Blogging Bayport Alameda

October 29, 2013

The finalist countdown

Filed under: Alameda, Alameda Point, City Council — Lauren Do @ 6:09 am

Okay, tonight.  Next Tuesday, sorry folks totally jumped the gun on this one.  City Council.  Big brouhaha is going to be over the consideration of who to hire to lease and property manage Alameda Point.  Right now PM Realty is the current leasing and property management company.  There has been some criticism about PM Realty that they aren’t aggressive enough when it comes to leasing and that’s why there’s been so much vacancy out there.   I don’t know if that is necessarily true or not because you also hear about how previous City Managers wouldn’t let long term leases be executed because of future development and seriously the infrastructure is pretty crappy out there so you’ve already severely limited your pool of prospective tenants.

Any who, the big brouhaha is not that this is happening but who the finalists are.   So first finalist is PM Realty who is now partnering with Cushman & Wakefield which is a pretty large scale commercial real estate company so they should be able to bring a lot of contacts to that relationship.   In fact the lead for the PM Realty and Cushman & Wakefield team will be a guy who brought VF Outdoor to Alameda as well.   The second finalist is California Capital Investment Group (CCG) better known as Phil Tagami.   For those that are not familiar with Phil Tagami he’s a pretty big deal developer type guy in Oakland.  He’s big into Historic Renovation type projects the significant ones in Oakland are the Fox Theatre and the Rotunda Building.   His company is also going to be developing the Oakland Army Base as well.

These two companies beat out two other companies for the finalist spots, the other two were local operation Gallagher and Lindsey and Colliers International with Mission Bay Development Group.   I was actually interested in why that group didn’t get one of the final two nods since Mission Bay has done an amazing job leasing out spaces.

Anyway, now it’s a choice between these two companies.   PM Realty had the higher overall score (90) and CCG was lower (76).   Here’s a good table detailing the strengths and weaknesses of both teams:

Screen Shot 2013-10-28 at 3.35.21 PM

I find it weird that being the incumbent is a weakness, but whatever.  So here’s an interesting part of the staff report that was included in bold:

It is important to note that any team that is selected for leasing and property management will be in a position to operate as City staff members.  As such, the selected team will have to adhere to conflict of interest laws which will prevent them from involvement in leasing, acquiring or developing the City’s properties for their own benefit.  The Management Services Contract will explicitly state this restriction.

Which appears to be preempt complaints that because Phil Tagami is a well known developer this is just to circumvent the process of having to produce an RFP to develop each parcel and having to bid on each parcel individually.

Honestly to me, I don’t really care who leases and property manages Alameda Point I’m sure either team could do the job. Although I do kind of feel like the incumbent company should be given a chance to do the job given that they had been working with their hands tied for so long and they still managed to bring some really neat companies to Alameda Point.   Now that that some of the limitations have removed maybe they will actually be able to bring more companies to Alameda Point.   Maybe have both companies work on the leasing component for a while and renew the contract with PM Realty for just the property management portion as the staff report says they do a really good job with that and let CCG and Cushman and Wakefield compete to lease up the buildings.   Just a thought.

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8 Comments

  1. As a tenet of the Point, I have first hand experience with PM – they have no interest in Small Business. Where hundreds of small businesses could be brought to the Point, there is absolutely no interest in dealing with any smaller spaces. Under the PM watch, the remaining building have been rendered useless.

    Are you aware that these remaining unoccupied buildings are stripped of Copper Wire? They sit empty because of the prohibited costs of getting them to occupancy and lack of terms for leasing that would allow the tenet to do such. If the roof leaks, you can’t get a lease long enough to justify fixing it; if the entire electrical system is missing, you have to replace it to current Building Codes.

    The Commissary is a good example – completely stripped of wire clear out to the street. Thieves are stripping the Class A Alameda Aerospace building now, gaining entry through the roof. There is a reason so many buildings are unoccupied – it wouldn’t matter that two companies are available to lease these buildings.

    A solution is to Birdnest a small business into these building for the inherent security, but there is no partial leasing of a building. You have to rent the entire building – look at Warehouse 169, the National Park Service Archives were moved because of the potential for Berkeley Labs, and now it sits empty. Soon to be stripped.

