THE

QUARTERLYA BNBuilders publication

URBAN REVITALIZATIONa look into redeveloping downtown neighborhoods

APRIL 2012

BNBuilders • Revitalization

B N B u i l d e r s

BNBuilders • Revitalization

WHAT YOU CAN FIND IN THIS ISSUE

A Note From Our Leaders PAGE 1Principal, David Becker shares why BNBuilders is passionate about the revitalization of urban downtown cores.

Urban Revitalization PAGE 2Take a closer look at how BNBuilders is involved in the revitalization movement across the West Coast.

What Matters PAGE 8BNBuilders chats with Project Executive Keith Whaley about the revitalization trends in the San Diego Market.

What’s Happening PAGE 9BNBuilders has been busy across the West Coast and the Inner States. Take a glance at what our people and our projects have been up to over the past months.

On the Move PAGE 11See what BNBuilders’ offices have been up to.

Credits PAGE 12Acknowledgements and thanks to everyone who contributed to this edition.

A NOTE FROM OUR LEADERS...David Becker, Principal

It is with great pleasure I introduce BNBuilders’

newest publication, The Quarterly. This newsletter

reflects the innovation and creativity on our jobsites

and in our people, and gives insight into the BNB

leaders that drive such a passionate culture. Most

importantly, The Quarterly continues to provide our

clients with value, with a thoughtful perspective on

trends and issues that matter to you. Each quarter

we will feature a timely topic in our industry, and

present innovative ways in which our clients and

BNBuilders are actively engaged in building both

solutions and communities.

We are truly inspired this year. The outlook for

2012 from our trailers is exciting. In 2011 we

witnessed an economic recovery and revival from

the tech boom that re-awakened San Francisco,

Silicon Valley, and “Creative Class” cities across

the country. San Diego. Seattle. Chicago. Boston.

Austin. Apple. Google. Facebook. Amazon.

LinkedIn. Twitter, Zynga, and Salesforce…These

are just a few of our neighbors and we are proud to

be a part of the rejuvenation in our local economy

and the urban renewal that is transforming our

cities. That’s why we chose to spend some time

talking about Urban Revitalization.

Relative to the technology market’s explosion, the

Bay Area has experienced a boom in tech jobs

as well as the resulting commercial property and

multi-family residential developments. First SOMA,

and now Mid-Market is undergoing a massive

transformation, with hot new companies moving

into this up and coming part of the city. Historic

buildings are being retrofitted and renovated for

the modern workspace, with sleek new interiors

that speak to a new generation and new work

culture. We see multi-family projects growing in

our offices and across the country. In our Seattle

office, the multi-family market is at the forefront of

development.

It really is a brave new world and as promising as

we had hoped. We wish you and your business a

prosperous year.

Carpe Diem.

David Becker

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THE REVITALIZATION OF DOWNTOWN NEIGHBORHOODS IS SPREADING ACROSS THE WEST COAST. BNBUILDERS IS EXCITED TO BE LEADING THE CHARGE IN MULTIPLE REGIONS THROUGH HISTORIC RENOVATIONS, COMMERCIAL OFFICE TENANT IMPROVEMENTS, AND MULTI-FAMILY HOUSING IN DOWNTOWN SAN FRANCISCO, SEATTLE, AND SAN DIEGO. WE WILL TAKE A CLOSER LOOK AT OUR PROJECTS IN THESE MARKETS AND HOW THEY ARE REVITALIZING THEIR NEIGHBORHOODS.

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Building for the Creative Class

The creative class is revitalizing the San

Francisco economy and cities across the

country. The “creative class” is defined by

economist and social scientist Richard Florida

as the workforce who creates for a living, and

includes diverse fields from engineering to

theater, biotech to education, and architecture

to small business. They currently make up

30% of the U.S. workforce and that number

is continuing to grow. Technology is San

Francisco’s fastest growing sector and the

creative class is at the forefront of this market,

driving how we live and work, how we interact,

and even spend our time. It is said San

Francisco will have 28% more tech positions

by the end of this year than it did in its 2000

peak during the dot-com era, according to an

employment analysis by Jones Lang LaSalle.

In the construction industry, we see the

huge economic impact on commercial office

tenant improvements and how workspace is

organized and designed. The creative class

thrives on a more artistic and open-office

environment that maximizes daylight, and one

that spurs creativity, integration, collaboration

and innovation. The unique building elements

and urban feel of historic buildings in Mid-

Market are very attractive work space for the

creative class.

