Stanford to Break Ground on RWC Campus Fall '16

Stanford University's Redwood City campus is one step closer to becoming a reality.  Last week, the Board of Trustees approved design plans for the 1.5 million S/F campus, and will submit them to the City of Redwood City for design approval by early 2016.

The Redwood City campus will be the University's first significant expansion outside of the main campus. It will be home to around 2,300 Stanford employees in such critical areas as the Graduate School of Business; School of Medicine administration; Stanford Libraries and University Archives; the major administrative units of Business Affairs; Lands, Building and Real Estate; University Human Resources; Residential & Dining Enterprises; and the Office of Development.

Richard Livingston, Stanford University's CFO/VP of Business and Affairs, will be among the 2,300 faculty making the move to Redwood City.

Stanford purchased the Midpoint Technology Park back in 2005 as a part of their plan for future growth.  Now a decade removed from the purchase, it appears the future has arrived.  The 35-acre site, located at the old Midpoint Technology Park on 405 Broadway, will be home to:

-High-end fitness center with a pool
-Modern child care center
-Cafes and a food pavilion
-A town square that will serve as the civic heart of the campus
-Ample parking
-Open spaces and attractive landscaping
-State-of-the-art buildings with ample light and views
-Areas for collaborative working and conferencing
-BeWell programs
-Shuttle service and traffic management programs

"Stanford's Redwood City campus will be infused with the ethos of the main campus, drawing from programmatic, cultural and design attributes", said David Lenox, the University's architect. "It will feel like Stanford. Covered arcades along the greenway connecting buildings and landscaped spaces; the use of warm, high-quality building materials in the Stanford palette; and spaces for active and passive recreation are just a few examples."

Redwood City already approved Stanford's development plan back in 2013 (which includes $15.1 million towards public benefits), as well as the accompanying environmental impact report, and community benefits package.   Assuming the city approves this recently unveiled design plan, the project's groundbreaking is tentatively set for the Fall of '16, with the first phase of construction being completed in 2019.

New Supreme Court Ruling Could Prohibit Use of Open House Signs

As a real estate salesperson trying to direct open house traffic to your listing, one of your most effective tools is the A-frame sign (the signs you see propped up on street corners every weekend pointing in the direction of open houses).  At busy intersections you might even see 3 or 4 from different brokerages.

In addition to helping funnel buyers into your open houses, A-frames are also a way for brokerages to build brand recognition.  They are usually emblazoned with your company logo and colors, so even when passerby aren't headed to your open houses, the signs and your company gradually become familiar.

However, due to a recent Supreme Court ruling, the right to display these signs on public property may be in jeopardy.  The ruling states that any sign regulation passed by a city government must be content-neutral, meaning restrictions can be placed on the placement, type, or size of a sign, but not on it's message.  As a consequence of this ruling, any municipality with an active sign code will be forced to re-evaluate the regulations to ensure they are content neutral.

This puts the use of open house signs in jeopardy because many cities permit their use only through an exemption to their sign code.  Upon re-evaluation, these exemptions will likely be seen as non-content neutral, leaving city lawmakers with two options:

1) Grant the right to place directional signs to everyone, not just real estate brokerages.  This means gun shops, liquor stores, adult entertainment stores etc.

2) Throw out all sign exemptions so that no businesses can display directional signs.

The second choice would be the easier, so many cities are likely to go that route barring some lobbying from Realtor Organizations.  The Supreme Court ruling does leave room for exemptions to a sign code if the exemption serves a compelling government interest, and Realtor Organizations will likely use this as the grounds to their lobbying since the Supreme Court has in the past cited open house signs as an asset to fair housing practices.

One thing is for sure: RealSmart Properties, and other brokerages across the nation, will be waiting eagerly to see how this all plays out at the local level.  We rely heavily on A-frame signs, especially when we have listings in areas that can be tough to navigate like Emerald Hills.

San Carlos Grows Weary of Chain Stores, Seeks to Protect Laurel Street

San Carlos City Council is looking to make it more difficult for chain stores to find a home on Laurel Street.

Councilman Cameron Johnson has proposed that chain stores be required to obtain a conditional use permit until the City can update zoning codes that put them under a greater level of scrutiny before being allowed to open.  The proposal, if passed, would go into effect for 45 days while city staff works on putting together permanent zoning codes.

The conditional use permit would require a public hearing to decide whether the chain store is appropriate for downtown SC or not.

This proposal comes amid concerns among some San Carlos residents that the Peninsula's booming economy, and the increased development interest that has come along with it, could lead to the displacement of the mom-and-pop style shops that give downtown San Carlos its character.

The concerns aren't entirely unfounded - Plantation Coffee Roastery, First Impressions Salon and Mi Ranchita Restaurant have all been given a 90-day notice to vacate so the new owner of 652 Laurel Street, JMS Development, can carry out renovations.  JMS owns several other buildings on Laurel Street and leases to chains like Peet's Coffee and Paxti Pizza.

The San Carlos Chamber of Commerce has yet to take a formal stance on the issue.  Currently, chain stores do not trigger any greater review than independently owned businesses in downtown San Carlos.

UPDATE:  The city has unanimously approved the urgency ordinance requiring conditional use permits for 45 days as permanent zoning codes are hammered out.

Development Proposal Unveiled for Aging RWC Shopping Center

Back in June, Cupertino-based Sobrato Organization closed on the purchase of an 11.2-acre shopping center in Redwood City - between Broadway and Bay, off Woodside Road.  The  aging plaza is currently home to a CVS, Big Lots, Foods Co. and few other shops.

