square foot office building on the border of the CBD and East End submarkets and 1255 23rd Street, NW, a 350,000 square foot office building in the West End submarket. Since acquisition, DivcoWest has focused on enhancing the assets through capital improvements and leasing.

More recently, DivcoWest completed the acquisition of Avalon Woodland Park, a 392-unit apartment community in Herndon, VA. Acquired in a joint venture with Arlington, VA-based Blackfin Real Estate Investors, the partnership has renamed the community Adara Herndon.

Los Angeles, Calif. (June 26, 2018): DivcoWest has completed the purchase of 331 North Maple Drive, an approximately 91,000 square foot office building in the heart of Beverly Hills’ Media and Entertainment District.

331 North Maple Drive is a three-story office building featuring large floor plates and parking for approximately 270 cars. Built in 2000, the building is located proximate to the Beverly Hills’ Golden Triangle, a distinctive neighborhood with numerous hotels, restaurants and shopping that is also one of the most desirable office markets in Los Angeles. Digital and media companies with a nearby presence include Google, LiveNation and Fandango.

331 North Maple is currently 60 percent leased to a single tenant. DivcoWest plans to strategically invest capital in the building to further enhance 331 North Maple’s position in the market, creating a desirable Class A location for future tenants.