Category: New Developments

Faraday Future Receives Permit and Announces Bernards as General Contractor for Hanford Factory

ONSITE CONSTRUCTION WORK HAS COMMENCED AS FIRST SET OF EQUIPMENT IS INSTALLED TO FACILITATE DELIVERY OF THE FIRST FF 91 BY YEAR’S END

LOS ANGELES, JUNE 7, 2018 – Faraday Future (FF) announced today that Bernards, a commercial builder located in San Fernando, California, will serve as the general contractor for the 1M square foot FF factory in Hanford, California.

The Hanford factory is a turn-key facility, strategically sited between the country’s two largest EV markets, Los Angeles and Silicon Valley. This marks a significant step forward for FF in its mission to deliver FF 91, its first production vehicle, to market by the end of 2018. FF has received the permit from the city government of Hanford for its onsite work to begin construction, prior to manufacturing and delivering the first FF 91.

“We are honored to be chosen as the general contractor for Faraday Future’s Hanford factory in the valley,” said Falco DiGiallonardo, VP of Bernards. “EV is the future of mobility and we look forward to working with FF to have the factory set for production later this year.”
As of February 1, the property was completely vacated. FF completed the planning phase, including interior and exterior design, progressing to the next phase of production.

“We appreciate the support given to us by the City of Hanford,” said Dag Reckhorn, SVP of Global Manufacturing of FF. “As of now, our on-site abatement, demolition, and refurbishment work has started, and we have ordered all the long lead-time equipment. We are extremely excited to have Bernards on board to work with us to ready our factory with our aggressive, yet workable, timeline.”

On-site demolition and construction work began in March, as the first batch of production equipment has already been installed and tested to begin manufacturing.

FF is also collaborating proactively with local Hanford institutions and agencies to ready the recruitment cadences and hiring efforts for the factory. Several local training programs have been designed and hiring has already started.

FF announced its Hanford factory last August. The facility will employ up to 1,300 employees, working a 3 shift schedule.

ABOUT FARADAY FUTURE

Faraday Future is a user-centric, advanced mobility company with headquarters in Southern California. Our global team leverages the talents of leading thinkers and passionate creators from the technology and automotive industries to bring premium, intuitive, and seamlessly connected electric vehicles to people worldwide.

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For more information about Faraday Future, contact: press@ff.com

Artist lofts project to begin construction in Stockton

The MediCo Dental building in Downtown Stockton is the site for the new Medici Artist Lofts.

A groundbreaking for a new artist-inspired project will be held May 31 in Stockton.

The Medici Artist Lofts, a mixed-income apartment building with commercial space, will break-ground this week at was once the MediCo Dental building.

“We are excited to expand on the success of our Cal Weber 40 project, providing much needed housing in San Joaquin County—specifically to those who want to live in Downtown Stockton,” said Chris Flaherty, chairman and CEO of 3 Leaf Holdings, a partner in the project along with the Housing Authority of the County of San Joaquin and DFA Development.

The project, expected to be completed by fall of 2019, is geared toward artists, offering space for receptions, galleries and 34 residential units.

“The Housing Authority is excited to be a part of the revitalization of Downtown Stockton,” said Peter Ragsdale, executive director of the Housing Authority. “Medici Artist Lofts will be transformative in its adaptive, mixed-use rehabilitation of the iconic Medical/Dental Building. This project will change the conversation around what is possible when partnerships are struck to help solve the affordable housing crisis in California.”

Six of the units will be offered at market rate, and 28 will offered at “affordable rent subject to income limitations,” according to the Housing Authority.

Similar projects in cities like Fresno have found success in bringing more residents to dwell in downtown regions undergoing revitalization efforts.

The groundbreaking will take place at 7:30 a.m. on May 31 in the lobby of the MediCo Dental building. Business leaders and community members are encouraged to attend the event.

https://cvbj.biz/2018/05/29/artist-lofts-project-to-begin-construction-in-stockton/

Fresno annexes additional land west of highway 99

The city of Fresno continues to grow west.

The city council today approved annexing a new housing tract west of Highway 99.

Thie nearly 160-acre parcel is expected to be the site of more than two hundred homes. The site is bordered by Shaw, Gettysburg, Bryan, and Hayes.

The project was approved more than ten years ago, but the recession delayed development. The developer, Dennis Gaab is now ready and wants the county land annexed into the city. He told the council, “Insofar as we are aware, there’s no opposition to the annexation.”

There is a building boom going on west of Highway 99. The area is becoming is becoming more desirable, but one big problem is getting here.