Last Friday, Sobrato unveiled their proposal for the land.  The mixed-use development - which they have dubbed the Broadway Plaza - would call for the construction of 400 apartment units, 420,000 S/F of office, and 19,000 S/F of retail.  As a part of the deal negotiated between Sobrato and the previous ownership group (which included CVS), CVS will acquire a new store at the corner of Woodside and Bay.

The residential component would be closest to Chestnut Street, with the buildings rising up to 6 stories.  Ground floor apartments will feature stoops to give the project a "softer edge".  This will also help it mesh with the residential neighborhood that will face the development from the other side of Chestnut.

The office component would consist of two large buildings - one at 200,000 S/F, and the other at 220,000 S/F.  In between the office buildings and the apartments, there would be a 40,000 S/F landscaped space open to the public.

The proposal includes 1,860 parking stalls, only 40 of which are above ground, and all of which are shared - meaning residents and guests can park in the office spots during nights and weekends, and workers can park in unassigned residential spots during the day.

In a phone interview with the Silicon Valley Business Journal, Rob Hollister, the President of Real Estate for Sobrato, said the mixed use development approach is a way of addressing the concerns about traffic and lack of housing in Redwood City.  It reduces traffic because it "give[s] people the chance to live where they work and shop where they live”.    And it addresses the shortage of housing simply by virtue of the fact that there will be 400 more housing units than there would have been were the shopping center left as-is.

Traffic concerns aside (of which there will surely be plenty), this development could also lead to resident opposition stemming from concern for a loss in affordable shopping.  Both Big Lots and Foods Co. are "bargain" grocery/department chains.  Either way, this project is still a ways out as some of the plaza's current tenants are locked in for a couple of years.  Don'y expect to see this project move forward until '17-'18.

What's Next: Redwood City will review the proposal to verify that it complies with their General Plan, at which point they will initiate an environmental impact report.

Habitat for Humanity to Begin RWC Affordable Condo Development Mid-2016

Back in February, Redwood City announced plans to distribute $4.5 million to four separate affordable housing projects.  One of these projects was a condominium development at 612 Jefferson which would be primarily funded by Habitat for Humanity.

click to enlarge

A rough timeline for this development has been posted to Habitat for Humanity's website, indicating that construction would begin mid-2016, with homes for sale sometime in 2017.  The development will consist of 20 condominium homes (a mix of 1, 2, & 3 bedrooms), and will be offered to families earning up to 80% of the area's median income.

The location of the development couldn't be any more ideal (for those who enjoy city-living).  612 Jefferson is just three blocks away from the courthouse square, and walking distance from all that downtown RWC has to offer.

Fun fact: per a tweet sent out earlier today by outgoing RWC Vice-Mayor Rosanne Foust, "with the Jefferson Ave project Redwood City will have 71 Habitat homes, the most of any City in San Mateo County".

Empty lot at 612 Jefferson - click to enlarge

RWC Gains Voter Approval of $193 Million School Bond

San Mateo County's first all-mail election resulted in a 62.5% in favor vote on Measure T, the $193 million bond that will be used to upgrade and repair Redwood City schools.  See below for info on how the RCSD plans to use the bond:

RWC Releases Draft Inner Harbor Specific Plan, Requests Public Input

Yesterday, Redwood City released to the public the Draft Inner Harbor Specific Plan (DIHSP) and the associated Draft Environmental Impact Report (DEIR).  These documents, and other information pertinent to the development of the Inner Harbor, can be viewed at www.redwoodcity.org/innerharbor.

The Inner Harbor is a 100-acre plot of land north of Highway 101, in-between Redwood Creek and Seaport Boulevard.  The Inner Harbor Specific Plan, just like the Downtown Precise Plan, is intended to provide guidance for the future development of the area.  Its general objective is to create a destination harbor center with areas for homes, recreation and employment.

In addition to studying the environmental impact of the land usage proposed in the DIHSP, the DEIR also includes impact reports for alternative land use possibilities.  It isn't common for the Draft Plan, Draft EIR, and Draft alternatives to be released all at once, but it was done deliberately to give the public and decision makers plenty of time to digest all of the information before the adoption process.  The released drafts cover the following topics: baseline conditions, vision framework, land use and zoning, design guidelines and standards, circulation and parking, utilities, community benefits, and implementation.

The community will have plenty of chances to voice their opinions/concerns about the plan.  The Draft EIR is under a 90-day review period, during which time the public is encouraged to send in written questions and comments.  In addition, the Planning Commission will be holding a public meeting on December 1st at 7pm in City Hall to receive further comments and questions.  All questions received at the meeting and in writing during the 90-day review period will ultimately be included and responded to in the final EIR.

Additional venues for community input will be established in the coming months - to stay updated, check in periodically to the Inner Harbor Website referenced above.

MBA Predicts Nationwide Surge in Housing Demand

As the real estate market has steadily climbed in the bay area, the question is always…how long with the expansion last?  As always, the job market in the local region continues to support our strong economy, but how is the rest of the country doing..and what is the countries overall future real estate prognosis?  I'm not an expert for this question, so I looked to an entity that is.

A recent report released by the Mortgage Bankers Association forecasts a huge surge in housing demand over the next 10 years, with somewhere between 13.9 and 15.9 million additional households expected to form by 2024.  If the projections made in the report were to play out, we would be looking at one of the strongest housing markets in U.S. history.

The MBA's report claims that the surge in new household formation - and the resulting spike in demand - will be driven primarily by Hispanics, baby boomers, and millennials.

