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

January 4, 2017 By Silicon X Construction

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.

 

 

Filed Under: Blog, Projects

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

October 27, 2016 By Silicon X Construction

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.

Filed Under: Blog

Saich Way Station Sells For $16.5 Million

September 14, 2016 By Silicon X Construction

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

 

Filed Under: Blog

SiliconX Helps Saich Way Station Retail Center Rise from the Ashes in the Heart of Cupertino

July 8, 2016 By Silicon X Construction

blast-exterior-w

saich240x240Highlights

  • Completely rebuilt shopping center after fire had destroyed previous property
  • Efficiently navigated complex planning and entitlements process to create a dynamic new retail center under Cupertino’s Heart of the City Specific Plan
  • Constructed sleek, stylish low-profile buildings, then worked directly with national tenants to complete high-quality tenant improvements on schedule and on budget
  • With 95% of the center leased, listed project for sale less than two years after groundbreaking
After the fire
After the fire in 2008
Construction finished early 2016

In a flash, it was over. Cupertino restaurant Bombay Oven and neighboring businesses, including a 7-Eleven and other retail stores, were destroyed in a fire in July 2008. For the next five years, the site sat mostly vacant until developer Borelli Investment Company completed the arduous planning and entitlement process and obtained the City of Cupertino’s approval to build a sparkling new retail center.

Challenge

marquee-wCupertino is one of the most desirable cities in Northern California. Recognized for its outstanding public schools, parks and neighborhoods — and corporate home to Apple Computer— the city attracts residents and visitors from around the world. Recently, Cupertino adopted the Heart of the City Specific Plan, designed to create a greater sense of place and community identity along the Stevens Creek Boulevard corridor — resulting in positive and memorable experiences for residents and visitors alike.

The Saich Way property with the burned-out shell consisted of two narrow parcels fronting Stevens Creek Boulevard between Target and a Whole Foods store. Borelli Investment Company worked closely with city officials for many months to handle the entitlements required and obtain approval to expand the strip mall into a completely new, 15,650 sq. ft., two-building retail center at 20803 Stevens Creek Boulevard.

 

Solution

melt-exterior-wGeneral contractor SiliconX Construction built an attractive, modern retail center with a low roofline, broad storefronts, stylish awnings, modern colors, and ample glass — making it a perfect fit for an upscale location. The center exceeds Cupertino’s standards for a pedestrian-oriented, environmentally conscious design. Saich Way Station features paved-stone walkways, benches and outdoor seating areas, plus bicycle racks — with abundant lighting and landscaping offering an inviting stroll for shoppers. Among the California Green features are a sophisticated drainage system that contains all runoff on-site. There’s also plenty of parking at the door in an oversized lot shared with neighbors Peet’s Coffee & Tea and Panera Bread.

SiliconX handles custom tenant improvements

As leasing progressed, SiliconX Construction was called upon to handle tenant improvements at the center. This included:

  • Vitamin Shoppe — 3,500 sq. ft. of space fronting Stevens Creek Blvd.
  • T-Mobile USA — 1,750 sq. ft. for the nation’s leader in wireless voice, messaging and data
  • H&R Block — 1,515 sq. ft. for the world’s largest tax services provider
  • TheCoderSchool — 1,025 sq. ft. used for a training center targeted at kids want to learn to write computer code
  • UBreakiFix — 800 sq. ft. that the firm uses to fix smart phones, tablets, computers, and game consoles

One small retail unit remains to be leased in the center. SiliconX Construction was part of an impressive team, which included FCGA Architecture as architects, HMH as civil engineers, and Randol Mackley of SRS Real Estate Partners as broker. The needed $6.4 million construction loan was provided by Heritage Bank.

 

Results

park-benches-wConstruction of the 15,650 sq. ft. shell began in the summer of 2014 and was signed off in early 2015. Vitamin Shoppe was quickly brought in as anchor tenant, with other retail firms following. SiliconX Construction not only completed the two buildings on time and on budget — but was also able to respond to the needs of retailers and finish all tenant improvements to each store’s custom specifications — while meeting tight deadlines for critical openings and effectively managing construction budgets.

From a design standpoint, the shopping center is a perfect fit for the affluent retail corridor along Stevens Creek Boulevard. Tenants have been pleased by the volume and quality of foot traffic attracted from the 30,000 vehicles that drive past the center daily.

With leasing 95% complete, in early 2016 the owners were able to list Saich Way Station for sale through the widely respected real estate brokerage firm, Marcus & Millichap. Interest has been strong from potential buyers around the globe.

