SiliconX Construction

Commercial and Industrial Construction Services

Stunning Tenant Improvement for Wave 2 Wave in Fremont

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SiliconX Construction, a leading commercial construction firm in San Jose, recently completed a beautiful Tenant Improvement project for Wave 2 Wave in the city of Fremont.

PROJECT HIGHLIGHTS
The total remodel consisted of 13,867 square feet of existing office space.  SiliconX added perimeter offices, re-created the lobby entrance with the existing glass and glazing, installed new vinyl plank flooring, and added case work to the break area. A new conference room and server room were created.  In addition, they helped move and reinstall warehouse racking from their old location to the new address.

CHALLENGES
SiliconX Construction was able to work using a good set of drawings and was flexible when the incoming tenant had changes and improvements over and above what was contained on the plans.  “We are a flexible bunch, and nimble enough to react quickly to changing requirements” said Tony Gonzalez, Director of Construction Operations.


SOLUTION
Working closely with the incoming tenant, SiliconX was able to see their vision, share in it and and make it all come together.  And it was all completed on a tight timeframe – the tenant’s lease was expiring so there was a tight time frame to get them in to the new space and operating.

RESULTS
SiliconX Construction created a beautiful new space, got the tenant moved in on-time and completely functional in less than 5 weeks.  The tenant was so happy they insisted on coming to this SiliconX office in person to deliver their final payment.

If you have an upcoming project for which you’d like a fast, no obligation quote, contact us today.

Creating a Stylish New Salon for Parlour 17

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Highlights

• Completed interior improvements for the upscale hair salon in its new space at Saich Way Station

• Worked closely with the property management team, architects and city planners to obtain all necessary approvals for the additional power and water required

• Finished all work within a tight eight-week timeframe — from lease signing to tenant move-in

In 2015, SiliconX Construction completed a 15,650 sq. ft., two-building retail center at 10095 Saich Way, across the street from Target on Stevens Creek Boulevard in Cupertino. The modern center with its sleek rooflines, stylish design and warm colors replaced an old strip mall that had been vacant for years following a major fire in one of the tenant spaces.

Saich Way Station was quickly leased to an impressive group of retailers including Vitamin Shoppe, T-Mobile USA, The Melt, Blast 825˚ Pizza, H&R Block, and TheCoderSchool.

Challenge

With only the end unit remaining, a business was identified to take half of that space, or approximately 800 sq. ft. The company was uBreakiFix, a specialized repair service for mobile phones, computers, tablets and game consoles.

This left the other half unit — 805 sq. ft. — as the sole remaining space at Saich Way Station. It also meant that SiliconX would have to work closely with the property management team at Borelli Investment Company, architect FCGA Architecture, and most importantly, Cupertino city planners to get approval for additional power and water needed by the final tenant: Parlour 17 hair salon.

Solution

Parlour 17 was moving to Saich Way Station from another location in Cupertino where its lease was ending. This created an additional challenge for SiliconX, which needed to complete the build-out of Parlour 17’s suite within eight weeks — from the signing of the lease agreement to move-in.

The work SiliconX completed on the extremely tight schedule included:

• Construction of a demising wall creating the space
• Installation of a new acoustical ceiling grid and light fixtures
• Installation of an HVAC system for the suite
• Stub out for the additional power and water in the concrete floor
• Concrete saw cutting for a new plumbing infrastructure
• Polishing of concrete floors and painting throughout the suite

The end result is a thing of beauty with added touches included rustic wood-covered walls and distinctive décor that presents a warm and inviting environment that’s comfortable for Parlour 17’s high-end clientele.

Results

Both the center’s new owner and the tenant were very pleased that SiliconX was able to complete its work on schedule and on budget. The seamless transition enabled Parlour 17 to avoid paying double rent for its old space and new space at Saich Way Station, while accommodating its clientele without missing an appointment. Meanwhile, the new owners of the center could begin collecting rent sooner and achieve 100% occupancy.

Overall, the owner has been very impressed from a fit and finish standpoint with the quality of SiliconX Construction’s work. The general contractor continues to provide facilities maintenance services and tenant improvement work at the center under the direction of property manager, Borelli Investment Company.

Creating a New Home for Ashley Furniture in Gilroy’s Alamo Plaza

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Highlights

  • Completed interior demolition and demising of a free-standing 84,728 sq. ft. retail building in Gilroy for developer, the Alamo Group
  • Handled all reconfiguration and remodeling for a new 30,000 sq. ft. Ashley Furniture HomeStore within the building — including everything from the polished concrete floors to new, energy-efficient LED lighting
  • Carried out a comprehensive exterior facelift of the entire 85,000 sq. ft. building, in addition to refurbishing the building’s parking lot
  • Finished all work within six months — on time and on budget — to accommodate store openings by the critical Labor Day weekend

 

The southern Santa Clara Valley encompassing Morgan Hill and Gilroy has become a major population center in Santa Clara County. Retailers must compete aggressively for a share of the lucrative market. In 2016, successful Danville-based shopping center developer, the Alamo Group, contacted SiliconX Construction to handle the interior demolition and demising as well as an exterior facelift of a stand-alone 84,728 sq. ft. building at 8777 San Ysidro Avenue in the Alamo Plaza shopping center in Gilroy.

