Daily Business Report — Dec. 4, 2009
Sales of Businesses Decline in San Diego County
The 91 small and mid-sized businesses that changed hands in the county last month represent a 30 percent rate decline from the 130 deals recorded in November 2008, and the 129 closed escrows in October 2009, according to figures released by BizBen.com — Small Businesses for Sale in California.
“The same uncertainty that impacts the economy as a whole is affecting entrepreneurs in San Diego County,” said Peter Siegel, founder and CEO of BizBen.com. “But I know the county’s business buyers and sellers — as well as its business brokers — are creative and determined, and I expect we’ll see improvement in activity in the months ahead as people figure out how to get business done in this difficult environment.”
Half of the county’s sales (45) involved businesses in the city of San Diego, and six were sold in Escondido. There were four closed escrows each in Chula Vista, Rancho Santa Fe and La Mesa.
Siegel noted that only 954 deals closed statewide in November 2009, a 22 percent slide from the 1,220 completed transactions recorded the same month in 2008. There are about 710 businesses for sale in the county, said Siegel.
Totals of completed small business sales this year in San Diego County are: Bonita: 8; Carlsbad: 41; Chula Vista: 65, Del Mar: 11, El Cajon: 78, Encinitas: 22, Escondido: 83, Fallbrook: 17; La Mesa: 49; Oceanside: 62; San Diego: 578; Santee: 34; Spring Valley: 26; Campo: 1; La Jolla: 33; Lakeside: 6; National City: 33; Poway: 28; Alpine: 9; Pauma Valley: 5; San Marcos: 20; Vista: 21; Bonsall: 1; Julian: 1; Ramona: 6; Riverside: 2; Solana Beach: 11; Coronado: 6; Descanso: 3; Imperial Beach: 7; Jamul: 5, Lemon Grove: 8; Ranchita: 2; Borrego Springs: 2; Boulevard: 1; La Costa: 1; Cardiff By The Sea: 1; and Rancho Santa Fe: 4.
New Program Seeks to Get Small Contractors More City Business
Mayor Jerry Sanders and Councilman Tony Young announced a new campaign to engage more small contractors in doing business with the city.
“Small businesses form the backbone of San Diego’s economy and we’d like to make it easier for small contractors to take advantage of opportunities on city public works projects,” said Sanders. “San Diego has plenty of work for small contractors — plumbers, electricians, landscapers, concrete contractors, environmental monitoring firms and other construction trades.”
During the next six months, the city plans to put out bids on nearly $18 million worth of contracts that are under $1 million. A new Website was created (SDSmallContracts.com) aimed at reaching contractors for jobs under $1 million.
The new Website provides a list of bids on smaller public-works projects, offers a preview of upcoming bids and allows bidders to check on results. Contractors also can learn how to become a registered vendor with the city and pre-qualify for contract bids. It also offers assistance for small contractors in navigating the government contracting terrain so they can bid successfully.
Among the new resources the city offers is a direct line to the U.S. Small Business Administration’s financial and technical assistance on bonding and other requirements that sometimes discourage small contractors from pursuing government contracts.
“The city of San Diego is committed to inclusion and contractor diversity, so we’re making every effort to break down the barriers that prevent small contractors from bidding on city projects,” said Sanders. “Engaging more small contractors also will help the city achieve our goal of more inclusive contracting and help our economy recover.”
Family Trust Purchases Industrial Building for $7.4 Million
The Chang Family Trust has purchased the 45,496-square-foot industrial building located at 6640 Cobra Way in San Diego for $7.4 million. Built in 1997, the building was previously occupied by Randall K Designers Express Inc. Chang Family Trust owns and operates American Electronic Materials Inc. and will move the company headquarters into the Sorrento Mesa building. Dean Asaro of CB Richard Ellis represented the buyer. Bill Cavanagh and Bryce Aberg of Grubb & Ellis/BRE Commercial represented the seller, Randall S. Koch.
Employment and Labor Law Seminar Set for Dec. 14
Best Best & Krieger LLP will hold its free annual labor and employment update seminar from 8:30 a.m. to noon on Dec. 14 at the Hilton San Diego Mission Valley, 901 Camino del Rio South. The breakfast seminar will include presentations by BB&K Labor & Employment Group attorneys on new legislation and employment case law, as well as a question and answer period. Seminar topics include “Coping With Cuts — Legal And Practical Tips” and “Facebook Faux Pas And My Space Mishaps,” and the “Annual BB&K Legal Update.” Reservations are required by Dec. 7. Contact Kathleen McNeill at (949) 263-2601.