“Saich Way Station is an ideally located retail center in a city with a pristine international reputation,” said Tom Purtell, chief operating officer of Borelli Investment Company. “We’re pleased to have been able to work with Cupertino to meet the city’s high standards for development – while offering our retail tenants a great shopping environment.”

Filed Under: Blog, Projects

Construction Complete – Saich Way Station in Cupertino Now 95% Leased and Listed for Sale

April 23, 2016 By Silicon X Construction

saich1Construction has been completed and leasing is nearly finished at Saich Way Station, a sleek 15,650 sq. ft. retail center in a prime, high-traffic area just off Stevens Creek Boulevard between Target and Whole Foods Market in Cupertino.

The busy location in Cupertino’s desirable “Heart of the City” area and within walking distance of Apple’s many offices has quickly attracted top tenants such as Vitamin Shoppe, T-Mobile USA, The Melt, and Blast 825° Pizza — resulting in all but 840 sq. ft. of space being leased. With development wrapping up, the retail center has now been listed for sale through widely respected real estate brokerage firm, Marcus & Millichap.

“Saich Way Station is ideally located in a city with a well-deserved international reputation,” said Tom Purtell, chief operating officer of developer, Borelli Investment Company. “Cupertino is the home of Apple’s headquarters and has many attractive community amenities, such as outstanding public schools, neighborhood parks and acclaimed De Anza College. Together with the Class A retail center’s impressive client list, this will make for what we expect to be a strong sales environment for Saich.”themelt

Rising from the Ashes

The Saich Way Station development is a story of transforming bad news into good for the community. In July of 2008, sparked by a fire in the Bombay Oven restaurant, a small retail center occupying the current 1.29-acre site burned to the ground.

After a time, the owners approached Borelli Investment Company about rebuilding. Years of seeing the project through the detailed planning and approval process paid off — with construction starting in 2014, and the first tenant, anchor Vitamin Shoppe, an international health and wellness retailer, opening for business in the spring of 2015. Other tenants soon followed, including:blast825

  • The Melt — A rapidly growing chain of fast-casual restaurants that offers gourmet burgers, grilled cheese sandwiches, salads, and more
  • Blast 825° Pizza — A quick-fired pizza restaurant chain known for creating custom pizzas in just three minutes
  • T-Mobile USA — A national provider of wireless voice, messaging and data services
  • H&R Block — The world’s largest tax services provider with approximately 12,000 company-owned and franchise locations in all 50 states
  • Site for Sore Eyes — The preeminent retail optical brand in the Bay Area, with 40 locations
  • TheCoderSchool — An innovative after-school, drop-off program for kids interested in learning to write computer codevs

Quality, Environmentally Friendly Construction

Saich Way Station features a modern profile with a low roofline, ample glass, attention-getting awnings, and stylish lighting — making it a perfect fit for such an upscale area. Working in close cooperation with city planners and other officials, general contractor SiliconX Construction incorporated numerous environmentally friendly, California Green features, such as a sophisticated drainage system that contains all runoff on-site — except in the case of a 100-year rain event — plus orchard-sized shade trees.tmobile

The center is pedestrian- and bicycle-friendly — with broad walkways, outdoor seating areas and convenient bike racks. Well-chosen paving stones and decorative tree grates provide added refinements to the center. Each store offers plenty of parking at the door — so retailers can attract and serve their share of the 30,000 vehicles that pass by daily on busy Stevens Creek Boulevard.

SiliconX Construction has also handled the custom tenant improvements as each retailer prepares its space for occupancy. Heritage Bank provided the construction loan for the project.

Marcus & Millichap Accepting Sales Offers

With only one small unit remaining — a highly visible, easily accessible end-cap space on the building’s far end — Saich Way Station has been listed for sale. Well-known broker Marcus & Millichap is currently accepting offers, and expects significant interest not only from U.S. groups, but also from international buyers.

Tenants interested in the final space at Saich Way Station can reach Randol Mackley of SRS at (408) 216-2316, or via email at randol.mackley@srsre.com. Prospective buyers can contact Vince Schwab at Marcus & Millichap at 415-625-2171 or vince.shwab@marcusmillichap.com.

For additional information about Saich Way Station, please contact Larry Bengiveno, vice president of Borelli Investment Company, at (408) 453-4700, or email larry@borelli.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 — as well as general contracting through its SiliconX Construction affiliate. More information about Borelli Investment Company’s services may be obtained by calling (408) 453-4700 or visiting www.borellli.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 Tony Gonzales at (408) 418-0099, or e-mail tony@borelli.com.  Or visit siliconxconstruction.com.

About Marcus & Millichap

With over 1,500 investment 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 more than 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.

 

Filed Under: Blog

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