 

Challenge

The large building sits in a prominent retail location, just down the street from Gilroy Premium Outlets and adjacent to busy Home Depot and Staples stores. It’s also clearly visible from the heavily traveled South Valley freeway (Hwy 101). Alamo Group wanted to ensure that it projected an appealing image that would draw customers to the retail businesses located there.

The biggest challenge was that with the upgrade not beginning until March, it was imperative that all work be completed by Labor Day weekend, the official start of the lucrative fall and, ultimately, holiday shopping season.

 

Solution

SiliconX started by demolishing the interior space and constructing the demising walls for the various tenant spaces. Soon after the project got underway, SiliconX was also contacted by Ashley Furniture to handle the reconfiguration and remodeling of a new 30,000 sq. ft. HomeStore that was going into the building. For Ashley Furniture, SiliconX took care of everything from the polished concrete floors to installation of the latest LED lighting with timers and multiple dimmers. The LED lights fully comply with California’s Title 24 building energy efficiency standards and create an inviting environment for shoppers.

In addition to the interior work, SiliconX completed an exterior facelift of the entire 85,000 sq. ft. building that not only houses the new Ashley Furniture store, but also locations for Gold’s Gym, Mancini’s Sleepworld, Sears Hometown, and a new Rockin’ Jump indoor trampoline park scheduled to open this winter.

To conveniently accommodate the increase in customers expected for the upgraded Alamo Plaza, SiliconX extensively refurbished the building’s parking lot as well.

 

Results

Exceptional planning and tight management kept the project on track throughout and enabled SiliconX to meet the ambitious deadline on time and on budget, so the stores could welcome customers beginning on Labor Day weekend.

The number one furniture retailer in the U.S. and one of the world’s top furniture stores, Ashley Furniture is using its 30,000 sq. ft. of space to showcase living room, dining room, bedroom, and home-office furniture — as well as mattresses and home accents at its new Gilroy store. The merchandise is all grouped within a variety of “lifestyles,” ranging from traditional and contemporary to urban and vintage casual.

From start to finish, SiliconX Construction’s innovative systems and processes plus strong project management provided the daily discipline to keep the work on schedule without costly overruns — ensuring that retailers could open their doors as planned.

 

 

Renting in Silicon Valley: The Cut & Dry of Tenant Improvements

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Silicon Valley and the Central Valley make up a particularly robust swatch of Northern California wherein lies a broiling epicenter of creativity and innovation. The amazing outbreak of technology start-ups and small businesses rising from this cauldron of productivity has also spurred growth from the businesses that feed these newborn fledglings. From legal services, to in-house advising, to production and manufacturing, start-ups have become a main source of fresh revenue for various industries.

One of the fastest growing of these industries is the rental market. Not just any rental market either. New small businesses and tech start-ups have come to value the décolletage of their workspace following trends set forth by leviathans such as Google and Facebook. These conglomerates transformed entire buildings into innovation processing centers provide by incorporating work-life and home-life via open-office layouts, outdoor and communal work areas, inducing natural light, and indulging in amenities such as laundry services, luxury cafeteria’s, and gyms.

That’s why the Bay Area, from Silicon Valley to Santa Clara and San Jose, provides particularly unique opportunities for renters to improve rental properties.

Tenant Improvement 101

1) Tenant Improvement Allowance

Business rentals come with unique caveats that differ from other types. These differences rely heavily on special needs that business tenants face. Generally, a businesses success hinges upon their identifying personality and service. Therefore, businesses seek to retrofit a workspace in accordance with the marketing schema that represents their goals, mission, attitude, and personality.

This where a tenant improvement allowance proves beneficial in the rental arena. Per 42 Floors, a tenant improvement allowance refers to “the amount a landlord is willing to spend so that the tenant can retrofit or renovate the office space. It is usually expressed in a per-square-foot or total dollar sum. This amount is decided upon during lease negotiations.”

During a tenant improvement allowance negotiation, it’s important for the tenant to retain as much control over the improvement decisions as possible. While the landlord may be willing to spend a certain amount on changers, they can also request control over approval and decision-making.

2) Estimate the Costs

When it comes to improving a rental space, budget is your main determinate. Dream big, but remember dreams come with caps.

Begin by reviewing what is possible within your allotted square footage. If a tenant improvement allowance is negotiated, consider what you would like to achieve in conjunction with your contract limitations. Once physicality is analyzed, begin scaling up or down based upon the budget. In short, before venturing to find a contractor or beginning any DIY projects, ask what are the physical and financial restrictions?

Project cost estimation is an inevitably large part of this analysis. Estimations should include costs to design, permits, professional hires, and construction.

Per Hughes Marino Construction Management, minor remodeling ranges from $15 to $25 per square foot, while major remodeling oftentimes goes as high as $50 per square foot. Keep in mind these estimations don’t include additional decorative upgrades such as carpet installation and painting ($5 – $10/ sf), constructing restrooms or lobbies ($60 – $75/ sf), or designing systems furniture (up to $5K per cubicle station), to name just a few.

