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Successful development often requires multiple abilities: the vision to see the best use for a property, assembling investors to raise needed capital and working closely with the city to remove zoning limitations, engaging the right architect and contractor, and applying strong marketing skills.
Borelli Investment Company was the one of the first real estate firms in Silicon Valley to recognize the opportunities in developing business condominiums, which offer smaller enterprises the advantages of commercial property ownership. At Ringwood Business Center, Borelli applied its experience in innovative ways.
CHALLENGE
In the summer of 2003, a six-building corporate campus in North San Jose’s International Business Park was being sold. Lost in the transaction was a five-acre parcel of land at the end of a cul-de-sac.
The five-acre sale required a fast close. Borelli Investment Company quickly assembled an investor group to raise $2 million in capital and made an offer. Helped by a close relationship with owner, South Bay Development Company, Borelli was able to purchase the land.
The next challenge was to amend the existing zoning for research and development to include other commercial uses as well. Meticulous follow-up secured the desired entitlements within approximately six months.
SOLUTION
Building on its experience in converting Berryessa Industrial Center into industrial condominiums, Borelli Investment Company and architect, Kenny Rodriguez, designed Ringwood Business Center, a three-building business condominium complex totaling 72,220 square feet of space. Ringwood features a “Main Street” design and single-story buildings that allow easy access. Quality exterior touches and attractive interior finishes distinguish the space from other alternatives.
As part of its efforts, Borelli conducted focus groups with brokers specializing in space for smaller businesses. Applying this knowledge, the company built a mix of large and smaller business condominiums, offering from 750 to 3,503 square feet of space for both office and industrial uses.
RESULTS
Six months of fast-track construction by South Bay Construction had the complex ready to be occupied by November 2004. Sales were brisk from the start. In addition to the expected buyers, CPAs, attorneys, mortgage companies, real estate brokers, and other professionals showed strong interest. Within 90 days, more than 80 percent of the units were either sold or in escrow—ensuring an early sell-out.
There had even been one resale by a company that moved to a bigger unit at Ringwood—and made a handy high five-figure profit in about six weeks. Borelli Investment Company’s precision execution of the business condominium concept at Ringwood further reinforces the company’s position as an “expert” in the category, and rewards investors with continued healthy returns on their investment.
Run your own numbers using our on-line lease vs. buy calculator to see if purchasing an office condo is right for you!!.
