Daily Business Report, Sept. 11, 2009
Procopio law firm to become dominant tenant at 525 B Street
The Downtown law firm of Procopio, Cory, Hargreaves & Savitch will relocate to Hines’ 22-story office building at 525 B Street next May and take over the building signage currently held by Reed Elsevier. The company, which has been at 530 B Street for more than 40 years, will occupy the top four floors of the building, an additional high-rise floor as well as lower floor space for a total of more than 100,000 square feet. Hines signed the law firm to a long-term lease, which becomes effective May 1, 2010. The company says it will be the only law firm in the Downtown market with premier building top signage. “525 B Street presented the best value proposition to the firm,” said Tom Turner, managing partner of Procopio. “This relocation offers Procopio strong visibility, generous parking, improved space efficiency and operational effectiveness in a building positioned at the forefront of the sustainable office movement.”
The firm’s decision to move was partly due to its commitment to sustainability and its pursuit of LEED certification, which the building should attain by year end, according to Turner. It will give Procopio the opportunity to incorporate new design and technology features such as a roof-top meditative garden, solar panels that will power the firm’s lighting and a skylight that will allow natural light to penetrate all top floors through an innovative stairway.
“We’re thrilled to have such a prominent and prestigious firm select 525 B Street as its new home,” said Paul Twardowski, Hines’ v.p. and partner in San Diego. “We look forward to a wonderful synergy between Hines’ focus on implementing green real estate practices and Procopio’s own goals to continue its growth in a sustainable manner.” Procopio was represented in the transaction by Craig Irving of Irving Hughes and Hines was represented by Matthew T. Carlson of Cushman & Wakefield.
Sale of single-family and detached homes declined in August
Single-family home sales in the county in August declined by 12.2 percent from July and detached home sales decreased by 9.6 percent over the same period, the San Diego Association of Realtors reported. Median prices continue to rise and are at an increase for the fifth straight month. The median price in August was $375,000 for single-family homes and $226,575 for condos/townhouses.
While Augusts’ sold listings were at a slight decrease from last month, there were still more than 2,600 properties sold and at a quicker speed than seen in the past. Properties averaged less than 70 days on the market. “These numbers accurately reflect what Chief Economist for NAR, Lawrence Yun forecasted at this month’s regional real estate summit,” says Erik Weichelt, 2009 SDAR president. “At the summit, Yun shared his prediction that our local market was on a slow and steady upward swing and these numbers clearly support that prognosis. With less than two months of housing inventory currently on the market, and an influx of new buyers as a result of the $8,000 tax credit, it is only natural that the median price will be at an increase and the market will see improvement.”
Total Sold Listings Comparing August 2009 to July 2009
• Detached: 12.2 percent decrease
August 2009 = 1,687 July 2009 = 1,922
• Attached: 9.6 percent decrease
August 2009 = 935 July 2009 = 1,034
Median Sales Price Comparing August 2009 to July 2009
• Detached: 1.0 percent increase
August 2009 = $375,000 July 2009 = $371,000
• Attached: 7.8 percent increase
August 2009 = $226,575 July 2009 = $210,188
Total Sales Volume Comparing August 2009 to July 2009
• Detached: 11.4 percent decrease
August 2009 = $809,609,684 July 2009 = $913,388,080
• Attached: 5.0 percent decrease
August 2009 = $254,967,554 July 2009 = $268,380,240
Homeland Security signs lease renewal and expansion
The Department of Homeland Security has signed a five-year lease renewal and expansion totaling 44,760 square feet of office space at 610 West Ash St. in Downtown San Diego. Financial terms were not disclosed. The building is a 19-story, 178,000-square-foot high-rise. Pascal Aubry-Dumand of Cushman & Wakefield along with Ron Miller of Cresa Partners represented the lessor, Glenborough, West Ash LLC. Department of Homeland Security, which represented itself, now occupies suites 800, 900, 912, 1000, 1200, 1501 and 1600.
Carlsbad industrial property sold
Proflight LLC, a flight training company, has purchased a 6,333-square-foot R&D/industrial property in the Bressi Ranch Corporate Center in Carlsbad. The two-story industrial condominium building is located at 6144-6146 Innovation Way. Palomar Airport Road LLC is the seller, who was represented in the transaction by Bob Willingham, Joseph Crotty and Jim Karlovsky of Coldwell Banker Commercial. Michael Mahoney of Colliers International represented the buyer.
