Borelli Investment Company has announced that, after considerable behind-the-scenes work with the City of San Jose’s planning department and other city officials, both Junction Office Center in San Jose’s Golden Triangle and AirTech Office Condominiums in the highly desirable airport area have been approved for medical and dental uses.

This means that MD’s in a variety of specialties, as well as dentists, chiropractors, acupuncture specialists, and other health professionals can take advantage of the benefits of business property ownership at either of these office condominium complexes.

“We have suites starting from as small as 750 square feet,” said Ralph Borelli, CEO of Borelli Investment Company. “This puts ownership within the reach of practices of almost any size. Medical professionals can purchase the real estate through their practice or as an individual—whatever they and their CPA deem is most favorable for their individual financial situation.”

Two Outstanding San Jose Locations

Borelli’s latest office condominium complex is Junction Office Center—a two-building, 77,404 square foot complex at 2051 – 2055 Junction Avenue in San Jose. The buildings are located in the heart of the famous Golden Triangle, formed by the intersections of I-880, Hwy 101, and Hwy 237. This prime location puts a practice in the middle of a busy office and industrial area, with high-traffic retailers such as Fry’s Electronics close by. In addition, the office staff will enjoy easy commutes via the major transportation arteries or light rail, a few blocks away.

Junction Office Center offers 52 office condos in total, with nearly 60 percent of Phase I already sold or in escrow. The two-story buildings have benefited from $10 million in renovations and upgrades, including new elevators, all new interiors, new windows, with new offices & doorways, large high tech-equipped common conference room, the latest heating and air conditioning systems, large multi-stalled restrooms with showers, extensive landscaping improvements, ADA accommodations, a new roof, and high-speed Internet service. Patients will enter through an impressive formal lobby with polished granite floors and high ceilings. Ample parking is right at the door.

AirTech Office Condominiums is a two-story garden office complex, with 42 condo units and nearly 56,000 square feet of space total. Fully 90 percent of the offices are sold or in escrow, so buyers need to hurry. More than $3 million in improvements made by Borelli Investment Company include a high-speed T1 line for Internet service, large high tech-equipped common conference room, individual temperature-adjusted suites, a high-speed elevator, large multi-stalled restrooms, a full seismic upgrade, new roof, and attractive landscaping improvements.

Both office condominium complexes provide the built-in backbone infrastructure required for customized medical and dental offices.

“As sophisticated as most medical professionals are, many don’t realize that the significant tax advantages of business ownership are so readily available,” Borelli commented. “These advantages include a special IRC Section 179 write-off of up to $105,000 in the first year, accelerated depreciation from cost segregation, and other deductions for taxes and interest. Plus, SBA financing requires as little as ten percent down.”

Medical Uses Create Healthy Market

There has been a healthy amount of interest in medical usage of office condominiums for some time, so Borelli expects the market to come to life quickly.

“Office condominiums represent an ideal investment for smaller medical practices,” noted Borelli. “Legitimate deductions can be applied to reduce taxes on high earnings, and at the same time, a practice can control its long-term occupancy costs while capitalizing on potential value increases. It really makes so much sense that a broad range of individuals and practices can benefit.”

For more information, contact Larry Bengiveno  for Junction, or Buddy Parsons for AirTech, or call (408) 453-4700. Or interested parties can visit the property development web sites by clicking on the logos at the bottom of this page.

Tom Purtell Named Chief Operating Officer of Borelli Investment Company

Will handle day-to-day operations-from technology systems to accounting

San Jose, Calif., June 14, 2006 — Tom Purtell has been promoted to chief operating officer of Borelli Investment Company, a leading San Jose-based provider of commercial real estate services, it was announced by Ralph N. Borelli, CEO. Previously asset manager and director of information services for the firm, in his new role Purtell will oversee all day-to-day operations for Borelli.

