Winter 2004 - Sares

SARES•REGIS
The SARES●REGIS Group Newsletter
www.sares-regis.com
Winter 2004
The SARES•REGIS Group is one of
the nation’s leading developers
and managers of commercial and
residential real estate in the western
United States. Currently, the company
has more than 3.5 million square
feet of commercial and over 2,000
residential units under development.
SARES•REGIS Group has a combined
portfolio of property and fee-based
management contracts valued at
more than $2.3 billion, including
12,200 rental apartments and 14
million square feet of commercial
and industrial space. Since its
inception the company has acquired
or developed approximately 36 million
square feet of commercial properties
and 18,000 multifamily and
residential housing units.
IN THIS ISSUE
Page 2
SARES•REGIS Group bought a muchsought after 11.7 acres in Old
Pasadena and plans to transform
the area from aging commercial
into an urban village.
Page 3
Why does the Los Angeles industrial
market outperform all others? Much
is attributed to the boon in imports
coming into the Long Beach and
Los Angeles ports.
Page 4
Spring ground breaking is planned
on a 300-unit condominium project in
Palm Desert, which has evolved from a
seasonal to a year-around community.
Page 5
Buyers snap up 601 SARES•REGIS
Group condominiums in housing short
Southern California.
Page 8
Regis Homes of Northern California
plans completion of 704 homes.
Aerial view of Bressi Ranch property showing infrastructure construction under way. Bressi Ranch
is one of the last large, contiguous parcels of developable land available in San Diego County.
SRG Buys 132 Acres On Bressi Ranch,
Carlsbad, For Commercial Development
S
ARES•REGIS Group has purchased
132 acres of land on the Bressi
Ranch in Carlsbad, Calif., from
MetLife and plans to develop the property
as one of the premier business parks with
ocean views in the highly desirable coastal
city. The property is approved for 2.1
million square feet of development.
“Bressi Ranch is one of the last large,
contiguous parcels of developable land
available in San Diego County” said Peter
Rooney, President of SRG’s Commercial
Investment Division.
Lannie Allee in the Carlsbad office of
CB Richard Ellis, which is marketing the
project, goes even further.
“I’ve been marketing business property in
Carlsbad for 16 years. After Bressi Ranch
is sold, there will be no more property
available here for business parks. Period,”
Allee said.
Construction is under way on the backbone
infrastructure and highly landscaped common areas. The company already is in negotiations to sell about 67 acres to qualified
developers and plans to retain the balance
of the property to sell to owner-users and
as build-to-suit opportunities. The property
is suitable for office, corporate headquarters,
research-and-development buildings and
light industrial facilities
“We are very excited about Bressi Ranch, as
well as our recent acquisition of the 500,000
square feet North County Corporate Center
in nearby Vista. We are confident that San
Diego, as a marketplace, remains a strong
Continued on page 15
2
Transit-Oriented Urban Village Planned
On 11.7 Acres In Historic Pasadena District
S
ARES•REGIS Group acquired 11.7
acres in the historic commercial
district of Old Pasadena and is
working with community groups and city
officials to develop a plan that transforms
the property into a transit-oriented urban
village with a mix of some 800 residential
units and 30,000 square feet of retail.
Montgomery says the SARES•REGIS Group
expects to have entitlements in place by
mid-2005. Equity Residential is the capital
partner on the proposed project.
“One of the most important things on this
project is that Pasadena is a notably very
involved community. And the community
is turning out to be our biggest potential
ally,” said Ed Eyerman, Forward Planning
Manager for SARES•REGIS Group.
“They’re not just anti-growth people saying
we don’t want any buildings. They’re actually
getting together on a weekly basis to do
nothing but discuss what should be
developed in their city, how it should be
developed, what the heights should be,
zone-by-zone, block-by-block. They’re
meticulous in determining what the city
should look and feel like. They call it urban
love. It’s astonishing to be part of this
process,” Eyerman said.
The preliminary plan for the site calls for a
485-unit apartment community and about
300 units of for-sale housing. In addition to
the retail component, the plan includes a
parking structure for some 200 to 250 cars.
Plans are being drawn to transform 11.7 acres from aging commercial to urban village.
“We envision a first-class project that eases
the city’s housing shortage and complements Old Pasadena with an urban village
neighborhood that is an easy walk to two
Gold Line stations,” said Bill Montgomery,
President of SARES•REGIS Group’s
Multifamily Acquisitions & Investments.
The seller, The Worldwide Church of God,
used the property as the East Campus of
its 48-acre Ambassador College. The
710 Freeway separates the property from
Ambassador College’s West Campus and
the city’s “millionaire’s row” of historic
homes.
The property is one of the last in-fill sites
of its size in Pasadena and represents a
unique opportunity to create a special
development to complement downtown
Old Pasadena. Montgomery said an agreement to purchase the property was signed
in January, escrow was opened in early
February and the transaction was
completed Feb. 11.
“All of this community discussion concerns
the central district specific plan revision,”
Montgomery said. “But since we’re processing a planned development we really don’t
have to comply with the central district
plan. But we’re trying to make our project
comply as close as we can to what we think
the central district plan will be. We’re
trying to be good neighbors. And the city,
in general, seems to think everything we’re
doing is right.”
