Strategies Winter 2016 - Sares

S A RE S•RE G I S G rou p Ne w s le t t erWI NTE R 2 0 1 6
SRG MEREDITH
INTERNATIONAL CENTRE –
Rendering of the 3-million-sq.-ft. project
shows its pre-eminent location adjacent
to Interstate 10 and Ontario International
Airport to the southeast. p 1
GAME-CHANGING FOOTPRINT –
SRGNC serves as development
manager for NVIDIA’s headquarters,
under construction in Santa Clara. p 2
STABILIZING INFLUENCE –
Boardwalk in Huntington Beach
is one of two SRG communities
recently leased up. p 3
THE LOGISTICS CHANNEL Premier SoCal distribution project
is unveiled; television shopping channel QVC signs as first tenant.
In a pair of major transactions, SARES•REGIS Group acquired 150 acres of
prime industrial land on Interstate 10 in Ontario and is underway on approximately
3 million sq. ft. of state-of-the-art LEED-certified industrial distribution buildings. In
concert with the land purchase, SRG pre-leased the largest of the seven buildings
planned for the site to QVC for the giant video and e-commerce retailer’s first West
Coast distribution hub.
“This is the largest and last tract of developable land in the western end of the Inland Empire and
located on the I-10 Freeway. QVC looked at several properties on the market, so we’re pleased
our location met their requirements,” said Larry Lukanish, Senior Vice President of SRG Commercial
Development.
Continued page 7
SARES•REGIS Group is one of the leading developers and managers of commercial and residential real estate in the western
United States. SARES•REGIS Group has a combined portfolio of property and fee-based assets under management valued
at more than $4 billion, including 15 million square feet of commercial and industrial space and more than 13,000 rental
apartments. Since its inception, the company has acquired or developed approximately 44 million square feet of commercial
properties and 20,000 multifamily and residential housing units. For more information, go to www.sares-regis.com.
sares-regis.com
•
srgnc.com
2 | Strat egies
GAME-CHANGING FOOTPRINT SRGNC serves as
development manager for NVIDIA, whose new headquarters is at the intersection
of science and art in Silicon Valley.
Construction of NVIDIA’s new 500,000sq.-ft. building commenced in July. With
a building footprint of nearly six acres,
the scale of NVIDIA’s building is more
akin to nearby Levi’s Stadium in Santa
Clara, where the San Francisco 49ers
play, than to a typical Silicon Valley
office building. The large floorplates
are driven by NVIDIA’s desire to foster
employee interaction as well as
collaboration among business units.
Recent workplace research has shown that
colleagues who are located on the same floor
are 95% likely to encounter each other on a
daily basis. That percentage drops to almost
zero if they are separated by floors or are
located in separate buildings. The activated
building core - which hosts centralized spaces
for meetings and social and business functions
Office
Project WILL
ACCOMMODATE
2,500 EMPLOYEES
.
Rendering of NVIDIA’S headquarters.
– serves as a gathering place and further
encourages interaction. Outside the building,
functional greenspaces were made possible by
ensconcing parking under the building with
earthen berms.
Designed around the employee
experience; refined by technology
In a true partnership between client and design
team, NVIDIA’s Iray technology was used to
simulate the interior daylighting conditions and
refine the quantity, size, and location of the roof
skylights. Iray leverages a robust material
library and a 3D design model to simulate
photons of light as they travel through the
building to the human eye. The resulting life-like
simulations were used extensively to refine the
final design.
The project, which can accommodate 2,500
employees, will supplement NVIDIA’s current
12-building, one-million-square-foot campus in
Santa Clara. LEED gold certification is anticipated, and occupancy is slated for late 2017.
WI NTER 2016 | 3
The Boulevard is on an eight-acre hillside site that provides
residents with sweeping views of the San Fernando Valley.
STABILIZING INFLUENCE Following busy months
of lease-up and move-in activity, two new amenity-rich apartment
communities have been stabilized in Los Angeles and Orange County.
With 340 apartments, The Boulevard
Apartment Homes in Woodland
Hills offers panoramic views of the
San Fernando Valley. Boardwalk, a
community of 487 apartments, is at the
gateway to Huntington Beach, aka Surf
City USA. Both SARES•REGIS Groupdeveloped communities recently hit
their stabilization targets, and the buzz
among residents is well underway.