San Francisco Mid-Market Revitalization

The Twitter effect is real and it is transforming

the Mid-Market district. Like Twitter, tech

companies wanting to capitalize on the payroll

tax exemption zone of the district, also see a

chance opportunity to be part of the next

trendy, emerging neighborhood. SOMA’s

renewal was successful, why not the central

thoroughfare of The City?

The Mid-Market neighborhood stretches

roughly between Fifth Street and Van Ness

Avenue along Market Street, and includes 3.3

million SF contained within 73 office buildings.

Interest in the blighted area came after the City

launched the Central Market Partnership, a

public-private initiative and economic strategy

to revitalize Central Market and the adjacent

neighborhoods. Companies in the Enterprise

Zone are exempt from San Francisco’s 1.5%

payroll tax for employees they add after they

move in. In addition to the tax break, the City’s

plan includes six strategic objectives: stabilize

the existing community, enhance and activate

the public realm, enhance the creative arts

community, reduce vacancies, build community

capacity, and improve safety. Tech companies

are noticing, as they have leased over 380,000

SF of office space on central Market, including

CallSocket (30,000 SF), Zendesk (35,000 SF),

One Kings Lane (52,000 SF), Zoosk (52,000

SF), and Riverbed Technologies. The increase in

lease activity is also attracting local developers

to take a closer look into the area. The Market

Square project was in the planning phases

for almost 10 years before Shorenstein

Realty Services purchased it and signed

Twitter to the space.

The Mid-Market area has more large-scale,

high-rise buildings that can accommodate

growing companies. While boutique SOMA

spaces cater to start ups, Mid-Market boasts

large and open floor plans, conducive to the

modern workplace. Twitter leased 250,000 SF

in the Market Square building with an option

for another 140,000 SF. 1455 Market, 1 South

Van Ness, Fox Plaza, and the former AAA

headquarters are examples of Central Market

properties that accommodate larger square foot

requirements. Mid-Market also has a distinct

advantage over the expanding Mission Bay

neighborhood, and that is the historical value

of its buildings and architecture, and access to

public transportation.

In addition to new workspaces, increased

residential investments are spurring new multi-

family projects in the Mid-Market, Civic Center

and Tenderloin area. Eight new residential

projects are slated for development, including

10 to 15-unit condos and a 30-story high-rise

condo building across the street from Market

Square. In all, over 2,000 units will be added

to the area, attracting more businesses and

commercial tenancies.

1355 MARKET SQUARE BUILDING RENOVATION...SOON TO BE HOME TO TWITTER

CURRENT LAYOUT TO ACCOMMODATE TWITTER’S NEW CREATIVE SPACE

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Among the key features is a 20,000 SF roof deck for Twitter employees on the ninth floor, with a

view sweeping across the City, from Twin Peaks in the west to the downtown skyline in the east.

In order to convert part of the ninth floor into an open roof deck, the roof deck is being created

by demolishing a structure that was added during World War II. Since metal was rationed during

the war effort, the addition was originally built out of wood rather than steel. The structure is being

meticulously taken down so that lumber can be reutilized for the feature walls in the lobby and

new retail area. The reclaimed lumber is not only ecofriendly but tells an amazing story about the

transfiguration of the building and how it was repurposed from a furniture mart to a high tech office

building.

BNBuilders is restoring both lobbies in 1355 Market Street and 875 Stevenson Street. The grand

marble lobby in 1355 Market is being preserved to keep the iconic architecture, while the lobby in

875 Stevenson will integrate modernizations and technical advancements to create a progressive

new space. The showpiece of the project will be the conversion of Stevenson Street into a vibrant,

beautiful promenade lined with retail shops, restaurants and gathering places. The landscaped

plaza will enhance the connection to both Market Square buildings and create a cohesive urban

campus for its tenants.

Historic Buildings and the Modern Workplace

Historic buildings are undergoing extensive renovation to maintain their classic architecture while

at the same time offering modern conveniences. Market Square’s large floor plates and open space

give tenants vast opportunities and configurations to customize their workspace. The interiors are

moving toward an open office plan with higher densities. A space with no walls, where creative

energy can spread like a wild fire and enliven everyone in the room. The trend is also moving

toward an open ceiling with exposed finishes. Buildings are being upgraded with significant MEP

infrastructure improvements. Upgraded electrical service is required for higher density, high-tech

users. HVAC systems are being modernized to provide added capacity as well as the comforts of

a modern building. Older buildings are in need of structural upgrades and the increased value in

the building has been a driver in upgrading the seismic properties of the buildings. Market Square

was updated to sustain a 2000-year seismic event.