The property is bounded by Del Mar to the
south and DeLacey Avenue on the east, with
the exception of the Friend Paper Company
parcel at the corner of Green Street and
DeLacey Avenue and the Werk’s Bros.
garage on Green Street.
Last year SARES•REGIS Group purchased
a 374-unit apartment community, called
Holly Street Village Apartments, in Old
Pasadena for $78 million. The property is a
vibrant part of the Pasadena Community.
3
Guest Column
The Ships That Keep Coming In Give
Los Angeles’ Industrial Markets A Big Edge
A
nyone who owns or develops
industrial properties in Southern
California should wake up each
day and tip their hats to the ports of Los
Angeles and Long Beach.
The ports are the gateway into the Western
United States for a tidal wave of imported
consumer goods that help provide jobs,
promote quality of life and fuel an overall
economy that virtually is unmatched anywhere in the world.
This year about 13 million containers of
parts for assembly and finished goods will
be unloaded by some 11,000 longshoremen.
Last year it was 11.8 million. By 2010 it is
forecast at 19.6 million containers. A large
portion of the recent increase is due to the
low-cost manufacturing capability of China.
As this is written these two ports – which
combine to be the third largest port in the
world behind Hong Kong and Singapore –
are so busy that approximately 70 to 90 of
these giant container ships are lined up offshore waiting for docks to clear to unload
their cargo. This is double the amount
usually waiting to be unloaded.
Ports and Population Create
Hottest U.S. Market
The latest generation of these ships is
designed to carry 8,000, 20-foot containers
and is up to 1,150 feet long. That’s bigger
than the largest of the U.S. Navy’s nuclearpowered Nimitz class aircraft carriers.
These vessels are so large they don’t have
the option to use the Panama Canal. So
rail connections from the West Coast to
Chicago and elsewhere have been another
big advantage for Southern California.
Everybody thinks of Los Angles as the entertainment capital of the world. And it is. But
it’s these ports that are keeping our region’s
economic prosperity at a round-the-clock
high tide.
Another reason the Southern California
economy and the industrial markets are so
dynamic is because of our population: 18
million people. Roughly 50 percent of all
inbound goods stay in Southern California
to be consumed. The rest are trucked and
railed to places like Las Vegas, Phoenix, Salt
Lake City, Denver and Chicago.
Los Angeles has become a critical link in
the global supply chain. Because there is
such a great concentration of goods that
flow through Southern California’s ports
and airports, there’s a huge shipping, rail
and trucking capacity here that make our
distribution costs more competitive than
any other West Coast port of entry. The
chance this will change in the future is
highly unlikely.
Steamship companies have made massive
investments in the terminals here, which
can cost upward of $400 million. So rather
than divert ships to less congested West
Coast ports which have relatively limited
capacity, the ships anchor offshore and wait
in line to be unloaded. The ports are in the
middle of an expansion plan which will be
completed by 2020 and will double the
cargo capacity.
Dynamic Demand For
Industrial Properties
As a veteran industrial real estate broker, I
can attest to the fact that Los Angeles is storing products not just for local consumption,
but for the entire world. It’s no wonder that
industrial property here is so highly valued.
One of the main drivers in this growth is the
ports as discussed above. It is our belief that
the nations’ port cities are the ones poised
for the most growth in the industrial
demand and development.
The market conditions are tightest in
Southern California as compared to the
rest of the United States. The extremely low
vacancy rates, the strong absorption, lack
of construction activity and available land
continue to drive this area as a leader in the
U.S. industrial markets. Overall, the areas of
highest growth are Inland Empire, Central
and Northern New Jersey and, to a lesser
extent, the Chicago marketplace. A few of the
U.S. markets are overbuilt and have higher
vacancies including Atlanta and Dallas.
From a capital market perspective,
investors are clearly favoring the Los
Continued on page 8
Darla Longo is Executive Vice
President of Industrial Properties
for CB Richard Ellis. Well known
for her national account representation, Ms. Longo has earned
numerous major company and
industry honors throughout her
career. She also is the first
woman to be named to CB Richard
Ellis’ Board of Directors.
4
SARES•REGIS Group Buys 62 Acres
For A Major Industrial Development
S
ARES•REGIS Group’s Commercial
Development Division acquired
62 acres in Fontana, Calif., for a
planned 1.4-million-square-foot development of nine industrial buildings for sale
or lease.
Bruce Bearer, Senior Vice President, said
the buildings in the Inland Empire project,
the Sierra Gateway Center, will range from
40,000 square feet to 300,000 square feet.
Groundbreaking for the project at Sierra
and Slover avenues is set for March with
completion of the first building planned
in October 2005. The parcels range from
2 acres to 13 acres. The project is valued
at $85 million.
“With an industrial vacancy rate in the
Inland Empire that is nearly 2 percent,
Sierra Gateway Center will provide quality
industrial product to a thriving market,”
Bearer said.
“The project not only provides a strategic
location minutes to major freeways including interstates 10, 15 and 215, it also offers
companies an abundant and growing workforce that is attracted to one
of California’s most affordable housing
markets,” he said.
