Daily Business Report-Oct. 19, 2016
San Diego Apartment Rents Keep Rising
Average San Diego apartment rents increased in September for the eighth straight month, and the rate of rent growth is still among the highest in the nation despite some moderation, according to Axiometrics, the leader in apartment and student housing market intelligence.
“Job growth continued to decline in August, so the demand for apartments is lower,” said Stephanie McCleskey, vice president of research for Axiometrics. “But job growth was so strong earlier in the year that apartments are being absorbed and rent growth remains above 5 percent.”
The average September 2016 rent in San Diego was 5.1 percent higher than the September 2015 average, and was the eighth highest rate in the nation among major markets.
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$400 Million Ritz-Carlton
Project Approved for San Diego
San Diego’s first Ritz-Carlton Hotel, a Whole Foods grocery, housing for all income groups and offices were approved yesterday. The $400 million project will be the biggest, most expensive and densest mixed-use building in the county. The San Diego Union-Tribune
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Lengthy November Ballot Creates
$1.8 Million Cost Overrun for Registrar
By City News Service
The San Diego County Board of Supervisors Tuesday approved a request by the Registrar of Voters Office for an additional $1.8 million, in part to fund election cost overruns.
Some of the money will defray higher costs of printing ballot materials, Registrar of Voters Michael Vu said. The Nov. 8 ballot will, for the first time, use two cards, which are filled front and back with elections for various offices and numerous propositions.
Vu told City News Service that the county allocated around $3.5 million on a contract with K&H Integrated Printing Solutions to handle printing and related services, but more money is needed.
The fund has dwindled over the past year and a half because of the June primary and a special election in Carlsbad, among other things, Vu said.
Along with the higher costs for next month’s election, money needs to remain on hand through the end of the fiscal year next June 30 if another special election is called, Vu said.
Such a vote would be needed if an officeholder resigns or if there is a follow-up election for a football stadium project in the event that Measure C, the Chargers downtown plan, fails next month.
The item was passed unanimously by the supervisors, without comment.
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Museum of Contemporary Art Launches
$75 Million Plan to Expand in La Jolla
Times of San Diego
The Museum of Contemporary Art San Diego unveiled plans Tuesday to quadruple exhibition space in La Jolla and officially launched a $75 million campaign to fund it.
Plans call for closing the museum in January 2017 and consolidating exhibitions at the Jacobs and Copley buildings downtown until the renovation is complete in 2020.
The campaign comes as the museum celebrates its 75th anniversary, and the 180th birthday of Ellen Browning Scripps, whose home served as the original building for the museum.
“MCSAD has been making its mark on the San Diego-Tijuana region and the international art world for 75 years,” said Hugh M. Davies, the museum’s director and CEO, at a press conference. “We stand ready to make our mark on the next 75 years.”
He said the museum has already raised $56.7 million toward its $75 million goal and engaged the New York architectural firm of Selldorf Architects for the expansion.
Rep. Scott Peters presented a proclamation and offered brief congratulatory remarks, telling arts supporters the project is “an example to the rest of us for how we can work together and make things happen.”
The museum has a 4,700-piece permanent collection of paintings, sculpture, prints, photographs, videos and installations, but most of it is in storage because of space constraints. The expansion will increase gallery space from 10,000 square feet to 40,000.
Davies is officially stepping down as the museum embarks on the expansion, and Kathryn Kanjo officially took over Tuesday as the new director and CEO.
“MCASD is a local museum with a world class collection,” said Kanjo. “We’re poised to go from a hidden treasure to a civic necessity.”
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Two Carlsbad Research Center
Buildings Sold for $5.8 Million
Two recently renovated flex buildings located in the Carlsbad Research Center have sold to an investor for nearly $5.8 million.
Alvarez & Marsal Capital Real Estate LLC acquired the pair of freestanding, single-story buildings located at 2320 and 2330 Faraday Ave. in the city of Carlsbad from PV Faraday, LLC. Aric Starck with Cushman & Wakefield’s San Diego office represented both buyer and seller in the investment transaction.
2320 Faraday consists of a 22,976-square-foot building and 2330 Faraday consists of a 17,451-square-foot building.
The seller, an affiliate of San Diego-based PacVentures Inc., had acquired the property through a note foreclosure and then completed interior work on the buildings that returned them to shell condition but with a more contemporary design plus modernized the exteriors and refreshed the landscaping—the buildings were originally developed in the 1980s. PacVentures, a San Diego based real estate investment firm, has been involved with over $1 billion in property transactions in the Southwestern United States.
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SAIC Awarded $142 Million Contract
To Support Cyberspace Operations Systems
The Space and Naval Warfare Systems Center Pacific has awarded Science Applications International Corp. a contract with a potential value of more than $142 million to provide services examining the architecture, engineering, functionality, interface, and interoperability of Cyberspace Operations systems for users within the U.S. Navy, the Marine Corps, the Department of Defense, and other government agencies. Work will be performed in San Diego.
“This award continues SAIC’s long-time support to develop, maintain, and manage DoD network systems,” said Tom Watson, SAIC senior vice president of the Navy and U.S. Marine Corps Customer Group.
Under the contract, SAIC will provide services and capabilities at the tactical, operational, and strategic levels that analyze vulnerabilities to existing networks and provide accreditation to systems to ensure compliance with DoD requirements..
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Rest Haven Children’s Health Fund
Awards $199,000 to Local Nonprofits
Rest Haven Children’s Health Fund, a foundation supporting health-related services for underserved children in San Diego and Imperial Counties, has awarded $198,983 to 15 area nonprofit agencies through its 2016 grant funding cycle.