"Household formation has been depressed in recent years by a long, jobless recovery and by a lull in the growth of the working age population," said Lynn Fisher, MBA's vice president of research and economics. "However, improving employment markets will build on major demographic trends - including maturing of Baby Boomers, Hispanics and Millennials - to create strong growth in both owner and rental housing markets over the next decade."

The millennial demographic has been slow to break into the housing market (as owners), as many have spent a lot of time in school, and have put off major life events like getting married and having children.  But as more and more millennials head into their 30's and onward, it is widely expected these trends will shift in favor of increased household formation.  The MBA report predicts that millennials - which they describe as ages 18-44 to account for 10 years of aging - will form 4.1 - 5.1 million new households over the next ten years.

What's interesting to note, is during the early 1970's, when a large portion of the Baby Boomers were in their mid-20's (prime renting years), we saw the biggest multi-family construction boom in the country's history.  In the late 70's - when that same demographic matured, started families, and began buying homes - we saw one of the country's biggest single-family construction booms.  So if history is any indicator, as the millennial generation matures, the resulting increase in single-family demand could lead to a similar construction boom.
   

Will the Fed Rate Increase Affect Bay Area Buyer Demand?

Since the beginning of the year, there has been endless speculation about when the Fed was going to increase interest rates. First it was mid-year, then it was September, and now some say it won’t be until next year. Sooner or later it is bound to happen, but the question is: how much will it affect the market here in the Bay Area?

When the Fed increases interest rates, banks tend to eventually increase their loan rates. Generally when this happens some amount of buyers are pushed out of the market - less demand equals lower prices. But in regions like the Bay Area, where the housing market is saturated with buyer demand, it would take a pretty large jump in rates to throw any sort of wet blanket over the market. And with the Bay Area nearing full employment (unemployment < 5%), and incomes generally on the rise, there is plenty of reason to believe that any effects on buyer demand resulting from a rate increase would be negligible.

What we may see is a slight spike in demand in the coming months, as borrowers try to lock in their rates in anticipation of the Fed increase. Either way, the effect of the Fed’s impending rate increase on the Bay Area’s housing market should be minimal.

If you have any questions regarding the impending Fed increase and what it may do to your purchasing power, feel free to give me a call.  I'd be happy to refer you to one of my trusted loan advisors.

Should You be Worried When Your Mortgage is Sold?

If you have taken out a mortgage, chances are you've received statements from companies other than your lender.  For some people this can be a little off-putting, but don't fret! Mortgages are regularly sold by lenders to investors like Freddie Mac, Fannie Mae, Hedge Fund companies, and the like.    Lenders do this as a way of generating the extra cash they need to be able to offer more loans.  On the investor’s side, purchasing mortgages is appealing because unlike many other investment opportunities, they are backed by a tangible asset - a house.  For the most part homes tends to increase in value, and if they don't, and the borrower defaults on the loan, the down payment is intended to cover the loss.  

While it may make you a little uncomfortable to think that your loan can change hands without your knowledge or consent, there is actually nothing to worry about.  When your loan is sold, its new owner has to adhere to the same terms and conditions that you agreed upon with the lender.  The Real Estate Settlement and Procedures Act, which is enforced by the CFPB, ensures that mortgages cannot be modified without the borrowers consent, even if they are sold to another company.

Also, the CFPB has laid out industry standards on how to collect on delinquent mortgages.  These standards are designed to protect the struggling borrower, and they apply even when a mortgage is sold.  They require the servicer to give the borrower options such as loan modification or a short sale before they pursue foreclosure.

So to sum things up - although your mortgage can be sold without your consent, it's terms and conditions cannot.  It may still seem a little bizarre, but there is no reason to be alarmed when you get a statement in the mail from a company with which you have never done business.  

Design Tech High Coming to RWC August 2017

Design Tech High Faculty - Founder, Dr. Ken Montgomery, pictured 2nd from left.

Design Tech High School, which opened just last year on the campus of Mills HS in Millbrae, is hoping to set up shop on Oracle's RWC campus by August 2017.  The move will call for the construction of their own 75,000 S/F school.  And according to Colleen Cassity, Executive Director of Oracle Corporate Citizenship, Oracle will provide the land and completely fund the school's construction, adding that education has long been a philanthropic focus of the company.

“We see great potential in Design Tech High School’s model and we’re in a unique position to provide a permanent home to support the school,” Cassity said.  Oracle likes the school’s education approach of teaching students to use “design thinking and to develop creative confidence,” she added.

The Oracle Education Foundation had already given a $75,000 grant to d.tech High prior to their announcement that they would be footing the bill for the school's new home.

D.tech High is an innovative free public high school authorized by the San Mateo Union High School District.  Dr. Ken Montgomery founded the school on the idea that while the world around us has changed so much over the years, schools haven't.  So d.tech High incorporates "technology, design thinking, and a focus on non-cognitive skills to help students forge an identity that will help them as students, professionals, and citizens".

By the time the school makes their move to Oracle campus, they estimate their size will be around 550 students and 30 faculty.

D.tech will be a welcome addition to Redwood City's diverse selection of high schools,  which already includes the number 7 state ranked Summit Preparatory HS.   To top it off, the construction of d. tech will come at no cost to tax payers - thanks Oracle!

To learn more about Design Tech High and their mission, head to their website!

