San Diego Business Journal

Active Lending Helps Fuel Interest in Commercial Property

REAL ESTATE: Region’s ‘Attractive Market’ Draws A Host of Entities to Space

Meeting recently in San Diego for the Mortgage Bankers Association’s annual commercial real estate financing conference, experts were bullish on national prospects for commercial and multifamily lending.

Tourism Promotions Cut Short By District Delays

HOSPITALITY: Future Ads Depend on Council’s Approval of TMD Budget

Officials don’t yet know how it will translate in terms of lost travel revenue for the region.

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Group Seeks Disclosure of Convention Center Labor Agreement

DEVELOPMENT: Lead Contractor and City Have Yet to Respond to Action

A local coalition that supports nonunion construction companies wants officials to make public details of a labor agreement tied to the San Diego Convention Center expansion project.

Resourceful Architects Diversify Pursuits as Military Projects Dwindle

DESIGN: Office Renovation, Re-Design Likely to Boost Demand

Local architects in 2013 will be looking to build on a postrecession recovery in work assignments that took hold in 2011 and accelerated during the past year, even as military-related projects continued to wane in San Diego County.

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Lowe’s Hiring Reflects Homeowner Confidence

RETAIL: Local Building Stores Post 6% Job Growth in Past Year

A brightening home-buying and building climate is raising hiring prospects at the national home improvement chains serving San Diego County.

Hotels Deal With New ADA Pool Access Rules

TRAVEL: Some Properties See A Chance to Better Serve Clients

Hospitality and legal experts see both opportunities and challenges resulting from recently enacted federal regulations requiring hotels to make pools and spas accessible for customers with impaired mobility, under the Americans with Disabilities Act.

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MOGL’s Rewards Program Is in Virgin Territory

MARKETING: Airliner And Firm Share Charitable And Demographic Interests

After winning over a crucial customer for its tech-enabled restaurant rewards program — billionaire Sir Richard Branson — locally based MOGL has landed Virgin America Inc. as its first airline partner.

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Creating Centers of Attention

RETAIL: Shopping Hubs ‘Make a Scene’ Through Renovations

Jeffrey Essakow likens the recent local wave of big-money retail center renovations to the shakeup that occurred when Tiger Woods began dominating the pro golf circuit a decade ago. “It forced all of the other players to improve their game,” said Essakow, CEO of Protea Properties LLC of La Jolla, which owns the newly renovated Flower Hill Promenade in Del Mar.

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Flights to Tokyo Hit the Dreamliner Skids

TRAVEL: Daily Service Launch in Limbo; Boeing 777 to Take Over Route

Experts are uncertain whether the grounding of Boeing’s 787 Dreamliner will also put a damper on Japan Airlines’ scheduled March 1 launch of daily local service between San Diego and Tokyo.

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Sudberry Properties Taps a Rich Vein of Retail Work

This will be a busy year in retail for locally based developer Sudberry Properties, which is nearing completion on a Carlsbad shopping center and moving ahead with planning for two large projects in San Diego.

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Experts Predict Rising Demand for Existing Properties in 2013

COMMERCIAL: Vacancy Decreases, Rent Increases Draw More Investors

San Diego-based BCL Inc. went shopping for office buildings and found two local properties matching its sweet-spot criteria in the final months of 2012.

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There Is Room for Improvement Following 2012’s Hotel Sales

HOSPITALITY: Experts See Investors, Favorable Financing Fueling Deals

San Diego County’s hotel investment sales trends checked back into historical reality in 2012, following a 2011 series of high-profile trophy acquisitions that pushed local deal volume for that year well above $1 billion.

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Market Trends Bring Housing Developments

REAL ESTATE: Developer Moves Ahead With Projects

Prominent local builder The Corky McMillin Cos. will be responding to the newly awakened housing market by pressing forward this year on two San Diego County projects long delayed by a sluggish economic recovery.

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Conditions Limit the Local Distressed Property Market

REAL ESTATE: Firms Pursue Opportunities in Other Areas of the U.S.

When it comes to work assignments and investments tied to distressed commercial real estate, most opportunities landing on the doorsteps of locally based firms are originating far beyond San Diego County’s borders.

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Big Lease Deals Could Spur Growth in Office Sector

Early indicators showed San Diego’s office real estate market starting 2013 still in recovery mode, although continued technology-related job growth could help put the region in an actual growth trajectory starting later this year.

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Financing Options Considered for Bay-Front Development

FINANCE: Officials Seek Best Mechanisms To Draw Developers

City and port district officials may be testing the private equity and loan markets, among other options aimed at bringing aboard commercial developers for a proposed transformation of the Chula Vista bay-front.

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A Foundation to Build On

BUILDING: Family Firms Know the Importance of Good Customer Relations

John Wirtz remembers visiting work sites when he was three years old, learning the construction business from his father, John Q., in the 1950s.