Randy Kuttler and Joe McKay of the
Ontario office of Lee & Associates are
responsible for marketing the project, which
is adjacent to a planned Hilton Garden
Inn hotel and near a large retail center.
The project is within a 200-acre masterplanned industrial development and
minutes from the Ontario International
Airport.
Resort Haven Is Now Year-Around City
Offering New Residential Opportunities
S
The Enclave Condominiums will be an
attached project on Gerald Ford Drive just
east of Monterey and across the street from
the popular Marriott Shadow Ridge Resort.
Late 2006 completion is planned.
“There has been tremendous growth out
there,” said Mike Winter, Vice President
and Director of Multifamily Development.
SARES•REGIS Group acquired the property
earlier this year. AIG is the capital partner
on the development, which is in the final
stages of approvals from the City of Palm
Desert.
ARES•REGIS Group is planning to
break ground next spring on its first
for-sale residential project in the
Coachella Valley, the 300-unit condominium
project of The Enclave Condominiums in
Palm Desert.
“In the past 10 years, Palm Desert has
moved from a seasonal resort to a yeararound community. We know this because
of sales receipts, which have been constant
throughout the year instead of spiking only
during the winter months. When you think
of the Inland Empire, Palm Desert is considered one of the region’s most desirable
areas,” he said.
All the units will be stacked flats from one to
three bedrooms. The project will have a 20
percent affordable component, which will
be priced from $170,000 to $270,000.
Market-rate units will sell from approximately the high $200,000s to the low
$400,000s.
Rendering of
for-sale 300-unit
project in “one
of the region’s
most desirable
areas.”
5
Buyers Purchase 601 Condominiums At
Three Southern California Developments
Kitchen in model home at Bordeaux in Santa Clarita, one of three SARES•REGIS Group condominium
projects posting robust sales.
E
ager buyers seeking home ownership opportunities in Southern
California’s red-hot real estate
market have snapped up 601 of 650 condominiums offered since November 2003
by SARES•REGIS Group and its Regis
Homes Division.
“We are thrilled with the market’s response
to our projects. These condominiums span
a wide price range of housing in three
distinctly different locales,” said David
Jacobson, Senior Vice President of Regis
Homes in Irvine.
“The real challenge for a residential
developer in this land-constrained market
is to find and acquire property on which
to build this niche product. Fortunately,
SARES•REGIS Group and Regis Homes is
intimately familiar with this region, which
gives us a big advantage over our competitors,” he said.
Additionally, Jacobson said, two of the
three projects are nominated for prestigious
industry awards.
Seabridge Sells Out Its 344
Condominiums
The largest of the trio of Regis Homes
condominium projects is Seabridge Villas
in Huntington Beach. Located one mile
from the beach, Seabridge Villas was built
in 1987 originally as an apartment development. The original developer had the
vision to place a condominium map on
the project, enabling their sale at some
point in the future.
The gated community with carports, two
pools, fitness rooms and spas consists of
three 3-story buildings and three 4-story
buildings on 7.27 acres.
SARES•REGIS Group in partnership with
AIG Global Real Estate Investment Corp.
acquired Seabridge Apartment Villas in
early 2003 and immediately launched plans
to sell the units, a plan that was met enthusiastically by dozens of existing residents
who moved to buy homes in the project.
The nine floor plans from studios to twobedrooms with lofts were priced from the
low $200,000s to the mid $300,000s.
Continued on page 13
6
Regis Homes Of Northern California
Plans Completion Of 704 Homes
C
onstruction is either under way or
planned in 2005 on eight residential projects totaling 704 homes by
Regis Homes of Northern California.
■ SoCap Lofts on 6th and R streets will consist of 67 loft-style homes, replicating the
historical “R” Street warehouse with the
look of steel, stucco and red brick.
The projects represent the broadest array
of housing styles yet developed by the company and include everything from minimansions and townhomes to live-work lofts
in a rehabilitated 6-story brick building
near the capitol in Sacramento.
■ Construction is under way on Islands at
Riverlake in the prestigious “pocket area”
of Sacramento. This project consists of
139 high-density, mini-mansions.
Five of the eight projects are in downtown
Sacramento and nearby communities of
the state capital.
■ At its Capitol Lofts project on 11th and
R streets in Sacramento, Regis Homes
of Northern California will transform a
brick office and warehouse building
into 108 lofts and flats ranging from
700 square feet to 1,400 square feet.
Construction is planned to begin next fall.
■ In West Sacramento, construction is set
to begin in the first quarter of 2005 on
Ironworks at the Triangle, an innovative
mix of 188 detached homes, 130 of which are
loft-style townhomes. The project also will
include 16 rental units.
The three-story loft can be configured to
have anywhere from one to three bedrooms.
The floorplans and elevations will be evocative of loft housing in an urban environment and will be finished with interior fixtures akin to what would be found in a warehouse.
The second style of home at Ironworks is
more traditional. These homes will range
from 1,040 square feet on one story with a
single-car garage to a two-story 1,700-squarefoot plan with a two-car garage.
Ironworks at the Triangle in West Sacramento.
■ In the Sacramento suburb of Rocklin is
Hidden Creek. Construction is set to begin
in February on this project of 47 detached
homes that will range from 1,100 square feet
to 2,150 square feet.