What Happened to the Depot Circle: The Downtown Precise Plan's Defining Project

When Redwood City adopted the Downtown Precise Plan in 2011, one of it's major components was what was known at the time as the Depot Circle.  The city envisioned the "Depot Circle" as a massive multi-building, mixed-use development that would cover two parcels of city-owned land known as "Block 2" and "The Winslow Street Parking Lot".  The defining feature of the development would be [not so surprisingly] the Depot Circle - which in the city's words, would be "a public open space intended to create a welcoming and exciting entrance to Downtown from the train station".  Below is a summary of available information on the progression of the Depot Circle Project: 

August 2011 - A request for qualifications document is released by Redwood City to solicit interest from development teams to develop two city owned parcels of land: "Block 2" and "The Winslow Street Parking Lot" (both parcels can be seen in the graphic below).  Potential uses for the project are listed as office, residential, hotel, retail, restaurants, and entertainment.  



December 2011 - After receiving 5 responses to the request for qualifications document, the city invites two developers to submit detailed proposals for the project: Hunter/Storm and Lowe Enterprises.

May 2012 - The city chooses the Hunter/Storm proposal as the preferred scenario, and plans are made to move forward with a development agreement.  The Hunter/Storm proposal is a development ranging in height from 4-9 stories that includes 261,000 S/F of office space, 3,000 S/F of retail, a 120 room hotel, and 810 parking spaces.  Pictured below is the birds eye view of the Depot Circle Project provided in Hunter/Storm's 2012 proposal:



Since the May of 2012, the city has not publicly released anything referring to the Depot Circle.  However, in late 2013 Hunter/Storm did break ground at the Block 2 parcel.  We know that development now as Crossing/900, and it is slated to open for business this October.  Crossing/900 includes over 300,000 S/F of office space, just over 5,000 S/F in retail, and 904 parking spaces that will be open to the public evenings, weekends and holidays.  According to Redwood City's website, it also includes a public plaza, which one would assume will serve as the "welcoming and exciting entrance to Downtown from the train station" they referred to at the time of the Depot Circle idea's inception in 2011.

For whatever reason, Hunter/Storm abandoned the hotel portion of their proposed development, which presumably would have been built on the Winslow Lot.  But interestingly enough, a proposal for a 200 room hotel at the Winslow Lot was submitted by none other than Lowe Enterprises - the developer that lost the bid on the Depot Circle Project.  The hotel was even included on the development map published in the May 2015 issue of Redwood City Climate Magazine.  But that project has since hit a potentially fatal roadblock...

August 2015 - Just last week, the city announced that they are putting the brakes on the hotel proposal in light of the sheer volume of construction that is already taking place in the downtown area.   Mayor Jeffrey Gee also expressed that they were finding it difficult to design a hotel with enough parking on the 46-space Winslow parking lot.  Instead, the city now wants public opinion on potential uses for the lot.  Starting early 2016, residents, business owners, and property owners will be invited to engage in a series of community workshops, City Council meetings,  and online surveys to hopefully figure out the best use for the lot.  The only thing that is out of the question at this point is additional office space - the cap of office space allowed under the Precise Plan has already been reached.

So even though the city hasn't released any information on exactly what happened with the Depot Circle Project since Hunter/Storm submitted their proposal, it is clear that somewhere along the way plans changed.  Crossing/900 accounts for all (and then some) of the commercial, retail, and parking space that was called for in their original proposal, but the future of the Winslow Street Parking Lot now seems to be in limbo.  Eventually it is likely that something will be built there, but not for some time.  Meanwhile, the parcel of land directly in between Block 2 and the Winslow Lot on the backside of the Fox Theater (labelled as "Future Lot" in the first graphic) has been approved as a mixed-use office/retail development.  I've talked more about this development in a recent blog.

Hotel or no hotel, Depot Circle or Crossing/900, it looks like one way or another the corridor of land walking you from the train station to Theater Way should turn out to be a pretty impressive Gateway to Downtown.  We'll get our first glimpse of what this will look like when Crossing/900 opens late next month. 

SF-Redwood City Metro Area Among Best for Millennial Workforce

   by  anhgemus 

Seattle-based online benefits and compensation firm, Payscale, recently ran a study in which it pulled data from 650,000 surveys filled out by millennials (those born between the years 1982-2002).  The question they were attempting to answer was, "where are millennials most likely to find the most rewarding jobs"?  The factors they took into consideration were: median pay for millennial workers, unemployment rate in the area (as of June '15), median commute time, percentage of millennials reporting high job satisfaction, and the percentage reporting low job stress.

The study found that the San Francisco metro-area, which they refer to as "San Francisco-San Mateo-Redwood City, was the 2nd most likely place for a millennial to find a rewarding job - behind only the Seattle metro, and just ahead of 3rd place San Jose metro.  However, I suspect there was some favoritism at play, as the SF metro actually ranked as high or higher than Seattle on most of the variables in the study.  Our median pay for millennials was listed at $69,700 (vs. $55,000 in Seattle), unemployment at 3.4% (vs. 4% in Seattle), and the share of satisfied workers at 70% (same as Seattle).  The only variables in the study that Seattle might best us on is commute time and job stress.

Click here to view Forbes' summary of the study and list of the 10 best cities for millennial workers.

I'll concede to Seattle on commute time.  I don't have any experience commuting in Seattle, but we all know how backed up traffic can get around here.

But as for job stress?  I'M NOT STRESSED!!! JUST LEAVE ME ALONE, OK??!!

In all seriousness though - Seattle is a rapidly growing tech hub with companies like Amazon, Microsoft, and Zillow calling it home, and many others opening up offices.  There was even an article floating around a few months ago claiming that tech workers were leaving SF and the Silicon Valley for a more manageable cost of living in cities like Seattle and Austin, which I addressed in a past blog.  But my stance now, as it was then, is that the SF Bay Area/Silicon Valley is the undisputed tech capital of the world, and nothing stands to change that any time soon - especially with tech giants like Google, Facebook, Yahoo, Youtube, Linkedin, Twitter,  and Apple continuing to grow here at mach speeds.

