Schweitzer Appraisals

The last property has not sold, but is included due to its proximity to the Carousel Mall site. CENTRAL CITY PLAZA 604-692 W 4TH STREET - A neighborhood shopping center directly to the north of the vacant Central City Mall Site. - Was purchased by an investor who was able to attract a tenant to the anchor building for a short time. ... - After loss of this tenant, the investor attempted to sell the center, citing the proximity to the mall, and the city’s intent to redevelop the site. After a protracted marketing time, the center is not being actively marketed. - Currently, the owner is attempting to increase the occupancy level and turn the center into an income producing asset. - Building 67,844 square feet. Vacancy 50,383 square feet or 74% vacancy. Land 5.25 acres. - Current tenants are service related with no restaurant space being used. See more

The next transaction involved a financial building: FORMER JACKSON FEDERAL BANK BUILDING 599 N E STREET - A Tudor style bank building built in 1987, which has been vacant for many years. - Purchased by Thinkwise Credit Union who announced they will move into the building vacating their location on Sierra Way. - The article indicates they plan to expand the 3,800 square foot community room to accommodate events for the Credit Union and it would be available to local organi...zations for use. - Building 18,275 square feet, Land 1.56 acres. Sale Price - $2,250,000 on 02/18/2020 for $123.13 per square foot of building space. - Buyer is a credit union for members in the education field. This location would be centrally located to City and County School administration centers along with the public schools located in the downtown district. - As of this date, it does not appear that the move from the Sierra Way location has been made. See more

The following posts will discuss three properties in the downtown. FOOD 4 LESS CENTER - Consists of two properties acquired by the same investor. One is the Food 4 Less/Ross Dress for Less center, and the other is an older vacant bank building. - SP for Food 4 Less - $13,200,000 on 12/18/2019. Building size 84,120 square feet with 6.09 acres. ... - Bank building - $1,799,000 on 12/18/2019. Building size: 9,760 square feet with 1.35 acres. - Total building size: 93,880 square feet with 7.44 acres. Total cost: $14,999,000 or $159.77/sf - Published article cites: o Proximity to transit center, across the street from Carousel Mall Redevelopment project which the city has named a developer for. o Signalized corner. o Plans to demolish bank and develop retail pads of which one would have a 3,250 square foot building and the other with 4,200 square foot building. Drive thru on at least one for restaurant space. - As of this date, no redevelopment of the site has begun. It would appear that the buyer is looking at what the city will do with the Carousel Mall Site prior to any additional investment being mad See more

The stadium district of down San Bernardino is the southwest corner of the downtown district. The city had used redevelopment to create a semi-pro baseball stadium with the intent of stimulating private investment in the area. In the early 2000s public money was used to create a center for public transit with the hope that private investment would follow. The last project was the creation of the Sach Clinic by Loma Linda University with a donation by the San Manuel Indian Re...servation to build a medical training facility. Loma Linda has also acquired additional vacant land to the south of the Clinic, but the intention of this acquisition is not known. A proposed project (Arrowhead Credit Union Administration Center) failed to materialize. The district has as much potential, if not more, for economic stimulation of downtown as the failed mall. Total land areas consists of 121.39 acres. The following is the land uses found in this district as of the current date: Land 25.08% Entertainment 22.37% Industrial 20.58% Transpiration 10.44% Medical 5.96% Utilities 4.42% Retail 3.43% Office 3.32% Automotive 1.34% Mixed Use 1.32% Restaurant 0.69% SFR 0.49% There is a potential for additional sport stadiums, or transit villages. It is interesting to note that visitors to the stadiums commonly cite the lack of restaurant space as a negative. A strong potential for additional development could arise, if the transit centers were linked to sporting or other events held at the existing stadium. The district has potential for additional medical or educational centers, and restaurant and specialty retail centers. There is adequate linkages to I-15 and visibility from the freeway.