KMA designed modifications for Carlsbad-based company
Alphatec Spine Inc., a Carlsbad-based medical device company that designs, develops, manufactures and markets products for the surgical treatment of spine disorders, moved its existing corporate offices to more technologically-equipped and energy-efficient buildings that were designed by KMA Architecture & Engineering. Construction for the $2 million renovation project was completed in August. “In designing the Alphatec Spine buildings, we have been able to capitalize on our company strength of developing sustainable, high performance buildings,” said KMA principal Tim Rubesh. “The buildings’ renovations, which are scheduled to be completed in several phases, will help consolidate the company’s operations.” Alphatec Spine’s corporate offices and laboratories, as well as research and development and manufacturing departments, moved from four separate buildings to two existing contiguous buildings that were modified to meet the needs of each department. The two-story buildings, owned by H.G. Fenton, are located at 5818 and 5830 El Camino Real and are 76,887 square feet and 72,129 square feet, respectively. Building renovations planned by KMA included incorporating natural daylighting, energy-efficient lighting, new mechanical systems and finishes for a variety of high tech equipment and machinery.
The KMA project team includes Rubesh, Bill Karrasch and Antonio Rey. KMA is also providing the electrical engineering team, including Jay Janda, Pedro Van Den Eeden and Ronel Capili, and the mechanical engineering team, including Jim Belmont, Billy Jennings and Laura Van Horn. Lyons Warren is the structural engineer, Johnson & Jennings is the general contractor and Haynac & Co. are the Title 24 consultants.
Amylin and Biocon Limited to collaborate on diabetes research
Amylin Pharmaceuticals Inc. and Biocon, Limited have agreed to collaborate on a plan to jointly develop, commercialize and manufacture a novel peptide therapeutic for the potential treatment of diabetes. The companies will share development costs and the research will center on Amylin’s “phybrid” technology. A phybrid is a peptide hybrid molecule that combines the pharmacological effects of two peptide hormones into a single molecular entity. Under the terms of the agreement, Amylin will provide expertise in peptide hormone development, particularly in the area of phybrid technology, as well as metabolic disease therapeutics. Biocon, located in Bangalore, India, will utilize its expertise in recombinant microbial expression to manufacture the compound and also leverage its experience in preclinical and clinical development of diabetes products. “This program could unleash the potential of cutting-edge peptide science to transform the lives of patients with diabetes,” says Daniel M. Bradbury, president and CEO of Amylin.
Port District unveils a new set of ‘Urban Trees’
Urban Trees, the popular public art project that the Port District started in 2003, has a new set of artistic sculptures. On Saturday, Sept. 12, the Port will officially dedicate them at a 10 a.m. ceremony in front of the B Street Cruise Ship Terminal, 1140 North Harbor Drive. The event will feature entertainment, refreshments and the “Urban Trees Challenge” contest where participants can win prizes for answering questions related to the Urban Trees 6 artworks.
This year’s exhibit of Urban Trees is diverse and creative. There isn’t a common theme and each tree is unique. There are abstract sculptures that have nothing arboreal about them. There are some that resemble old industrial machines, and some that are sleek and shiny. Some of them relay messages about protecting the environment and protecting the ocean. Others are simply fun and lighthearted. A giant box of popcorn overflows with oversized baby chicks. A couple of feet away, a giant tuning fork with wavy branches points out toward the sea. Just a few yards from that, three spotted frogs frolic up a game board that swirls to the sky.
The Port’s Public Art Committee picks 30 of these to be made into life-sized sculptures that would be exhibited on the north embarcadero of San Diego Bay for a period of one year. Artists are given a base and a pole to serve as the tree’s “trunk” and are given a stipend of $2,500 to use for materials. The artists can choose any type of materials to fasten to the pole and base to create their trees.
“Urban Trees 6 promises to be just as innovative as our past exhibits,” said Yvonne Wise, who oversees the Port’s public art program. “The project really contributes to the uniqueness of our bay front and helps to brand it as a destination.”
Federal contracts awarded to San Diego County companies
• Professional Plastics Inc., San Diego, won a $202,000 federal contract from the U.S. Army Materiel Command, Rock Island, Ill., for CPVC pipes.
• Science Applications International Corp., San Diego, won a $109,948 federal contract from the U.S. Army Contracting Agency, South Region, Fort Stewart, Ga., for an Annual Installation Antiterrorism/CBRN Exercise.
• Proteus Dimensional Technologies, Vista, won a $400,000 federal contract from NASA’s Langley Research Center, Hampton, Va., for custom models of the lunar electric rover.