■ In the tiny yet booming city of Emeryville
on the San Francisco Bay, Regis Homes of
Northern California is under construction
on a project called Bay Street One.
Late Summer 2005 completion is planned
for this development that is unique for its
95 townhomes built over an existing retail
development produced by Madison
Marquette. The units range from 902
square feet for a one-bedroom plus office
floorplan to 1,310 square feet for a two-bedroom 2.5-bath design. Some of the units will
have spectacular views of the San Francisco
Bay and others will overlook a lively retail
street scene that is Bay Street Emeryville.
Prices are expected to range from the mid
$400,000s to the low $600,000s.
SARES•REGIS Group’s Multifamily
Property Management Division also is
involved in a second component of the project, a 284 unit apartment community at the
Emeryville site.
■ In Mountain View, The Reserve at
Whisman Station is slated to open in the
summer of 2005. This is a project of 60
townhomes in the traditional Whisman style.
The units have three bedrooms with 2.5
baths and approximately 1,300 square feet.
■ Further south in Campbell, a suburb
of San Jose, Regis Homes of Northern
California has started construction on Park
Towne Place, a project of 24 contemporary
loft-style townhomes. Architects Seidel
Holzman created eight different floorplans
for this project of one- to three-bedroom
homes that will range from 1,022 square feet
to 1,747 square feet. Prices are expected to
start in the mid-$400,000s to about
$600,000.
7
SRGNC Developing Palo Alto Facility
For The Campus For Jewish Life
S
ARES•REGIS Group of Northern
California’s Commercial
Development Division in San Mateo
is working with the Campus for Jewish Life
on the organization’s new Palo Alto facility.
The 8-acre site, which contains a vacant
office building previously owned by Sun
Microsystems, will consist of a 125,000square-foot Jewish Community Center and a
165-unit, 270,000-square-foot independentand assisted-living facility.
This $200-million project will be financed
through a fundraising campaign and bond
financing.
SRGNC is in the early stages of the project,
working to finalize the project team,
the master plan and city approvals by
September 2005. Occupancy is targeted for
2008. A joint venture of BRIDGE Housing
and CalPERS, called BUILD, also will
develop a 165-unit senior housing project on
an adjacent 4-acre parcel that was originally
part of the Sun Microsystems campus. The
Campus for Jewish Life and BRIDGE have
entered into a joint development agreement
and are jointly working on city approvals.
Planned $200-million campus is on a former Sun Microsystems site.
Northrop Grumman Signed To Five-Year
Lease At Santa Barbara Business Park
S
ARES•REGIS Group signed
Northrop Grumman to a five-year
lease of 14,000 square feet of
research and development space at the
Cabrillo Business Park in Goleta, Calif.
The lease is valued at more than $2 million.
Steve Fedde, Vice President of Operations
and Development at SARES•REGIS
Group’s Santa Barbara regional office, said
the defense and aerospace contractor is
scheduled to take occupancy next spring
in the building at 6769 Hollister.
Northrop Grumman’s space is part of a
50,000-square-foot building in the 320,000square-foot business park, Fedde said,
adding that the Cabrillo Business Park is
93 percent leased.
Santa Barbara brokers Mark Mattingly of
Pacifica Realty and John Peckham of Grubb
& Ellis represented SARES•REGIS Group.
Northrop Grumman was represented by
Daum Commercial Real Estate brokers
Winfield Shiras in Santa Barbara and
Brad Vickrey in Los Angeles.
8
L.A. Industrial Markets
Continued from page 3
Angeles area in addition to Northern New
Jersey, Phoenix, Chicago and New York.
The capitalization rates in the Los Angeles
area have been significantly lower than the
rest of the country, especially for class
“A” product.
As of the 3rd quarter 2004 more than 44.8
million square feet of industrial space was
absorbed in Los Angeles County alone,
which has a base of more than 965 million
square feet and a vacancy rate of only 2.5%
percent. L.A. has seven submarkets, each
nearly or equal to the industrial space of
any city west of Chicago.
And each submarket is seeing scores of new
companies coming in from overseas seeking
to do business in our local markets.
For example, in Baldwin Park in the
San Gabriel Valley east of downtown Los
Angeles, we recently completed a full asking
price lease deal on a 30,000 square foot
building with a Chinese company that sells
flat-screen televisions. This is a company
whose parent company posted $500 million
in sales last year and is entering the U.S.
market for the first time.
Who Saw It Coming?
This is a paradigm shift. This surge in
demand due to the Far East wasn’t happening 10 years ago. Now these expansions are
happening in Los Angeles daily.
At the other end of the spectrum is
Wal-Mart. This discount retailer entered
the market in 2001 and has leased multiple
buildings totaling 5 million square feet of
distribution space in Ontario over the last
four years. That’s a number that most
people can’t fathom. In addition to the
space leased by Wal-Mart, there is at least an
equal amount of space leased by Wal-Mart’s
suppliers nearby. Wal-Mart has located in
Southern California because it is the main
shipping hub from the Far East and also
because of their desire to open retail stores
throughout Southern California.
Continued on page 9
9
L.A. Industrial Markets
Continued from page 8
What about prices? We all know that story.