Maybe it is reckless to equate the tech workforce with the millennial workforce.  But since the two are so intrinsically linked, I feel comfortable saying that as long as the SF Bay Area remains #1 in tech, we remain the #1 haven for the millennial workforce.

8/10/2015 - 8/16/2015

8/10/2015 - 8/16/2015

In July we were looking at an average sales price of almost $1.5 million.  Halfway through August, we are looking at a number closer to $1,125,000.  Does this mean prices are cooling off?  Not necessarily.  Homes are still selling at well over asking, and the average list price of the 10 homes that went pending this week was $1,546,300.  It says more about the size/location of the homes than it does about Redwood City's market health as a whole.  The average size of the sales that closed this week was 3 bed, 2 bath 1,492 S/F.  In comparison, the average size of the sales that went pending this week was 4/2 and just over 2,000 S/F.  Redwood City has a great deal of variation in the size of homes and desirability of neighborhoods, so it isn't uncommon to see these numbers fluctuate so much on a weekly basis. 

Whole Foods vs. Trader Joe's: Who's the Better Neighbor?

It seems we finally have an answer to the age old question: which grocery store should I buy next to if I want my home to appreciate, Whole Foods or Trader Joe's? 

Housing data and analytics provider, RealtyTrac, recently ran a study to figure out which zipcodes showed greater home appreciation, those near a Whole Foods or those near a Trader Joe's.  By comparing the current value of homes within these zipcodes to the price they were last purchased at, the study found that homes near a Trader Joe's showed greater appreciation (40%) than those near a Whole Foods (34%).  Homes in the Trader Joe's zipcodes also had higher average property values ($592,339) than those in Whole Foods zipcodes ($5,382), giving us no other choice than to conclude that Trader Joe's is the better neighbor. 

Just for fun, let's take a look at this on the micro-level and compare 94062 (Whole Foods Redwood City) with 94070 (Trader Joe's San Carlos). According to Zillow's home value index, from July of 2013 to July of 2015, home values in 94070 grew 32%, compared to 27% in 94062.  Admittedly, my methodology is probably a bit flawed due to the notorious inaccuracy of Zillow's home value index in the Bay Area, but hey! Maybe there's something to this (not likely). 

Make what you will of this... I've always preferred Trader Joe's anyway. 

Here's an infographic detailing RealtyTrac's study:   

Neighborhood Spotlight: Woodside Plaza

Aerial view of the Woodside Plaza Shopping Center, 1953.  Rows of
ranch-style homes can be seen in the upper-right hand corner.

During and after World War II, Redwood City saw rapid growth. Its population boomed from 12,500 at the beginning of the war, to more than 46,000 by 1960. During that time, the city’s suburbs grew in concentric rings around the downtown area, until a few developers set their sights on what would ultimately become the Woodside Plaza neighborhood (Valota-Alameda/Roosevelt-Woodside). In a short period of time spanning from the late 40’s to early 50’s, a flurry of construction left the area blanketed with 3 bed/2 bath ranch-style homes.

Now one of the most up and coming neighborhoods in Redwood City, Woodside Plaza offers a look and feel similar to Menlo Park’s Willows neighborhood, but with a notably smaller price tag. Pleasant tree-lined streets, quiet cul-de-sacs, close proximity to grocery stores, and a diverse selection of dining options have made this neighborhood a standout amidst Redwood City’s recent surge in housing demand. 

Historically, Woodside Plaza has been known as a starter neighborhood for young families looking to set roots in Redwood City. And with the Henry Ford School District steadily improving its ranking, the area certainly still appeals to young families. But as Redwood City is growing, the neighborhood has seen a wave of renovations of more dated homes - a number of which we’ve worked on and sold. The resulting facelift has created a neighborhood in which more and more people feel comfortable settling long-term. 

We love the neighborhood and plan to stay active there for a long time. In just over 3 months, RealSmart Properties has been a party to 6 sales in the area, making us the neighborhood’s most active brokerage. 

If you are interested in making the move to Woodside Plaza, give me a call and I'll be happy to help you find your new home.

A Case Study on Rent Control: 910 Clinton Street, Redwood City

This article was pulled from the Summer Edition of the RealSmart Quarterly Newsletter: In the last few months we have seen more media coverage on the topic of skyrocketing rents, displaced tenants, and the possible need for rent control. Or, as some politicians refer to it: rent stabilization.  The poster child for this movement can be found in a local 18 unit apartment building located at 910 Clinton Street in Redwood City. Reports say, "every resident of an 18-unit apartment complex in Redwood City, including 31 children, had their tenancies terminated by new ownership that plans a complete interior and exterior renovation of the aging building" (San Mateo Daily Journal, May 18th, 2015).  A notification sent by the new management company on May 1st, gave tenants 60 days to vacate the premises. Most of the units had been going for below market rate, and it is assumed that rents post-renovation will be significantly higher.  But for all the front page stories published about the displaced tenants - their rallies for rent control, candle-lit vigils held in their honor and tearful pleas for affordable housing - very little, if anything, has been reported about the previous living conditions at 910 Clinton, or why the owner felt he had to evacuate and renovate it in the first place. We were able to get into contact with someone involved with the new ownership group (who requested to remain anonymous), and found that once you start peeling back the layers, there is much more to the story. According to our source, a majority of the units exceeded the maximum allowable tenants, with many even tripling the maximum allowable tenants.  910 Clinton Street also had routine visits from local law enforcement due to suspected drug and alcohol abuse, suspected drug dealing, noise complaints and a suspected gang presence.  Many neighboring apartment owners have expressed discontent with the previous owner’s “hands-off” approach to management, and thanked the new ownership for taking control.  Local Law Enforcement officials have also reached out to new ownership with positive things to say about re-tenanting 910 Clinton Street due to the constant issues at the property over the years. Does knowing this discredit the plight of the displaced tenants?  Of course not, but it shows that there is more to know than what has been reported. It is evident that the standard of living at 910 Clinton was far below acceptable, and it is well within the owner’s right to correct that. Who should ultimately be held responsible for providing affordable housing to lower income families?  Is it private property owners? Local government?  This will be discussed further in our next newsletter, but for now we’d like to hear what you think.  I've created a poll on my Facebook page where you can chime in.