1355 Market Street

Shorenstein acquired Market Square for

approximately $120 million in March of

2011. BNBuilders was hired to retrofit

and renovate the 1.2 million SF landmark,

making it a new home for Twitter and other

expanding tech firms. In June more than

1,500 Twitter employees will be moving in

to their new digs.

Occupying a full city block, this historic

renovation project is converting a

dilapidated furniture warehouse into

900,000 SF of Class A office space.

Showcasing classic elements of the Art

Deco era, the former Furniture Exchange

and Merchandise Mart is receiving a major

face-lift from renowned designers RMW

Architects and BCV Architects. BNBuilders’

renovation work includes structural

upgrades, six new elevators, installation

of new MEP systems, and all new rooftop

equipment. BNBuilders is helping the

project achieve LEED Gold certification.

RENDERINGS FOR THE NEW RETAIL SPACE AND PARKLET ON THE GROUND LEVEL

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Building Living Spaces in Urban Cores

With more people now traveling daily into downtown cores, cities are also seeing a rise

in the demand for housing. BNBuilders is experiencing this trend first-hand in downtown

Seattle on the Plymouth Housing Group’s Williams Apartment Building.

There are two main groups fueling the housing trend in downtown Seattle. The first is

choosing to rent in downtown versus purchasing property outside the City. The second

group is the non-profit sector who is committed to providing affordable housing throughout

downtown Seattle. Condos and single-family homes were over-built in early 2007, now

the focus has shifted to constructing multi-family and affordable apartments in

downtown.

Plymouth Housing Group (PHG) is one organization that has been at the forefront of

helping create housing opportunities in downtown Seattle. PHG provides housing for the

most disadvantaged homeless people in our communities, including the disabled, aging,

and military service veterans. BNBuilders is currently constructing a new five-story wood-

framed apartment building for PHG in the heart of downtown Seattle. With 17 studio units

per floor, the 43,350 SF apartment building accommodates a total of 85 units of housing.

Each unit has its own hydronic heating/cooling unit. The ground floor spaces include offices

for on-site management, a meeting room, two large community rooms, and a small interior

courtyard.

DELIVERING THE TOWER CRANE IN DOWNTOWN SAN FRANCISCO

CAST-IN-PLACE PANELS AT PLYMOUTH HOUSING GROUP

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Williams Apartments is pursuing LEED Gold certification using LEED for Homes Mid-

Rise. LEED for Homes Mid-Rise is a recent addition to the USGBC’s offerings and BNBuilders

first project to use the Rating System. BNBuilders is installing a solar thermal system and 90%

of the wood framing, sheathing and casework will come from within 500 miles of the project.

BNBuilders is working with Cleanscapes to have our construction debris handled separately from

their normal diversion streams and have even found a way to have our wood recycled into mulch

rather than being burnt at the local paper mill. We are maximizing all of the points associated with

environmentally preferred materials, construction waste management and low emission products

to deliver a sustainable project to our community and make the downtown more vital.

Urban Renewal

A new economy is underway based on the tech boom and other creative class sectors renewing

urban areas. BNBuilders is helping to revitalize our local communities in San Francisco,

San Diego, and Seattle through commercial office renovations, multi-family residential and

affordable housing projects. BNBuilders has experienced measured growth, resulting in annual

volume over $200 million and five offices along the West Coast. With our largest backlog to date,

we are poised for significant growth during a very exciting time in the marketplace.

VIEW OF THE WILLIAM’S APARTMENT SITE IN DOWNTOWN SEATTLE

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What is the building trend in San Diego?

With the proposed expansion of the convention

center there has been increased interest (driven by

a need) in hospitality and retail development. Future

development within the downtown area is limited to

the outskirts of the city predominantly, only a few lots

remain within the heart of the city that are open to

redevelopment.

How are developers utilizing historic buildings for the modern workplace?

Most recently a number of business owners have

acquired or leased buildings within the East Village

of downtown. By seismically upgrading the structures, cosmetically upgrading the interiors, and

preserving and or restoring the building’s façade, the historic ambiance of the east village is

pleasantly adding to the growing redevelopment of downtown San Diego.

How is BNBuilders in San Diego involved in this trend?

BNBuilders is a member of the Downtown San Diego Partnership, a leading advocate for the

economic growth and revitalization of Downtwon. We are also working with a number of developers

in planning new revitalization projects within the downtown region.

How is San Diego being affected by redevelopment?

Relative to the San Diego region, redevelopment or revitalization of the downtown area has been of

significant interest to business owners. The impact of redevelopment is most obvious in downtown.

It was realized many years ago, that should the downtown district (primarily the district known as

the “Gaslamp Quarter”) be revitalized, tourism interest would return to the region. With tourism the

natural progression of business development would also return, followed by residential to support

surrounding areas.

