Solyndra Property Approved For Sale As Another Solar Company Goes Dark

Colo. Firm Acknowledges ‘Challenging’ Market Conditions for U.S. Solar Firms

By Randyl Drummer

Bankrupt thin-film solar panel manufacturer Solyndra LLC has chosen Jones Lang LaSalle to market the sale of its headquarters and production facility in Fremont, CA, even as another leading firm that reportedly received government loan guarantees has closed its doors in Colorado and laid off 180 workers in the difficult market for U.S. solar manufacturers.

The JLL team of Bart Lammersen, Greg Matter and Jason Ovadia will lead the effort to sell the corporate headquarters and primary production facility at 47488 Kato Road following the approval of the sale by the U.S. Bankruptcy Court overseeing the Solyndra case.

On Tuesday, Loveland, CO-based Abound Solar Inc. announced it will cease production of its first-generation solar module, resulting in the “temporary reduction” of about 180 permanent jobs in its Colorado facilities, the company said in a statement. Abound said the closure is necessary to accelerate the manufacturing process and equipment changes needed for the production launch of its next-generation high-efficiency module.

“Once manufacturing equipment has been modified and performance tested, Abound Solar expects to resume mass production with a 12.5-13 percent efficiency module by the end of 2012,” according to the statement.

The Solyndra facility, completed in 2010, sits on a 30-acre parcel with prominent Interstate 880 frontage, suited to a variety of clean-tech and technology uses. Fremont is the closest city in Alameda County to Silicon Valley, and frequently associated with it.

The 280,000-square-foot manufacturing space is rated as a Class 100,000 under ISO 8 international standards for clean rooms and was designed to exceed California seismic standards. The building’s 21-kilovolt electrical service is backed up by two diesel emergency generators, each with 2 megawatt capacity.

A two-story office space totaling approximately 30,000 square feet was constructed to LEED (Leadership in Energy and Environmental Design) Gold standards. The property includes plans for an additional 200,000-plus-square-foot expansion facility.

Read the entire CoStar article here.

Bay Area Market Update, February Highlights

Headlines:

  • BioMarin Pharmaceutical Inc. has signed a ten-year lease for 120,000 s.f. in the San Rafael Corporate Center.
  • American Assets, a San Diego-based REIT, has purchased One Beach Street for about $36.5 million or $376 per s.f. 
  • StumbleUpon Inc. has signed a 63,000 s.f. lease at 301 Brannan St in SoMa. 
  • In an effort to consolidate their Palo Alto offices, Barnes & Noble signed a lease for almost 208,000 s.f. at VMware’s old facility at 3400 Hillview Ave. 
  • Flextronics has inked a deal for roughly 130,000 s.f. at America Center in San Jose.

     

    Read the entire Market Update:  bay-area-market-update_02_2012

Grubb & Ellis Files For Bankruptcy, Sells Itself to BGC Partners

Grubb to Apparently Join Newmark Knight Frank In Howard Ludnick’s Growing Platform of CRE Services Firms

By Randyl Drummer
Grubb & Ellis Co., one of the country’s most recognizable CRE services brands which fell on hard financial times during the economic recession, has agreed to file for Chapter 11 bankruptcy protection and sell the company in a bankruptcy transaction to BGC Partners, owners of Newmark Knight Frank.In a statement, Santa Ana, CA-based Grubb & Ellis said it believes the acquisition by the investment firm headed by Cantor Fitzgerald CEO Howard Lutnick “will bring the much-needed scale and resources the company had been seeking through its strategic process” and will position Grubb & Ellis to “become part of a well-capitalized global platform.”

“Following a thorough and rigorous process and the evaluation of all available options, we determined that a partnership with BGC provides the best platform for our brokerage professionals, employees and clients,” said Thomas P. D’Arcy, president and chief executive officer of Grubb & Ellis. “We believe the transaction will be seamless for our clients and we expect no disruption to the company’s operations.