“The Boulevard Apartment Homes has become
a subject of social discussion. It’s the newest
community in Woodland Hills, and no community
has more amenities,” said John Gregory, Regional
Vice President in SARES•REGIS Group’s
Multifamily Property Management Division. “We
get notes from residents who say they love the
central location. One resident tells us of finding
‘peace and tranquility with a book near a
fireplace or waterfall,’” Gregory said.
The community’s spacious clubhouse offers
both work and play options with private offices
for residents and a café bar area. A two-level
fitness center has spa-like locker rooms with
infrared saunas. Other resident amenities include
a sports bar/media lounge with attached patio
space. A gourmet kitchen with a folding-glass
wall opens to a resort-style swimming pool and
spa area that are surrounded by private cabanas
and lounge seating.
Boardwalk, a mixed-use development on
Edinger Avenue near Beach Boulevard, includes
a 9,500-sq.-ft. recreation and fitness center.
Coffee 2 Go, ASAP Noodles and Ginny’s
Cosmetics join Jimmy John’s gourmet sandwiches as tenants in Boardwalk’s 9,000 sq. ft.
of retail space.
The project is a short walk to the Bella Terra
Mall as well as Whole Foods, Costco and a
variety of entertainment options. Boardwalk’s
spectacular outdoor amenities include a half-acre
park with beach volleyball and paddle ball
courts and playground, a resort-style saltwater
pool and spa, three-story fitness center, outdoor
barbecues, recreation rooms, media lounge,
private dog run and a large roof deck. Interior
finishes and features include gourmet kitchens
with stainless steel appliances, hardwood floors
and in-home washers and dryers.
“This is a dynamic-looking project. Its highly
articulated design and first-class amenities
attract energetic young professionals,” said
Dave Powers, Vice President of SRG Multifamily
Development.
Two
luxury
communities
totaling
827
apartments
are in prime locations
in Huntington Beach
and Woodland Hills.
4 | Strat egies
Logistics Empire SRG is in its element as intense demand for
distribution space in much of the western Inland Empire outpaces new deliveries.
SARES•REGIS Group has developed
approximately 7.3 million sq. ft. of
industrial and distribution buildings in
the Inland Empire – the most of any
company in the current development
cycle – and is looking to develop an
additional 1.2 million sq. ft. with a
business park in Chino.
“We’ve been very aggressive during the recovery,
and it’s paying off. Not only have we acquired
several prime sites and gained needed entitlements to take advantage of intense demand
for logistics facilities, companies are quickly
leasing up all of our buildings to accommodate
their requirements,” said Peter Rooney, President
of SRG Commercial Development.
SRG’s recent projects in the Inland Empire
are the 3-million-sq.-ft. SRG Meredith
International Centre in Ontario (see story on
Page 1), 1.6-million-sq.-ft. Deckers/Moreno
Valley, 580,000-sq.-ft. SRG Perris Logistics
Center and 2.1-million-sq.-ft. Empire Gateway in
Chino. SRG has developed more than 21 million
sq. ft. of industrial space in the Inland Empire
since 1994.
CLOSE TO PORTS OF L.A., LONG BEACH
Currently, SRG Commercial Development is
seeking to gain entitlements to develop the
Kimball Business Park, a 70-acre masterplanned project in Chino, with 1.2 million sq. ft.
of premium distribution and industrial buildings
for lease. SRG’s planned development is
More industrial space has been
absorbed in Chino this year than in the
larger, more well-known neighboring
submarket of Ontario.
adjacent to Chino Airport and is in one of hottest
distribution markets in the western end of
the sprawling Inland Empire and where new
construction struggles to keep up with demand.
Colliers International reports there was
662,400 sq. ft. of net absorption in 2015 through
Q3 for buildings from 100,000 sq. ft. to 250,000
sq. ft. compared to 354,800 sq. ft. of new
product delivered.
“Chino is the region’s closest big-box destination to the ports of Long Beach and Los Angeles
and is served by three major freeways,” Rooney
said. “It’s simply a great logistical submarket.”
