Inside Gwyneth Paltrow’s Goop headquarters in PMI’s Creative Offices in Santa Monica

Actress-turned-lifestyle entrepreneur Gwyneth Paltrow has grown her company Goop from a newsletter into a full-on force that offers advice on a wide range of topics including fashion, food, wellness, and travel. Often, the products it endorses carry outrageous price tags (a $4,700 juicer?) that some argue only an actress-turned-lifestyle-entrepreneur could afford.

The company began humbly in Paltrow’s home in London, then moved to a barn on her property in Brentwood. Less than two years ago, reports Architectural Digest, the expanding business has moved into “no-frills” Santa Monica warehouse that once housed chickens. Paltrow called in RH (the post-rebrand name of Restoration Hardware) to redo the space and give it that Goopy feel.

Paltrow says the resulting workspace really captures the “raw and energetic … very California” vibe of the company’s first office.

A variety of pendant lamps and tables set up as flexible work areas run throughout the space, which is a textbook warehouse with exposed trusses, high airy ceilings, and concrete floors.

It’s nothing cutting edge or even really exciting, but it does look comfortable. And that’s kind of the point, says Paltrow: “Since we think of Goop as a family, we wanted everyone to feel at home.”

https://la.curbed.com/2017/5/3/15532422/gwyneth-paltrow-goop-headquarters-santa-monica

PMI Renovates 200 Unit East Bay Apartment Complex Down to the Studs

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PMI is in the process of a substantially renovating its 200 unit apartment property in El Sobrante in the East Bay of California , approximately a 26 minute drive to San Francisco in the non rush hour traffic.  Renamed Solace Apartments, the property will be packed with amenities:

• Clubhouse with Fireplace, Media Lounge and Indoor/ Outdoor Entertaining Kitchen
• Fitness Center/Yoga Studio with Streamable Instructional Classes
• Multiple Work Stations
• Pool, Spa and Outdoor Lounge Areas with Trellis, BBQ’s, Cabanas and Large Fire Pit to Gather Friends
• Trellised Deck Overlooking Pool
• Pet Parlor/Doggie Park
• Parcel Delivery Lockers & Mail Room
• Bike Friendly – Bike Repair Station
• Barbecue Grills
• Creek & Mountain Views
• Free High Speed WIFI in Common Area Amenities

One of the most attractive things about living at Solace Apartment Homes is that it is central to everything. You’re close enough to enjoy the nature reserves around the area while also taking advantage of everything that California’s second largest metropolitan area has to offer, like quick trips to San Francisco, Berkeley, and Napa Valley. Daily conveniences like Sprouts, Trader Joes, Starbucks and a Raley’s supermarket are all within close proximity.

Wildcat Park, a wildlife reserve, is a five-minute drive away. This is a perfect location for the outdoorsy types who enjoy hiking and mountain biking along trails; you’ll forget that you even live in the Bay Area!

Solace Apartment Homes’ prime location comes with various transportation options for its residents. Solace is minutes from I-80, and the area is serviced heavily by Uber and Lyft drivers. There is an AC Transit Bus stop located on the corner of the property, a BART station approximately four miles away, and the Richmond Parkway Transit where you can Park and Share a Ride approximately two miles away.

Solace Apartment Homes is a wonderful residential community for people who love living in the Bay Area but want some distance from the congested and busy streets of larger cities.

 

 

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Great Room

 

Kitchen

Dining

 

Lounge

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Announcing Completion of Another Creative Multifamily at 128 North Rampart Near Echo Park

We have completed construction at 128 North Rampart, a nine unit apartment renovation  near  Echo Park.  PMI ventured a half mile south of Echo Park– about two blocks north of Beverly Boulevard.  Yet, the complex is still within a mile of the Echo Park Lake.    PMI converted studios to micro one bedrooms and one bedrooms to micro two bedrooms.  At slightly lower rents, PMI is targeting its same clientele with its hip new loft like look.

 

Investment Strategy in The Current Environment of Real Estate Asset Prices

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We are currently in the expansion phase of the business cycle.  We are typically not buyers during this phase.  We are usually buyers during the  recovery phase of the cycle. The rewards during the recovery phase are great.   Values can more than double or triple over time.

We have a very difficult time navigating the expansion phase of the cycle for investment opportunities. During this phase, as is now now occurring, values reach record highs and are hard to reconcile with our past experience.  As the expansion continues, prices reach ever higher levels, and many short term investors reap very high IRR yields.  For example, many offices properties are selling for $800 to $1,100 per square foot in Los Angeles and San Francisco.  Investors who purchased and renovated properties at $600 per square foot or even higher during the last few years are now selling and making attractive IRR yields given the short holding period.  Investors who purchased Westside apartment buildings at 4 to 5% cap rates are now the selling them at higher rents at 3 to 4% cap rates.   We view this as a risky enterprise.  The longer the expansion continues, the more overly conservative we appear.  Up it goes until it blows, and the higher it goes, the bigger it blows.

