J.K. Dineen
Reporter- San Francisco Business Times

Email
 | Twitter

In the world of Peninsula real estate, Daly City is often overlooked. After all, the city only has one Class A office building, the 600,000 square foot Pacific Plaza, which also has 20-screen cineplex and 40,000 square feet of retail and restaurants.

But Daly City wants the Bay Area real estate community to know it is open for business, and there may be more opportunities than people realize.

On Aug. 15, the city, along with Pacific Plaza owner RREEF, is holding an open house for brokers, tenants, builders, investors, and anyone else who might want to bring their business to Daly City.

Those who attend the party will learn about the second Pacific Plaza office building that is entitled, according to Brian Millar, the city’s director of economic and community development. The city wants to also highlight development opportunities next to the Colma BART station, land that is in Daly City and owned by Samtrans.

“This is a big and visable site — a couple of acres off the freeway,” said Millar. “Samtrans has expressed interest in moving ahead with moving some sort of transit-oriented development use. They have asked the city to be part of the process.”

Currently in Daly City, a Taco Bell, a CVS Pharmacy, and an 80,000-square-foot Dick’s Sporting Goods are under construction. The office portion of Pacific Plaza has a low vacancy, but the retail has three vacancies. From a vacant Blockbuster to a 4.8 acre retail site across from the Serramonte Mall, Daly City has plenty of opportunities, according to Millar.

“We want to provide a forum for brokers and developers to meet and interact so they can exchange information,” said Millar.

J.K. Dineen covers real estate for the San Francisco Business Times.

Follow Your Favorites with My News

My News is a way to create a customized news feed based on companies and industries that matter to you.

Article source: http://www.bizjournals.com/sanfrancisco/blog/real-estate/2012/08/daly-city-opens-door-to-office-tenants.html

RREEF Real Estate will sell the buildings to PS Business Parks Inc., a real estate investment trust based in Glendale, California, Deutsche Bank said in a statement yesterday. PSB will assume $250 million of debt as part of the transaction.

Rents and occupancy in San Francisco and the Silicon Valley area are rising on demand from technology firms. Google Inc. and Apple Inc. combined have leased almost 4 million square feet (372,000 square meters) this year, according to San Jose-based broker Cassidy Turley.

“The combination of strong demand and limited availability of core real estate assets in the San Francisco Bay Area has resulted in attractive pricing,” Brian McAuliffe, head of Americas transactions at RREEF Real Estate, said in a statement.

Of the buildings being sold, 45 percent are warehouses and the rest can be used for either offices or warehouses. The portfolio includes 26 projects and more than 5.3 million square feet of space. The properties were 82 percent leased as of December 2011.

“This portfolio acquisition significantly enhances PSB’s presence in Northern California, providing a strong concentration of parks in markets that are poised for continued recovery,” Joseph D. Russell Jr., president and chief executive officer of PS Business Parks, said in a separate statement.

Following the purchase, the company will own 7.2 million square feet of multi-tenant industrial and multi-use space in 30 business parks in Northern California, making up about 26 percent of its properties.

RREEF Real Estate had $58.5 billion in assets under management as of Sept. 30.

–Editors: Andreea Papuc, Linus Chua.

Article source: http://news.businessweek.com/article.asp?documentKey=1376-LWJ9WK0D9L3501-34G45AJ05ICO9D2LS6CBMC7OIO