ACG Meeting to Explore Clean Tech
Investing in clean technology will be the focus of the Dec. 15 meeting of the San Diego chapter of the Association for Corporate Growth. Guests will explore the economics of the solar energy sector, the availability of capital and private equity considerations. The breakfast meeting will be from 7 to 9 a.m. at the Doubletree Hotel Hazard Center, 7450 Hazard Center Drive, San Diego. Shelly McGuire of BDO Seidman will moderate discussions with Aaron Hall, president of Borrego Solar; Bruce Deming, partner in the corporate group of Covington and Burling’s San Francisco office; Jasandra Nyker, a senior vice president at PCG Asset Management; and Craig Nelson, a senior vice president and corporate banking manager at Torrey Pines Bank. Admission is free for ACG San Diego members and $50 for nonmembers. To make reservations, visit acteva.com/go/acgsd.org. For more information, call (619) 741-7247.
General Atomics Gets Aircraft Carrier Work
General Atomics Electromagnetic Systems has been awarded a $675.2 million contrat by the Naval Air Systems Command in Maryland for the production of the Advanced Arresting Gear and the Electromagnetic Aircraft Launch System (EMALS) for the aircraft carrier CVN 78, to be christened the USS Gerald R. Ford. Both systems will be installed on CVN 78, now in the early stages of construction at Northrop Grumman’s shipyard in Newport News, Va. EMALS is the electromagnetic catapult launch system replacing the steam catapults used on prior generations of aircraft carriers. The Advanced Arresting Gear is a turbo-electric system that replaces the existing Mark 7 mechanical aircraft recovery system. The work will be performed in San Diego and other various locations across the United States and the contract will complete in fiscal 2014.
Former Mesa College Coach Wins Bias Lawsuit
Lorri Sulpizio, former coach of the women’s basketball team at San Diego Mesa College, has won a favorable verdict from a California State Court jury from a lawsuit she filed in July 2008 against the San Diego Community College District. The jury awarded $28,000 — the equivalent of one year’s salary — in damages, finding that the district had retaliated against Sulpizio when she complained that Mesa engaged in gender inequities in violation of Title IX, a federal statute that prohibits discrimination based on sex in any education program or activity receiving federal financial assistance in the United States. Sulpizio, who claimed she was fired by the district after she complained, was represented by the National Center for Lesbian Rights, Leslie Levy of Boxer & Gerson LLP, and Mattheus E. Stephens of Stock Stephens LLP. “This is a victory for the student-athletes who work so hard to succeed on the court and in the classrooms,” said Sulpizio. “They deserve nothing less than fair and equal treatment. I remain committed to Title IX and ending gender discrimination in sports, and this verdict inspires me to continue working for equality.”
BOMA Honors 9 Properties for Excellence
The San Diego Building Owners and Managers Association has presented TOBY Awards to nine local office properties for excellence in commercial real estate for 2009. Each of the properties was named Office Building of the Year in a particular category. There were nine categories. The theme for this year’s competition, “Salute to the Skyline,” highlighted prominent properties in San Diego.
This year’s TOBY Award recipients:
• Waples Research Center, managed by Thomas Felter of BioMed Realty Trust in the Under 100,000 Square Feet category.
• Nobel Executive Center, managed by Barbara Puccio of CB Richard Ellis in the 100,000 to 249,999 Square Feet category.
• 550 Corporate Center, managed by Carrie Petro of CB Richard Ellis in the 250,000 to 499,999 Square Feet category.
• Columbia Center, managed by Carlos Alvarez and Chris Cooper of Sentre Partners Inc. in the 500,000 to 1,000,000 Square Feet category.
• 450 B Street, the Bank of America Building, managed by Cathy Houck of Colliers International in the Renovated Building category.
• Paseo De Mission Hills, managed by Nick DiMeglio of Witt Properties in the Historical Building category.
• BioMed Realty Trust Inc. Headquarters managed by Peggy Schackne and Thomas Felter of Biomed Realty Trust in the Corporate Facility category.
• Kilroy Centre Del Mar, managed by Kathleen Bristol and Anna Orlando of Kilroy Realty Corp. in the Suburban Office Park-Low-Rise category.
• Kilroy Sabre Springs, managed by Cheryl Castrence of Kilroy Realty Corp. in the Suburban Office Park-High-Rise category.
Shea Homes San Diego Records Busy November
Shea Homes San Diego said it closed 59 new homes during November, to date the busiest month for the new home builder. The company started construction on 40 new homes around the county during that same month.
As of Nov. 30, Shea Homes reported 227 net new home sales and 155 homes closed.
Mission Federal’s Tricia Link Receives National Award
Tricia Link, vice president of community relations and external affairs at Mission Federal Credit Union, has been named 2008-2009 Community Relations Professional of the Year in the annual PR News PR People Awards. Winners were announced at the National Press Club in Washington D.C. According to PR News, this was the most competitive field of entries to date, with more than 1,000 nominations from global and national companies. Link and Mission Federal were the only winners from a non-national or global, locally-based company, and the only credit union represented.