Exemplifying the strong net absorption trend,
all four distribution buildings totaling 2.1 million
sq. ft. at the Empire Gateway in Chino were
leased within months of the project’s completion
this year. SRG continues to manage the project.
In the Chino submarket in Q3, 625,100 sq.
ft. were completed but net absorption totaled
968,000 sq. ft. Chino’s vacancy rate settled at
1.1% in Q3, down 90 basis points from the prior
quarter. Colliers’ Q3 data shows Chino with 669
buildings larger than 10,000 sq. ft., totaling 45.5
million sq. ft. Net absorption is 3.5 million sq. ft.
year-to-date.
PRIME LAND IS LIMITED
More industrial space was absorbed in Chino
last year than in the larger and more well-known
neighboring submarket of Ontario.
SRG has assembled four parcels at Kimball
and Hellman avenues just east of the countyowned Chino Airport. It is about five miles from
I-15 and near I-10 and state highways 83, 91
and 60.
Rooney said the entitlements should be in
place by June. When approved, the land will be
transformed from dairy farming into a masterplanned development with premier LEED-rated
distribution buildings. The project will be valued
at approximately $150 million.
The Inland Empire, the term used to identify
Riverside and San Bernardino counties, has
WI NTER 2016 | 5
GROWTH in LOGISTICS activity
is RESPONSIBLE FOR
25%
OF THE REGION’S NEW JOBS
.
Downtown Los Angeles, 42 Miles
210
Rancho
Cucamonga
San Bernardino
Ontario
International
Airport
83
Redlands
10
SRG Meredith Intl. Centre
3 million sq. ft.
215
15
60
Chino
Airport
KIMBALL
Kimball Business Park
1.2 million sq. ft.
Riverside
Moreno Valley
60
91
71
Empire Gateway
2.1 million sq. ft.
Deckers/Moreno Valley
1.6 million sq. ft.
Corona
215
Downtown
15 San Diego,
96 Miles
MAP NOT TO SCALE
gained about 200,000 jobs since the bottom in
2010. A report from an Inland Empire economic
conference this year by the Los Angeles Times
said the region’s growth was the fastest in the
state and that logistics were responsible for
nearly 25% of the region’s new jobs. Despite the
region’s vastness, prime land for development is
limited. San Bernardino County’s chief executive,
Greg Devereaux, told the L.A. Times that much
of the land is government-owned or lacks
infrastructure needed for development.
SRG Perris Logistics Center
580,000 sq. ft.
n
New construction
in the IE’s western end struggles
to keep up with demand
n
6 | Strat egies
Strategically speaking
Guest column Worldwide investors of all stripes
like what they see in the U.S. and its real estate assets – and
for good reason.
By Jack Berquist, Managing Partner, Accord Group Holdings LLC, San Francisco
“It was the best of times, it was the
worst of times.”
Demand
has compressed
cap rates
200-300 bps –
‘investors have piled
into the sector.’
Just as Charles Dickens wrote in
1890 in “The Tale of Two Cities,” the
U.S. economy and, more specifically,
U.S. real estate markets are exhibiting
steadily improving conditions and, in
certain cases, reaching all-time high
valuations. Two of the most significant
reasons for these conditions can be
attributed to a historically low and
pervasive level of interest rates and,
secondly, to the resulting strong flow
of global capital into real estate assets
in the U.S. Although market conditions
are in most cases highly favorable,
there are clear winners and losers
emerging.
On a relative basis the U.S. economy is doing
extremely well compared to the rest of the world.
With strong job growth, declining unemployment
(currently around 5%), a recovering single-family
housing market and the easy availability of debt
and equity capital, a modestly strong GDP
growth rate of 2.1% in the third quarter of 2015
is not surprising. In the San Francisco Bay area
alone there have been more than 500,000 jobs
created since the depth of the global financial
crisis, leading the entire world in its percentage
growth over this period.