A building we sold for $50 a square foot
three years ago is now selling for $80 a
square foot. That’s 20 percent appreciation
per year. Price increases have been driven
by user sales and the tremendous inflow
of capital wanting to purchase leased
industrial properties.
Rents have remained relatively flat during
the past three years. However with vacancy
rates back at historical lows coupled with
the current strong tenant demand, we are
starting to see lease prices increase by
5-10% in most markets.
The kicker is that land is getting scarce.
Twenty-five years ago brokers used to put
people in their cars, drive 100 miles an hour
to the Inland Empire and say, “See, it’s only
10 minutes away.” Now, even the Inland
Empire is running out of land. Land prices
have increased from $3.00 per square foot
five years ago in the Inland Empire to
$9.00 per square foot for recent land deals.
Because of the scarcity of land, we’re looking at the Coachella Valley and cities like
Banning, Perris and Moreno Valley.
But the reality is that our port facilities are
unmatched and retailers are consolidating
on the West Coast. Everybody’s got a facility
down here because they’ve got to serve a
huge local population and the carriers are
in place to move intermodal boxes to other
major markets.
What Our Port Executives Say
“The emergence of China as a producer of
consumer goods for export has happened a
lot quicker than any of our forecasts anticipated,” says Larry Cottrill, Manager of
Master Planning for the Port of Long Beach.
“Everybody knew that China was going to
grow as a manufacturing enterprise but the
thought was they were going to be producing for their own consumption for quite a
while before they started producing for
export. But what’s happened has caught
everyone by surprise,” says Cottrill.
An inbound container from China used to
cost $1,500 to the West Coast. Today it’s
$3,800. Still, maritime experts say that’s a
bargain.
“What we are projecting right now is that
China is and will continue to dominate household goods production. The West Coast is
going to be the beneficiary,” Cottrill says.
“Nobody else can bring 18 million people to
the table like we can. And what that means
is Los Angeles will remain the first port of
call, the first discharge point for a ship
rotation.”
“Wherever you discharge first that’s where
you’re also going to discharge your intermodal boxes as well as your local boxes.
Those intermodal boxes are the hot boxes
that need to get to Chicago. So if a ship’s
going to call here first because there are
18 million people, they’re also going to be
bringing their intermodal boxes as well.
Being the first port of call is what everyone
wants to be.”
Suffice it to say, the future looks very
bright for owners of industrial properties in
Southern California. For others who want
to invest in Southern California industrial
properties, the higher prices for industrial
properties in Southern California is
justified by the unique dynamic growth
drivers.
10
SRGNC Overhauls Tucson Data Center
For Software Maker Symantec
S
ARES•REGIS Group of Northern
California recently completed
redevelopment of a Tucson, Ariz.,
data center for software maker Symantec -an effort that showcases the close working
relationship between SRGNC’s commercial
development and property management
divisions.
The facility, which Symantec has commissioned as its primary state-of-the-art data
center, was owned by WorldCom.
“This data center has tremendous electrical,
mechanical and structured cabling capacity
with redundant systems designed to avoid
any downtime,” SRGNC officials said.
Phase 1 work consisted of infrastructure
improvements for half of the 20,000-squarefeet of raised floor. Symantec invested about
$8 million in infrastructure improvements.
The structure initially was completed in
2001 but was never occupied by WorldCom.
Todd Arris in SRGNC’s San Mateo office
managed the project. Joe Blair and Eva
Bates have assumed the property and asset
management duties.
Artist’s rendering of 540-luxury apartments called The Reserve on San Diego’s 4S Ranch.
Two Multifamily Projects In Last
Planning Stages, Starts Set In ’05
T
wo new apartment properties –
The Reserve on the 4S Ranch in
San Diego and Vintage in Rancho
Cucamonga – totaling 840 units are in their
final planning stages and SARES•REGIS
Group multifamily officials expect construction to get under way next year on both.
Winter said the Vintage in Rancho
Cucamonga, a 300-unit project, is in plan
check. Plans will be approved and escrow
will close on the land by the end of this year.
But due to an agreement to give an adjacent
developer a head start, construction on the
project won’t begin until the fall 2005.
Mike Winter, Vice President and Director of
Multifamily Development, says SARES•
REGIS Group just made its final submittal
for The Reserve to San Diego County planners for the 540-unit luxury development on
the 4S Ranch. SSR is the capital partner on
the project.
The 300-unit Vintage in Rancho Cucamonga.
11
Five-building North County Commerce Center totals 493,898 square feet.
SARES•REGIS Group Advises JP Morgan
On North San Diego Industrial Park Buy
S
ARES•REGIS Group on behalf of JP
Morgan Investment Management
purchased the North County
Corporate Center, a five-building, 493,898square-foot industrial park in Vista, Calif.,
for $41 million. The purchase of the 31.4acre development is Sares Regis’ first
industrial property investment in San
Diego in 10 years.
“We have studied the San Diego real estate
market and we feel very confident that it is
a great place to invest,” said Peter Rooney,
President of SRG’s Commercial Investment
Division.
“The market fundamentals in San Diego
are very strong,” Rooney said.