During this expansion phase, we are reaping the fruits of our gains by selling, raising rents, and refinancing in order to distribute money to our investors; building the stability of our portfolio by pursuing better credit tenants and longer term lease;,  bolstering our cash resources by refinancing to replenish reserves; and asking our investors to keep some dry powder in preparation for the next great buying opportunity.”  We have experienced several of these buying opportunities where certain real estate prices fall to shocking levels.

We seem to follow the musings of Warren Buffet in his recent (February 25, 2017) letter to investors:

“…I have no magic plan to add earnings except to dream big and to be prepared mentally and financially to act fast when opportunities present themselves. Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons….”

Real estate investors tend to be optimists. It takes a lot of patience and discipline to deploy this strategy.

Water Test to Find the Leak and To Make Sure It is Fixed

The recent rains have exposed the weaknesses in our roofs and drainage. Water issues abound resulting from the decade high rainfall that occurred in mid February. Experts are quick to recommend a solution: new roofs, roof sections, gutters, swails, waterproofing, french drains, etc. From my experience, I would first use a hose ,if possible, to identify the cause of the leak. You may need to expose the structure under the drywall to accomplish this task. Once the remediation is complete, I would again use a hose to test the success of the remediation. For more complex jobs, you can hire a water leak testing company.

PMI LEASES 12,717 Square Feet to Video Game Ad Network at 642 Harrison in SOMA San Francisco

642 Harrison

642 Harrison

RockYou, an interactive media company that runs in-game video ad platforms for premium brands, has leased a 12,717 square feet suite at 642 Harrison Street.

ry-logo-183-51RockYou Inc. is media a company that previously developed widgets for MySpace and implemented applications for various social networks (including Facebook). Since 2014, it has engaged primarily in the purchases of rights to classic video games, then incorporated in-game ads and re-distributed them. Per their website, RockYou’s “seamlessly integrated video advertising service enables brands to efficiently reach 75M+ consumers on Facebook, web and mobile. [They are] currently ranked within the Top 20 of comScore’s Top 100 Video Properties.” Backed by investors such as Columbia Capital and DCM Venture Partners, RockYou has seen exponential impression growth each year since 2013 and has been profiled on sites like VentureBeat and TechCrunch.

RockYou has leased Suite 300 at 642 Harrison Street; located in the center of San Francisco’s (SOMA’s) South Beach neighborhood and just off of SOMA’s commercial corridor, 642 Harrison provides easy access to the area’s housing, restaurants, nightlight, and cultural venues. The property is also in one of the few San Francisco locations that is walking distance to both Caltrain and BART. PMI purchased the building in 2012, during the recession. RockYou’s lease covers approximately 12,717 rentable square feet. The Landlord was represented by Mike McCarthy and Mike Monroe of Colliers, and the tenant was represented by Matt Hart of Savills Studley

Ubisofts Renews 42,200 Square Foot Lease In PMI’s 625 Third Street Building in SOMA San Francisco

exterior-2PMI is pleased to announce a successful lease signing in San Francisco: Ubisoft, a world-renowned video game company, has extended their 42,429 square foot lease at 625 Third Street for an additional seven year term.

Ubisoft Entertainment SA is an award winning French company that is engaged in the development, publishing and distribution of video games. It offers a wide portfolio of products, such as Far Cry, Tom Clancy’s Splinter Cell, Prince of Persia, Tom Clancy’s Rainbow Six, Petz, Shaun White, Driver, and Assassin’s Creed (which was recently adopted to feature film, starring Michael Fassbender). Ubisoft Entertainment SA operates through its subsidiaries, including Ubisoft Inc. in the United States, Ubisoft Ltd in the United Kingdom, Ubisoft GmbH in Germany, Ubisoft France SAS and others. The Company’s subsidiaries are located in 28 countries, such as France, Spain, the United States and China, and the Company’s distribution network covers more than 55 countries around the world. Ubisoft had sales of approximately $1.7 billion in 2016 and a book net worth of over $1 billion.
Ubisoft’s lease at 625 Third Street dates back to 2005; PMI acquired the building in 2010, during the recession. 625 Third is located in San Francisco’s desirable SOMA submarket, the city’s most popular submarket for tech and media companies. The property fronts along Third Street, a main artery carrying traffic into Downtown San Francisco and is one block away from AT&T Park, home of the San Francisco Giants. Ubisoft’s lease covers the entirety of the building (42,429 rentable square feet). They were represented by Matt Hart of Savills Studley.