What is more unique than a recovering
economy, however, are the effects of a prolonged
period of low interest rates. For the last six and
a half years the Federal Reserve has pursued a
policy of essentially a zero short-term Fed Funds
Rate. Even today, after this extended experiment in quantitative easing, the 10-year bond is
around 2.15%, still a very low rate by historical
standards. So what is the logical effect on U.S.
real estate markets with an extended period of
extremely low interest rates – a boom in demand
for income producing properties. The demand
for real estate assets has resulted in cap rate
compression of 200-300 bps over the last six
years as investors have piled into the sector. In
many sectors real estate has reached historic
highs in price level.
ALLUREMENTS OF U.S. ASSETS
The flow of capital into U.S. real estate has
essentially come from all sources including
individuals, institutions, offshore sovereign
wealth funds and overseas pension funds. The
phenomenon of low interest rates is not just a
U.S. issue but also a global issue as western
Europe and other parts of the world have
concluded that quantitative easing (i.e., low
interest rates) is the only solution to raising their
economies out of lackluster economic growth.
As a result, the U.S. has become one of the
most highly desired locations in the world for
real estate. The value and stability of our
currency, our rule of law, greater transparency
on operations and our well-developed capital
markets for ease of exit are all driving overseas
investors to our shores and adding to the
demand for income-producing real estate.
Continued page 11
WI NTER 2016 | 7
SRG: THE LOGISTICS CHANNEL
The property is part of the undeveloped
243-acre Meredith International Centre, which
extends nearly a mile along the north side of I-10
and opposite LA/Ontario International Airport
between Archibald and Vineyard avenues.
SRG completed the land purchase with the
Meredith family on July 1. As the land purchase
was being completed, SRG and QVC executed
a lease agreement for QVC’s 1,050,000-sq.-ft.
building to be completed July 1, 2016. The
building will include 30,000 sq. ft. of office and
employee cafeteria space. In its statement, a
QVC spokesperson said the company “anticipates hiring approximately 1,000 team members
in total by 2020 as the distribution center
expands fulfillment to all product categories.”
SIX BUILDINGS AVAILABLE FOR LEASE
“At QVC, distribution plays a significant role in
enriching the customer service experience. For
each and every product we ship, we look at it as
an opportunity to build trust, loyalty and engagement with our customers,” said James Reid,
Vice President of Distribution Operations at QVC.
“This new distribution center will enable us to
Continued from page 1
efficiently and swiftly serve our customers
throughout the Western United States.”
SRG’s land purchase followed the Ontario
City Council’s unanimous approval in April of a
new Specific Plan and Development Agreement.
In addition to SRG’s industrial project, there are
entitlements for 1.1 million sq. ft. of office and
retail space and 800 apartment units on the 80
acres retained by the Meredith family.
SRG’s six remaining industrial buildings
planned for its 150-acre site are for lease. They
range from 130,000 sq. ft. to 575,000 sq. ft. with
32-foot and 36-foot clear heights. SRG’s entire
project will be completed by late next year.
Chuck Noble, a principal broker of Lee &
Associates who represented the Meredith family,
said the property is the largest new entitlement
in Ontario in 20 years. The Meredith interests
were also represented by John Hatzis and Dave
Hunsaker of Lee & Associates.
SRG was represented in the land acquisition and QVC lease by Joe McKay, also of Lee
& Associates. QVC was represented by CBRE
brokers Erik Wanland in Ontario and Mike Barker
in Wayne, Penn.
n
SRG’s six
remaining
buildings
planned for its
150-acre site
are for
lease.
n
From left: Larry
Lukanish, Sr. VP, SRG
Comm. Dev.; Leslie
McBride, Deputy Dir.,
Governor’s Office;
Councilman Alan
Wapner; John Hagestad,
SRG Managing Dir.;
Craig Meredith and son
Brett Meredith, original
property owners; Mayor
Paul Leon; Councilman
Jim Bowman; Mayor
pro Tem Deborah
Dorst-Porada; Beth
Rubio, QVC Exec. VP
for HR; Rob Muller, QVC
Sr. VP of Customer and
Business Services; Peter
Rooney, SRG Managing
Dir. and Pres., Comm.
Dev. and Sr. VP. Patrick
Russell.
8 | Strat egies
EAST
PHASED RELIEF SRG’s Pacific Pointe East will move the needle in
product-starved South Bay; Long Beach has only two available buildings larger
than 100,000 sq. ft.