The North County Corporate Center was
purchased from the State Teachers Retirement System of Ohio. Major tenants include
Jeld-Wen, Tweeter Home Entertainment,
Doortech Industries and Hay House Inc.
The North County Corporate Center
buildings range from 71,464 square feet to
123,270 square feet and are fully leased to
six tenants. Each building is on a separate
parcel.
Company Employees Supporting
The Troops Following Iraqi Fire
E
mployees of SARES•REGIS Group
pitched in to help a battalion of
U.S. Marines replace some of their
R&R diversions that were destroyed by fire
in Iraq.
It took 20 Marines, 18 fire extinguishers and
1,200 gallons of water to put out a fire that
swept through the R&R tent but not before
the unit’s creature comforts such as VCRs,
DVD players, video games, books and magazines were destroyed. There were no injuries
to the 3rd Battalion, 1st Marines based out
of Camp Pendleton.
The loss came to the attention of the
SARES•REGIS Group’s managing directors
who informed employees
of the opportunity to
support the troops and
their morale.
Donations from employees thus far include
Marines sift through the ashes following tent fire in Iraq.
scores of books by Clancy,
Grisham, King and even some romance
novels. Videos, DVDs and Playstations were
donated. The Marines were especially fond
of the John Madden football computer game
and other sports games, magazines and playing cards. Additionally, employees donated
an array of items ranging from disposable
razors, insect repellent, sunscreen and
candy.
12
Managing Director Geoffrey Stack Honored
By Marine Corps Scholarship Foundation
eoffrey L. Stack, Managing Director
of the SARES•REGIS Group in
Irvine, was honored with the Semper
Fidelis Award from the Marine Corps Scholarship Foundation at The Regent Beverly
Wilshire Hotel.
G
members of the United States Marine Corps.
This year $1.5 million in scholarships will go
to nearly 1,000 students. This year’s scholarship ball raised more than $700,000. Three
of this year’s scholarship winners are from
Orange County.
Stack of Corona del Mar is a highly decorated
Vietnam Veteran. He joins 21 previous
Semper Fidelis Award winners who include
Arnold Beckman, Thomas F. Riley, former
California Gov. Pete Wilson, newsman Walter
Cronkite and former President Gerald Ford.
Stack is a graduate of Georgetown University
and earned a master’s of business administration from the Wharton School at the
University of Pennsylvania. He worked as an
aide to U.S. Sen. Paul Douglas and served
three years as a Marine Corps officer,
attaining the rank of Captain. He served
in Vietnam and fought in the battle for
Khe Sanh. While in Vietnam he earned two
Bronze Stars with Combat V for valor, a
Purple Heart, 21 Air Medals and a Navy
Commendation Medal with Combat V.
More than 550 persons attended the Oct. 9
Marine Scholarship Ball at which the keynote
speaker was Marine Corps Commandant
Gen. Michael Hagee. Stack also received a
personal tribute from former Marine Corps
Commandant Gen. James Jones, currently
Supreme Allied Commander in Europe,
who called Stack “one of our country’s great
citizen soldiers.”
Since 1962 the Marine Corps Scholarship
Foundation has awarded over $21 million in
scholarships to more than 16,000 students,
who are children of past or present serving
The SARES•REGIS Group is one of the
nation’s leading developers and managers of
commercial and residential real estate in the
western United States. Currently, the company
has more than 3.5 million square feet of
commercial and over 2,000 residential units
under development. SARES•REGIS Group
has a combined portfolio of property and
fee-based management contracts valued at
more than $2.3 billion, including 12,200
rental apartments and 14 million square feet
of commercial and industrial space. Since
its inception the company has acquired or
developed approximately 36 million square
feet of commercial properties and 18,000
multifamily and residential housing units.
Stack is on the board of the Tejon Ranch
Company (NYSE) and is chairman of the
board of the National Multi Housing Council.
He also is on the board of the California
Housing Council, is a Trustee of the Urban
Land Institute and is Vice Chairman of the
Multi-Family Silver Residential Council.
Stack and his wife, Nancy, are founders and
trustees of the non-profit Cystinosis Research
Foundation, an organization dedicated to
finding a cure for the rare disease that affects
their daughter Natalie. In this capacity over
the past two and a-half years they have raised
$1.2 million to fund medical research.
Marine Corps Commandant Gen. Michael Hagee with Geoffrey Stack.
13
Two Condominium Projects
Win Five BIA Elan Awards
T
wo condominium projects by Regis
Homes recently won five Elan
Awards for superior marketing
achievements in the home building industry
from the Los Angeles/Ventura Sales and
Marketing Council of the Building Industry
Association.
been so well received by the home-buying
public,” said David Jacobson, Senior Vice
President of Sales and Marketing for
Regis Homes.
Honored as Community of the Year, the
344-unit Seabridge Villas in Huntington
Beach also won Elan Awards for Best
Interior Merchandising, Best Model
Complex Landscaping and Best Website.
Bordeaux in Santa Clarita was honored
with an Elan Award for Best Brochure.
“We’re extremely proud to have been
honored so many times by our peers in
the home building industry. But what’s
especially gratifying is that both Seabridge
Villas and Bordeaux condominiums have
Regis Homes’ David Jacobson with Elan Award.
