Chipotle Will Open Downtown Danville Location

You might remember that upon the conception of Chipotle there was a downtown Danville location. Unfortunately, it was unable to take a foothold in the market and was forced to close. Country Waffle now occupies the space and does a very good business. Despite this, Chipotle wants to take another stab at Danville. The new location will be located in Danville Square, the center anchored by Trader Joe’s. I am sure the students at San Ramon Valley High will be ecstatic for the new addition.

Other tenants in the center include Z Pizza, Starbucks, Tutti Frutti, and Bank of America. The center has a couple of vacancies including a small second generation restaurant space and an end-cap location that was temporarily used by See’s Candy.

Commercial Building in Danville Catches Fire

On Monday a night, a building I recently blogged about caught fire at 140 Prospect Avenue in Danville. Thankfully the fire was contained quickly, no persons were injured, and was limited to just the front suite of the building. The four other businesses including Wild Vine Hideaway, JuneBug’s Bakery, and two other apparel and accessory stores owned by the victim of Monday night’s fire were unharmed. The fire is being called a “Total Loss”.

A fire or any other event that causes a disruption in business  is horrific for any business owner. This made me question my own knowledge of commercial insurance and the importance of being properly protected. I consulted a good friend and Executive Vice President, Jay Fischer, of a local commercial insurance company, One Risk Group, for his insight and advise for business owners when considering their insurance policy.

“When it comes to insurance not all policies are equal. You do not want to wait until there is a fire to realize how you are or are not covered properly. If you believe that all policies are created pretty much the same, you could end up paying dearly. According to a study that will come out early next year by the Chicago Law review, those differences are poorly understood, and wording can be drastically different.

Policy wording could allow the insurance company to deny a claim “to the extent that the policy holder’s negligence contributed to the loss” There can also be wording in the policy that can deny coverage if sprinkler systems to not discharge properly in the event of a fire. These are a couple examples of how the policy wording can be altered in the insurance companies best interest. However, there are many to be aware of. Many of which can be negotiated out by a good broker for little to know charge.

A few tips for buyers

• Use a reputable independent agent/broker with access to a range of insurers and coverage options
• Broker should be a specialist in your industry and be able to pint out coverage options and understand coverage wording
• Ask about exclusions in the policy and wording differences across policies
• Ask how co-insurance penalties could affect them and how it applies
• Ask about Business Interruption coverage is applied and how a limit is determined
• If you have tenants, make sure that you understand what insurance they are carrying and what your lease requires of them. Fire Legal Liability could be an important coverage.”

If you have any questions regarding commercial insurance One Risk Group is an Independent Insurance Broker, providing the Real Estate Industry and others valuable Risk Management advice. You can contact Jay Fischer for an Assessment of your current program 925.226.7353 or jfischer@oneriskgroup.com

Downtown Danville See’s an Influx of Buildings For Sale

Rarely do free-standing single tenant buildings come on the market in Danville, especially buildings that may lend to a more “flex” type use. Located at 112 W. Linda Mesa Avenue is 1,600 square foot building that is an excellent little piece of real estate. The building offers a large roll-up door that opens to storage or garage area with a retail storefront.

If you are having a hard time picturing Linda Mesa Avenue, think the side street where Pete’s Brass Rail is located, connecting Hartz and Railroad.

The price of this little beauty: $649,000 or $401 per square foot. A steep price tag for what it is, then again we are talking about a not-so-common commercial building in the core of downtown. An owner/user very well could make sense of this number given rents and inventory of comparable space.

294 Railroad Avenue sits on the corner of Church and Railroad Avenue, adjacent to Lunardi’s Market. The stand alone building is split into two spaces totaling 2,870 square feet. The building does have a small parking lot which is beyond valuable in Danville. Why is parking valuable? if you wanted to build a restaurant, cafe, or bakery the last I was quoted parking impact fee is $7,000 per seat if you cannot provide the appropriate parking… OUCH. Built in 2001, the building is very attractive and has great visibility.

The retail price is: $1,450,000 or $505 per foot. Sticker shock?

522-524 Hartz Avenue is a bit different from the other two properties. This is more of a long-term investment or perhaps a redevelopment play. The building is just under 6,000 square feet with a lot size of .33 acres. As it currently stands, the building is fully leased. The plans that are included in the sale are for a 15,000 square foot building with 9 parking stalls.

Asking Price: $3,300,000 or $553 per square foot.