5th Street corridor for analytic purposes may be defined as: North: 6th St, South: 4th Street, East: Sierra Way (the intersection of 5th St corridor and the Waterman Corridor), West: I-25. It should be considered in relationship to the Airport, the Historic Route 66, the Mt Vernon Corridor and the 2nd Street Gateway. For this analysis, the historic district, entertainment district government center, and the low income housing centers have been intentionally excluded as they a...re stand alone districts or centers. Land use found within this district as of 10/18/2020 include: Office 26.63% Land 17.29% Housing 12.94% Cultural 9.08% Pkg Lot 7.41% Mixed Use 7.38% Motel 6.35% Restauran 2.69% Financial 2.41% Religious 1.79% Government 1.78% Warehouse 1.53% Automotive 1.32% Retail 0.71% Transportation 0.69% With the recent announcement of the approval of the first phase of the 5th Street Gateway project, the vacant land component will change in the near future.

I have posted articles of the downtown core for several years and have accumulated research data for each of the districts found downtown including 5th Street Corridor, Government Center, Historic District, Low Income Centers, Education District, Waterman Corridor, and the Stadium District. The data is available for free to either the economic development department, or urban planning students at Cal State. My hope is that it will be a starting point or a help in the efforts of the city to move forward. I will be ending my research and postings within the near future.

The SB Sun published an article indicating that the developer for the 5th Street Gateway Project initiated by the former Mayor Davis has been approved by the Planning Department. The two primary tenants will be 7-11 convenience store/gasoline center and a Starbucks. Two drive thru restaurants will also be built; however, tenants have not been named. Upon completion, the downtown will have 2 Starbucks (both in gateways to the downtown), a 7-11/gasoline station in the Waterman... Corridor (close to Seccombe Lake), and a 7-11/gasoline station in the 5th Street corridor. Downtown will have 5 gasoline/convenience stores will the new facility is built. The article indicates a future phase of the 6.56 acre project will consist of mixed use housing. This project has been anticipated for 3 years and will help to reduce the percentage of vacant land (17.29%) in the 5th Street corridor. Hopefully, this addition will help to change the perception of minimal activity in the downtown core in the evening hours .

Located in downtown San Bernardino is an area that is called the Historic or Heritage Block which is the current center of emerging economic activity. One of the main centers is the Breezeway. The following is a discussion of this center. THE BREEZEWAY Designed by Howard Jones as a business court, a modest group of buildings with the entrance facing north on 4th Street. The original design were 5 offices or shop spaces lined up on either side facing the courtyard with an e...leventh office or shop at the southern end of the courtyard. Design was Spanish with red roof tile, and the exterior designed in color with stencils. In the courtyard was an electric fountain. Today, the western end of the business court consists of the original structure with 6 shop spaces. The eastern end has been replaced with a concrete block building constructed in 1981. The shop at the southern end of the courtyard has been removed, extending a walkway to Court Street. During the economic downturn of the early 2000’s the courtyard became vacant and was entering into a blighted state. Between 2012 to 2018 two investors acquired the properties in the court and the business court has entered into a newer phase of commercial use. The total acquisition price was $230,500 (sum of the acquisition prices) or $43.70 per square foot. Current users include Fischel Law Group Viva La Boba Fit Camp Little Art Gallery

Two of the properties posted are in the former Central City Mall District. Additional properties include the Marshall's Center and Fairview Ford. These properties in conjunction with the senior housing centers, entertainment block and potential for the vacant mall site will be discussed in a future post.