Rest Haven has undergone a competitive request for proposal process each year since 2008, averaging $200,000 in annual giving. Over the last eight years, the foundation has awarded a total of $1,616,711 in the form of special one-time grants to 39 different nonprofit agencies who share its children’s health mission.
The 2016 grant recipients:
Emilio Nares Foundation
Family Health Centers of San Diego
Fresh Start Surgical Gifts
Grossmont Hospital Foundation
Home of Guiding Hands
Imperial Valley Food Bank
Jacobs and Cushman San Diego Food Bank
La Maestra Family Clinic Inc.
Neighborhood House Association
North County Health Services
Promises2Kids
San Diego County Breastfeeding Coalition
San Ysidro Health Center
South Bay Community Services
Vista Community Clinic
Rest Haven’s mission is to provide funds for health-related services for children in San Diego and Imperial Counties when no other funds are available.
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City Council Approves 5-Year
Operating Agreement for Civic San Diego
By City News Service
The City Council Tuesday narrowly approved a five-year operating agreement for Civic San Diego, a quasi-independent organization that assists city officials with development projects in certain parts of town.
The original open-ended deal didn’t receive the six votes necessary for passage.
Once a five-year cap was proposed, only a simple majority was required, and a motion by Councilman Todd Gloria to approve the agreement passed 5-4. Council members David Alvarez, Marti Emerald, Sherri Lightner and Scott Sherman dissented after expressing concerns about various terms.
Councilwoman Myrtle Cole acknowledged that the deal was “not perfect” but was an improvement over the agreement currently in place. She said it formalizes accountability and city oversight without expanding the agency’s responsibilities.
Gloria said among other things, the deal sets requirements for hiring local workers for construction, sets aside a portion of projects for affordable housing, and observes city rules on living and prevailing wages.
Civic San Diego was created when the state abolished the redevelopment process, consolidating the remains of the Centre City Development Corp., which led the reinvigoration of Downtown, and the Southeastern Development Corp., which worked in neighborhoods in Southeast San Diego.
Employees at Civic San Diego have since overseen several new hotel developments, worked on older projects left over in the redevelopment pipeline like the park at Horton Plaza and managed funds collected from parking meters.
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Personnel Announcements
John Landis Joins Jerome’s Furniture
Jerome’s Furniture announced the hiring of Jon Landis as its new senior vice president and general merchandising manager, effective today.
Landis has more than 20 years of planning, cross-functional store operations, merchandising and executive experience.
Prior to joining Jerome’s, Landis served as chief merchandising officer for Dublin, Ga.-based Farmer’s Home Furniture. Prior to that, he spent 20 years with American Signature Furniture, rising to the ranks of divisional merchandise manager for case goods. In that role, Landis generated double digit retail sales increases while reducing overall inventory investment and increased profit contributions for the company year-over-year.
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Marc Frederick Named Vice President of CBRE Group
has joined CBRE Group Inc. as a vice president, and will focus on the sale of owner/user and investment properties in Downtown and Uptown submarkets.
Frederick previously worked at Colliers International for more than 12 years. He was a member of the Colliers Private Client Investment team, specializing in the sale of owner/user and investment properties under $10 million. He has brokered more than 200 sale and lease transactions valued at more than $130 million.
Frederick previously was an associate at Booz Allen and Hamilton, where he provided program and financial management consulting services. He also served as a commissioned officer in the United States Army and graduated from Ranger School and Airborne (Parachute) School.
Frederick received a Master’s in Business Administration in Real Estate at San Diego State University and graduated with a Bachelor’s of History at Chico State University.
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Higgs Fletcher & Mack Partner
Heads Make-A-Wish San Diego
Higgs Fletcher & Mack partner and employment law and litigation attorney Jim Peterson has been named chairperson of Make-A-Wish San Diego. Peterson has been a board member since 2013 and previously was vice chair.
Peterson was first introduced to the organization in 2011 when his then 16-year-old daughter, Tina, was diagnosed with Non-Hodgkin’s Lymphoma. During her inpatient chemotherapy treatments at Rady Children’s’ Hospital, the family was introduced to Make-A-Wish and ultimately, Tina’s wish to go to the Grammy’s was granted. Today, Tina
is a healthy senior at San Diego State University seeking a degree in marketing.
The Peterson family celebrated Tina’s five years of remission on Oct. 1. Peterson’s wife, Kim, is a founding member of the chapter’s W.I.S.H. circle, a group of women who hold events, fundraisers and sponsor wishes. In addition, Peterson’s daughters, Danielle and Whitney, and son-in-law, Clark, are involved as wish granters and volunteers for the organization.
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Mike Ross Awarded ‘Relentless Ally’
Award from Balfour Beatty Construction
Balfour Beatty Construction has named Mike Ross its 2016 Relentless Ally — the highest honor the company can bestow upon its employees. Balfour Beatty’s Relentless Ally Award recognizes and honors the contributions of high-performing individuals who most embody the company’s vision centered on Zero Harm, Zero Waste, Client Advocacy and Employee Inspiration.
“Thanks to his dedication to his teams and clients, Mike Ross truly lives the company’s purpose by definition: ‘To be a Relentless Ally for the success of each and every dream that we are entrusted to build,’” the company said.
As a senior superintendent in Balfour Beatty’s San Diego office, the role Ross plays is mission critical to the company’s ultimate success. Like his peers across the company, the senior superintendent is a unique individual demonstrating extreme talent in balancing both the on-site field administration and technical supervision of projects, while also building and nurturing trusted relationships with clients and communities.
Ross has won numerous California division “top hammer” awards for safety, the highest award and recognition among his peers for prioritizing a safety culture. Ross routinely hosts jobsite barbecues for safety recognition, handing out prizes to top performers and his subcontractor partners appreciate his genuine concern for their safety.