• Kevcon Inc., Escondido, won a $350,000 federal contract from the U.S. Veterans Affairs Department’s Northwest Health Network, Vancouver, Wash., for the repair and upgrade of a nurse call system for patient safety under the American Recovery and Reinvestment Act. Place of performance will be in Roseburg, Ore.
• MRO Warehouse Inc., El Cajon, won a $49,410 federal contract from the U.S. Department of Justice’s Bureau of Alcohol, Tobacco and Firearms for a Greenlee CS-8000 circuit seeker tracer.
• BAE Systems San Diego Ship Repair Inc., San Diego, won a $508,886,937 federal contract from the U.S. Naval Sea Systems Command, Philadelphia, for the modification of equipment.
• WEST Consultants Inc., San Diego, won a $304,799.23 federal contract modification from the U.S. Army Corps of Engineers, Sacramento, for the preliminary design for the Oxbow Pump station under the American Recovery and Reinvestment Act. Place of performance will be in Napa River, Calif.
• Illumina Inc., San Diego, won a $129,886.60 federal contract from the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention, Atlanta, Ga., for lab supplies.
(Source: Targeted News Service: www.targetednews.com)
Forensic Imaging & Archiving introduces new division
San Diego-based Forensic Imaging and Archiving has launched a new division — Aeronautical Forensic Archiving (AFA) — to photographically document aircraft inspections, maintenance and/or repairs. AFA creates a permanent archive of an aircraft’s history to increase confidence and help retain market value for the owner, leasing entity, insurance and/or finance company. The service adheres to the manufacturers specifications to maximize safety and confidence in the aircraft. AFA contracts with an aircraft-specific photographer for each project to insure all squawks and subsequent recommendations are visually verified, justified and documented with detailed notes, high quality photographs and relevant information through a patented online system. Over time, AFA documentation identifies trends or wear patterns as they develop, leading to a safer aircraft and a solid investment. “I’m very impressed with the technology and method of delivery employed by AFA,” said Tom Hannawa, president/chief instructor of the American Aviation Academy. “This service can potentially save lives and countless sums of money.”
AFA President David A. Blackburn, an aviator, discovered the benefits of Forensic Imaging and Archiving for aircrafts when he upgraded to a more complex airplane. By entering the pre-buy inspection points for his aircraft into the software originally used by FIA to prevent construction defects and cost overruns, Blackburn improved his knowledge and verified the value of the aircraft. The software identified every section of the aircraft and listed points of inspection required for the inspection. The photographs, capable of being enlarged 300 percent, made even the twists in safety wire twists visible. Realizing the FIA system worked for his own aircraft, the AFA division was launched using software to accept the Manufacturers Inspection Checklist for any aircraft. Using the inspection criteria out of the manual, AFA captures a picture for every point of the pre-buy inspection. The software
SD East County Chamber of Commerce chooses 2010 leadership
Four new local business leaders and six familiar faces will be joining and re-joining the ranks of the board of directors of the San Diego East County Chamber of Commerce in 2010. New to the board will be Al Silva, principal of Life Investors Corp.; Dee Deane, owner and publisher of The East County Herald; Evonne Darby, hotel sales manager at Barona Valley Ranch & Casino; and Guy Gonzales, principal of Western Financial Planning Corp. Returning to the board for their second term are Renae Arabo, an independent business consultant; Newell Bowen, owner of Bowen Printing Inc.; Les Hart, community relations, Waste Management Inc.; Doug Murphy, owner of Murphy’s Creative; and Anita Norton, director of marketing and community development for Sycuan Casino.
How to avoid the Bernie Madoffs of the world
“Catch Me If You Can: Understanding Fraudulent Behavior,” is among the classes being offered by the Osher Lifelong Learning Institute at SDSU’s College of Extended Studies during the fall. The class will be held Wednesdays, Oct. 14 through Nov. 4, from 9 to 10:50 a.m. in the SDSU Extended Studies Center. The fall schedule also includes a new Network Lounge, where attendees may linger longer after class to further discuss what they have just learned. The lounge is open each Friday from 9 to 11 a.m. throughout the semester. Also this fall are courses titled “Dancing with the Stars: Astaire, Kelley, and Fosse”; “An Illustrated History of World War II”; and “The Politics of Human Rights in a Global Era.” For more information, call (619) 594-2863 or visit www.neverstoplearning.net/osher.
Correction
In San Diego Metropolitan magazine’s September issue, Carl Kukkonen, one of the 40 Under 40 Award winners, was incorrectly identified as a founding partner of the law firm of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC. Since the firm is more than 70 years old, that is obviously wrong. Kukkonen is actually one of the founding partners of Mintz Levin’s San Diego office. We regret the error.
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