    Phil Tagami is dedicated to the community, I know his work extends far beyond what is apparent. Are you aware of the Oakland School of the Arts that is in the Fox Theater? Do you know how Phil arranged for the revenue from the video billboards at the foot of the Bay Bridge to pay for that school? His abilities are very good, he is small business friendly, and his political reach is far better than the other canidates.

    However I do believe that CCG was involved with the former master developer for the Historic Buildings on the Point.

    Comment by Bart — October 29, 2013 @ 7:24 am

  2. I like Cushman & Wakefield — and the VF Outdoor Campus they brought to Alameda. It was a good move on PM Realty’s part to bring in Cushman & Wakefield – they bring a fresh perspective to the project and some great leasing experience.

    I also like the fresh perspective that CCG would bring to the project as well as their extensive Adaptive Re-use experience. Phil Tagami has a great portfolio of historic properties that he’s developed – a good resume for the Historic District at Alameda Point.

    These are two really great choices!

    Comment by Karen Bey — October 29, 2013 @ 11:46 am

  3. Except it’s not “tonight”. Unless the City Calendar is wrong, this meeting is Nov 5.

    Comment by vigi — October 29, 2013 @ 11:58 am

  4. Ack! You’re right. Correction made.

    Comment by Lauren Do — October 29, 2013 @ 1:25 pm

  5. Thank you so much for posting this item and thank you for digging into the staff report. There is so much momentum now at Alameda Point. As a follow up, the staff report also talked about how, of the nine “turn key” leasable spaces at Alameda Point, the City is currently in negotiations for seven of them, including companies such as Google. Through continual outreach and hard work by the PMRG team the current occupancy at Alameda Point is 87% of leasable space (not including the pending deals mentioned) and tenant renewals are 99%; that percentage alone speaks to our tenants’ satisfaction levels.

    There are now 80 companies here at The Point, with over 1,100 employees which pay the City of Alameda nearly $11 million a year in rent. These employers are as diverse as Google X companies, Tesla Motors, St. George Spirits, and Bladium Sports. Within the last 12 months alone PMRG has completed 31 lease deals, including 16 new deals and 15 renewals.

    As far as comment #1, here are a few thoughts. The leasing and management use of buildings are city (i.e., Landlord) decisions based on economics; a balance of how and where to spend wisely now while holding property to maximize future use and value. The role of property management is to take direction from the city to help execute its plans and vision. As for security, there is an extensive network of security systems as well as 24 x 7 security staff. Property management staff responds to these alarms 24 hrs/day literally hundreds of times a year, working closely with both Alameda Police and Fire Depts on incident response.

    Hope to see everyone tomorrow for the Bike Ride!

    Comment by Stacey McCarthy — November 1, 2013 @ 3:44 pm

  6. I wonder if those tenants at the Point realize their spaces are at the mercy of San Francisco Politics. I did not realize it myself and almost choked on my blueberry/banana/pineapple smoothie at lunch time as I was reading today’s SF Examiner freebie my wife picks up daily in order to do the crosswords.

    Glenn Dickey, whose been around the sports scene in SF since Gaylord Perry was a rookie, wrote a column today titled “Warrior’s arena is built on some big egos” (if anyone knows something about big egos, Dickie’s the guy). Dickie excoriates Mayor Lee for even thinking about building what Lee calls his “legacy project” which is a new Warrior’s arena and is a big, big project on and around SF Piers 30-32. But it’s not really the egos that Dickie is concerned about, it’s this…and I quote, “I believe this is a bad idea for several reasons. One is that a huge amount of concrete will have to be poured into San Francisco Bay in order to provide support, raising the water level for a city that is threatened by the potential of rising water with climate change.”

    So, Point tenants and Alameda residents in general, stop the south shore beach sand replacement because some of it will no doubt get in the Bay and raise the water level. Instead of having debris pickup day on the beach we need a ‘grab your shovel’ day and have everyone go knee deep into the water and shovel some holes so the water level will go down.

    Comment by Jack Richard — November 1, 2013 @ 5:59 pm

  7. Inquiring minds want to know, what was the outcome of this item at City Council? It went on past my bedtime. I did tune in to see Phil Tagami (who I think has done a wonderful job in downtown oakland and the oakland army base) give a long convoluted non definitive answer to a straightforward question from Council Member Ashcraft.

    Comment by notadave — November 6, 2013 @ 10:53 am

  8. PM Realty got the gig again. All five votes.

    Comment by Lauren Do — November 6, 2013 @ 10:55 am


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