The unique style of work life in Silicon Valley and the Central Valley offer very distinctive expectations. The above estimations are for a basic business office. For innovative design and specialty inclusions (such as a cafeteria or a gym or open-work space), cost estimations will continue to rise.

3) Find a Professional

When circuitry is shorted due to bad DIY decisions in a personal home, you call an electrician. In a rental space, you make the dreaded call to the landlord. Unless you have an extensive background in construction, it’s incredibly important to hire professionals.

  • Project Manager

While a project manager is not necessary, they are oftentimes invaluable. For rental improvements, a project manager plays the role of organizational taskmaster.

Per the Project Management Institute, project managers “have a broad and flexible toolkit of techniques, resolving complex, interdependent activities into tasks and sub-tasks that are documented, monitored and controlled. They adapt their approach to the context and constraints of each project, knowing that no ‘one size’ can fit all the variety of projects.”

A PM’s main goal: understand the wants, document the restrictions, organize a timeline, and work with all the stakeholders to meet client satisfaction.

  • Construction Manager

A project manager is optional, but the construction manager is a must have. When working with multiple stakeholders – the renters, the landlords, and even other building tenants effected by the renovations – a construction manager will be the key individual to provide neutral perspective when difficult decisions come about.

The Occupational Outlook Handbook from the Bureau of Labor Statistics states that construction managers “plan, coordinate, budget, and supervise construction projects from start to finish.” While this is true, their job encompasses much more. Construction managers also interpret contracts, report on building progress, and oftentimes become chameleon’s to work with architects, engineers, and various other construction specialists.

 

For more information on tenant improvements, feel free to reference the below related articles:

Tenant Improvement Allowance – Negotiating the Best Deals

Tenant Improvements: A Practical Guide to Estimating Project Cost

Bureau of Labor Statistics: Construction Managers

 

SiliconX Construction provides high-quality, reliable, comprehensive real estate services. From Silicon Valley to the Central Valley, we offer a wide range of skills including sales, leasing, property management, development, and syndication. For more information or to speak with a representative directly, feel free to contact us.

Saich Way Station Sells For $16.5 Million

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saich1CUPERTINO, Calif., Sept. 12, 2016 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, is pleased to announce the sale of Saich Way Station, a 15,525-square-foot multi-tenant retail center located less than one mile from Apple Inc.’s headquarters in Cupertino, California. The $16.5 million sales price equates to $1,063 per square foot.

Kirk Trammell, senior vice president investments in Marcus & Millichap’s Palo Alto office, along with Vincent Schwab, senior vice president investments in the firm’s San Francisco office, and David Cutler and Joshua Johnson, associates in Palo Alto, represented the seller, Borelli Investment Co. Tenny Tsai of Cushman & Wakefield in San Jose represented the buyer, a family exchanging out of a redevelopment site in San Francisco.

saich_425x200The sale marks the successful fulfillment of a joint venture between Borelli Investment Co. and a local property owner. The partnership transformed the property from a burned-out shell in 2008 into a multi-tenant retail center that is perfect fit for its upscale location.

“Saich Way Station’s evolution is the result of an enormous effort by the Borelli Investment Co. and we are very pleased to have been able to maximize the value received,” says Kirk Trammell, senior vice president investments in Marcus & Millichap’s Palo Alto office. “The center’s excellent construction quality, strong tenant line-up, and close proximity to the new Apple campus made it an ideal trade property. We created a competitive bidding environment that produced multiple offers, secured an all-cash buyer and closed in a little over a month.”

Built by SiliconX Construction to exceed Cupertino’s high standards for a pedestrian-oriented, environmentally conscious retail center, Saich Way Station features a low roofline, bold storefronts, stylish awnings, modern colors, and ample glass. The center’s paved-stone walkways, benches, outdoor seating areas, bicycle racks, and ample parking welcome shoppers. One of the California Green features SiliconX incorporated into the center is a sophisticated drainage system that contains runoff on-site.

street-viewSaich Way Station’s tenants are Vitamin Shoppe, T-Mobile, The Melt, H&R Block, Blast 825 Pizza, Site for Sore Eyes, uBreakiFix and The Coder School Cupertino.

The center is located between a Target and a Whole Foods Market at the northwest corner of Stevens Creek Boulevard and Saich Way at 20803 Stevens Creek Blvd.

 

About Marcus & Millichap (NYSE: MMI)

With over 1,600 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 8,700 transactions in 2015 with a value of approximately $37.8 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com

 About Borelli Investment Company

Now in its 61st year in business, Borelli Investment Company is one of the oldest commercial real estate firms serving the Santa Clara Valley, Central Valley and Sacramento areas. The company provides a full range of commercial real estate services — from development and asset management to land sales and property management services.  More information about Borelli Investment Company’s services may be obtained by calling (408) 453-4700 or visiting www.borelli.com

  About SiliconX Construction

SiliconX Construction is a full-service general contractor that provides a wide array of value-focused construction services to clients throughout Northern California. Specialties include ground-up construction, major renovations, tenant improvements, and facilities maintenance. For more information, call (408) 418-0099 or visit www.siliconxconstruction.com

 

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