The last property has not sold, but is included due to its proximity to the Carousel Mall site. CENTRAL CITY PLAZA 604-692 W 4TH STREET - A neighborhood shopping center directly to the north of the vacant Central City Mall Site. - Was purchased by an investor who was able to attract a tenant to the anchor building for a short time. ... - After loss of this tenant, the investor attempted to sell the center, citing the proximity to the mall, and the city’s intent to redevelop the site. After a protracted marketing time, the center is not being actively marketed. - Currently, the owner is attempting to increase the occupancy level and turn the center into an income producing asset. - Building 67,844 square feet. Vacancy 50,383 square feet or 74% vacancy. Land 5.25 acres. - Current tenants are service related with no restaurant space being used. See more

The next transaction involved a financial building: FORMER JACKSON FEDERAL BANK BUILDING 599 N E STREET - A Tudor style bank building built in 1987, which has been vacant for many years. - Purchased by Thinkwise Credit Union who announced they will move into the building vacating their location on Sierra Way. - The article indicates they plan to expand the 3,800 square foot community room to accommodate events for the Credit Union and it would be available to local organi...zations for use. - Building 18,275 square feet, Land 1.56 acres. Sale Price - $2,250,000 on 02/18/2020 for $123.13 per square foot of building space. - Buyer is a credit union for members in the education field. This location would be centrally located to City and County School administration centers along with the public schools located in the downtown district. - As of this date, it does not appear that the move from the Sierra Way location has been made. See more

The following posts will discuss three properties in the downtown. FOOD 4 LESS CENTER - Consists of two properties acquired by the same investor. One is the Food 4 Less/Ross Dress for Less center, and the other is an older vacant bank building. - SP for Food 4 Less - $13,200,000 on 12/18/2019. Building size 84,120 square feet with 6.09 acres. ... - Bank building - $1,799,000 on 12/18/2019. Building size: 9,760 square feet with 1.35 acres. - Total building size: 93,880 square feet with 7.44 acres. Total cost: $14,999,000 or $159.77/sf - Published article cites: o Proximity to transit center, across the street from Carousel Mall Redevelopment project which the city has named a developer for. o Signalized corner. o Plans to demolish bank and develop retail pads of which one would have a 3,250 square foot building and the other with 4,200 square foot building. Drive thru on at least one for restaurant space. - As of this date, no redevelopment of the site has begun. It would appear that the buyer is looking at what the city will do with the Carousel Mall Site prior to any additional investment being mad See more

The city will face some uncertain times due to the economic slow down. In light of this, I suggest that time be taken to consider the future for the city. The following are some ideas that may be considered: A CRITICAL VIEW OF DOWNTOWN The following statement summarizes the status of downtown as of today:... - For 40+ years, the primary objective of the city has been avoiding the collapse of its economy. The city has become one of the least successful cities in the region. It has been buffeted by loss of employment, inept government, and lack of specific economic development. The city historically was a center city with major employers, cultural attractions, and educational institutions. The trend over the prior 40+ years has resulted in the city diminishment as a center city and the current trend is towards a bedroom community with employment and cultural centers shifting to other cities in the region. An ongoing issue: - City lacks economic diversity or economic centers with sufficient pull factors strong enough to combat the push factors that lure people away from the city. o The city is struggling with retaining long term residents and attracting new ones. o The city has retained poverty but has lost wealth (existing and potential). While crime, poverty, blight, poor educational status, environmental justice, and economic centers are important and necessary for San Bernardino to be a sustainable city, the following is more of an existential threat: - The political structure is unstable with programs, and goals only lasting as long as the current administration is in power. o This instability has led to frequent turn over of city managers, department heads, and has resulted in no long-term planning or governmental memory of the vision and methods required for a long-term redevelopment/revitalization program. o The political infighting has resulted in few, if any, public-private partnerships needed to bring significant economic progress to the city. An example of one which has worked is the partnership between the Airport Agency and Hillwood. Over time, this partnership has significantly reduced the job loss resulting from Norton closure. o Inability of city government has led to formation of citizen groups determined to have some progress if only limited in scope and ability. This is indicative that residents desire changes and continuity in effort. This post is a starting point. I will post some thoughts on how to proceed, but I believe it is necessary to state reasons necessary to take action and spend capital.