SOUTH
BAY’S
industrial
vacancy rate
is 0.8%
Construction is underway on Pacific
Pointe East at Douglas Park at Long
Beach Airport – a new phase of premium headquarters-style distribution
buildings by SARES•REGIS Group.
Three buildings will range from approximately 110,000 sq. ft. to 230,000 sq.
ft. and are available for lease.
Pacific Pointe East is entering one of the nation’s
most supply-constrained markets for industrial
buildings where the vacancy rate is less than 1%.
“For many companies that are looking to
expand, Pacific Pointe East could be the last
chance to secure a premium facility in a highly
desirable location. Master-planned Douglas Park
is near freeways and ports,” said Larry Lukanish,
SRG Commercial Development Senior Vice
President. The buildings will be the same
state-of-the-art corporate headquarters-style
facilities that SRG developed in a previous
award-winning phase.
Third-quarter reports from CBRE show there
are only 1.7 million sq. ft. of empty space in the
South Bay market for a vacancy rate of 0.8%.
South Bay is greater Los Angeles’ largest
industrial market with 218 million sq. ft. of
inventory, 21% of the region’s total. The vacancy
rate was 1.5% in the Long Beach submarket,
which only has two available buildings larger
than 100,000 sq. ft., according to the report.
Each building in the 24.8-acre Pacific Pointe
East will include two-story executive office
space. The buildings will be LEED rated with
3% skylights, secure concrete truck courts,
load levelers, dock-high and grade-level loading.
Buildings will have 30 feet of clear height and
energy-efficient T-5 fluorescent lighting fixtures
on sensors.
Seven previous Pacific Pointe buildings – the
region’s largest collection of LEED-rated facilities
– totaled 677,142 sq. ft. and were leased or
sold in one year. One phase was judged “best
industrial project” by the Los Angeles Business
Journal.
Pacific Pointe East is being marketed by
CBRE’s Brian DeRevere, John Schumacher and
JB Green.
WI NTER 2016 | 9
SCHOOL FOR MOTORHEADS Universal Technical Institute –
one of the nation’s foremost automotive trade schools – opens its second
Southern California campus in Douglas Park.
The 136,965-sq.-ft. facility was built
by SARES•REGIS Group to suit UTI’s
specifications for administrative operations and classroom space for 800
students and instructors. UTI leased
the building from SRG for 15 years.
“Having a central location for coastal Los
Angeles County, the South Bay and Orange
County with access to several freeways was
important to meet the needs of an underserved
student population,” said Larry Hohl, Campus
President of UTI-Long Beach.
“Douglas Park near Long Beach Airport
offered that and more. SARES•REGIS Group
helped broker the deal and build the shell in
record time. I’d like to recognize SRG and its
professional staff for leading the effort. We
broke ground in November 2014. In less time
than it takes to build a single-family home, we
constructed a 142,000-sq.-ft., highly technical
facility, which was delivered on-time and onbudget,” Hohl said.
In addition to Long Beach, UTI has a campus
in Rancho Cucamonga and 10 others nationwide
for students seeking careers as professional
automotive, diesel, collision repair, motorcycle
and marine technicians. They will be among 1.4
million workers in those specialities by 2020,
according to the U.S. Department of Labor.
UTI works with top manufacturers to develop
programs that meet the evolving needs of the
industry, graduating more than 190,000 students
in the last 50 years.
‘
SRG helped
broker the deal
and build the shell
in record time.
’
Universal Technical
Institute celebrated
the opening of its 12th
campus. From left are:
Adrian Cordova, UTI
Regional VP Operations;
Joe Oltmans II,
Chairman and CEO,
Oltmans Construction;
UTI-Long Beach
Campus President Larry
Hohl; Brian Udall, UTI
VP and Asst. General
Counsel; Long Beach
City Councilwoman
Stacy Mungo; Mayor
Robert Garcia and Peter
Rooney, SRG Managing
Dir. and Pres., Comm.
Dev.
Foster City Center’s towers will alter
the skyline of the city off SR 101 and at
the foot of the San Mateo Bridge.
10 | S t rat egies
PLANS
FEATURE two
office buildings
totaling
600,000 sq. ft.