Record Year of Acquisitions Puts a Lot on Firm’s Plate

PROPERTY: Westcore Still Has Eye on Markets, As It Assimilates Purchases

Westcore Properties founder and Chairman Marc Brutten says the San Diego-based investment firm will likely take a breather of sorts in the early part of 2013, after ending 2012 with a $700 million flurry of property acquisitions.

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Constraints of Tight Market Affect Moves

PROPERTY: Tenants’ Options Limited as New Projects Are Few

Office property experts say 2013 could be the year that the “flight to quality” trend of the past two years plays itself out. A continuing scarcity of large spaces for growth-oriented companies could spur the local market to move beyond its tenant musical-chairs phase, encouraging building owners and developers to move forward with redevelopment and new construction projects.

Hospitality and Tourism Industry May Need a Bigger Welcome Mat

TRAVEL: Tokyo Flight Boosts Region’s Profile; Hotel Metrics Improve

Hospitality and tourism leaders will be looking to overcome fears about the national and global economies, as the San Diego region aims for a third consecutive year of local visitor and hotel business growth in 2013.

There’s Not Much Room for Big Office Space Requirements

PROPERTY: Expert Sees Situation Damaging The Region’s Reputation

If past trends are an indication, says local commercial real estate broker Tom van Betten, the coming year could see the continuing emergence of two distinctly different supply-and-demand realities for office users scouting new space in the San Diego region.

Construction Industry Sees Boost in 2013 From Health Care

CONSTRUCTION: Region Employs 57,600, Up 5 Percent from 2011

Local construction companies are anticipating a continued recovery in commercial projects in 2013, spurred largely by the growing health care and technology industries, even though a return to anything resembling pre-recession workloads is likely still years away.

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Builders’ Confidence Sets Carlsbad Projects in Motion

PROPERTY: Community’s Potential Energizes Retail And Housing Construction

An improving economy is spurring new progress on long-discussed development projects in places like Carlsbad, where work is proceeding on a large retail center and adjacent new homes on an 83-acre site known as La Costa Town Square.

Westcore Completes $600M Buy

San Diego-based investment firm Westcore Properties has purchased a $600 million portfolio of industrial properties, with 110 buildings spanning approximately 11 million square feet in Northern California and the Midwest.

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UltraStar Sells 7 of Its Locations to East Coast Partnership

THEATERS: Movies Are Just Part of Entertainment Mix as Exhibitors Diversify

UltraStar Cinemas is selling off seven of its movie theater locations for approximately $13 million, as the Vista-based company and its rivals aim to diversify their role in the entertainment business beyond film exhibitor.

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Firm Covers a Lot of Ground With Projects

PROPERTY: Offerings Include Luxury and Entry-Level Sites

The coming year will likely be a busy one for locally based developer ColRich, which has several apartment and single-family projects either moving forward or nearing completion in 2013.

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Developer Gives Renters the Single-Family Option

The long battered home-building market has shown signs of life this year in San Diego County, with contracts for future residential construction up 11 percent from a year ago in the first 11 months of the year.

Acquisition Boosts Apartment Owners’ Local Portfolio

REAL ESTATE: Thousands Of Properties Change Hands With $16B Archstone Deal

Two of the nation’s largest apartment owners, Equity Residential and AvalonBay Communities Inc., are about to significantly boost their national and local footprints, with their recently announced $16 billion purchase of the assets and liabilities of Archstone Enterprise LP.

Duty-Free Shop Arrives At Lindbergh Field

TRAVEL: Airport Catering to Increase in International Travel

San Diego International Airport recently debuted its first-ever duty free store, as the facility looks to bolster services catering to a growing contingent of international travelers to the region.

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Faltering Grocer’s Locations Have Good Potential

RETAIL: Consultants Help Market Review Sell-Off, Partnership Options

Don’t expect bargain-basement transaction prices if or when the local spaces occupied by Tesco Plc’s Fresh & Easy Neighborhood Market go back on the block.

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Grocery Store Expected to Draw a Retail Crowd

PROPERTY: Business Activity Seen as Key to Revitalizing the Area

The last pieces are falling into place for the long-awaited, $80 million mixed-use Mercado del Barrio development in San Diego’s Barrio Logan, which recently saw the opening of a new apartment complex and the neighborhood’s first major grocery store.

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Technology Tenants’ Space Demands Lead to Upgrades

PROPERTY: Expansion Considered at Tech Center In a Prime Submarket

Spurred in part by rising local space demand among technology firms, owner Beacon Capital Partners LLC has long-range plans in the works that could nearly triple the square footage of San Diego Tech Center in Sorrento Mesa, already among the region’s largest office campuses.

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Mission Beach’s Belmont Park Rides Again?

PROPERTY: Vision Is For 3-Year Makeover to Draw Tourists, Locals

The new operators of Belmont Park will soon embark on a multimillion-dollar revitalization of the historic Mission Beach attraction, aiming to diversify offerings for locals while restoring its place among San Diego’s tourism icons.