“It’s awful, it’s awful.” That’s how longtime area resident Sharon Brown describes the traffic getting across the highway on Shaw or Ashlan. “In the morning, going over you have to time it just right, or it might take ten times just to get through the light.”

Getting across Highway 99 is a problem City Councilmember Steve Brandau is aware of. He told his fellow council members, “At some point, our city is going to have to get very serious about Shaw and 99 and Ashlan and 99.”

Putting in overpasses will cost tens of millions of dollars, and the city is working with Caltrans, trying to figure out where to get the money. Councilmember Paul Caprioglio said Fresno appeared to be putting “the cart before the horse” in dealing with traffic, police and fire protection.

City Manager Wilma Quan Shecter said those issues were being discussed.

City staff has given the project the green light, and despite expressing concerns, the city councilmembers approved the annexation. Council President Esmerelda Soria said, “This is a great housing project because it’s going to bring more housing units to our community.”

The developer says the 216 homes will have average prices of around $400,000.

Goodbye East Hills Mall, hello City Lights

  • By JOHN COX jcox@bakersfield.com
East Hills Mall
East Hills Mall in northeast Bakersfield remains boarded up and fenced off.

A few years ago, comparing the East Hills Mall in northeast Bakersfield to The Marketplace over in the southwest would have gotten you laughed out of any cocktail party.

But earlier this week, commercial property broker Duane Keathley kept a straight face when he said that, within maybe a year and a half, the two retail centers will be “not that much different.”

Seriously. Similar size, similar design, similar kind of entertainment-dining-shopping experience.

 In fact, forget the name East Hills Mall. After it’s demolished later this year, it’ll be called City Lights. And come late next year or early 2020, it’ll be Bakersfield’s new “it” spot, in the words of city Development Services Director Jacqui Kitchen.

“If done right, the ‘new East Hills’ center will bring a variety of much-needed amenities to the residents of northeast Bakersfield,” she wrote in an email Tuesday. “These residents have waited a long time for development of this magnitude and it looks like the time has finally arrived!”

Has someone been drinking the Kool-Aid? Perhaps. But northwest Bakersfield resident Tomeka Powell hasn’t, and during a visit Monday to the northeast to see her mom, she took a moment to reflect on the area’s shopping options.

“There’s nothing, really,” said Powell, 35, a stay-at-home mother. She’d like to see a Victoria’s Secret at City Lights, while her husband wants a Fry’s Electronics. “Yeah, it’s needed,” she said of the mall’s redevelopment.

For the record, not everyone agrees. Rebecca Withnell disapproves of the mall’s demolition.

“They should work with what they have and just refurbish what they have,” said the 33-year-old Bakersfield resident. She shops at stores next to the mall, like Target and Big Lots, and contends the area has plenty of shopping options.

There’s no word yet on who’ll set up shop at City Lights. Keathley and Vince Roche, one of his business partners at Cushman & Wakefield | Pacific Commercial Realty Advisors, aren’t allowed to name names, but they assure us tenants are signing up left and right.

What they could disclose is the kind of businesses that want to be part of the project: clothing stores, shoe retailers, specialty shops, cosmetics, jewelry. They said it’ll have chains that already exist in Bakersfield, just not in the city’s northeast.

As for who will shop there, think everyone in town south of Highway 58, and then some. Rio Bravo. Oildale. Tehachapi. “It’s a very diverse trade area,” Roche said, estimating the project’s trade area at 250,000 people or more.

If that’s the case, you ask, why wasn’t East Hills a runaway success? Well, it’s a long and unhappy story.

When the mall opened in 1986, there were four anchor tenants: department stores Gottschalks and Harris, a Mervyn’s clothing store and a United Artist Theatre.

The northeast area didn’t immediately rise to meet the population projections on which the mall was built. Then, in 1998, Gottschalks and Harris became one, leaving the mall with one fewer anchor. Gottschalks and Mervyn’s later closed during the economic recession, and it was downhill from there.

Malls aren’t generally as popular as they once were. While Valley Plaza still draws crowds, the trend in retail development these days is to build an outdoor setting. Like the Marketplace.

A site plan shared this week by Cushman & Wakefield shows row of stores as large as 40,000 square feet abutting the south side of Highway 178 just east of Mount Vernon Avenue. Included there is a 38,300-square-foot movie theater and a few small shop spaces.