New Development Unanimously Approved by RWC City Council

rendering of the approved project

According to Redwood City Mayor, Jeff Gee, a new development unanimously approved by City Council on Tuesday should improve parking in the downtown area. The project, located behind the Fox Theater at 815 Hamilton Street, consists of 7,141 square feet of retail use on the ground floor, 60,322 square feet of office use on the upper four floors, and two levels of underground parking consisting of 88 parking stalls.

The parking garage for this project will connect to the existing city-owned garage on Jefferson, giving it a second exit. Gee says that as it is now, the Jefferson garage is under utilized during the day even though the first 90 minutes are free. He speculates that this is because the single entry/exit point on Jefferson makes it inconvenient to use, and hopes that this new project will change that. The new parking garage will be open to the public nights, weekends, and holidays.

The site is currently housing a surface parking lot and a single story building, both of which will be demolished for the project. A 650 S/F dressing room wing attached to the Fox Theater will also be demolished.  The tall blank walls on the backside of the Fox will be covered up by the new buildings, which should serve as an aesthetic improvement.

What does this mean for us Redwood City residents?  For now, just more construction and traffic in the downtown area.  Currently there are already 6 projects under construction in the area, consisting of 1,810 units of housing and 313,000 S/F of office space.  The increased noise and traffic generated by these projects has already been enough to irk some residents, and this next project will likely further congest that portion of Middlefield Road.  But Mayor Gee insists that in the end it will all be worth it, and we think so too.  Especially at the site of 815 Hamilton, where the addition of 7,141 S/F of retail should be a welcome change from an otherwise underused parcel of land.

The construction isn't fun while it lasts, but the finished product will hopefully be a more fun and vibrant downtown Redwood City.

Facebook's Plan to Redevelop TE Connectivity Site Takes Shape

Facebook's plans to redevelop the TE Connectivity campus - a 58-acre site running along Constitution Drive in Menlo Park - are beginning to take shape.  The latest development proposal includes a 175,00 S/F hotel and two 75-foot tall office buildings.  Facebook purchased the site last year for $101.6 million.

The design features numerous environmentally friendly features, including water-saving systems, and drought-tolerant landscaping.  According to a representative from the Gehry Partners, the architectural firm working on the project, vegetation will be heavily incorporated into the campus, and "as the trees grow, the (campus) is really going to disappear into that landscape".

The plan also includes a pedestrian bridge which would go over the Bayfront Expressway to the Bay Trail.  The other end of the bridge would go under the new Facebook buildings into a "planned green-space" that would be accessible to the public, providing the Belle Haven community with a pathway to Bedwell Park.

There will be a total of 4,055 parking spaces, including 3,810 for the office buildings and 245 for the hotel.

The Menlo Park Planning Commission did express some concerns about the hotel, which was described as a "select-service" hotel.  The city doesn't fully understand who the hotel is intended to serve, and requested that further details be provided by Facebook in subsequent meetings.

The proposal calls for a total floor area of 1.318 million square feet, which is a net increase of 302,000 S/F from the current TE campus.  In order for the project to progress any further, the area will need to be rezoned, as the current district only allows for a building height of 35 feet.

The plan also seeks the removal of some heritage trees, which are protected from removal based on their age and circumference.  In return for the removal of those trees, Facebook has offered to sign onto a below-market rate housing agreement.

San Carlos Set to Approve 204 Room Hotel

The city of San Carlos has partnered with an Irvine, CA based company, R.D. Olson Development, to build a 204-room extended stay hotel at the intersection of Industrial Road and San Carlos Avenue.  The San Carlos Landmark will be built on a 4-acre property that the city purchased for $13.69 million in November of 2013.  The hotel will be the largest in the city, and will offer 165 parking spaces, and shuttles to the San Jose and San Francisco airports.  According to Dustin Schmidt, R.D. Olson's VP of Real Estate Acquisitions, the project is expected to receive final City approval July 27th, begin construction in November, and completed some time in early 2017.

The hotel - which will include a 1,500 S/F meeting space - will primarily cater to the "executive business traveler", and according to the Community and Economic Development Director of San Carlos, Al Savay, "It’ll be bigger and the most modern and contemporary version of executive travel suites on the Peninsula".  Schmidt noted that the hotel will have accommodations for leisure guests including kitchenettes, a pool, a basketball court, and tree-lined walking areas.  No indication was given as to how how much it will cost to stay there.

San Carlos stands to benefit a great deal from transit occupancy taxes generated by the hotel, and initial concerns from residents about increased traffic at the Industrial/Holly intersection were addressed when the already high-traffic area was signalized.

