Company Move to New HQs; Survey Says: Cooling U.S. Housing Market
COMMERCIAL
The month of January is a time of change,a time for a fresh start, a new beginning. As the new real estate reporter, it didn’t take me long to realize what a vibrant area I’d stepped into. In recent years, Orange County has become an attractive address for high-tech Silicon Valley companies. Cisco Systems Inc., among others, continues to increase its presence locally. But the exchange is two-way, particularly for OC developers.
Costa Mesa-based developer Snyder Langston recently announced that it’s working on the renovation and expansion of Silicon Valley WAVE, short for walk and village entertainment. Construction has begun on the $68 million project, co-funded by the city of Sunnyvale and American Mall Properties, with an estimated completion date of March 2002.
Originally conceived in the 1960s and known as the Sunnyvale Town Center Mall, construction on the Silicon Valley WAVE emphasizes the property as a retail and entertainment center with the look and feel of a self-contained village. If that description sounds familiar, it should. Once completed, the Silicon WAVE will share similarities with the Irvine Spectrum Center, another strolling, entertainment/retail venue built by Snyder Langston.
According to Richard Majestic, vice president of Operations for Snyder Langston, the project will include extensive modifications to the parking garage, with one-third of the structure converted to entertainment space. Amenities include special water features, architectural lighting and extensive landscaping.
“Snyder Langston was selected for this project, because we excel in the construction and design management of complex, challenging jobs,” he said.
A 20-screen multiplex theater run by AMC Entertainment Inc. will stand at the center of the village. And, reflecting the newer look and feel of the village, Old Navy and Barnes & Noble will serve as freestanding anchor stores, shifting the attitude away from the mall’s original anchors, Macy’s, J.C. Penny and Montgomery Ward.
New HQs
A couple of companies have decided to relocate their headquarters. Lambda Research Optics Inc. plans to move its primary operations from Cerritos to Costa Mesa. A manufacturer of industrial optics, Lambda Research chose the 35,340-square-foot building located at 1695 MacArthur Blvd., due to the freestanding research and development site’s potential for growth.
“The new location accommodates the company’s growth and contains enough room for future expansion,” said Paul Caputo of Voit Commercial Brokerage, who represented Lambda Research in the $3.4 million deal. Lambda Research acquired the property from computer products maker CI Designs, which was represented by Lee & Associates in the deal.
Syzygy Corp., a provider of computer network services, moved down the street, literally. Located on Batavia St. near the Anaheim Pond, Syzygy moved to the 20,908-square-foot-building at 1640 N. Batavia St. in Orange, almost tripling the size of its previous location.
Mike Boomer, Mitch Zehner and Louis Tomaselli of Voit’s Anaheim Metro office, represented Syzygy in the $1.2 million deal.
RESIDENTIAL
Last week, the Meyers Group released its third quarter issue of U.S. Housing Markets. The residential research and consulting service reported that the housing market cooled during the third quarter. However, they added a caveat. Due to various economic indicators, the housing market slowdown could mean good news to the housing industry.
The Meyers Group points to Federal Reserve Chairman Alan Greenspan as a barometer for gauging the market’s success. In a recent speech, Greenspan hinted at lowering short-term interest rates.
“Homebuilder stocks rose 11% the day of Greenspan’s speech,” according to the Meyers Group report.
The Meyers Group says that investor caution will further slow housing construction. And that’s a good thing? According to the report, it is. For long-term growth, the housing industry would bounce back more quickly from a “slowdown in national construction now, rather than a steep decline later.”
Going by the numbers, the report views the economy as slowing, but remaining strong. The U.S. employment base grew 1.9% in the past year, more than double the population growth. Consumer and builder confidence continued posting positive results. Consumer confidence held an “A” rating, while builder confidence rose from 58 in June to 65. The market for new homes declined slightly in the third quarter, dipping 4% from last year and keeping pace with the second quarter numbers.
On an interesting side note, Los Angeles, with a 31% increase in permits issued from the past 12 months vs. the prior period, ranked as the fastest-growing housing market in the country.