MARQUEE APPROVAL SRGNC receives entitlements for
Foster City Center on behalf of landowner Northwestern Mutual Life.
After years of working collaboratively
with officials in Foster City, including
amending the city’s general plan,
Sares Regis Group of Northern
California secured entitlements for
Foster City Center, a marquee
800,000-sq.-ft. office development.
Its prime location is drawing interest
from prominent local companies with
expansion plans.
Entitlements include two office buildings at
275,000 sq. ft. and 330,000 sq. ft., two parking
structures and an “amenity building” with a
landscaped rooftop garden that connects the
nine- and 12-story Class A office towers. A third
phase could add 200,000 sq. ft. on an adjacent
two acres of land. The entitlement represents a
nearly four-fold increase in income-producing
square footage for Foster City.
Northwestern Mutual Life retained SRGNC
in 2005 to develop the eight-acre site just off
SR 92 that contained 150,000 sq. ft. of obsolete
industrial buildings. The project included gaining
city approvals for a master plan, EIR, development agreement and use permit.
The project’s marketing by brokers with DTZ
has attracted a number of qualified potential
tenants who are evaluating the opportunity. The
planned development is close to San Francisco
International Airport and the East Bay via the
San Mateo Bridge.
When completed, Foster City Center will
create value for NML’s policy owners, deliver a
substantial economic development for Foster
City and complement NML’s recently completed
Plaza Apartments on the south side of SR 92.
ENTITLEMENT
represents a nearly
four-fold increase in
income-producing square
footage in Foster City.
WI N TER 2016 | 11
GUEST COLUMN
Continued from page 6
With respect to real estate property types,
two of the clear winning strategies have been
multifamily apartments and industrial warehouse
facilities. As noted by Ken Rosen of Rosen
Consulting, multifamily has provided the best
risk-adjusted return among all property types
over the last 10-20 years. With the positive
demographics of a booming 18-24 year old,
primary-renter population leading to solid rent
growth (exceeding 5% per year nationally for the
eleventh straight month) owners of Class A and
Class B apartments in major metropolitan areas
(especially in cities like San Francisco, Los
Angeles, Portland and Seattle) have seen very
strong risk-adjusted returns. On the other hand,
poorly capitalized buyers (unable to compete
with well-capitalized institutional investors),
properties in secondary or tertiary market
locations and functionally obsolete properties
have been left out in the cold and unable to
benefit from very positive general market
conditions.
ASSET QUALITY MATTERS
Industrial properties, more specifically bulk
warehouse distribution facilities, have also been
among the strongest performing sectors over
the last decade. Similar to apartments, they
show strong resiliency in down markets with
occupancy rates exceeding 90% even in the
worst of times. For most all institutional investors,
especially offshore sovereign wealth funds and
pension funds, they are well below their target
ownership of industrial assets and are actively
pursuing high-quality assets. Highly functional
large warehouses near major ports and
intermodal facilities (such as LA/Long Beach)
and within a three-hour drive from major
population centers have demonstrated
occupancy rates increasing faster than the
growth in real GDP. These markets generally
have significant barriers to new entry, adding
to the favorable supply/demand characteristics
and prompting high levels of acquisition
demand. It can be the worst of times, however,
for functionally obsolete properties, “C” quality
assets, tertiary markets or highly leveraged
assets as they suffer from a cold shoulder
response from the investor community.
The improving U.S. economy, but more
specifically, low interest rates and strong capital
inflows have provided highly attractive returns
to owners of commercial real estate assets over
the last few years. With cap rates compressing
to 4% to 5% in many sectors (including the best
quality multifamily and industrial assets) and
rent growth outperforming historical averages,
holders of these assets have done extremely
well. Despite these trends, well-capitalized new
asset purchasers can still use positive leverage
and expect above-average rent growth to
continue in the best performing markets,
especially infill locations in the major western
markets (such as Los Angeles, San Francisco,
Portland, Seattle and Denver). Although many
expect moderately increasing interest rates in
the future, investors that pursue a value-added
strategy with a “best-in-class” operating partner
can continue to generate very attractive returns
in a generally high-priced asset market. It does
require finding an operator with the ability to
acquire well-located assets at favorable prices
(often due to an asset’s physical or management
defects) and to use their skills to improve the
assets before selling into a deep investordemand market.