New Life Given to Century 12 Redevelopment

It has been 12 years since the last time a movie was screened at the Century 12 Theaters on East Bayshore Road in Redwood City.  In 2003 they were shut down in favor of the new Century 21 complex downtown, a moment that marked a huge turning point in the city's history.  Since that time, the downtown area has undergone a massive revival, with "Theater Way" playing a huge role in drawing people and their money into local restaurants and businesses.  But as downtown flourishes, the old Century 12 Theater site sits frozen in time, serving mostly as extra vehicle storage space for the neighboring car dealerships.  Several plans for how to redevelop the land have surfaced over the years, but none ever gained any significant momentum.  This may be in part due to the fact that right around the time Century 12 shut down, the owner of the 14-acre parcel of land, SyWest Development, had begun focusing energy and resources into other business endeavors, effectively moving the redevelopment of the site to the back burner.  However, recent reports indicate SyWest is now turning their attention back towards the site. According to the Silicon Valley Business Journal, SyWest Development has recently submitted a conceptual proposal to redevelop the land.  The proposal includes a 100,000 S/F luxury "VillaSport" health club, and 550 housing units (275 1-bedrooms, and 275 2-bedrooms).  It is unclear at this point whether these units will be for rent or for sale, though a site plan does allegedly show a "sales office".  This proposal is said to be only preliminary, meaning it's primary purpose is to gather feedback from the city, from which point the plan could either change or be dropped all together. Regardless, in order for this project to progress at all, SyWest is going to need approval from the city to rezone the land for residential development.  This might not be a huge obstacle though, as Redwood City Planning Manager, Steven Turner, noted that the precedent for residential has already been set in that area with the nearby 249-unit One Marina development, and the city is not opposed to approving more. I will post updates to this development, as they arise, directly to my blog: camiloperezrealestate.com/blog.

Redwood City Economy Thriving, Budget Balanced for Next Five Years

In 2011, the future was looking grim for Redwood City's economy.  We were facing a $2.6 million budget deficit that was predicted to grow to $6 million by the end of the '14-'15 fiscal year.  Through negotiations during the budget cycle, city workers even ended up forfeiting nearly $5 million a year in salary and benefits to help reduce the deficit.

Well here we are in 2015, facing what Outgoing City Manager Bob Bell says will be about a $4 million dollar surplus by the end of the fiscal year.  The health of the economy is such that the budget is balanced for the next 5 years, with 15-20 percent of it going straight to reserves.

According to Bell's '15-'16 budget report, the city is expected to see $106.4 million in revenue in the coming year - a 6% increase from last year.  The lion's share of that revenue - about 60% of it - will be spent of police and fire services.  Another $29.4 million chunk of it will be allotted to the city's capital improvement budget.  The city has 58 projects on its capital improvement list, including:

-addition of two police officers
-The creation of a new senior shuttle program to downtown events
-playground renovations
-turf replacement
-street resurfacing
-sidewalk repair
-Increasing branch library hours for Schaberg Library and Fair Oaks
-Expanding children focused library programs
-Increasing tree and sidewalk maintenance services
-Increasing street sweeping to two times per month
-Increasing building inspection and code enforcement services
-The creation of a parking and traffic demand management position
-Expansion of the city’s communication program
-The creation of a new endowment for nonprofit grants to support human services financial assistance
-An addition of a deputy city attorney and other legal resources

What's the Significance?

It's easy to get frustrated with the traffic, the increased population, and the all around commotion that Redwood City's rapid development has brought about over the past few years - it happens to me on a regular basis.    But City Manager Bob Bell's farewell budget report represents the bigger picture.  The long term gains are coming into focus.  Increased tax revenue and direct payments from developers are affording us the ability to make significant investments back into our community - whether it be into infrastructure, education, recreation, or security.  Public services that were cut from the budget out of necessity years ago are being brought back to the table.  It isn't just downtown that is benefiting from the boom - it's the city as a whole.

And while traffic and construction will continue to frustrate me so long as it persists, I find myself excited for the Redwood City of the near future, when the scaffolding has been torn down, the cranes have moved on, the roadblocks have cleared, and the capital improvements have been made.  Not only do I see a flourishing downtown at the center of cultural relevance in the Silicon Valley, but I also see a vibrant suburban community growing along side it.

Mythbusters: Is Tech Pricing Itself Out of Silicon Valley?

A plane full of software developers carrying them from the Silicon Valley to greener pastures. Photo by flickr user, hjl.

Last Tuesday, CBS SF Bay Area published an article titled, "Silicon Valley Exodus Is Real, Even Techies Can’t Afford The Bay Area Anymore", and naturally it elicited some feelings of panic from its readers.

Well, local news stations like CBS make a living off of fear-mongering, so apocalyptic article titles like this should be expected. But is there validity to the claim? Like most of these articles, maybe. You just have to sift through the click-bait theatrics to find it.

The article was written in response to a study released by the real estate brokerage Redfin. The study reported that in an analysis of search data from the Redfin's website, they found that 1 in 4 people in the Bay Area searched for a home outside of the Bay Area (compared to just 1 of 7 in 2011), and that a large chunk of these searches were done for homes in other up and coming tech cities like Seattle, Boston, Portland, and Austin. The study ultimately deduced that the high cost of living in the Bay Area is driving some tech workers to take jobs in cities where housing is cheaper.

I'll buy that.

Software Developers in Silicon Valley do have a much higher median salary ($112,000) than software developers in Boston ($83,300), Portland ($79,700) or any other city for that matter. But the median cost of a home here in the Silicon Valley is a whopping $1,050,000, while in Boston it's just $480,000, and in Portland $375,000.  So it seems reasonable to expect that for some techies the pay gap isn't enough to keep them from taking a job in a city that costs less than half as much to live in.  Some of them may not even have to take a pay cut if they are staying with the same company and just transferring to a facility in a different city.

