Archives for June 2011

Junction Office Condos A Sellout

Innovative, determined marketing  sees the 52-unit, 77,400 sq. ft. project through the challenges of the  Great Recession of 2008-2009

San  Jose, Calif., June 8, 2011 – When Borelli Investment Company acquired an REO  (bank-owned) two, building, two-story, 77,400 sq. ft. R&D/manufacturing  complex located on Junction Avenue near the Trimble Road exit on I-880 back in  2005, creating an office condo complex seemed simple enough.  But with the deepest recession in more than  three-quarters of a century lurking right around the corner, there would be  nothing simple about the Junction Office Center story.

With $10 million in debt and equity funding raised  from an investment group, the project started as expected.

Borelli completely renovated the two  buildings, converting them into high-quality office condos ranging from 750 to  3,000 sq. ft.  The refurbishing included  stunning glass lines with 48 new window openings, new roofs, new heating and  air conditioning units, extensive landscaping, awning covered entrances to  formal lobbies, completely redone interiors, large multi-stalled restrooms, an  on-site fitness facility, common conference room, all the necessary ADA  improvements, and well-appointed suites with carpeting, finished walls and  coffee bars.

“Our first office condo sales closed just before the  end of the year,” said Ralph Borelli, company chairman.  “The following two years were also strong, so  that by the end of 2007, we only had 15 or so units left.”

Responding to the Recession

But  off course, the recession arrived in 2008.   Borelli responded with innovative marketing programs designed to  maintain forward momentum, even if dramatically slowed.  Marketing included a creative mix of  traditional media – brochures, postcards, newsletters, and print ads – together  with “new” media such as a project-specific micro-web site, e-mail blasts, a  lighthearted informational blog that attracted a steady following, and TEAM Junction – a business-acceleration  group run by a certified chairperson from Vistage International, known as the  leading organization for CEOs in the world.           It took awhile and required adjusting condo sales  prices to conform to new market realities, but sales inched forward.  The final sale of a 1,943 sq. ft. unit closed  in May – approximately 5 1/2 years after the first sale.

“Many other developers might have walked away from  Junction Office Center,” Borelli remarked.   “We take our responsibilities seriously – both to our investors and to  the condo owners – to finish the project the way it was intended.  While the returns to investors were obviously  scaled back somewhat, with hard work, we brought the project to a successful  completion.”

For information about other office condo  opportunities through Borelli in Silicon Valley, contact Anna Mcquillan Rose,  at anna@borelli.com, or call (408) 770-1205.