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Main Street Project Takes a New Turn

PROPERTY: Kilroy Submits Revised Plans for Carmel Valley

Developer Kilroy Realty Corp. has revised plans for its $650 million, mixed-use “Main Street” project in Carmel Valley, which has been in the works for four years and represents the last large office and retail development expected to be built in that San Diego neighborhood.

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Construction Industry Keeps Going on Green

BUILDING: Tenants Expect Energy Efficiency in Properties

Green construction and improvement projects already figure prominently in the work of local contracting firms

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Water Park Should Get Tourist Dollars Flowing

TOURISM: South County Site Boasts SeaWorld Brand

Tourism leaders are looking for SeaWorld Parks & Entertainment’s water park acquisition and upcoming expansion in Chula Vista to create a big economic splash for the entire South County

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Parking Improvements Are Around the Corner

TECH: Solutions Include Using Apps, Pedestrian-Friendly Areas

Parking guidance technologies — from companies including Vista-based McCain Inc. and Streetline Inc. of Foster City — are helping curb frustration among time-strapped drivers searching for available spaces.

Analysis Calls S.D. a Winner in Election

ECONOMY: National Result Favors Region’s Real Estate

Despite talk of massive federal spending cuts and other uncertainties as lawmakers look to avoid going over a “fiscal cliff,” real estate experts say the San Diego region should benefit in the long run from the results of recent national elections.

Tax Increases Won’t Be Property Game-Changer

REAL ESTATE: They May Lessen State’s Drawing Power

The jury remains out on the exact effects, but industry experts say newly passed California tax hikes could have long-term impacts on local retail center landlords and other commercial property owners looking to fill tenant vacancies.

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Hotel Recovery Appears to Have Staying Power

PROPERTY: Strong Metrics, Buyer Demand Are Boost to the Sector

If current patterns hold, industry observers expect San Diego County hotels to continue riding a wave of positive growth trends into 2013, with the region on track for a return to pre-recession peak revenue numbers last seen in 2007.

Westfield UTC Transforms Shopping Experience

RETAIL: Malls Turn to Nontraditional Tenants to Create Compelling Venues

Westfield Group recently completed a $180 million renovation of its Westfield UTC mall in San Diego, just in time to greet a holiday season that national experts predict will top last year’s November-December period for U.S. retail sales.

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Airline and City Look for Success Out of the Gate

TRAVEL: Japan Airlines, San Diego Aim to Sell Asian Market on Flights

Japan Airlines has seen a gradual liftoff in consumer interest, as the carrier prepares to launch its first direct service between San Diego and Tokyo on Dec. 2.

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Firm Gets Right Places at Almost Right Time

PROPERTY: Cruzan Positions Itself for Future Developments

Del Mar-based Cruzan Monroe describes its investment approach as conservative and relatively low-profile, but it has made some big moves in San Diego’s office real estate market this year.

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Think Globally, Teach Locally

EDUCATION: NewSchool Taps World’s Design Talent For Cutting-Edge Curriculum

San Diego’s NewSchool of Architecture and Design is aiming to boost its profile in a world where cutting-edge design is making a big business impact, in industries ranging from movies and video games, to construction and mobile technology.

Bank Failure Storm Subsides, But Leaves Big Changes

FINANCE: Climate Favors Mergers to Cut Costs, Meet Regulations

The wave of bank failures that claimed nearly 300 U.S. institutions during the crest of the 2009-10 financial crisis — including four locally based banks — has subsided considerably.

Banks Move Cautiously In Commercial Lending

BANK: Other Lenders Lead The Way in Some Sectors

Financing players of all types have recently been ratcheting up their lending in the commercial real estate arena, although traditional banks remain cautious about where they place their money.

Unconventional Career Path Leads to Unconventional Bank

FINANCE: CEO Guides BofI Federal In a Changing Climate

A future 9-to-5 career in banking was not a given in the financial education of Gregory Garrabrants, and the traditional workday clock doesn’t set the pace at BofI Federal Bank, the San Diego-based company he now leads as president and CEO.

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Internet Reshapes Small-Time Lending

CAPITAL: Sites Arrange Business That Banks Ignore

Web-based crowdfunding sources such as Kickstarter, Kiva and Prosper are increasingly playing the role of financier to startup small businesses and solo operators, at a time when traditional lenders are carefully weighing the risks in their portfolios.

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Restaurant Expansion Heats Up as Economy Warms Up

DINING: Mid-Priced, Quick-Service Fare Sees Foot-Traffic Growth

San Diego County’s longtime restaurant operators managed to survive when the economy was at its worst, and are now adding locations as budget-minded diners regain their appetite for food away from home.

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Theaters Usher In a New Movie Experience

CINEMA: Customers Lured With Luxuries, Technology

Movie theaters are ratcheting up amenities in San Diego County, as operators like Cinepolis Luxury Cinemas and now ArcLight Cinemas look to pull consumers away from streamed entertainment watched on big high-def TV screens in the surround-sound comfort of their living rooms.