The company provides a wide range of services for commercial real estate including property management, sales and leasing, land sales and repositioning, syndicated real estate investments, property development, construction management, asset management, and court-appointed receiverships. “We are involved in an unusually diverse set of activities,” said Borelli. “This creates unique operating challenges on a daily basis. We are fortunate that Tom possesses a special combination of skills that will allow him to deal effectively with whatever challenges we might face.”

Purtell first joined Borelli Investment Company’s accounting department in 1995. His responsibilities soon expanded to include management of technology systems—including Borelli’s first web site and e-mail system, property management responsibilities, and project development. Most recently, Purtell developed Borelli Investment Company’s Junction Office Center, a 77,400 square foot office condominium project currently for sale in North San Jose’s Golden Triangle.

Before joining Borelli, Purtell was involved in the expansion of Hollywood Video, establishing a strong presence in Northern California with the opening of 11 stores. Prior to his work at Hollywood Video, Purtell also gained work experience in banking and finance.

Purtell holds a degree in accounting from San Jose State University. He is a member of the Building Owners and Managers Association (BOMA) and the Aircraft Operators and Pilots Association (AOPA). He resides with his family in Gilroy.

Borelli Investment Company is one of the oldest commercial real estate firms in the Santa Clara Valley, with more than 50 years of experience.  The company provides a full range of commercial real estate services-from development and construction management to land sales and consulting for sales and leasing.  More information about Borelli Investment Company’s services may be obtained by calling (408) 453-4700 or visiting www.borelli.com.

Contact: Ralph Borelli, CEO Borelli Investment Company 1770 Technology Dr. San Jose, CA 95110 Ph: 408.453.4700 Fax: 408.453.4636 E-mail: ralph@borelli.com

http://www.borelli.com

Borelli Restructures

By Katherine Conrad, San Jose Mercury News, June 13, 2006 in the Commercial Real Estate Section, Spaces and Places column.

Longtime commercial real estate company Borelli Investment has restructured its management team, freeing Ralph Borelli from day-to-day responsibilities so he can handle land development deals, and making Buddy Parsons president. Borelli, who took over in 1977 for his father, founder Nelo Borelli, remains the CEO.

“We decided that having Ralph micromanaging is not the best use of his time,” Parsons said. “He is heavily invested in land transactions. That’s a huge amount of responsibility on his plate.”

The restructuring also allows Borelli Investments to beef up its current portfolio of 4 million square feet in the valley and San Joaquin County. Parsons is ambitious — he wants to double that figure.

About half of the company’s business is devoted to third-party property management, despite the fact that Borelli Investments has not sought out such accounts. Still, it has managed to build a sizable portfolio for a company with fewer than 30 employees, Parsons said.

 

Driven by Silicon Valley’s seemingly endless high-technology engine, millions of square feet of commercial space were constructed in Silicon Valley in the 1970s and 1980s. Much of this space consisted of large, one or two-story industrial and R&D buildings, built as part of sprawling campuses for high tech manufacturers and fabricators. But over the past decade, a lot of manufacturing jobs have moved elsewhere, to lower-cost areas in Texas, Oregon, or Massachusetts—or overseas. This has left a glut of vacant industrial buildings with functionally obsolete space on the market, with few prospects to fill it up.

At the same time, the San Jose metropolitan area’s rapidly growing population continues to put tremendous strain on the area’s housing supply. Prices have increased month after month, year after year, to levels that some analysts worry are too high.

With a drastic oversupply of industrial space and undersupply of residential space, it didn’t take long to identify the answer: Silicon Valley real estate’s own version of “recycling”.

16 Million Square Feet of Conversions

According to local brokerage firm Commercial Property Services (CPS), nearly 16.4 million square feet of commercial space at 150 sites are at some stage in the process of being converted to residential offerings.

With less than 3.2 million square feet already converted, the vast majority of that space will be transformed into much needed housing over the next few years. Almost 6.5 million square feet of space is under contract in the entitlement phase. Another 1.9 million square feet should soon be added to that, once an issue or two has been resolved with city planning departments.