601 Condominiums Purchased
Continued from page 5
Sales Open At Super-Luxury
Watermarke in Irvine
SARES•REGIS Group has launched sales of
its newest 534-unit multi-family residential
development, the super-luxury Watermarke
in Irvine.
Completed in 2003, the project was leasing
up when SARES•REGIS Group executives
decided to begin the process of selling the
units, which currently are priced from the
mid $300,000s to the low $700,000s.
There are 10 floor plans of one- to threebedroom units as well as a townhome
design. The units range from 620 square
feet to 1,482 square feet.
The first three phases of 138 units were
made available for sale last summer. The
offer was well received by buyers who have
purchased 90 of the units.
Watermarke’s premier location on 11 acres
at Campus Drive and Jamboree Road is in
Orange County’s financial hub and near
John Wayne Airport. For this reason
Jacobson said many of the buyers – individuals and companies – with private airplanes
have purchased Watermarke units as second homes.
The development overlooks one of the most
pristine wetlands in Southern California –
the expansive, preserved habitat of the San
Joaquin Marsh. Watermarke also is near the
campus at the University of California at
Irvine.
Watermarke, which features classic
European-style architecture, is amenity-rich
inside and out. It offers residents concierge
service, a 8,000-square-foot two-story clubhouse with a fitness center and entertainment theater. There also are a number of
active courtyards, which include swimming
pools, a grass volleyball court, children’s
play areas, spas, cabanas and barbecues.
Sales Brisk At Bordeaux In Valencia
In an area called Plum Canyon of Santa
Clarita’s community of Valencia is
SARES•REGIS Group’s Bordeaux
development that was completed in
2002 as an apartment community.
SARES•REGIS Group officials who monitor
the marketplace decided earlier this year
to launch sales of Bordeaux’s one- to threebedroom units. Sales are nearing completion with 167 of Bordeaux’s 168 units sold.
Prices range from the mid $200,000s to
the low $300,000s for the three-bedroom
townhomes.
Bordeaux is a gated community on nine acres
and many of the units include attached
garages.
14
SARES•REGIS Group Leads A Team
In Major Irvine Park Rebuilding Project
SARES•REGIS Group-coordinated volunteers busy on the major renovation of the Adventure Playground
in Irvine.
S
ARES•REGIS Group responded to a
call from Rebuilding Together, a
charitable group that promotes goodwill construction projects, to revitalize an
aging community park in the City of Irvine.
The City of Irvine’s Adventure Playground,
a unique 6-acre community park with forts,
mud pits, water slide, a rope bridge, cargo
nets and a small amphitheater, had fallen
into disrepair since it was dedicated in the
early 1980s.
Given the nature of the park’s “free-play”
environment, the Adventure Playground
doesn’t rate a maintenance or improvement
funding priority. So over the years the condition of the playground and its structures
deteriorated badly, city officials said.
Libby Cowan, Superintendent of the city’s
Community Services Department, said the
much-needed contributions in materials
and labor are valued at between $150,000
and $200,000 for each of the park’s two
phases of rehabilitation, which included
design, architecture and construction.
Bill Albert, President of SRG’s Multifamily
Development & Construction Division,
coordinated the rehabilitation effort and
called on no less than 14 subcontractors and
others from the Irvine Stake of the Mormon
Church to help.
“When we get a situation that’s a major
undertaking, I call Bill Albert and the
SARES•REGIS Group. I really have to be
moderate on what I ask for because he and
SARES•REGIS Group are so generous,”
said Cy Baumann, a retired McDonnell
Douglass executive who heads up
Rebuilding Together.
Rebuilding Together, which formerly was
called Christmas in April, continuously
works on numerous projects – from rehabbing homes for the needy to overhauling
facilities for community organizations.
15
Bressi Ranch
Continued from page 1
and dynamic market, and we believe it will
continue to outperform other markets on
the West Coast,” Rooney said.
Additionally, the City of Carlsbad has
approved development of an 18-hole
municipal golf course nearby.
CB’s Allee said that Bressi Ranch is what
everyone’s been waiting for since the highly
successful Carlsbad Research Center sold
out in 1998.
According to CB Richard Ellis there is a
current base of 13.5 million square feet of
industrial and R&D space in Carlsbad and
about 3.1 million square feet of office.
“Bressi Ranch is right at the corner of Main
and Main, which in Carlsbad is El Camino
Real and Palomar Airport Road. It’s got
frontage on both of those thoroughfares.
It’s going to be the equal of the Carlsbad
Research Center, which is like driving
through the Irvine Spectrum,” Allee said.
“After Serrano Mesa, Carlsbad is the next
high-tech area of San Diego County. We’re
up here in the northwest quadrant of the
county. We draw the high finish users.
Warehouse and distribution operations
go to Vista and Oceanside. We get the
corporate headquarters and high-end
manufacturers,” he said.
“It will have beautiful common-area landscaping, a lot of frontage on the major
arteries and is catty-corner to Palomar
Airport,” he said.
San Diego County-owned Palomar Airport
has a 4,700-foot runway and serves United
Shuttle commuter aircraft to Los Angeles
International Airport and Sky Harbor International Airport in Phoenix. The county is
planning to launch $30 million in capital
improvements to the airport, adding several
hangars and a restaurant.
