THE
QUARTERLY A BNBuilders publication
URBAN REVITALIZATION a look into redeveloping downtown neighborhoods
APRIL 2012
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WHAT YOU CAN FIND IN THIS ISSUE A Note From Our Leaders PAGE 1 Principal, David Becker shares why BNBuilders is passionate about the revitalization of urban downtown cores.
Urban Revitalization PAGE 2 Take a closer look at how BNBuilders is involved in the revitalization movement across the West Coast.
What Matters PAGE 8 BNBuilders chats with Project Executive Keith Whaley about the revitalization trends in the San Diego Market.
What’s Happening PAGE 9 BNBuilders has been busy across the West Coast and the Inner States. Take a glance at what our people and our projects have been up to over the past months.
On the Move PAGE 11 See what BNBuilders’ offices have been up to.
Credits PAGE 12 Acknowledgements and thanks to everyone who contributed to this edition.
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A NOTE FROM OUR LEADERS... David Becker, Principal It is with great pleasure I introduce BNBuilders’ newest publication, The Quarterly. This newsletter reflects the innovation and creativity on our jobsites and in our people, and gives insight into the BNB leaders that drive such a passionate culture. Most importantly, The Quarterly continues to provide our clients with value, with a thoughtful perspective on trends and issues that matter to you. Each quarter we will feature a timely topic in our industry, and present innovative ways in which our clients and BNBuilders are actively engaged in building both solutions and communities. We are truly inspired this year. The outlook for 2012 from our trailers is exciting. In 2011 we witnessed an economic recovery and revival from the tech boom that re-awakened San Francisco, Silicon Valley, and “Creative Class” cities across the country. San Diego. Seattle. Chicago. Boston. Austin. Apple. Google. Facebook. Amazon. LinkedIn. Twitter, Zynga, and Salesforce…These are just a few of our neighbors and we are proud to be a part of the rejuvenation in our local economy and the urban renewal that is transforming our cities. That’s why we chose to spend some time talking about Urban Revitalization. Relative to the technology market’s explosion, the Bay Area has experienced a boom in tech jobs as well as the resulting commercial property and multi-family residential developments. First SOMA, and now Mid-Market is undergoing a massive transformation, with hot new companies moving into this up and coming part of the city. Historic buildings are being retrofitted and renovated for the modern workspace, with sleek new interiors that speak to a new generation and new work culture. We see multi-family projects growing in our offices and across the country. In our Seattle office, the multi-family market is at the forefront of development. It really is a brave new world and as promising as we had hoped. We wish you and your business a prosperous year. Carpe Diem.
David Becker
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URBAN REVITALIZATION
THE REVITALIZATION OF DOWNTOWN NEIGHBORHOODS IS SPREADING ACROSS THE WEST COAST. BNBUILDERS IS EXCITED TO BE LEADING THE CHARGE IN MULTIPLE REGIONS THROUGH HISTORIC RENOVATIONS, COMMERCIAL OFFICE TENANT IMPROVEMENTS, AND MULTI-FAMILY HOUSING IN DOWNTOWN SAN FRANCISCO, SEATTLE, AND SAN DIEGO. WE WILL TAKE A CLOSER LOOK AT OUR PROJECTS IN THESE MARKETS AND HOW THEY ARE REVITALIZING THEIR NEIGHBORHOODS.
Building for the Creative Class
Interest in the blighted area came after the City
The creative class is revitalizing the San
launched the Central Market Partnership, a
Francisco economy and cities across the country. The “creative class” is defined by economist and social scientist Richard Florida as the workforce who creates for a living, and includes diverse fields from engineering to theater, biotech to education, and architecture to small business.
They currently make up
30% of the U.S. workforce and that number is continuing to grow. Technology is San Francisco’s fastest growing sector and the creative class is at the forefront of this market, driving how we live and work, how we interact, and even spend our time. It is said San Francisco will have 28% more tech positions by the end of this year than it did in its 2000 peak during the dot-com era, according to an
public-private initiative and economic strategy to revitalize Central Market and the adjacent neighborhoods. Companies in the Enterprise Zone are exempt from San Francisco’s 1.5% payroll tax for employees they add after they move in. In addition to the tax break, the City’s plan includes six strategic objectives: stabilize the existing community, enhance and activate the public realm, enhance the creative arts community, reduce vacancies, build community capacity, and improve safety. Tech companies are noticing, as they have leased over 380,000 SF of office space on central Market, including CallSocket (30,000 SF), Zendesk (35,000 SF), One Kings Lane (52,000 SF), Zoosk (52,000 SF), and Riverbed Technologies. The increase in
employment analysis by Jones Lang LaSalle.