During her tenure at Mission Federal, Link has created and implemented several community outreach campaigns, including: the national and international award-winning “I’m Thankful for My Teacher” campaign, the Padres Community Home Run Challenge, Mission Possible Star 94.1 Community Outreach of Care radio and Web campaign, Mission to Educate KPBS radio and TV campaign, San Diego Zoo social media click-through campaign, groundbreaking Mission 4 R Schools donation campaign, the Mission Federal Memory Walk held in Balboa Park every October to support Alzheimer’s awareness, education and research, the Mission Federal ArtWalk and Mission 4 ArtReach companion initiative, held every April in San Diego’s Little Italy community, and the inaugural Mission 4 Monarch School holiday gift card donation drive in Mission Federal’s 22-branch network.
FEDERAL CONTRACT AWARDS . . .
• Northrop Grumman Systems Corp. in San Diego was awarded a $10,640,071 federal contract by the U.S. Air Force’s 303rd Aeronautical Systems Squadron Contracting Flight, Wright-Patterson Air Force Base, Ohio, for engineering, manufacturing and development activities in support of the Global Hawk Program.
• Professional Maintenance Systems Inc. in San Diego won a $102,600 federal contract from the U.S. Naval Special Warfare Group 1, San Diego, for recreational aides.
• Valley Power Systems Inc. in San Diego won a $25,000 federal contract from the U.S. Naval Sea Systems Command, San Diego, for the overhaul of Detroit Diesel propulsion diesel engines.
• Propulsion Controls Engineering in San Diego won a $25,000 federal contract from the U.S. Naval Sea Systems Command, San Diego, for the overhaul of Cummins brand propulsion diesel engines.
• Syzygy Technologies Inc. in San Diego won a federal contract valued at up to $5,771,000 from the General Services Administration’s Federal Acquisition Service, Auburn, Wash., for professional engineering services.
• Primetrica Inc., dba Facts Online in Carlsbad, won a $22,700 federal contract from the U.S. Federal Communications Commission’s Office of the Managing Director for TeleGeography Research database services.
(Source: Targeted News Service)
NEW LEASES . . .
• Terra Costa Consulting Group Inc. leased 5,500 square feet of office space for eight years at 3890 Murphy Canyon Road, Suite 200, in San Diego, from Olympia Plaza LLC for $904,577. Andrew Ewald and Bob Kuzman of Grubb & Ellis|BRE Commercial represented the lessee in the transaction. Derek Applbaum of Cushman & Wakefield represented the lessor.
• Subway Development of San Diego LLC leased 1,279 square feet of retail space for five years at 101-197 S. Las Posas Road, Suite P1, in San Marcos, from Grand Plaza LLC for $199,637. Andrew Peterson of Grubb & Ellis|BRE Commercial represented the lessee in the transaction. Bryan Cunningham of Grand Plaza LLC c/o Cushman & Wakefield represented the lessor.
• Vacation Tree leased 5,000 square feet of office space for three years at 833 Broadway, Suite 101/200, in El Cajon, from AMKLY Enterprises LLC for $145,500. Brian Jinings and Brent Williams of Grubb & Ellis|BRE Commercial represented the lessor in the transaction. Mike Conger of ECP Commercial represented the lessee.
• AER Travel Inc. leased 1,334 square feet of office space for three years, one month at 5465 Morehouse Drive, Suite 160, in San Diego, from Morehouse Office Partners LLC for $88,711. Duncan Dodd of Grubb & Ellis|BRE Commercial represented the lessee in the transaction. The lessor’s representation was not disclosed.
• S.D. Handbags leased 700 square feet of retail space for two years, two months at 4480 Camino de la Plaza, Suite F1-A, in San Ysidro, from FS San Ysidro LLC for $72,000. Mike Clark, Joe Yetter and Brent Williams of Grubb & Ellis|BRE Commercial represented both the lessor and the lessee in the transaction.
• Ocean Pointe Mental Health leased 1,185 square feet of office space for two years, two months at 2236 Encinitas Blvd., Suite C, in Encinitas, from Encinitas RSF LLC c/o ER Management Inc. for $57,803. Brooks Campbell of Grubb & Ellis|BRE Commercial represented the lessee in the transaction. Debbie McNamara of ER Management represented the lessor.
Jose’s Hosts Street Party and Contest
Jose’s in La Jolla will host a street party beginning at 10 a.m. on Sunday (Dec. 6) that will include a sanctioned World Flauta-Eating Championship set for 4 p.m. The street party will be on Prospect Avenue, which will be closed for the event. Attendees will be able to take in the La Jolla Christmas and Holiday Parade and then walk to Jose’s (at 1037 Prospect St.) for the festivities. Activities will include inflatable jumpers, carnival games, free face painting and a beer and food garden. The Jose’s World Flauta Eating Championship will award a $2,000 first prize and could become a major event on the international competitive eating circuit. Jose’s will offer $1,000 to the second place finisher and $500 to the third place eater. The event is officially sanctioned by the International Federation of Competitive Eating. Jose’s located at 1037 Prospect St in La Jolla at 4:30 p.m. For more information, call (858) 454-7655.
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