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.

SAN FRANCISCO–(BUSINESS WIRE)–DivcoWest Real Estate Services, LLC, a leading vertically integrated real estate investment firm, announced today that they have entered into a new $300 million venture with the California State Teachers’ Retirement System. The joint venture will focus on acquiring core and core plus commercial real estate assets in growth-oriented markets throughout the United States.

The venture’s investment activities will concentrate on commercial real estate opportunities in targeted markets that are characterized by strong local economies and highly qualified workforces. Another key characteristic of these markets is their substantial tenant bases in dynamic, new economy industries. Cities in five states plus the District of Columbia have been identified as target markets. In California they include San Francisco (including the greater Bay Area), Los Angeles and San Diego. Other target markets include Seattle, WA; Boston, MA; New York, NY; and Austin, TX.

“We are so appreciative for our relationship with CalSTRS and will strive to continue to deliver results to prove that we deserve the faith and trust they have shown in us as a partner.”

DivcoWest and CalSTRS have a 15-year history of investing together. Over this time, DivcoWest has put the more than $1.5 billion that CalSTRS committed into various DivcoWest-sponsored investment vehicles. DivcoWest has invested CalSTRS capital across various assetclasses, return profiles, and investment structures, including commingled funds, joint ventures and separate accounts.

Mike DiRé, director of real estate at CalSTRS, said, “We continue to commit capital to DivcoWest not only because of our partnership’s financial success, but because they’ve earned our trust over a long period of time. They’ve built their professional management style on transparency and integrity—which is especially significant to CalSTRS, as we’re a public pension fund. We benefit from DivcoWest’s expertise and leadership in providing and managing commercial space to the innovation and technology communities.”

Don Palmieri, portfolio manager in real estate at CalSTRS added, “In addition to an outstanding investment return history, DivcoWest’s deep knowledge and expertise in their target markets, excellent relationships with innovation and technology leaders and the strength and quality of their team make them an ideal partner for CalSTRS.”

Stuart Shiff, founder and CEO at DivcoWest, added that: “We are so appreciative for our relationship with CalSTRS and will strive to continue to deliver results to prove that we deserve the faith and trust they have shown in us as a partner.”

SAN JOSE, CALIF. – December 20, 2017 – A joint venture between DivcoWest and Rockpoint Group has completed the purchase of Riverpark Towers, a 600,000 square foot Class A office complex close to Diridon Station in downtown San Jose.

Consisting of two 16-story towers built in 1987 and 2009, Riverpark is currently 85% leased. The property includes an adjacent 10-story parking garage with spaces for 1,397 cars. It also offers tenants onsite amenities including a coffee and wine bar, a bike sharing program, a dining lounge, a game room and a fitness room with showers. Riverpark is the closest Class A office complex to Diridon Station, downtown San Jose’s main transit hub, and sits adjacent to the city’s Guadalupe freeway (SR-87).

DivcoWest and Rockpoint plan to strategically invest capital into the building and reinvigorate its appeal to a broad base of tenants. The venture believes the property is ideal for tenants seeking a strong transit-served business location surrounded by access to lifestyle, retail and residential amenities. More than 2,000 residential units are under construction in the immediate neighborhood and Riverpark is just two blocks from the San Jose Convention Center, several hotels and numerous restaurants.

This is DivcoWest’s second purchase of a major office building in downtown San Jose in 2018. In March of this year DivcoWest acquired 2 West Santa Clara, an 84,000 square foot office building across from the SCVTA’s Santa Clara Station. In addition, in 2015 DivcoWest and Rockpoint formed a joint venture to acquire 50 West San Fernando in San Jose.

Cambridge/Somerville/Boston (October 23, 2017): DivcoWest joined Cambridge Mayor E. Denise Simmons, Cambridge City Manager Lou DePasquale and elected officials from the Commonwealth of Massachusetts to celebrate the long-awaited re-launch of the 43-acre development site now known as Cambridge Crossing (“CX”). The group gathered to ceremoniously mark the start of construction of 250 North Street, the first commercial office building to be built at Cambridge Crossing. 250 North Street will be a 430,000 square-foot science and technology building, and the first phase of a new neighborhood retail district to be built at the heart of CX.

Cambridge Crossing
~ 43 Acres
~ 4.5 msf of commercial, residential & retail
~ 11 acres of open space
~ 2 MBTA Stops

Cambridge Crossing is adjacent to Kendall Square and centered within one of the highest concentrations of talent and intellectual capital in the world. Formerly a rail yard, CX will be a new mixed-use neighborhood with research facilities, residential units, and retail amenities in a compact, walkable, and transit- and bicycle-friendly plan that will become an integral part of the existing East Cambridge neighborhood.

The site will be directly served by two MBTA transit lines. The new Lechmere Station, part of the Green Line Extension commencing construction in December 2017, will be located directly on the CX site, and the Orange Line Community College Station is steps away.

At full buildout, CX will be comprised of approximately 2.1 million square feet of state-of-the-art science and technology space, approximately 2,400 new residential units in addition to approximately 2,500 existing units, and approximately 100,000 square feet of retail thoughtfully curated to deliver a unique and local neighborhood experience. The project will also include approximately 11 acres of activated public open spaces, highlighted by a central common area.

DivcoWest founder & CEO Stuart Shiff spoke of his company’s desire to create a world-class development at CX to connect the hearts and minds of future generations of innovators and disruptors with the talent required to challenge the status quo and achieve life-changing and life-saving visions.

“Our goal as a company has always been, and always will be, to add value whenever and wherever we can. If we can help create places where innovators can attract, nurture, and ultimately retain talent, then we will have done our job and given long term value back to those innovators and the community at large,” Shiff said.

“Great companies driving real change think in terms of forever, not in terms of cycles and that’s exactly how we are approaching CX. This is an area surrounded by the human electricity of innovation and education, where more Nobel laureates have come from than anywhere in the world. On behalf of DivcoWest, we are thrilled to embark on our long term commitment to develop a world class community within this former rail yard – a place in which companies, researchers, start-ups, entrepreneurs, visionaries and Nobel laureates, can live, work, play and thrive,” Shiff added.

“The City of Cambridge is thrilled to see Cambridge Crossing evolve into this innovation-driven community. It is important that we continue to provide places that allow our local colleges and universities to collaborate with entrepreneurs and industry leaders in solving real world issues, and in developing the next generation of companies,” said the Honorable E. Denise Simmons, Mayor of Cambridge.

“We are making the investments in retail, open spaces and infrastructure that are necessary to make Cambridge Crossing a thriving urban neighborhood and to attract existing commercial office tenants, as well as new tenants locating to the area for the first time,” said Tom Sullivan, President of DivcoWest’s development division. “We are thrilled to launch the project with a new name and brand identity to signify this ‘game changing’ moment for the largest transit-oriented site in the Greater Boston region. We want to thank Cambridge, Somerville, Boston, the State of Massachusetts and the MBTA for their unwavering commitment to working with DivcoWest to make Cambridge Crossing a reality.”

DivcoWest invited over 300 people to share in the launch of the new brand and showcase plans for the Cambridge Crossing. To represent the future of CX and its place for innovation and the thinkers of tomorrow, DivcoWest invited Nuvu, a full-time innovation school in Cambridge, to participate in the groundbreaking ceremony. Nuvu used a human powered bicycle to dig the dirt officially breaking ground alongside elected officials and attendees.