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California building sells for $64M less than 2019 as problems plague city

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California building sells for $64M less than 2019 as problems plague city


A property in California that sold for $86 million in 2019, has been acquired by a new owner for $64 million dollars less.

The building, at 410 Townsend street in San Francisco, was bought for just $22 million, SFGATE reported this week, in what could be an illustration of how the city is still battling against an underwhelming office real estate sector.

The property boasts 78,000 square feet and four floors and had been a home for tech firms in the area, said the website.

San Franscico’s office market is still struggling to recover from the COVID shock when lockdowns and stay-at-home orders led to a significant rise in home working. There were vacancy rates of about 22 percent at the end of the first quarter of 2024, according to real estate firm CBRE’s analysis.

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A panoramic view from above San Francisco’s financial district on a bright sunny day. But the office real estate market is still struggling: one block sold for $64 million dollars less than it’s last selling…


Georgeclerk/Getty Images

But the new owners of the 410 Townsend street property believe the market is about to rebound.

“It’s our opinion that this is the start of the recovery for the San Francisco real estate market and 410 Townsend provides us with the opportunity to acquire a best-in-class creative brick and beam office asset well below replacement cost and where the asset traded in 2013 and 2019,” Albert Pura, senior director of one of the buyers, New York Life Real Estate Investors, told SFGATE.

But San Francisco’s office space real estate fightback is still in the early stages. CBRE’s analysis showed that the city ended the first quarter of this year with what they described as negative 387,000 square feet of net absorption

It was “the seventh consecutive quarter of occupancy losses,” the analysis said.

Homes have been hit hard too.

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The data did show some interest in offices from research and development tenants, whose demand was up by about 56 percent. But even then, the nature of their interest pointed to some softness in the overall market.

“The increase in tenant demand is largely driven by tenants who need to make decisions about their space as their leases are coming to term. Many companies are seeking to reduce the size of their current space, which portends further occupancy losses,” CBRE’s report warned.

“The software and internet industry continued to lead demand along the Peninsula contributing to about 51.3 percent of the active requirements.”

CBRE’s says its report looks at the office building market of at least 10,000 square feet and collects its information “through telephone canvassing, third-party vendors, and listings received from owners, tenants and members of the commercial real estate brokerage community.”

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California

Special surcharges to become illegal in California restaurants

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Special surcharges to become illegal in California restaurants


As of July 1, it will be illegal for any restaurant in the Golden State to add special surcharges to diners’ checks, which has become a favorite method that restaurants use to lower costs and enhance employee incomes. 

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Except for taxes, the surcharge disclosure law applies to all imposed add-on fees such as service fees, dining-in charges, delivery charges, credit card processing fees, and even imposed tips. But this is not crystal clear.

Attorney General Rob Bonta, who had previously said restaurants would be allowed to make surcharges, says they must be disclosed in advertising, which, presumably includes menus. 

However, the California Restaurant Association, is ready to fight back, saying that the written law only applies to advertisements because courts have ruled that “advertisements” for goods and services do not include menus.

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In Walnut Creek, many people dining out had essentially the same opinion. “Yeah, it needs to be in the price of the food. It might help somebody decide on a menu item,” said Susan Bomba,

If this bundling happens, don’t expect the price of dining to decline. In fact, expect them to rise sharply. 

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“Seeing the fee, we know about it and, I guess, if you eat somewhere long enough and you see those prices raised, you know that’s where those fees went,” said Dana Barry.

In fact, many folks think tipping, fees and surcharges are way out of control now. 

“I absolutely agree with that. Like I said, I’ve been to restaurants before and put a nice tip down and then realized later, the tip was included or something else,” said Bob Kennedy. 

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“They shouldn’t be tipping on those fees,” said Dana Barry. “Now, for a carry-out, you’re expected to tip. That was never the case. I didn’t mind it during Covid, but now we’re back to something normal, we’re still expected to tip for carry-out food,” said Bomba.

Restaurant owners say they need clarity and specific answers soon, given that these rules take effect in just 60 days.
 



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Meghan Markle filming Netflix show on California cannabis farm embroiled in controversy: report

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Meghan Markle filming Netflix show on California cannabis farm embroiled in controversy: report


One of the filming locations for Meghan Markle’s highly-anticipated cooking show is reportedly a cannabis farm marred by controversy.

