SAN FRANCISCO-NAIOP's San Francisco Bay Area Chapter recently hosted the 24th Annual Real Estate Challenge at the Four Seasons Hotel, and the Stanford team, Cardinal Development Group, was named the winner. The proposal was for the development of a site belonging to the San Francisco Public Utilities Commussion.
The site consists of 17.2-acre of office and operations, located along El Camino Real in Millbrae, CA. CDG analyzed the site's potential and recommended a course of action that “maximizes its value while meeting SFPUC's current and future needs.”
Standford's opponent was the Haas School of Business, UC Berkeley.
SFPUC's goal is to consolidate administrative and lab operations, currently scattered throughout the Peninsula, into a single office location with improved parking and access to public transportation. However, SFPUC also aims to obtain the highest and best use for the existing site, which is well-suited for mixed--use, transit-oriented large-scale development, according to a prepared statement.
The team's analysis found that SFPUC's most important decision is whether to stay or go. It can stay and build a new facility that meets all of its needs in one place, but this would be expensive and not aligned with the site's highest and best use, says the team. Alternatively, it can sell the site to a developer who can “maximize the site's potential, and use the proceeds to move to facilities more suited to its needs. Either of these paths will present further key decision points in the near future.”
CDG performed a thorough analysis of the SFPUC's goals, the site's characteristics and opportunities, market opportunities and trends, community characteristics, the entitlement process and feasibility, design and development alternatives and disposition strategies, according to a prepared statement.
The team also performed a complete financial analysis to evaluate the economic arguments for several alternatives. “In considering site development possibilities, CDG conducted extensive analysis on the market context and the advantages of possible land uses, and performed multiple land residual analyses,” says a release. “The team also considered several options for the parcel currently occupied by Orchard Supply Hardware.”
CDG's recommendation is that SFPUC sell the site to a developer who can “maximize its value.” Based on their analysis and conversations with real estate experts, a developer would be likely to build a mixed-use development with retail and residential product.
“The recommendation reflects this opportunity and proposes the creation of Rolling Hills, a new community-oriented development with a mix of apartments, townhomes and retail space that leverages the great site location along El Camino Real and is consequent with the city's and the Grand Boulevard Initiative goals of maximizing the potential of El Camino Real and creating opportunities for the community,” the statement says.
The statement says that the proposal “captures the residential demand in the area and allows the developer to position the development in a way that foresees future market trends. At the same time, the retail space will attract people to the site and contribute to the city's tax revenues, potentially saving the PUC $150 million.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
