Jeff
Sunnyvale,#2Consumer Comment
Mon, January 07, 2008
Yes, David Taran and Page Mill properties are rising rents, but not to make more money on a monthly basis, but to redevelopment the area. The specific area they are targeting is in East Palo Alto, west of 101, between University and Cooley Avenue. That area in particular is zoned by East Palo Alto for "General Commercial" which means they could build buildings there up to 225 feet (about 15 stories), similar to University Circle and the Four Seasons. Right now it is full of single- and multi- unit properties, and in 1999 the zoning was changed by the City from medium and high density housing to general commercial. By rising rents, Page Mill Properties is hoping to reduce the tenant population. A reduced tenant population will make the relocation fees ($20,000 - $60,000) per tenant less, thus saving millions! Just look back at the pay-out from Home Depot to the tenants that were there across the freeway, it was about $60,000 per tenant:) At that rate Page Mill could save 6 million dollars for every 100 tenants that move because of rent increases! Long term rental increases are small potatoes compared to a large scale redevelopment effort. By mapping the real estate purchases of Page Mill Properties over the last two years a clear pattern emerges of their redevelopment plans. Yes they want to make the West Side of EPA, non-low-income:) Get ready, first Page Mill Properties will scramble to try and save face with the rent increases, then in about 6-18 months will submit their plans for redevelopment to the City. With all the money they have invested, I am sure they already have redevelopment plans and complete models of the new buildings in their offices behind the curtain.