Bill Driscoll of CB Richard Ellis represented
SARES•REGIS Group in the transaction.
Rick Sparks and Matt Strockis of CB
Richard Ellis and Biff Smith of Collins
Commercial represented Metlife. CB
Richard Ellis will retain exclusive marketing of the project, which will be handled by
Allee, Sparks, Roger Carlson and Strockis.
Ocean close Bressi Ranch is near Palomar Airport and famed La Costa Resort.
16
THE
SARES REGIS
GROUP
REGIONAL
OFFICES
●
CORPORATE OFFICE
John Hagestad, Managing Director
Geoffrey Stack, Managing Director
William Thormahlen, Managing
Director
Peter Rooney, President,
Commercial Investment Division
Vince Ciavarella, President,
Commercial Property Services
Division
Jim Thomas, President, Multifamily
Property Management Division
Bill Albert, President, Multifamily
Development & Construction
Division
Bill Montgomery, President,
Multifamily Acquisitions &
Investments Division
18802 Bardeen Avenue
Irvine, CA 92612
(949) 756-5959
www.sares-regis.com
REGIS HOMES &
REGIS CONTRACTORS
18825 Bardeen Avenue
Irvine, CA 92612
(949) 756-5959
SARES•REGIS GROUP OF
NORTHERN CALIFORNIA
Robert Wagner, President
Mark Kroll, Executive Vice President
901 Mariners Island Blvd., Suite 700
San Mateo, CA 94404
(650) 378-2800
www.srgnc.com
SACRAMENTO
Bill Heartman, Regional President
1435 River Park Drive, #415
Sacramento, CA 95815
(916) 929-3193
VENTURA/LOS ANGELES
Russ Goodman, Regional President
500 Esplanade Dr., #470
Oxnard, CA 93031
(805) 485-3193
PHOENIX–COMMERCIAL
Eva Bates, District Manager
1600 W. Chandler Blvd., #150
Chandler, AZ 85224
(480) 497-6759
PHOENIX–RESIDENTIAL
Kurt Seidel, Regional Manager
1600 W. Chandler Blvd., #150
Chandler, AZ 85224
(480) 821-1671
DENVER–RESIDENTIAL
Jennifer Nessett, Regional Vice
President
900 E. Louisiana Ave., Suite 101
Denver, CO 80210
(303) 715-9600
Announcements
BILL HEARTMAN was promoted to President of the Sacramento Division
of Regis Homes of Northern California. He will oversee all operations,
including product designation, design, asset management, marketing and
construction management.
Heartman’s expertise has been a steady influence on the division, which
is aggressively undertaking numerous infill residential projects as well as
traditional suburban developments with five projects totaling 518 homes
and an additional 500 homes in the entitlement process.
With more than 20 years of experience in the Sacramento area, Heartman
has delivered more than 3,000 homes and more than 5,000 residential lots
with a value in excess of $500 million.
Heartman received his bachelor’s degree in accounting and finance and
MBA in marketing and federal taxation from University of California,
Berkeley.
GINGER BRYANT, Chief Financial Officer and Senior Vice President of
SARES•REGIS Group of Northern California, was elected President of
Network of Commercial Real Estate Woman, a 6,000-member national
organization, during its recent annual convention in Toronto.
As CREW’s 2005 President, Bryant says she plans on implementing
initiatives aimed at “looking outward to find ways to bring women into all
fields of the industry, showcase their successes and be a resource to our
members and the industry.”
JOHN IGOE joined SARES•REGIS Group of Northern California’s
Commercial Development Division in San Mateo as a Vice President.
Igoe holds a bachelor’s degree in civil engineering from Villanova
University, a master’s degree in civil engineering and construction
management from Stanford University and a MBA in finance from
Drexel University.
Prior to joining SRGNC, Igoe was vice president of real estate and site
services at palmOne where he was responsible for worldwide real estate.
Before that, John held real estate and facilities positions at PeopleSoft,
3Com, Octel Communications and NeXT. He also was a vice president and
partner at Lincoln Property Company, responsible for site acquisition,
design, construction and leasing for residential projects in Santa Clara,
San Mateo, San Francisco and Marin counties. He managed the development of the Moscone Center and served as its interim general manager.
PATRICK O. RUSSELL, AIA, joined SARES•REGIS Group’s Commercial
Development Division as Vice President of Development. He is responsible
for development of Bressi Ranch in Carlsbad, Rochester Rancho
Cucamonga and Bloomfield in Santa Fe Springs.
Russell’s comes to SARES•REGIS Group from CarrAmerica Development
where he was responsible for design, entitlements and construction of
class-A office, flex and biotech facilities in Southern California. He also
served as director of architecture and construction for Metropolitan Life
Real Estate Investments of Los Angeles.
He has a bachelor’s degree in architecture from California Poly San
Luis Obispo and a master’s of real estate development from University
of Southern California. He is a licensed architect in California and is
certified by the Environmental Assessment Association. He is a member
of the American Institute of Architects, Urban Land Institute and the
National Association of Industrial and Office Parks.