My interpretation of the pricing is two factors are being put together, the value of the building and the value of the land. If there is a redevelopment play in downtown (besides the Hotel) this would be one of the larger parcels giving it more value. At $553 per foot, plus the cost to build the new building, even if redeveloped the new rents would have to be astronomical to make the economics work.

Now that you have seen the asking prices of the current market inventory, let’s talk what has actually sold.

Most recent was the sale of 100 Railroad, Danville. This building is just over 8,000 square feet and sits behind the Clock Tower and Pete’s Brass Rail. The multi-tenant building isn’t the most attractive and doesn’t fetch the highest rents in town but it gets the job done. The rumor comp is between $280-$295 per square foot.

115-125 Hartz Avenue, Danville located on the corner of Hartz and Railroad across from San Ramon Valley High School traded hands earlier in the year. You might remember this little mult-tenant strip center being a bit rundown. The Danville Redevelopment Agency picked this little piece up for $430 per square foot. Redevelopment agencies aren’t exactly known for being a bargain hunter.

180-190 Hartz sold in September. This building consists of retail and office space and is  10,800 square feet. Built in 2001, the building offers a lot of glass and corner location. This building sold for $356 per square foot. Tenants include Chicago Title and Quizno’s Subs.

JuneBug’s Bakery Prepares for Opening in Downtown Danville

 

After months of design and construction JuneBug’s Bakery will be opening at 122 E. Prospect Avenue in Downtown Danville. This spot might be a little tucked way, located next to the appropriately named Wild Vine Hideaway, but it’s fair to say it won’t stay a secret for long.

The new bakery and coffee shop with boast a large quiet patio,  an amazing in-house roasted coffee that has been speciality selected from the source specifically for Junebug’s, to die for pastries, light breakfast menu, and of course cakes and other baked goods. Did I mention they will deliver? This brings a whole new light to “breakfast in bed”.

The owner, a Danville native and young entrepreneur, was educated at London’s infamous Le Cordon Bleu and went on to complete an externship in France and has worked with renowned Chefs that include Julie Walsh, Bidault Christophe, and Claire Clark, the former pastry chef at Napa’s French Laundry. Junell then went on to work at number restaurants across the nation including Brix, Tulocay in Napa, Pres a Vi and the Ritz Carlton in San Francisco. Currently, her business, Cakes by Junell, services local restaurants Sideboards and Mangia Mia with fresh pastries and goods and creates specialty cakes and pastries via special order.

Read more about Junell and her new bakery: Valley Sentinel – Danville native a world class baker 

You can also find JuneBug’s on Facebook: Junebug’s Bakery

Sapphire Lounge in Livermore Replaced by Sauced BBQ Restaurant

 

Yes, it is true. Livermore will now have a BBQ restaurant in downtown by the name of Sauced BBQ and Spirits. Located in the space formerly occupied by Sapphire Lounge at 2300 First Street, the new restaurant will be open for lunch and dinner. It gets better. They will also have an awesome, brand new bar with 20 flat screens to feed our sports needs. A matter of fact, the entire space will get a face lift with completely new interior decor. The restaurant plans to have a family friendly atmosphere with hospitality straight from the South.

With Georgia roots, the Co-owner has done some competition BBQ’ing and plans to bring that slow smokey flavor front and center. Think: brisket, Angus burgers, sandwiches, spareribs, and even wings. As for those crazy southern fried items, they will make a small appearance on the menu. The fully stocked bar will include mircobrews on tap, specialty spirits, and cocktails fit for even the pickiest of drinkers.

The family owned and operated venue will be a great addition to downtown. Look for an opening in mid-February.

Commercial Building and Land Sales in Livermore Point Toward Recovery

 The past quarter did make way for positive activity in the downtown area with a number of new restaurants taking over vacant spaces. Shopping centers and strip centers have not been so lucky. Besides the former Mervyn’s space being back-filled with Petco, TJ Maxx, and Big Lots, overall retail activity in Livermore pales in comparison to neighboring communities. As for land sales, those have been non-existence since the market turned. Development, for get about it. No, Paragon Outlets do not count, that deal had been in the works for 10 years.

Is there hope? Maybe. A few month back you may remember the former AAA building on Kitty Hawk Road was sold to a group of investors who then leased the 80,000 square foot building to 24 Hour Fitness. According to our stats here at Lee & Associates, activity of industrial buildings and condos is up three-fold from last year. Don’t believe me? How about these for the top 3 industrial deals in town:

1. Greenville Business Center – 4 buildings totaling 475,000 square feet

2. Best Buy Distribution Center – 1 building totaling 280,000 square feet

3. Johnson Controls Building – 1 building totaling 100,000 square feet

More good news? A piece of land that was slated for residential development has sold to a potential developer. Why is this one 5 acre parcel a big deal? Because this 5 acre parcel signifies that developers see a demand and more importantly, can make a profit on new construction.