lease activity is also attracting local developers
In the construction industry, we see the
Square project was in the planning phases
huge economic impact on commercial office tenant improvements and how workspace is organized and designed. The creative class thrives on a more artistic and open-office environment that maximizes daylight, and one that spurs creativity, integration, collaboration and innovation. The unique building elements and urban feel of historic buildings in MidMarket are very attractive work space for the
to take a closer look into the area. The Market for almost 10 years before Shorenstein Realty Services purchased it and signed Twitter to the space. The Mid-Market area has more large-scale, high-rise buildings that can accommodate growing companies. While boutique SOMA spaces cater to start ups, Mid-Market boasts large and open floor plans, conducive to the
creative class.
modern workplace. Twitter leased 250,000 SF
San Francisco Mid-Market Revitalization
for another 140,000 SF. 1455 Market, 1 South
in the Market Square building with an option
The Twitter effect is real and it is transforming the Mid-Market district. Like Twitter, tech companies wanting to capitalize on the payroll tax exemption zone of the district, also see a chance opportunity to be part of the next trendy, emerging neighborhood. SOMA’s renewal was successful, why not the central thoroughfare of The City? The
Mid-Market
neighborhood
stretches
roughly between Fifth Street and Van Ness Avenue along Market Street, and includes 3.3 million SF contained within 73 office buildings.
Van Ness, Fox Plaza, and the former AAA headquarters are examples of Central Market properties that accommodate larger square foot requirements. Mid-Market also has a distinct advantage over the expanding Mission Bay neighborhood, and that is the historical value of its buildings and architecture, and access to public transportation. In addition to new workspaces, increased residential investments are spurring new multifamily projects in the Mid-Market, Civic Center and Tenderloin area. Eight new residential projects are slated for development, including 10 to 15-unit condos and a 30-story high-rise condo building across the street from Market Square. In all, over 2,000 units will be added to the area, attracting more businesses and commercial tenancies.
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1355 MARKET SQUARE BUILDING RENOVATION... SOON TO BE HOME TO TWITTER
CURRENT LAYOUT TO ACCOMMODATE TWITTER’S NEW CREATIVE SPACE
1355 Market Street
Among the key features is a 20,000 SF roof deck for Twitter employees on the ninth floor, with a
Shorenstein acquired Market Square for approximately $120 million in March of 2011. BNBuilders was hired to retrofit and renovate the 1.2 million SF landmark, making it a new home for Twitter and other expanding tech firms. In June more than 1,500 Twitter employees will be moving in to their new digs. Occupying a full city block, this historic renovation dilapidated
project
is
furniture
converting warehouse
a into
900,000 SF of Class A office space. Showcasing classic elements of the Art Deco era, the former Furniture Exchange and Merchandise Mart is receiving a major face-lift from renowned designers RMW
view sweeping across the City, from Twin Peaks in the west to the downtown skyline in the east. In order to convert part of the ninth floor into an open roof deck, the roof deck is being created by demolishing a structure that was added during World War II. Since metal was rationed during the war effort, the addition was originally built out of wood rather than steel. The structure is being meticulously taken down so that lumber can be reutilized for the feature walls in the lobby and new retail area. The reclaimed lumber is not only ecofriendly but tells an amazing story about the transfiguration of the building and how it was repurposed from a furniture mart to a high tech office building. BNBuilders is restoring both lobbies in 1355 Market Street and 875 Stevenson Street. The grand marble lobby in 1355 Market is being preserved to keep the iconic architecture, while the lobby in 875 Stevenson will integrate modernizations and technical advancements to create a progressive new space. The showpiece of the project will be the conversion of Stevenson Street into a vibrant, beautiful promenade lined with retail shops, restaurants and gathering places. The landscaped plaza will enhance the connection to both Market Square buildings and create a cohesive urban campus for its tenants.
