Fall Updates from Westlake Realty

ByKristina C. Chang

As we settle into the fall season, we are pleased to announce several exciting announcements from across Westlake’s major initiatives.

1. Leasing Momentum at 255 Mayock
Following several weeks of productive negotiations with current tenants, we’re excited to share excellent leasing news. The seller has decided to keep his business operating and will lease space from us, meaning the site will be 100% leased at closing, with only one possible month-to-month tenant. Based on these updates, we now project a stabilized yield of 9.3% – 10.1% and a deal-level IRR between 29% – 36% depending on final lease terms.

  • RMC Engineering:
    The seller has decided to continue operating his business and gradually merge with Fleet Body Worx (see below). They will lease the three buildings at the rear of the site and half of the yard in the back. They have requested a two year lease with a five year market rate extension option. We will offer a five year lease with a five year option but have underwritten a two year lease.
  • Fleet Body Worx:
    The RV and truck body repair company will lease the front paint shop and sand blasting building and half of the rear yard. They have requested a two year lease with a five year market rate extension option. We will offer a five year lease with a five year option but have underwritten a two year lease.
  • T3 Materials:
    The landscaping company currently pays $10,300 per month for the office trailer at the front of the property and two thirds of the yard across the street on a month-to-month basis. They have expressed interest in leasing the entire yard. We will offer them a lease for the entire yard and the small office; if they reject it we will market the space for lease while keeping them on a month to month lease. We have underwritten six months of rent at $10,300 followed by a five year market rate lease.

2. Groundbreaking at Ryder Square
We’re also proud to share that we’ve officially broken ground on Ryder Square, a 328 unit multifamily development in the heart of Santa Clara. This landmark project marks the next chapter in Westlake’s long history of high-quality development. Located just minutes from some of the most important technology campuses in the world (Apple, NVIDIA, Intel, etc.), Ryder Square will provide much needed premium housing for the area’s rapidly growing workforce. As the last fully market rate residential project to be built in Santa Clara, Ryder Square is uniquely positioned for long term success in one of the nation’s strongest rental markets. We’re proud to partner with Northwestern Mutual on this milestone project and look forward to delivering an exceptional community that reflects the innovation and energy of Silicon Valley.

3. Celebrating Betty Shon’s Retirement
Finally, we’d like to extend a special congratulations to Betty Shon on her retirement. I’ve been so grateful for the opportunity to work with my aunt over the last several years – not only sharing countless laughs but also witnessing the impact she had on our organization. Betty elevated our property management standards to true institutional quality and set a standard of excellence across the company. Thank you for everything Betty!! Now looking forward to more San Diego visits!