“Furthermore, we believe our professionals and clients will benefit greatly by being part of the BGC organization, which, with its recent acquisition of Newmark Knight Frank, will bring together two strong brands to create a powerhouse in the commercial real estate space. BGC’s purchase of the company’s senior debt and its willingness to provide incremental financing to ensure the smooth execution of the sale process demonstrate its commitment to the success of the Grubb & Ellis business.”

To execute the bankruptcy sale, BGC said it has acquired the outstanding secured debt of Grubb & Ellis and has committed to provide debtor-in-possession financing to fund Grubb & Ellis operations during the sale and bankruptcy process.Grubb & Ellis has filed motions requesting that the bankruptcy court approve sale procedures and set a hearing date to approve the sale.

Read more of the CoStar article here.

South City Warehouse Sold by Industrial Pros

Comparable details:

Address:  1350-1352 San Mateo Ave, South San Francisco

Seller:   Chang Irrevocable Trust

Buyer:  Kevin Semien

RBA SF:  15,022

Lot size:  0.68 AC (29,621 SF)

Selling price:  Contact us for details

Type:  Industrial-Warehouse

 

The property closed last week to an owner/user who plans on occupying half of the property and leasing out the other half.  Check out our lease availables for details on the space.  Once again, sales are heating up with several properties closed or in escrow.  With interest rates at historic lows, SBA financing in full swing, and several quarters of positive absorption in the greater Bay Area, the trend of business owners taking on debt is increasing.

Apple Inks Another Large Lease in Sunnyvale

Tech Giant Has Now Taken At Least 475,000 Square Feet In Three Business Parks In Silicon Valley City

By Randyl Drummer

Apple Inc. has leased a new 156,000-square-foot building in downtown Sunnyvale, CA, the third large lease by the technology company in the city since last fall.

Long associated with its headquarters in Cupertino, Sunnyvale’s southerly neighbor, Apple will occupy the building in the Sunnyvale Town Center at 250 S. Mathilda Ave. at McKinley Avenue in about the third quarter, according to a news release from Sunnyvale City Manager Gary Luebbers.

In a deal revealed last month, Apple signed a long-term lease for 215,472 square feet for four buildings at E. Arques Ave. in the nearby Sunnyvale Research Center, 12 miles from Apple’s headquarters. Last fall, Apple signed a lease for buildings of 44,000 and 64,376 square feet at 995 and 975 Benicia St. in the Peery Park submarket.

Last May, Nokia merged several of its Bay Area offices into a new regional office on Mathilda and Washington avenues in the Sunnyvale Town Center, next to what will become Apple’s building. Nokia brought about 500 employees to staff the Town Center site, and Apple is expected to add about 400 employees there.

Luebbers called the Apple’s signing “an important step forward” for the Town Center redevelopment project, which like numerous other properties, has run into challenges as a result of the economic downturn.

Read more of CoStar article here.

Less Building Now, Higher Office Rents Later

By Eliot Brown

Office-building construction is in the midst of a severe drought. This means higher rents may be on the horizon in some cities, if history is any guide.

In the U.S. last year, developers broke ground on office buildings with a total of just 56 million square feet of space, the lowest level tracked by McGraw-Hill Construction since at least 1960.

Even during the early 1990s, in the aftermath of a surge of construction a decade earlier that left cities around the country dotted with empty office buildings, the U.S. never dropped below 80 million square feet of new office-building construction …

Read entire Wall Street article here.

 

Kepler’s, Iconic Bay Area Independent Bookstore, Launches Transition to Next-Generation Literary Venture

One of the Industrial Pros is in the news!

“Kepler’s 2020” Project Kicks Into High Gear to Drive Literary Innovation on SF Peninsula
January 31, 2012

MENLO PARK, Calif. – The Kepler’s Transition Team, a group of local business and community leaders, today announced the launch of “Kepler’s 2020,” an initiative that will transform Menlo Park’s historic independent bookstore into a next-generation community literary and cultural center. The project aims to create an innovative hybrid business model that includes a for-profit, community-owned-and-operated bookstore, and a nonprofit organization that will feature on-stage author interviews, lectures by leading intellectuals, educational workshops and other literary and cultural events.

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