Blogging Bayport Alameda

March 15, 2016

Makers mark

Filed under: Alameda — Lauren Do @ 6:05 am

Another really interesting and exciting concept for one of the old spaces at Alameda Point is on the agenda at tonight’s City Council meeting.  From the staff report:

Alameda Point Redevelopers (APR), an experienced master developer of multi-tenant small industrial and creative “maker” spaces, proposes leasing and developing Building 8 at Alameda Point. Building 8 is an approximately 270,000 square foot (sf), 3-story warehouse building constructed in 1940. The building has been vacant since decommissioning of the Naval Base (Base) in 1997, has no electricity or water and is in need of a complete re-roofing. The multiple stories, size and condition of the building has prevented the City from finding tenants with sufficient resources and experience to make the significant investment to bring the building up to code and make it marketable to potential tenants. APR has a vision for making the building an enterprising, multi-tenant entrepreneurial and creative “maker” space that is comparable to their other projects in the Bay Area.

One of the principals recently completed a project in Berkeley: Berkeley Kitchens (tour) and was able to secure a letter of recommendation from the Mayor of Berkeley.

Here’s the size of the investment they’re considering and the scale of the project:

Like many buildings at Alameda Point, Building 8 is reported to have lead based paint (LBP), asbestos containing material (ACM), fluorescent light fixtures containing suspected PCB-containing ballasts and mercury-containing light tubes.  APR anticipates investing up to $20 million in abating these hazards, fixing the roof, installing electricity and water, and delineating the building for occupancy by multiple small-scale “maker” tenants.

APR’s vision is to divide the building into spaces of varying sizes, allowing individual businesses to find a home as a start-up, and then grow to scale in a supportive environment. Potential uses for Building 8 include light manufacturing, work-live spaces, and workshops for artisans, craftspeople, design professionals, administrative / office uses along with accessory uses to support the community including cafes, restaurants, galleries, and ground floor retail accessible from the exterior facades.

As with the other leases there is an option to purchase the building, here are the details:

The APR lease also includes a purchase option with an option price of $10.3 million. Staff believes a purchase option is warranted in this case because of the significant investment needed in the building coupled with the development of additional small, creative spaces, enabling entrepreneurship and creating jobs. …Additionally, APR plans on investing approximately $20 million in Building 8, which is a significant investment that would unlikely be possible without the security of a purchase option.  The project is backed by a qualified, single investor ready to rapidly realize the potential of Building 8. The City does not otherwise have the funds to invest this level of improvement into Building 8 without private owners and users that have access to private capital.

City staff and its leasing agent, Cushman & Wakefield, believe that the option price of $10.3 million dollars represents a reasonable market price for Building 8, a multi-story industrial building in poor condition that cannot be occupied without significant upfront investment. Assuming a typical 50 percent building to land coverage ratio, the 90,000 square foot building footprint on the 173,369 square foot parcel results in a coverage ratio of 51.9%. Therefore, we do not believe that there is any additional land area being delivered with the building that should be accounted for in the valuation. The $10.3 million dollar purchase price over the 270,000-square-foot building equates to $38 per square foot, which for an atypical multi-story industrial building in poor condition that cannot be occupied without significant investment is a reasonable market price. Class C single-story manufacturing/warehouse space that can be occupied is estimated at a range of $53 to $70 per square foot (Exhibit 3). It is very difficult to obtain exact comparable sales for multi-story buildings in similar poor building and infrastructure condition as Building 8.  It is highly unusual for industrial buildings to be multi-story as industrial buildings are typically single-store buildings.  If the purchase price of $10.3 million is spread over just the first-floor square footage of 90,000 square feet since this is the most usable and marketable directly comparable type of industrial space, the price per square foot is approximately $114 per square foot.

These are exactly the kind of projects — along with the others that have been recently approved — that we’re supposed to be waiting for.  Hopefully this one gets approved quickly without too much push back.

Advertisements

11 Comments »

  1. Maker’s Mark is drinkable but utterly forgettable– the Toyota Camry of bourbon.

    Comment by dave — March 15, 2016 @ 7:10 am

  2. 1: Maker’s Mark bourbon is one of the options we use to make very memorable pumpkin pies at the holidays, however, and “drinkable” is sometimes an achievement with many types of liquor.

    Comment by Jon Spangler — March 15, 2016 @ 7:53 am

  3. Maker’s is sweet and has a significant vanilla quality to it so I can see how it would make a pie. Maybe try Maker’s 46 next time. It still has the vanilla & sweet but also has a bit more body and teeny bit of barrel spice, more satisfying to sip while the pie is in the oven.

    Comment by dave — March 15, 2016 @ 8:07 am

  4. hard liquor is not sweet because all of the sugar is eaten by the yeasts

    Comment by Floyd — March 15, 2016 @ 8:40 am

  5. I struggled to eke out a C in chemistry so I can’t speak to the yeast/sugar thing, but people who drink bourbon consider Maker’s to be on the sweet side.

    Comment by dave — March 15, 2016 @ 11:04 am

  6. Dave, what do you think of the “Breaking and Entering” Bourbon from St. Georges. ??

    Comment by John P. — March 15, 2016 @ 3:57 pm

  7. It’s different, in a good way. They bought barrels from a few different KY producers and blended them here. When you blend different flavor profiles you get something unique. It seems like there’s some Beam & Wild Turkey in the mix but hard to say for sure.

    Comment by dave — March 15, 2016 @ 4:11 pm

  8. dave smirnoff ice is yeastless that is why it taste sweet.

    Comment by Floyd — March 15, 2016 @ 5:39 pm

  9. oh great…bourbon snobs

    Comment by vigi — March 15, 2016 @ 5:45 pm

  10. …..just like when Woodford County leased the old Labot and Graham distillery to Brown Forman on condition that they rehab it in timely fashion

    Comment by MP — March 15, 2016 @ 6:53 pm

  11. Well played, sir.

    Comment by dave — March 15, 2016 @ 7:41 pm


RSS feed for comments on this post.

Say what you want

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Create a free website or blog at WordPress.com.