By Jon Peterson
Approximately 14 months after it purchased the Malibu Grand Prix site in Redwood City for a reported $34.9 million, San Francisco-based Jay Paul Company has submitted redevelopment plans to the mid-Peninsula city for its Harbor View Place office building project that will go in its place. On a site that once featured a miniature golf course with a go-cart race course and batting cages, a new office complex will emerge totaling as many as 1.3 million square feet at 320-350 Blomquist Avenue and 30 Stein Am Rhein Court in Redwood City.[contextly_sidebar id=”ceZh7RDRdbmpoSVeSGuhcjKGymOoYWmS”]“We are expecting that we could get the approvals of the project from the city by the third quarter of next year,” said Matt Lituchy, chief investment officer for Jay Paul Company. The developer is now in the process of getting the 40-acre site transformed from industrial use to Class-A office space.
The proposed plan calls for four buildings with each of them rising up to 10 stories. The overall design approach is to develop a campus-like set of structures, which could likely accommodate high tech office use for either a single or multi-tenant office operation.
As it has done in the past, Jay Paul will be ready to commence construction with or without tenants. Presently, no tenants have been lined up for the project. “If we need to, we will be prepared to start the project on a speculative basis,” said Lituchy. The developer has hired Newmark Cornish & Carey as the listing agent. One person involved with this project will be Phil Mahoney, executive managing director in the company’s Santa Clara office, who has a long-standing relationship with the developer.
Lituchy believes that the office building market in Redwood City is very tight. “Rental rates over the past 12 months for Class A product have increased by 15 percent to 25 percent. At the same time the vacancy in the market is 5 percent to 7 percent,” said Lituchy. “We are asking now for rents at $4 per square foot triple net for this project,” he added. That figure is probably on they higher end of today’s pricing scale. According to research from Cassidy Turley, office rents in San Mateo county over the last four years have increased from approximately $2.70 to $3.73 per square foot on a monthly full-service basis.
As for the development itself, Jay Paul is planning to do this project on its own, and it will be seeking a traditional construction loan. The existing set of structures on the site will be completely torn down in the near term, and construction should commence once the city provides its approval for the plan.
Harbor View Place is located within the Inner Harbor Precise Plan, which the city is hoping to improve from an industrial-zoned area into a higher density office use. The project sits on a plot of land that is adjacent to Highway 101 and Steinberger Creek, which flows into Redwood Creek and further into the San Francisco Bay. The location is approximately 1.5 miles away from the downtown Redwood City Caltrain station.
Rendering by DES Architects + Engineers