But are we in the midst of a Silicon Valley exodus? Or is there a possibility of one occurring in the near future?

Not likely.

Just because people are taking jobs in other cities doesn't mean we are losing our workforce. The Silicon Valley is growing as fast as it ever has. Facebook just opened a massive new campus near their Menlo Park HQ capable of holding 2,800 employees, and they have plans to develop two other nearby sites they recently purchased (they are by far Menlo Park's largest landowner and employer). According to their careers page they are currently hiring almost 500 new employees in Menlo Park, with that number sure to jump as they begin settling into their new campus (and jump even more once the next new campus opens). And with all of the real estate that Google has purchased over the last several years, they are reported to have the capacity to expand their already massive Bay Area workforce by 30,000 employees. There were even unofficial reports from industry insiders last year claiming Google has plans to hire around 5,000 Bay Area employees per year for at least the next 5 years (Google doesn't disclose hiring data so the numbers can't be verified). Over in Cupertino, Apple is in the process of building one of the largest, most expensive tech facilities yet, which will hold 13,000 employees on a 176-acre site.

And how about our well of innovation, startups?  Those don't appear to be going anywhere either.  Angel List, a fundraising platform for startups, lists 18,040 of them in the greater Silicon Valley area.  And Stanford University figures to continue to be a huge source of brain power for Silicon Valley companies for years to come.

Don't get me wrong - there is no doubt that the cost of living is pushing people out of the Bay Area. The Silicon Valley's flourishing tech sector brought about a population boom that our housing supply wasn't ready to handle. As a consequence, housing prices skyrocketed.  But I think what we are seeing is an overflow of people, not an exodus of people.  The overcrowded housing market is trying to normalize itself by pushing out some of the excess demand.  And while the area is certainly going through an affordable housing crisis, it isn't the software developers making a median salary of $112,000/year that are being forced out of the Silicon Valley - these people are choosing to move.

To put it into perspective: did Wall Street pack up and head elsewhere because Manhattan got too expensive? No, but as the financial industry grew, places like Chicago, Boston and San Francisco emerged as new financial hubs and some Wall Street workers moved there.  Still, Manhattan remains the financial capital of the world.

San Carlos Residents Vote in Approval of Increased Parcel Tax for School Funding

The ballots are in!  68.3% of San Carlos voters voted in favor of Measure P, an extension to a current parcel tax that raises funds for the city's elementary and middle schools.  The County posted the "Semi-Official Results" early Monday morning.

Measure P will be a $58 annual extension of Measure B, a $78 parcel tax, and Measure A, a $110.60 parcel tax set to expire June 30th, 2019.  The passing of Measure P means a total of $246.60 will be collected annually per parcel for the school district, which will total over $9.5 million over 6 years.

According to San Carlos School District Superintendent, Craig Baker, this additional locally sourced funding for the district is crucial due to a lack of state funding.  "While the State's new school funding formula has resulted in large increases in State funding in other districts, State officials continue to see our small district as a low priority," Baker wrote in an email to the Daily News.  "In fact, the new State funding formula actually gives a smaller amount of money to the district compared to what it would have received under the old model."  He added that the new parcel tax "will go a long way in generating additional, stable, local funding to help protect (an) outstanding core academic curriculum and provide programs like design, engineering, music and world language, among other priorities."

The official results are expected to be announced no later than June 4th.

Bay Area Sellers Reveling in Flurry of Buyer Activity

If you look up "seller's market" in the dictionary, you'll find a picture of the Bay Area.  Homes all across the region are staying on the market for shorter periods of time than ever before due to a flurry of buyer activity.  In March 2015, Silicon Valley homes selling for over $1.5 million spent an average of 17.3 days on the market, compared with 23.1 days on the market in March of 2014.  To put things into more of a micro-local context, over the past 6 months homes in the Central Park and Woodside Plaza neighborhoods of Redwood City spent an average of just 10 days on the market, down from 14 days during the same period a year prior.  

While these numbers are good indicators of a seller's market, they don't come close to painting the whole picture.  In the context of this blog, the phrase "days on the market" is defined as the number of days in between the date the property is listed and the date the purchase goes into contract (it is sometimes defined differently elsewhere).  But those numbers are inflated because listing agents don't usually accept offers the day they put a property on the market.  To maximize exposure and encourage competition, agents usually keep their listings on the market long enough for at least one round of open houses and broker's tour (unless someone presents them with an offer so compelling they can't refuse).  Here at RealSmart, we'll often list a property on a Friday, hold open houses on Saturday and Sunday, broker's tour on Tuesday, accept offers on Thursday morning, then enter into contract later that day.  On paper that property was on the market for 7 days, but in reality we were receiving calls from buyer's agents day 1 asking when they could submit their offers.  In fact, buyer activity has been so high lately that we usually start receiving offer inquiries before the home even officially hits the market.

The reasons for seller's market conditions in the Bay Area are well documented:  massive job growth, tons of tech money, foreign investment, low interest rates, looser lending requirements, and (most importantly) extremely low inventory - the perfect storm.  And while the Fed is expected to raise interest rates at some point this year, with all of the other aforementioned factors likely to persist, the Bay Area should remain a seller's market for the foreseeable future.

BUYERS!  Don't let the competition scare you away.  Persistence will prevail, and if you have a good agent there are many ways that he can position your offer to get it noticed before others.  Home values are projected to continue their upward trend, so buying a home now is still a sound investment.

As always, if you are thinking about buying or selling, feel free to call for a consultation.  (650) 222-2327