South of that section would be a sea of parking spaces, 2,191 of them (more than the 1,329 required by regulation, by the way). Then, further south along Mall View Road would be a series of retail islands, or “pads,” Keathley said would house restaurants and other uses such as financial institutions.

All in all, City Lights would contain 323,313 square feet of space. In other words, pretty close to The Marketplace’s roughly 300,000 square feet. Who’s laughing now?

http://www.bakersfield.com/news/goodbye-east-hills-mall-hello-city-lights/article_e1b943d8-587e-11e8-8e75-af05116ef91b.html?utm_source=bakersfield.com&utm_campaign=%2Fnewsletters%2Fheadlines%2F%3F-dc%3D1526468413&utm_medium=email&utm_content=headline

Hey, what’s that going up over there? A look at retail construction around Modesto

Special job training program is about to ‘take off’ at Reedley College

By Reuben Contreras

Reedley College is creating a runway for those who want to get their pilot’s license and work in the airline industry.

This fall the community college will have a new Flight Science Program that will allow students to get behind the controls of an airplane within two years.

“The first job you get, you get a flight instructor for a year or two and get flying experience so that you can legally be a co-pilot at an airline, that takes about two years,” said Flight Science Program Coordinator John Johnson.

He says most programs at other public and private schools take up to four years, and cost of tuition is double the $65,000 charged at Reedley College. Plus, this program is the only in the state that allows students to pay with federal financial aid or VA benefits.

“That’s what makes our program so great is that people who don’t have a lot of money laying around can enter the program and get through it,” said Johnson.

Friday the community college hosted an open house for its Flight Science Center with students visiting from local elementary, middle and high schools.

“They showed me examples of jet engines and propeller engines, and then they had us use the simulators,” said Kingsburg High School Student David Reimer. “So actually we got to fly a simulator plane.”

That flight simulator shows students how to fly a plane on a computer with three screens. Students can get a virtual feel for flying around Reedley Airport or Fresno Yosemite International Airport.

Reedley College also plans to use electric planes for training, once they get approval from the F.A.A. The aircraft are funded by Measure C and are part of sustainable aviation project of the San Joaquin Valley Clean Transportation Center.

“When that happens I think that’s going to be awesome,” said Johnson. “Electric planes are the wave of the future, just like we are seeing with automobiles.”

Enrollment is now open for classes that begin in August.

http://abc30.com/education/job-training-about-to-take-off-at-reedley-college/3462291/

$8.4 billion realty deal includes 29 Northern California properties

Images from the Prologis web site and from a DCT Industrial Trust earnings
supplement, in a montage. Prologis, a huge player in the industrial real
estate market, has struck a deal worth $8.4 billion to buy DCT Industrial
Trust, a major company in the same sector, in a transaction that includes
dozens of Northern California properties.

Prologis, DCT Industrial Trust
Prologis, DCT Industrial Trust

Images from the Prologis web site and from a DCT Industrial Trust earnings supplement, in a montage. Prologis, a huge player in the industrial real estate market, has struck a deal worth $8.4 billion to buy DCT Industrial Trust, a major company in the same sector, in a transaction that includes dozens of Northern California properties.

PUBLISHED: 

Prologis, a huge player in the industrial real estate market, has struck a deal worth $8.4 billion to buy DCT Industrial Trust, a major company in the same sector, in a transaction that includes dozens of Northern California properties.

San Francisco-based Prologis, through its proposed purchase of Denver-based DCT Industrial, would obtain a portfolio of industrial buildings totaling 71 million square feet — the size equivalent of roughly three-dozen regional shopping malls — along with development projects and vacant sites.

According to information in a supplement to DCT’s first-quarter financial results, DCT’s portfolio includes an estimated 29 properties in Northern California. The properties total 5.13 million square feet, including DCT properties in San Leandro, Hayward and Tracy.

“For some time, we have considered DCT’s realigned portfolio to be the most complementary to our own in terms of product quality, market position and growth potential,” Prologis Chief Executive Officer Hamid Moghadam said in a prepared release.

Both companies specialize in what generically is known as logistics real estate, which includes industrial, warehouse and distribution centers.

“This transaction underscores the exceptional quality of DCT’s portfolio, platform and customer relationships,” DCT Industrial CEO Philip Hawkins said in a prepared release.

The deal also highlights the value of industrial properties in hot markets such as the Bay Area.

Cupertino-based Apple, Menlo Park-based Facebook, Mountain View-based Google and other tech giants have gobbled up huge amounts of space in Silicon Valley and elsewhere, through a combination of property purchases and leases. That activity has, in turn, prevented industrial development on some parcels where it might otherwise have occurred, and increased the value of existing industrial properties.