Architects and BCV Architects. BNBuilders’
Historic Buildings and the Modern Workplace
renovation
structural
Historic buildings are undergoing extensive renovation to maintain their classic architecture while
upgrades, six new elevators, installation
at the same time offering modern conveniences. Market Square’s large floor plates and open space
of new MEP systems, and all new rooftop
give tenants vast opportunities and configurations to customize their workspace. The interiors are
equipment. BNBuilders is helping the
moving toward an open office plan with higher densities. A space with no walls, where creative
project achieve LEED Gold certification.
energy can spread like a wild fire and enliven everyone in the room. The trend is also moving
work
includes
toward an open ceiling with exposed finishes. Buildings are being upgraded with significant MEP infrastructure improvements. Upgraded electrical service is required for higher density, high-tech users. HVAC systems are being modernized to provide added capacity as well as the comforts of a modern building. Older buildings are in need of structural upgrades and the increased value in the building has been a driver in upgrading the seismic properties of the buildings. Market Square was updated to sustain a 2000-year seismic event.
RENDERINGS FOR THE NEW RETAIL SPACE AND PARKLET ON THE GROUND LEVEL
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DELIVERING THE TOWER CRANE IN DOWNTOWN SAN FRANCISCO
CAST-IN-PLACE PANELS AT PLYMOUTH HOUSING GROUP
Building Living Spaces in Urban Cores With more people now traveling daily into downtown cores, cities are also seeing a rise in the demand for housing. BNBuilders is experiencing this trend first-hand in downtown Seattle on the Plymouth Housing Group’s Williams Apartment Building. There are two main groups fueling the housing trend in downtown Seattle. The first is choosing to rent in downtown versus purchasing property outside the City. The second group is the non-profit sector who is committed to providing affordable housing throughout downtown Seattle. Condos and single-family homes were over-built in early 2007, now the focus has shifted to constructing multi-family and affordable apartments in downtown. Plymouth Housing Group (PHG) is one organization that has been at the forefront of helping create housing opportunities in downtown Seattle. PHG provides housing for the most disadvantaged homeless people in our communities, including the disabled, aging, and military service veterans. BNBuilders is currently constructing a new five-story woodframed apartment building for PHG in the heart of downtown Seattle. With 17 studio units per floor, the 43,350 SF apartment building accommodates a total of 85 units of housing. Each unit has its own hydronic heating/cooling unit. The ground floor spaces include offices for on-site management, a meeting room, two large community rooms, and a small interior courtyard.
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VIEW OF THE WILLIAM’S APARTMENT SITE IN DOWNTOWN SEATTLE
Williams Apartments is pursuing LEED Gold certification using LEED for Homes MidRise. LEED for Homes Mid-Rise is a recent addition to the USGBC’s offerings and BNBuilders first project to use the Rating System. BNBuilders is installing a solar thermal system and 90% of the wood framing, sheathing and casework will come from within 500 miles of the project. BNBuilders is working with Cleanscapes to have our construction debris handled separately from their normal diversion streams and have even found a way to have our wood recycled into mulch rather than being burnt at the local paper mill. We are maximizing all of the points associated with environmentally preferred materials, construction waste management and low emission products to deliver a sustainable project to our community and make the downtown more vital.
Urban Renewal A new economy is underway based on the tech boom and other creative class sectors renewing urban areas. BNBuilders is helping to revitalize our local communities in San Francisco, San Diego, and Seattle through commercial office renovations, multi-family residential and affordable housing projects. BNBuilders has experienced measured growth, resulting in annual volume over $200 million and five offices along the West Coast. With our largest backlog to date, we are poised for significant growth during a very exciting time in the marketplace.
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WHAT MATTERS...
Q&A WITH KEITH WHALEY ABOUT THE REDEVELOPMENT IN SAN DIEGO What is the building trend in San Diego? With the proposed expansion of the convention center there has been increased interest (driven by a need) in hospitality and retail development. Future development within the downtown area is limited to the outskirts of the city predominantly, only a few lots remain within the heart of the city that are open to redevelopment.
How are developers utilizing historic buildings for the modern workplace? Most recently a number of business owners have acquired or leased buildings within the East Village of downtown. By seismically upgrading the structures, cosmetically upgrading the interiors, and preserving and or restoring the building’s façade, the historic ambiance of the east village is pleasantly adding to the growing redevelopment of downtown San Diego.
How is BNBuilders in San Diego involved in this trend? BNBuilders is a member of the Downtown San Diego Partnership, a leading advocate for the economic growth and revitalization of Downtwon. We are also working with a number of developers in planning new revitalization projects within the downtown region.
How is San Diego being affected by redevelopment? Relative to the San Diego region, redevelopment or revitalization of the downtown area has been of significant interest to business owners. The impact of redevelopment is most obvious in downtown. It was realized many years ago, that should the downtown district (primarily the district known as the “Gaslamp Quarter”) be revitalized, tourism interest would return to the region. With tourism the natural progression of business development would also return, followed by residential to support surrounding areas.