How do you see downtown San Diego growing in the next five years in comparison to the growth of all of San Diego County?

The growth of the downtown district within the next five years appears to be focused on continued

redevelopment of the East Village and bay front properties to include major projects in planning

such as the expansion of the convention center and potentially a new professional football field as

the major projects. Relative to the anticipated growth of the County of San Diego where residential

development appears to be on a slow upswing as well as development of new and or growing

commercial business. With the addition to the convention center downtown, there will likely be an

upswing in retail and hospitality growth as well.

WHAT MATTERS...Q&A WITH KEITH WHALEY ABOUT THE REDEVELOPMENT IN SAN DIEGO

Keith Whaley is a Project Executive

in BNBuilders’ San Diego office. He

has over 30 years of experience

in the Southern California market.

BNBuilders • Revitalization 9

WHAT’S HAPPENINGAROUND BNBUILDERS

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1. Seattle volunteering at the Blaine Center 2. Redwood City’s Project Engineer Spring Training 3. Progress photo of Washington State University’s, Duncan Dunn Residence Halls Renovation 4. The Arensica project team at the San Diego holiday party 5. BNBuilders self-performing concrete at 259 East Grand in S. San Francisco 6. Ground-Breaking at Puget Sound Blood Center 7. Tower crane delivery at 1355 Market Street in San Francisco 8. New Spokane Valley Fire Station #6 project 9. San Diego’s Holiday Party 10. Redwood City’s Annual Saint Paddy’s Day Celebration 11. Footings at Washington State University’s Duncan Dunn Residence Halls 12. Big Room Meeting for UHS projects in Fremont, CA and Seattle, WA 13. First concrete pour at 259 East Grand in S. San Francisco

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WHAT’S HAPPENINGAROUND BNBUILDERS

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1. Tower crane erection at Plymouth Housing Group project in Seattle 2. Seattle CIT group volunteering at the Blaine Center 3. OR Light Replacement at UC San Diego Medical Center 4. Seattle sponsored the Shamrocks hockey team to benefit the Ronald McDonald House 5. Redwood City’s annual employee holiday party 6. Seattle team building, giant Jenga 7. BNBuilders’ new smart board in Redwood City 8. Redwood City’s annual employee holiday party 9. San Diego’s Oktoberfest Celebration 10. Progress photo of rooftop deck at 1355 Market Street in San Francisco 11. Redwood City’s annual employee holiday party 12. Redwood City’s Project Engineer Spring Training, team building exercise - Support Your Executive 13. Installation of the curtain wall at San Diego’s Arensica project

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ON THE MOVE.BNBuilders is excited to annouce three new offices throughout the West Coast.

Interstate Office Relocation

The Interstate Office has expanded into a new

space in Spokane, Washington. This office is the

base of operations for existing (and future) work

in Eastern Washington, Idaho, and Montana.

Spokane Office15920 E Indiana Avenue, Suite 202

Spokane, WA 99216

San Diego Expansion

BNBuilders’ Southern California office recently

moved into their new home in San Diego,

adjacent to UC SD. In the past two years, they

have experienced exponential growth, and are

expanding their office.

San Diego Office9255 Towne Centre Drive, Suite 800

San Diego, CA 92121

New Office in San Francisco

BNBuilders is expanding our Bay Area presence

with a new office location in the mid-Market

area of downtown San Francisco. BNBuilders’

newest Bay Area location will support the $100

million worth of work under contract in The City.

San Francisco875 Stevenson Street

San Francisco, CA 94103

CONTRIBUTORS

David BeckerRob MelinauskasJason LimpKeith Whaley

EDITOR

Tiffany Avila

CREATIVE DIRECTOR / DESIGNER

Andrea Larsen

The Quarterly is written and designed by BNBuilders in Redwood City. We are committed to the construction, architecture, and engineering communities and want to share our knowledge and passion with our industry peers.

To comment or request copies of The Quarterly, please contact thequarterly@bnbuilders.com

BNBuilders is a mid-size General Contractor that specializes in highly technical commercial construction projects. BNBuilders has the experience and strength of a large contractor, but provides the personal service and economy of a local builder. We combine our technical expertise with a drive to exceed expectations to build solutions for our clients.

Since the company was founded, we have experienced measured growth resulting in annual volume of $200 million, 250+ employees, and a presence in the California, Washington, Oregon, and Montana construction markets - establishing BNBuilders as a leader for the West Coast.

The Quarterly is printed on 100% recycled paper with low-VOC ink.

B N B u i l d e r s

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