VINCENT PARK, PLEASANT HILL, CA
Vincent Industrial Office Center (Vincent Center) is a 3 building, 62k SF industrial office complex located at 3301, 3317 and 3333 Vincent Road in Pleasant Hill, CA. Vincent Park suffered a release of a chlorinated solvent, perchloroethylene (PCE), sometime between 1975 and 1981 by a former high-tech tenant.
On January 31, 2017 GP Vincent (GPV) obtained a CLRRA Agreement (California Land Reuse and Revitalization Act), with the San Francisco Regional Water Quality Board, which established a government approved Remedial Action Plan (RAP Plan) and provided legislative and legal protections pertaining to the contamination at Vincent Center. On February 1, 2017 GPV purchased the first position non-performing Note, secured by Vincent Center, at a significant discount. On February 2, 2017, GPV foreclosed on the Note, effectively acquiring Vincent Center for approximately 25% of its market value at the time.
Since then GPV has completed the project’s First Phase, which consisted of an extensive renovation, repairing many years of neglect and deferred maintenance, and implementing the RAP Plan’s proscribed environmental mitigation with Sub Slab Depressurization systems, protecting the buildings’ interior air quality and ensuring the tenants’ safety. GPV has secured No Further Action letters from the Water Board for Buildings 1 and 3, allowing them to be financed with conventional commercial financing.
The Vincent Center Project has two remaining Phases. Phase II is underway and consists of leasing the Vincent Center and implementing the Soil Vapor Extraction system, to remove the PCE contaminants from the soil. Phase III will focus on long term environmental remediation, which will take 5 years to complete. The long term remediation will eliminate the remaining PCE contaminants from the ground water, concluding the clean-up process and closing the case.
GPV projects the complete acquisition, renovation, stabilization, mitigation and remediation costs to be 50% of the property’s market value.
The Colma Estates, Colma, CA
Grand Partners, LLC entered into a joint venture with the Tealdi Commercial Real Estate Corporation, to form Colma Partners, LLC (CP). CP is a single purpose entity created to develop La Villa Monico, a high end, new 9-unit, single family residence project in Colma, California. In July 2016, CP purchased the one acre parcel with a dilapidated barn and a rundown single family residence at 442-444 B Street and 439 C Street for a favorable price. CP is three quarters of the way through completing the project, using a cutting edge pre-constructed modular design, offering outstanding structural integrity and high end finishes. CP has had an overwhelmingly positive response, pre-selling several homes and estimates the project to be completed and sold by the Summer of 2018. CP selected the modular design approach, because it reduces costs, construction time, and risk, while significantly increasing profit.
1530 Meridian Ave, San jose, CA
Grand Partners, LLC (GP) purchased 1530 Meridian Avenue, a run-down 42,000 square foot, multi-tenant office building in October 2015, significantly under-market value. At the time, Meridian was 30 percent occupied with weak, short term tenants. GP invested additional funds to complete a comprehensive building renovation and stabilization from roof to foundation, replacing the undesirable tenants with strong credit tenants, with a seven year median lease term, doubling the average rent and in turn, doubling the asset value. Due to the success of the project, its location, and the quality of the build out and tenants, GP has opted to hold the Meridian Building long term as one of its core assets.
415-417 Grand Ave, san Francisco, CA
GP purchased a 31,000 square foot, run down multi-tenant retail/office building at 415 Grand Avenue in November 2013. At the time, it had a 50% occupancy with weak month to month tenants and some deferred maintenance. GP invested a moderate amount of money into a building renovation and stabilization project. GP renovated the building as needed and replaced the undesirable tenants with strong credit tenants at double the rents. GP sold 415 Grand Ave in January 2016 at a 5.25% CAP rate, more than tripling its investment in approximately 24 months.