How do you see downtown San Diego growing in the next five years in comparison to the growth of all of San Diego County? The growth of the downtown district within the next five years appears to be focused on continued redevelopment of the East Village and bay front properties to include major projects in planning such as the expansion of the convention center and potentially a new professional football field as the major projects. Relative to the anticipated growth of the County of San Diego where residential development appears to be on a slow upswing as well as development of new and or growing commercial business. With the addition to the convention center downtown, there will likely be an upswing in retail and hospitality growth as well.
Keith Whaley is a Project Executive in BNBuilders’ San Diego office. He has over 30 years of experience in the Southern California market.
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WHAT’S HAPPENING AROUND BNBUILDERS
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1. Seattle volunteering at the Blaine Center 2. Redwood City’s Project Engineer Spring Training 3. Progress photo of Washington State University’s, Duncan Dunn Residence Halls Renovation 4. The Arensica project team at the San Diego holiday party 5. BNBuilders self-performing concrete at 259 East Grand in S. San Francisco 6. Ground-Breaking at Puget Sound Blood Center 7. Tower crane delivery at 1355 Market Street in San Francisco 8. New Spokane Valley Fire Station #6 project 9. San Diego’s Holiday Party 10. Redwood City’s Annual Saint Paddy’s Day Celebration 11. Footings at Washington State University’s Duncan Dunn Residence Halls 12. Big Room Meeting for UHS projects in Fremont, CA and Seattle, WA 13. First concrete pour at 259 East Grand in S. San Francisco
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WHAT’S HAPPENING AROUND BNBUILDERS
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1. Tower crane erection at Plymouth Housing Group project in Seattle 2. Seattle CIT group volunteering at the Blaine Center 3. OR Light Replacement at UC San Diego Medical Center 4. Seattle sponsored the Shamrocks hockey team to benefit the Ronald McDonald House 5. Redwood City’s annual employee holiday party 6. Seattle team building, giant Jenga 7. BNBuilders’ new smart board in Redwood City 8. Redwood City’s annual employee holiday party 9. San Diego’s Oktoberfest Celebration 10. Progress photo of rooftop deck at 1355 Market Street in San Francisco 11. Redwood City’s annual employee holiday party 12. Redwood City’s Project Engineer Spring Training, team building exercise - Support Your Executive 13. Installation of the curtain wall at San Diego’s Arensica project
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ON THE MOVE. BNBuilders is excited to annouce three new offices throughout the West Coast.
Interstate Office Relocation The Interstate Office has expanded into a new space in Spokane, Washington. This office is the base of operations for existing (and future) work in Eastern Washington, Idaho, and Montana.
Spokane Office 15920 E Indiana Avenue, Suite 202 Spokane, WA 99216
San Diego Expansion BNBuilders’ Southern California office recently moved into their new home in San Diego, adjacent to UC SD. In the past two years, they have experienced exponential growth, and are expanding their office.
San Diego Office 9255 Towne Centre Drive, Suite 800 San Diego, CA 92121
New Office in San Francisco BNBuilders is expanding our Bay Area presence with a new office location in the mid-Market area of downtown San Francisco. BNBuilders’ newest Bay Area location will support the $100 million worth of work under contract in The City.
San Francisco 875 Stevenson Street San Francisco, CA 94103
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CONTRIBUTORS David Becker Rob Melinauskas Jason Limp Keith Whaley EDITOR Tiffany Avila CREATIVE DIRECTOR / DESIGNER Andrea Larsen
The Quarterly is written and designed by BNBuilders in Redwood City. We are committed to the construction, architecture, and engineering communities and want to share our knowledge and passion with our industry peers. To comment or request copies of The Quarterly, please contact thequarterly@bnbuilders.com BNBuilders is a mid-size General Contractor that specializes in highly technical commercial construction projects. BNBuilders has the experience and strength of a large contractor, but provides the personal service and economy of a local builder. We combine our technical expertise with a drive to exceed expectations to build solutions for our clients. Since the company was founded, we have experienced measured growth resulting in annual volume of $200 million, 250+ employees, and a presence in the California, Washington, Oregon, and Montana construction markets - establishing BNBuilders as a leader for the West Coast. The Quarterly is printed on 100% recycled paper with low-VOC ink.
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