See those shiny new condos? The ones you think are over priced… take into account the cost of the land, the cost to construct, the hundreds of thousands of dollars in fees, real estate commissions, and the cost to hold the condos when they aren’t selling like hot-cakes. How much do you think that developer is squeezing out of each sale? In this market, not much if anything at all.

Being under water on a property isn’t just an issue for the average home owner; developers and commercial building owners are all in similar positions. For a developer to build there has to be an equilibrium between the total cost to construct and the present day resale value.

The 5 acre parcel sold lies between First Street and Old First Street. The future development is adjacent to the Pinn Brothers condo project completed back in 2005, Palasage. See the picture below, the red outline depicts the parcel.

A number of years back this piece of land was rumored to be a Pulte Homes development who in the end never pulled the trigger on the land purchase. The project was going to consist of multi-story condos, similar to those across the street.

Although the sale activity and a land sale does point toward recovery, don’t hold your breath on prices returning to pre-2008 levels or activity levels to suddenly jump. It is going to be a long road and with an election year in sight, I will be placing my bet that activity will remain steady, perhaps even decline a tad.

Pleasanton’s TGI Fridays On its Way Out

After years and years of calling Rose Pavilion home, TGI Friday’s will be moving out of its location at 3999 Santa Rita Road. Even juicier, you won’t believe the new suitor! Nope, not a new restaurant. Much more boring. Not sure I am allowed to spill the beans yet but take my word for it, not worth getting to excited about. Any guesses? Here is a hint for you:

Despite being the biggest in the Nation they can’t seem to shake the blue…

Rose Pavilion has had a pretty good run at leasing over the past couple years. New tenants in the center include 99 Ranch, Fresh & Easy, the expansion of Express Fitness, Panda Express, and most recently Auto Zone and Sport Clips. The center is an astounding 94% occupied which, for this market is great. Rose Pavilion has completed about 100,000 square feet of new deals in past 24 months. That’s HUGE!

Isabel Freeway On/Off Ramp Set to Open

The early bird commuters will be the first to break in the new on/off ramp at Isabel Avenue on  Wednesday, November 16th! No more congestion along Kitty Hawk Road. Yeah!!!

Sapphire Lounge in Downtown Livermore is Closed

 

If you have walked by Sapphire Lounge in downtown Livermore you might notice it has been dark for few days now. Have no fear, a new restaurant has signed a lease and has started construction in the space. The new spot will not be open until February but no doubt will be a smokin’ (hint hint) addition to downtown. More details coming soon!

The Tri-Valley Is Experiencing a Restaurant Resurgence!

A number of new restaurants will soon be opening across the Tri-Valley. Keep your eyes out for these up and coming spots:

Danville

The Amazing Wok Chinese Cuisine opened in October at 9000 Crow Canyon Road in Danville. The restaurant takes over the space formerly occupied by Brandy Ho’s Hunan Food.

San Ramon

Clementine’s, “Where the bayou meets the Bay” has signed a lease on the former Marie Callender’s space on San Ramon Valley Boulevard and Bollinger Canyon. The restaurant will be a New Orleans style cuisine. The owner operator is not new the business, he owns four Country Waffle restaurants in the area. Look for an opening date in late February 2012 once a complete interior remodel is complete.

Dublin

Karma Fusion Lounge  in Dublin’s Grafton Station will now be hosting a full service restaurant.  Karma will continue to operate on during their current hours catering to lounge & club type vibe, while Unir Restaurant and bar will operate as a full service restaurant. Expect and eclectic upscale menu for Unir and the opening is scheduled for early November. The operator of Unir also owns and operates a restaurant in Sonora.

Vito’s Express, a pizza restaurant, also located in Grafton Station will be opening before Thanksgiving.

Pleasanton

The new Safeway center on Bernal Avenue called Pleasanton Gateway, has had much leasing success. New restaurants in the center include: Baja Fresh Mexican Grill, The Habit Burger Grill, and Panda Express. Safeway will be open within the month. Look for the restaurants and surrounding retail to be open early 2012.

Livermore

Double Barrel Wine Bar will soon be open at 2086 First Street in Livermore. Double Barrel has taken over the former First Street Alehouse space. After a complete renovation the new wine bar will play host to Spanish style small plates and local, regional, and global wines.