Seattle-based Amazon also is among the digital commerce companies that hunger for more industrial sites to support their online retailing activity.

“While we are later in the economic cycle, we believe that the industrial market has a long runway given growing e-commerce-related demand and the subsequent modernization of companies’ supply chains to accommodate for this,” Matt Kopsky, an analyst with St. Louis-based investment firm Edward Jones, wrote in a research note to clients regarding the Prologis-DCT deal, which is expected to be completed by the end of September.

Among the most high-profile of the Prologis properties in Northern California is a vast fulfillment complex in Tracy that’s leased to Amazon.

“We believe this is a positive strategic acquisition for Prologis,” Kopsky said in the research note. “DCT owns warehouses primarily in high-growth markets, which overlap nicely with Prologis’ portfolio. Additionally, DCT has a robust development pipeline in core markets.”

During 2017, Prologis earned $1.64 billion on revenue of $2.87 billion, while DCT Industrial earned $102.8 million on revenue of $429.7 million.

At the end of March, Prologis owned, or had investments in, 683 million square feet of properties, based on the combined size of the existing buildings and potential square footage of future buildings that could be constructed on vacant properties.

With properties in 19 countries, Prologis serves a base of 5,000 customers.

“This deal diversifies our customer roster through the addition of some 500 new relationships,” Prologis CEO for the Americas Eugene Reilly said in a prepared release.

$8.4 billion realty deal includes 29 Northern California properties

Modesto touting its new “opportunity zones”

Central Valley Business Times

April 16, 2018

  • Central Valley city now has 17 areas with designation
  • Nationally, there is $6.1 trillion in capital gains that could be invested

Companies looking to establish a new operation should look to its 17 federally-designated opportunity zones, the city of Modesto says in a new promotion. It says it has four ways to take advantage of the new zones. On April 9, the U.S. Department of Treasury certified 17 census tracts in the Modesto area as opportunity zones. Any investment purpose that stimulates economic activity in these census tracts may participate in the program, the city says. It says there are four primary groups that may be particularly interested in this recent announcement:

  • Investors that want to defer gain from a recent sale and obtain tax-free appreciation from its investment in an Opportunity Fund (O-Fund), which can reduce capital gains tax by up to 15 percent;
  • Sponsors that want to form and operate an Opportunity Fund;
  • Property owners with assets located in Opportunity Zones, and,
  • Developers and business owners that desire to start-up or expand in an Opportunity Zones

Nationally, there is $6.1 trillion in capital gains that could be invested in Opportunity Zones, which could make this effort the largest community development program in the nation’s history, Modesto says. The Treasury Department is now finalizing Opportunity Fund guidelines and rules. Interested parties can use this time to become informed about Opportunity Zones and network to develop Opportunity Zones concepts and opportunities for their communities, the city says.

The Council of Development Finance Agencies offers a comprehensive set of resources. Click here: www.cdfa.net/cdfa/cdfaweb.nsf/resourcecenters/iioa1.html

Enterprise Community Partners Inc. provides a policy overview and anticipates implementation timing. Click here: www.enterprisecommunity.org/download?fid=8856&nid=6212

http://files.constantcontact.com/2cb20f61601/4c0e8495-01e9-4972-9694-b050b89aec64.pdf

New entertainment venue could come to downtown Bakersfield

  • BY JOSEPH LUIZ jluiz@bakersfield.com

Bakersfield could soon have more entertainment options in the downtown area.

The City of Bakersfield has a 223,000-square-foot piece of land at California Avenue and P Street that it intends to sell to Discovery Management Group LLC, partly for the construction of a venue called Discovery Bakersfield that would include a bowling center, restaurants, a music venue and more.

The city said Discovery Bakersfield would be a 38,000-square-foot, three-story building that would include 20 bowling lanes and a 950-seat music hall.

“This is a great opportunity,” said Community Services Director Jacqui Kitchen. “The City Council has had a vision of an entertainment area here for more than 10 years. I think the residents of Bakersfield deserve this.”

Kitchen said the goal is for the Discovery Management Group to eventually develop the rest of the property with restaurants and other entertainment uses, as well as a possible high-end hotel. Kitchen said she would also like to see some kind of microbrewery locate there.

Kitchen said the creek that runs along the eastern edge of the property would also serve as a great amenity. She said she would like to see a restaurant take advantage of the views.