“This movement from industrial to housing promises to reshape the Valley’s landscape,” says Ralph Borelli, president and CEO of Borelli Investment Company. “The 16 million square feet of space represents more than one-quarter of the vacant industrial space in the Valley, according to some estimates. The shift will be good for commercial rents—firming the market a bit—and also good for housing, cooling off what has been an overheated marketplace.”

A number of big-name builders are active participants in the conversion of industrial to residential space. For example, Southern California-based Shea Homes plans to demolish the longtime Underwriter Labs R&D facility in Santa Clara, replacing it with high-density housing. Shea is also looking at other potential conversion sites, from Mountain View to San Jose.

A New Breed of Condominiums

Besides residential condominiums and townhomes, there’s another type of condominium that is rising out of the dust created as old industrial buildings are recycled: business condominiums. Developers such as Borelli Investment Company, which has been at the forefront of the business condominium trend in Northern California, are actively searching for undervalued industrial properties to purchase, renovate, and convert to office condominiums.

For example, Borelli’s Junction Office Center was originally a vacant R&D complex on Junction Avenue just off Brokaw Road in San Jose. Borelli Investment Company purchased the two two-story buildings in 2005, investing nearly $10 million, and converting the space into 52 office condominiums ranging in size from 750 to 3,000 square feet—for a total of 77,400 square feet. Smaller companies, including medical and dental practices, can purchase office space at Junction and enjoy all the advantages of ownership, from tax benefits to potential appreciation

“The owners of the industrial buildings get a fair price for what had been a non-income producing investment,” Borelli explains. “And once the renovation is complete, companies that never dreamed of owning business property can afford to buy—putting an end to ever-rising lease rates. Recycling industrial space to business condominiums benefits everyone involved.”

The Space Race

There’s still plenty of demand for quality commercial space in Silicon Valley, as recent deals such as Adobe’s purchase of the San Jose Water Works acreage for future development in downtown San Jose suggest. Also, at some point, if millions of square feet of industrial space are converted to residential, there’s a danger of reaching a saturation point in the housing market.

But for now, it’s a case of spring renewal of a different kind, as industrial buildings with functionally obsolete space make way for a fertile crop of much-needed housing and other uses in Silicon Valley.

Buddy Parsons Promoted to President of Borelli Investment Company

Will handle day-to-day business development, client relations,
sales force management, and acquisitions

San Jose, Calif., June 5, 2006 — Buddy R. Parsons has been promoted to president of Borelli Investment Company, a leading San Jose-based provider of commercial real estate services, it was announced by Ralph N. Borelli, CEO.  In his new role, Parsons will be responsible for day-to-day activities in client relations, business development, sales force management, and acquisitions for the 50-year-old firm.  Borelli Investment Company provides a wide range of services for commercial real estate including property management, sales and leasing, land sales and repositioning, syndicated real estate investments, property development, construction management, asset management, and court-appointed receiverships.

Parsons has been with Borelli Investment Company almost continuously since 1978, when he started as a commercial leasing agent and property manager.  He left the company briefly in the mid-1980s for another career opportunity, but returned two years later-and has remained with Borelli ever since.  Most recently, Parsons was vice president of asset management. In the past few years, he has been involved in more than 500 lease transactions and helped close approximately $70 million in building sales.

“Buddy and I go back a long way, and he is well prepared to lead the company,” said Borelli.  “One of his greatest strengths is his focus on client satisfactions and meeting individual client requirements.  The company’s various clients, investors, and partners will be in very good hands with Buddy as president.”

Borelli Investment Company is one of the oldest commercial real estate firms in the Santa Clara Valley, with more than 50 years of experience.  The company provides a full range of commercial real estate services-from development and construction management to land sales and consulting for sales and leasing.  More information about Borelli Investment Company’s services may be obtained by calling (408) 453-4700 or visiting www.borelli.com.

Contact: Ralph Borelli, CEO Borelli Investment Company 1770 Technology Dr. San Jose, CA 95110 Ph: 408.453.4700 Fax: 408.453.4636 E-mail: ralph@borelli.com http://www.borelli.com