The long awaited El Sacromonte Restaurant and Bar, is opening this month at 2062 First Street. The menu will feature upscale Mexican/ Spanish fusion cuisine. This is the first restaurant for the ownership in the U.S., they own a few restaurants in Mexico, including a popular restaurant in Guadalajara by the same name and same concept.

 

Chevy’s and El Torito Files For Bankruptcy

As the newest victim of the economy, El Torito and the more commonly known brand Chevy’s Fresh Mex has filed for bankruptcy as of Tuesday, October 4th. What is going to happen to those locations? It is a little early to speculate but if history has anything to say about it we will see a closure of most locations, leaving only the most profitable open. One article states that there are 178 locations, 84% of those are in California.

You might remember earlier this year when Marie Callender’s went bankrupt – without warning all of the Northern California locations closed. Prior to that, Black Angus struggled and closed a portion of their portfolio to save the brand.

The unstable economy has made the consumer more conscious of their spending habits. This could be one major reason for the volatility of restaurants. One report claims that 9,450 restaurants closed last year alone; of those, 8,650 were independent restaurants rather than chains. Read the full article HERE

Danville Salon Space Available Now!

Crossroads center on the corner of Hartz, San Ramon Valley Blvd, and Railroad Avenue is anchored by FedEx, Los Ponchos, Bagel Box, Miglet’s Bakery, and a number of other small tenants.

Now available in this busy little center (and very near downtown) is a second generation salon space. Complete with 8 stations, sinks, and equipment. This is a great deal for a start-up owner! Not only is the space is turn-key condition but there is tremendous savings by taking over a space with existing sewer/water credits.

Stats:

Address: 480 San Ramon Valley Boulevard

Size: 1,500 square feet

Price: $2.50 per square foot, per month

Total monthly rent: $3,750 per month, tenant pays utilities

New Leaf Eyes Pleasanton For New Store

New Leaf Community Market, the Santa Cruz based grocer plans to open a Pleasanton store in the near future. Currently, their sights are set on the Vintage Hills Center at 3550 Bernal Avenue. New Leaf provides healthy, organic and locally grown foods.

Vintage Hills Center has been plagued by vacancy for many years. Since losing the grocery anchor over 15-years ago the center has struggled to stay alive. Tenants in the center include Anytime Fitness, Spark Dance Studio, Yogoholic Frozen Yogurt, Vintage Hill Cleaners, and Kokoro Sushi. 

What do you think? Is this a good location for New Leaf?

To learn more about New Leaf visit their website: www.newleaf.com

24 Hour Fitness Will Open New Livermore Location

For years Livermore has lived in the shadow of the 24 Hour Super Sport locations…. waiting… wondering if Livermore would ever be good enough. I am happy to report that day is finally on its way! A group of investors have bought the former AAA building at 2650 Kittyhawk Road and have a long-term lease in place with 24 Hour Fitness. If you have recently driven the detour to/from Airway Blvd then you have passed this building, the white two-story office building located on the corner of Nissen Drive & Kittyhawk, facing the freeway.

The new location will be similar to the new Pleasanton location and no doubt a huge upgrade from the current location on Railroad Avenue.  Construction should begin shortly which means the new gym should be open early summer of 2012.

Downtown Pleasanton Leasing Update

Summer started off a little slow in downtown Pleasanton with a number of vacancies along Main Street. The heat must have rubbed off on the real estate market because almost every space has been filled.

Therapy opened in late July at 525 Main Street. That particular space had been vacant for over two years. The new store is a Bay Area chain selling a variety of merchandise ranging from designer accessories to home decor.

Grape Times Wine Bar & Bistro will be opening next to the Firehouse Performing Arts Theater in fall.

Handles on Main, taking over the The Farmer Restaurant at the Pleasanton Hotel will open August 29th.

Domus is back! Two years after they departed their Main Street location they have re-opened their doors.

Glad Tidings, a Christian book and gift store has recently signed a lease for the former Euphoria Nail and Body Bar next to Domus at 660 Main. Glad Tidings is relocating from Court Furniture Plaza, the small center next to Trader Joes on Santa Rita.

Juice & Java Express will be opening on West Angela, taking half of the former Storks Nest space.

Emilio’s Mexican Restaurant, across from Pleasanton Hotel has been replaced with Alma’s Mexican Grill.

I am sure I have forgotten someone but as you can see the downtown real estate market is doing well this quarter.