The Duchess of Sussex, 42, has been shooting the Netflix series in two California locations: a $5 million home in Montecito belonging to Tom and Sherrie Cipolla and a farm owned by the cannabis-supplying Van Wingerden family in the nearby seaside city of Carpinteria, the Daily Mail reported.

The Van Wingerdens are the area’s largest vendors of legally produced cannabis, according to the website.

Markle is filming part of her Netflix series on a farm owned by cannabis suppliers David and Cindy Van Wingerden. Farmlane
The farm is located in Carpinteria, Calif. Farmlane
Residents in the area have complained of the weed smell. Farmlane

Markle’s film location, dubbed Farmlane, is owned by David and Cindy Van Wingerden, who turned their flower farm into a marijuana mecca in 2015. They now sell cannabis flowers and pre-rolled cannabis joints.

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But the Van Wingerden family’s operation and other cannabis farms have had the neighborhood up in arms over the pungent weed fragrance contaminating the air.

Local Carpinteria residents filed 2,340 odor complaints from mid-2018 to 2022, according to the website.

In September, homeowners in the area filed a class-action lawsuit against two weed farms, unrelated to the Van Wingerden’s business, with claims that their property values had been severely damaged due to the “sewer-like” smells.

Production of the show is already well underway. AFP via Getty Images
News of the new show surfaced in March. Getty Images for Project Healthy Minds

“The neighborhood surrounding their property has a thick, heavy, strong stench of cannabis on a near daily basis,” the lawsuit states.

Angry citizens said their homes and clothes reeked of marijuana and that some people were experiencing breathing problems, headaches and nausea.

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Page Six confirmed in March that the former “Suits” actress would collaborate on a Martha Stewart-esque show tying into her newly launched lifestyle brand, Montecito Riviera Orchard.

The wife of Prince Harry has already debuted the first product of her cookware and home needs company with a jar of strawberry jam sent to her closest high-powered friends.

The show will tie into her new Montecito Rivera Orchard company. AFP via Getty Images
The lifestyle brand will sell cookware and other home goods. WireImage
The wife of Prince Harry has already debuted the first product of her new business. UK Press via Getty Images

An insider told Page Six Style at the time that the business would focus on home, garden, food and general lifestyle wares.

“She’s been working on this for over a year, and it’s all the things that are close to her heart — all the things she’s passionate about,” an industry source said.

A trademark application obtained by Page Six Style revealed that the company would sell cookbooks, an assortment of edible treats like jellies and spreads and tableware staples like cutlery, table linens, drinkware and more.

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EV market share sags in California, though EV sales are up

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EV market share sags in California, though EV sales are up


It’s a complicated time for the nation’s largest EV market. California EV sales increased in the first quarter of 2024, but market share still fell, according to a new quarterly report from the California New Car Dealers Association (CNCDA).

The absolute number of EVs sold in California grew from 89,741 in the fourth quarter of 2023 to 90,296 in the first quarter of 2024, the report found. But EV market share still decreased from 21.5% at the end of 2023 to 20.9% in Q1 2024. That’s because new-car registrations grew overall, with even more non-electric vehicles being sold. The rise of EV sales by volume rather than share is a trend that continues from the previous quarter.

2024 Tesla Model Y. – Courtesy of Tesla, Inc.

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Tesla’s EV sales lead in California also continues to shrink, the report found. Tesla registrations were down 7.8% from the previous quarter, which itself saw a 9.8% decline in registrations for the once-California-based automaker.

Without a deeper dive into the trends, it might be argued that sagging Tesla sales, not sales of EVs of other brands, are what have caused the recent flattening for EVs in California and elsewhere. That’s because Legacy automakers are selling more plug-in vehicles, the report noted. Mercedes-Benz and BMW saw the highest increases in California in Q1, posting 3% and 2.4% gains, respectively.

2024 BMW iX

2024 BMW iX

EV sales through franchised dealerships also increased 14% in Q1, while direct sales—the model used by Tesla and some startup automakers—saw a 3% drop. Franchised dealerships account for 66% of “alternative powertrain types” in California, according to the CNCDA.

Even with EV sales rising in the rest of the country, California remains near a third of the nation’s EV sales. And even with this market-share hiccup, in the state, one of four new vehicles sold in California has a charge port—although some are plug-in hybrids rather than all-electric models.

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