OTO Development to Build 170-Room Moderate Service Hotel
Burlingame, CA – March 30, 2016 – CBRE announced today the disposition of a 3.34-acre vacant parcel located in Belmont, California on behalf of Nikon Precision, Inc., the worldwide leader in LSI Optics. The site, which is located at 1401 Shoreway Road in the master planned development of Redwood Shores, was purchased by OTO Development, a leading upper tier hotel developer for the development of a 170-room, four-story moderate service hotel. The hotel includes a business center, lounge and pool and will serve the significant demand created by a number of major business entities located in the Redwood Shores area including Nikon Precision, Oracle, Electronic Arts and the Sobrato Foundation.
Bruce Paris, of CBRE’s National Land Services group based in the San Francisco Peninsula, arranged the sale on behalf of Nikon Precision, Inc.
“The site, which is physically located in Belmont, is subject to the Redwood Shores Business Center commercial owners association regulations and required numerous non-governmental approvals to include architectural, massing, access and easement relocations,” said Paris. “The number of necessary governmental approvals was also significant, including a general plan amendment, zone change as well as conditional use permit, all of which were supported by Paris and the CBRE Land Services Team.”
“This was a very competitive opportunity, and we were able to generate seven qualified offers for this unique development site,” said Paris. “Ultimately, OTO’s offer, track record and plan to develop an SBC compliant hotel were seen as the most advantageous option for both Nikon Precision and the community,” said Paris. “With the majority of available development land on the Peninsula being consumed for high-density housing in recent years, it’s very unique to have a raw 3.34-acre development site present in the market. This well-conceived quality branded hotel will fill a significant void in the new home marketplace.”
At the time of sale, the property was completely vacant and had never been previously developed, despite the surrounding Class B office buildings, 101 Freeway frontage and prestigious Redwood Shores location. “Large land sites on the Peninsula are in short supply, and the majority of such sites that have been or will be available in the future are typically redevelopment, surplus or former public facility-use properties,” said Paris. “As a result, the CBRE Land Services Group largely focuses its efforts on filling this pent-up demand from developers both nationally and internationally, providing a specialty service in the San Francisco Peninsula market.”
About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.