Uncommon Knowledge
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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.
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.
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.”
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
If you visit Disneyland with any frequency, a discount from the usual price of more than $100 a day would feel like a blessing.
However, almost as soon as Disney recently offered a rare chance to purchase limited evening passes to its two Southern California parks at about half of the regular cost, the online speculation among Disney enthusiasts behind the company’s strategy spiked. It was no surprise that the lower-priced tickets sold out in about a week.
Some fans referred to the five-hour ticket as a “recession” indicator on social media or as a way to “capture random stragglers.”
Others believed the ticket offered fireworks enthusiasts an opportunity to catch a nighttime spectacular, while one person said the pass allowed visitors to partake in other Southern California activities before finishing their evening at Disneyland.
Buyers of the pass are first set to attend the parks this Sunday, with dates extending until August.
Disneyland officials brush off the speculation, saying the ticket sale is business as usual. Fortunately for us, industry insider Dennis Speigel offered some analysis behind the move.
Let’s jump into the offer and his thoughts on the deal.
Late last month, Disneyland offered a one-park evening pass for $59 to Disneyland or California Adventure. The ticket is good from Sundays to Wednesdays, starting this Sunday until Aug. 5.
California Adventure would allow evening patrons in at 5 p.m. until closing at 10 p.m. and Disneyland at 7 p.m. until closing at midnight.
A park reservation was still required for evening passes.
The tickets became available June 30 and sold out by July 6, according to a Disneyland spokesperson. Disneyland officials declined to say how many tickets were sold.
The ticket offering is not all that rare.
Similar opportunities began as far back as 1957 with Disneyland date nights admission running from 5 p.m. to 1 a.m, a park spokesperson said.
“Our goal is to provide guests with a variety of limited-time ticket offers throughout the year — this being just one example of that,” a Disneyland spokesperson said.
Speigel, founder and chief executive of Cincinnati-based International Theme Park Services, Inc., a theme park consulting firm, said theme parks, ranging from small, regional locales to international destinations are struggling with a “softness” in admission demand that began in April but became more acute in June.
That slump at Disney and Universal Studios properties nationwide, Speigel said in a call with The Times, is due to three primary factors: the economy, weather and the Iranian War.
“There’s a nervousness from visitors, a lack of understanding of what to expect because of the war and economy,” he said. “We saw something like that last year driven by tariffs with soaring gas prices, and we monitored how people started moving back on their spending.”
To counter that softness, Disney is turning to discounts, hoping to kindle interest, Speigel speculated.
“They understand their guests are in a crucible, and this drives the decision to discount,” he said. “People still want their escapes; that doesn’t go down. They just want to pay less to escape.”
Disney’s evening pass is also a shrewd offer because it aims to attract another type of guest: budget-minded locals who might be enticed by $59, Speigel said.
“It’s a smart attempt on Disney’s part,” Speigel said. “It moves in the local people who aren’t the season pass holders or tourists, and it fills the park. That’s what parks are looking to do right now.”
(Etienne Laurent / For the Times)
(Stephanie Breijo / Los Angeles Times)
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CALIFORNIA CITY, Calif. (KABC) — An Amber Alert was issued Friday by the California Highway Patrol for a 3-year-old child out of California City believed to be in imminent danger.
Emaria Peel, 3, was last seen Friday at about 7:17 p.m. in the area of Redwood Boulevard and 83rd Street in California City, according to police.
Authorities believe 31-year-old Charnay Mclin took Emaria. Investigators have not yet said what relationship, if any, Mclin has to the child.
The suspect was described as being 5 feet 9 inches tall, 185 pounds, with black hair and brown eyes.
The child was described as being 1 foot 6 inches, 20 pounds, with black hair and brown eyes.
Police believe they’re traveling in a gold-colored 2021 Kia Sorento with the California license plate: 36095DV
Mclin is considered armed and dangerous. Authorities wants anyone who sees them to call 911.
No further details were immediately known.
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A 17-year-old suspect has been arrested in Texas in connection with the deadly shooting after a high school graduation ceremony in Fairfield, California last month, police said.
Fairfield police said U.S. Marshals, accompanied by department detectives, served search and arrest warrants Friday morning at a home in the greater Dallas-Fort Worth area.
The teen was taken into custody without incident on suspicion of murder and related offenses.
Investigators said the suspect fled California and traveled to Texas within days of the June 3 shooting. He will remain in custody while awaiting extradition to Solano County.
The shooting happened after Sem Yeto Continuation High School’s graduation ceremony, which was held on the Fairfield High School campus.
Police said 18-year-old graduate Jamario Baker died at the scene. Three others – an 11-year-old child and two adults, ages 20 and 25 – were wounded.
Authorities have not released the suspect’s name because he is a minor.
Although an arrest has been made, police said the investigation remains active and detectives continue to pursue additional leads.
“While today’s announcement may provide a measure of relief to some, it does not lessen the pain felt by our community,” the Fairfield-Suisun Unified School District said in a statement.
Police plan to hold a news conference Monday at 4 p.m. to discuss the case and arrest.
Fairfield is a Northern California city about 40 miles northwest of San Francisco.
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