“Mill Creek is the only opportunity in Bakersfield where you can have a restaurant looking out over the water,” she said. “You can almost imagine you’re sitting somewhere in Germany or Italy enjoying a meal.”

The company has already begun discussions with restaurants and other companies about developing on the property, Kitchen said.

During its April 11 meeting, the City Council authorized Mayor Karen Goh to sign a draft letter of intent from the city detailing terms for purchase of the property, the price of which has been set at $2.2 million. The city will now move forward with the purchasing process.

If the purchase goes through, the venue would be Discovery Management Group’s third location. The company already has a Discovery Ventura and is opening a Discovery San Luis Obispo this summer. Discovery Bakersfield would be its largest venue yet in terms of square footage.

Jeremy Pemberton, founder of Discovery Management Group, said at the council meeting that he believes the music hall in particular will draw a lot of people to the venue. Pemberton said he believes another music veue is greatly needed in Bakersfield.

“Currently, the City of Bakersfield and the county is void of a national touring spot for a music club that can host between 400 and 800 folks,” he said. “With the facility design that we have and the experience that we have, we know that we can create a facility that would eventually become a commodity for the touring industry.”

Pemberton and his brother Joshua initially approached the city in fall 2015 to discuss their desire to open a location in Bakersfield. However, Kitchen said plans were put on hold after the company suffered some setbacks in the process of developing its San Luis Obispo location.

Once the issues were settled and the project was moving ahead, the brothers returned to the city late last year to renew discussions.

“They believe Bakersfield has a young, growing population and a real desire for more entertainment choices here,” Kitchen said. “They think a location in Bakersfield would be a great addition. It’s not meant to replace any of our businesses, but enhance those and give the community more choices.”

If approved, construction of Discovery Bakersfield would start by the end of year and wrap up by June 2019, according to the Discovery Bakersfield Development Project Plan. A soft opening has been tentatively scheduled for June 5, 2019.

Discovery Bakersfield would be part of the city’s South Mill Creek Entertainment District, which already includes Maya Cinemas, the McMurtrey Aquatic Center and the Bakersfield Ice Center.

If approved, Discovery Bakersfield would be the second entertainment venue to open in the downtown area within just a few years. The BLVD, located on Buck Owens Boulevard, opens on April 19.

The 45,000-square-foot business will have a restaurant, three full-service bars, bowling lanes, laser tag, a ropes course, an arcade and more. It is owned by The BLVD LLC and Trifecta Management Group.

The two venues will share some services and features but Discovery Bakersfield would be more focused on music, Kitchen said.

Pemberton said he’s excited about the prospect of developing a project in downtown Bakersfield and working with the city.

“We’re excited about the opportunity here in Bakersfield and we look forward to providing a much-needed first-class concert venue and entertainment facility for the entire community,” he said.

Construction milestone reached at Manteca Commerce Center

 

Central Valley Business Times

April 13, 2018

  • Dermody Properties puts in first wall panels for industrial building
  • “We are excited to be expanding our investments in the Central Valley”

The tilt-up and placement of the first wall panels for a 286,072- square-foot building that could be used as a distribution center has been completed by Dermody Properties in the Manteca Commerce Center, the Reno, Nevada-based company says. Dermody builds and manages logistics real estate.

The new building will feature a total of 50 dock doors, two grade-level doors, a 36-foot clear height and 156 car parking spaces. Construction is expected to be complete in the second quarter.

“We are excited to be expanding our investments in the Central Valley,” says Douglas Kiersey Jr., president of Dermody Properties. “The development of Manteca Commerce Center is consistent with our strategy of investing in key distribution markets with a high demand for industrial facilities and a well established transportation infrastructure.”

Manteca Commerce Center is located directly off of Highway 120, about 15 minutes south from the Port of Stockton, with access to Highway 99 and Interstate 5. The developer says the location provides “an ideal” West Cost distribution link to Fresno, Reno, Los Angeles and Las Vegas.

“Manteca Commerce Center is our second property in the Central Valley,” says George Condon, West region partner, Dermody Properties. “Companies are continuing to move from the Bay Area to the Central Valley to expand their businesses and lease Class-A warehouse space at a significant discount to the cost of Bay Area warehouses. Companies new to Northern California are also setting up shop in the Central Valley to serve the businesses and residents of the Bay Area.”

JLL is marketing the property. The project was designed by HP, Inc., and BCM Construction is the general contractor.

http://files.constantcontact.com/2cb20f61601/12d85a0b-161b-4ef2-85f1-4802f7ddbfea.pdf