Based in San Francisco, Accord harnesses
a powerful combination of capital markets,
investment management and principal investing
capabilities to bring an aligned approach to real
estate investing across a range of sectors and
geographies.
‘
It can be the worst
of times...for functionally
obsolete properties.
’
12 | S t rat egies
TOPPING OUT
Crews racing to protect The Pierce
luxury apartments in San Jose against
El Niño have topped out framing and
are roofing the five buildings by Sares
Regis Group of Northern California
and Clark Construction.
“Our contractors are now finishing framing the
last two buildings. Weather permitting, roofing
on these will start in the next three weeks,” said
Jeff Smith, Senior Vice President of SRGNC.
The Pierce is a seven-story, amenity-rich
development on Market Street between Pierce
and Reed streets. The project sits at the center
of the burgeoning South First Area district, a
visual arts and entertainment destination locally
known as SOFA.
When completed, the 232 residences will
offer studios, one- and two-bedroom units and
a two-story concrete garage with 323 spaces.
Amenities include a clubroom, fully equipped
fitness center, an outdoor kitchen, screening
room, bike shop, swimming pool, landscaped
gardens and a roof terrace.
The ground floor will feature 4,300 sq. ft. of
retail space and will include the main lobby and
leasing office. Leasing is set to begin in August.
SRGNC is partnering on the project with
Chicago-based Pritzker Realty Group. The
team includes Steinberg Architects, HMH Civil
Engineers, The Guzzardo Partnership, Belden
Consulting Engineers and Nishkian Menninger.
Announcements
Patrick S. Simons joined SARES•REGIS Group as Senior Vice President in Multifamily
Patrick S. Simons
Development from Strategic Property Economics, a market research and economic forecasting firm
he founded in 2008 that focused on attached residential development and investment. In his career,
Simons has supervised the performance of all facets of real estate acquisition, development, and
asset management for more than 10,000 residential units valued in excess of $1 billion with such
companies as Summerhill, JPI, LNR Property Corporation, and the Kaufman and Broad MultiHousing Group. He is a licensed real estate broker and earned a bachelor’s in engineering and
master’s in real estate development from the University of Southern California.
Sares•Regis Group Regional Offices
Corporate Office
John S. Hagestad, Managing Director
Geoffrey L. Stack, Managing Director
William J. Thormahlen, Managing Director
Christopher L. Payne, Managing Director,
President, Multifamily Development
Peter Rooney, Managing Director,
President, Commercial Development
Michael Bissell, President, Multifamily
Property Management
Vince Ciavarella, President, Commercial
Property Services
Bill Montgomery, President, Multifamily
Investments
Kelly Peart, President, Multifamily
Construction
18802 Bardeen Avenue,
Irvine, CA 92612
(949) 756-5959 • www.sares-regis.com
SRG Contractors, LP
Regis Contractors, LP
18825 Bardeen Avenue,
Irvine, CA 92612
(949) 756-5959
Ventura/Los Angeles
Russ Goodman, Regional President
966 S. Seaward Ave.,
Ventura, CA 93001
(805) 604-7101
Denver/Phoenix–Residential
Jennifer Nessett, Vice President, and
Regional Manager
900 E. Louisiana Ave., Suite 101
Denver, CO 80210
(303) 715-9600
Sares Regis Group of Northern
California, LLC
Regis Homes Bay Area, LLC
Robert W. Wagner, Managing Director
Mark R. Kroll, Managing Director
Ginger Bryant, Chief Operating Officer/
Chief Financial Officer
Jeffrey A. Birdwell, President, Commercial
Development
Kenneth Gladstein, Chief Investment
Officer, Income Properties
Todd Regonini, Chief Development Officer,
Residential Division
Drew Hudacek, Chief Investment Officer,
Development Properties
901 Mariners Island Blvd., Suite 700
San Mateo, CA 94404
www.srgnc.com • www.regishomes.com
Regis Homes of Sacramento, LLC
Bill Heartman, President
1990 3rd St., Suite 400
Sacramento, CA 95811
www.regishomessacramento.com