DTZ, a global leader in commercial real estate services, announced today that Panattoni Development Company, Inc. has gone into escrow on an undeveloped ±14.81 acre site in Davis, CA. Panattoni plans to develop between ±150,000 and ±225,000 square feet of new Class A office, lab and technology space on the site.
Located at 3501 Chiles Boulevard, the subject property is zoned for a business park and commercial use. The site is said to be the largest undeveloped site within the City of Davis currently approved for development.
The announcement comes at a time when the city is working on two peripheral innovation park proposals – one east of Mace Blvd. and the other northwest of Sutter-Davis Hospital – that could add nearly 7 million square feet of high tech and innovation space. Nishi, adjacent to UC Davis has plans for another 300 to 500 thousand square feet.
Those proposals put the size of the Panattoni proposal into perspective.
According to a press release, “The proposed state-of-the-art campus design will focus on sustainability, technological enhancements, and a strong sense of place both indoors and outdoors.”
San Francisco-based global architectural firm Vitae Architecture will be designing the campus and Cunningham Engineering, which has done a great deal of work in Davis, including at UC Davis West Village’s zero net energy community, will be providing engineering services.
Panattoni has selected Jim Gray, CCIM (Certified Commercial Investment Member), and Nahz Anvary, CCIM, brokers with DTZ for the project leasing assignment. Based in the firm’s Sacramento office, Mr. Gray and Ms. Anvary specialize in commercial real estate located within the Sacramento Region, and both reside in Davis. They are also representing the existing land ownership in the sale to Panattoni.
Jim Gray told the Vanguard in an email, “We believe that this is an exciting opportunity for our city! It is a significant infill opportunity to create jobs and great new buildings as well as community amenities. It is our opinion that if the Innovation Parks get approved and voted on by the citizens in the affirmative that it will be 4-6 years before real buildings could be delivered.”
He added that they are completely behind the Innovation Parks, but they believe that “this is a project that could be leveraged by a world class organization to show that Davis can build quality buildings and related facilities and amenities so that we can attract and retain good businesses.”
Located between Mace Boulevard and the Richards Boulevard/Downtown Davis off ramp with freeway visibility on the south side of Interstate 80, the proposers believe that the site is well connected to the bike paths and greenbelts in Davis and is close to the other major business parks where the majority of off-campus technology and institutional users are located, including University Research Park and Mace Ranch.
Tim Schaedler, a partner in Panattoni Development Company which is spearheading the development plan, said, “There is a real shortage today of space for mid-size and large companies in Davis. We are pleasantly surprised by the interest, enthusiasm and energy focused on our project. We believe we can deliver high quality and competitively priced workplaces that will be a valuable addition to the Davis community. Our new project will be one of the last fully zoned freeway visible office developments available in Davis.”
“This is really exciting news,” said Mayor Dan Wolk in the release. “The Panattoni Company is a world class builder. That they picked Davis to build such a significant project just underscores what I’ve been saying lately — we are clearly experiencing an economic resurgence in Davis.”
“This project means jobs,” added Mayor Wolk. “It means increased sales and property tax revenues for the City. And it will be an economic development catalyst. As I said during a talk with Chamber of Commerce leaders the other day, ‘I want to renew Davis.’ To build on what we have done over the past decades, not resting on our laurels. This is the type of project that leads us down that path.”
“We are actively targeting tenants and users for the proposed buildings. In this early stage, large and midsized companies are going to have the opportunity to get the property tailored for their specific needs,” said Mr. Gray. “There are many companies and institutions in Northern California that might be interested in a presence in Davis due to the ability to collaborate with UC Davis, the highly educated workforce, and strong quality of life that exists here.”
Nahz Anvary stated, “There is a strong relationship between the University of California at Davis and the business community in the region and we are sharing our planning efforts with both the business community and the University, including with faculty, researchers, departments and operating units. We believe there will be great synergies and opportunities for collaboration providing new space for firms who have relationships with UCD who want close proximity to their academic colleagues and to a talented pool of employees and UCD students.”
“From a macroeconomic perspective, the project just makes perfect sense, said Gretchen Becker, consultant for Panattoni.
Mr. Gray noted “There is a scarcity of existing available spaces larger than ±10,000 square feet. You can’t recruit businesses to Davis if there isn’t space. Also, it’s very troubling that Davis based firms cannot find modern facilities to accommodate their growth.”
Panattoni and DTZ said in their release that they “believe that there is great momentum and focus on the community of Davis, and an active collaboration amongst the City, the community, the University, and the development team will result in a dynamic and vibrant business park that will become of the most desirable business environments in the Sacramento Valley.”
Mr. Gray added, “Of course, to achieve success, the entire team’s efforts will need to embrace and enhance the DNA of the community of Davis, which includes great planning and design, sustainable buildings and innovation, close relationships between the University and the City as well as deep roots in Agriculture, Education, and civic participation.”
The Panattoni Development Company is “a commercial real estate development company specializing in industrial, office and retail projects. The company has the depth, expertise and capacity to quickly respond to the demands of its clients. Panattoni provides users multi-market solutions completing quality projects on time and within budget.”
Further, “Panattoni is a global firm with projects underway throughout northern California and around the Globe. Carl Panattoni began his firm in Sacramento and the founder still lives in northern California.”
“Panattoni’s commitment to environmental excellence will be woven into the fabric of the new campus through elevated efficiency, enhanced performance goals, connectivity with nature, and sustainability,” the company information stated.
DTZ is “a global leader in commercial real estate services providing occupiers, tenants and investors around the world with a full spectrum of property solutions. Our core capabilities include agency leasing, tenant representation, corporate and global occupier services, property management, facilities management, facilities services, capital markets, investment and asset management, valuation, building consultancy, research, consulting, and project and development management.
“DTZ manages 3.3 billion square feet and $63 billion in transaction volume globally on behalf of institutional, corporate, government and private clients. Our more than 28,000 employees operate across more than 260 offices in more than 50 countries and proudly represent DTZ’s culture of excellence, client advocacy, integrity and collaboration.”
—David M. Greenwald reporting