5th Street Gateway East This gateway has the following boundaries: North: 7th St South: 4th St... East: Waterman Ave West: Sierra Way. Portions of the land involve the Waterman Corridor, but have been included as they are really part of the gateway. Two land uses stand out as one enters into this gateway - Seccombe Lake and the volume of newer housing in this area. The newer housing is a sign of improvement and are the result of the efforts to revitalized downtown undertaken by the Morris administration. One also notices the change on the Waterman Ave entry point by the newer 7-11 store. The total amount of land in this gateway is 75.19 acres with the following land uses: Apartments (2-4 units): 3.74% Automotive: 11.06% Financial: 1.83% Vacant land : 11.12% Mixed Use: 0.93% Office: 1.70% Open Space: 58.52% SFR: 11.10% The larges percentage consists of open space (Seccombe Lake) and unfortunately, this land use is considered to be a negative in terms of perceptions for a visitor/Investor to the city, which will hold the city back from being able to attract the capital necessary for any redevelopment/revitalization project. There have been numerous proposals for this park over the years; however, no concrete action plan has been instituted by the city. In terms of revitalization, the city needs to decide whether to reduce the footprint of the park and place a portion into the private sector for development and/or whether to find the capital resources necessary to fully develop the park and make it a center point of redevelopment. Both choices have economic benefit, and it is up to the city and its residents to make a choice.

GATEWAYS TO DOWNTOWN Entrances to the downtown creates the first and sometimes the lasting impressions of the city for visitors and the residents. In my opinion, they should create a sense of arrival, by defining what to expect, and inviting the visitor to stay and explore the area. Downtown has the following gateways: E STREET- NORTH...Continue reading

Another area that has been viewed over the years as a potential for development is the stadium district. When the stadium was built it was hoped that it would draw private investment money. Just prior to the Great Recession, the City, County, and Omnitrans were able to construct the rail, and bus infrastructure which is hoped to create a transportation hub downtown. It is possible, under the right marketing program, to use this infrastructure to leverage the stadium as a draw... to bring visitors to the city. In addition, Loma Linda has acquired 20.58 acres of which a clinic and college has been built on 7.23 acres. Industrial properties are slowly being converted to other uses. A small pocket of fast food restaurants are at the intersection of E and Mill. Linking events at National Orange Show and the stadium could have a significant economic impact for the city. A total of 124.87 acres are in this distinct of which 55.05% or 68+/- acres have been developed or are in the process of being developed with uses which were envisioned by the RDA when the stadium was built. These uses include, Stadium, Transport, Retail, Restaurant, and Medical. There is adequate amount of land for mixed use, specialty retail, and residential use. Hopefully, the city will see its way to funding the economic development department, hiring a professional director, and providing the staff so that developers can be attracted. This area has as much economic potential as the former mall and should be seriously considered.

The former American Sports University properties consist of 259,703 sf of vacant building space. In this area is the Fox Theatre building, and a 135 unit student housing center. The land area is 5.84 acres. This is a significant area of vacant space for a downtown central core. The facility could be a center that would draw visitors, and full time students who provide a source of demand for entertainment, and restaurant use. If the facility was a functioning university, I cou...ld see a demand for a microbrewery, more specialized restaurants such as Via La Boba, maybe a vegetarian restaurant, etc. Night life could develop due to this demand, maybe the vacant nightclub downtown would re-open. It is possible that linkages between this facility, Cal-State, and Loma Linda University could result in additional student visitors to the downtown. Demand for open space may result in cleaning, maintenance, and upgrade of Seccombe Lake and Meadowbrook Parks. In the future, I believe the Loma Linda Clinic/San Manuel Gateway College will expand or additional medical/educational facilities will be built as Loma Linda owns vacant land to the south of the existing facilities. If this happens it is possible that additional student demand will occur. If the assets are sold on a piecemeal basis, the city should consider buying the student housing center (could be a homeless center), and the Fox Theatre (potential for the Mills Act). I sincerely hope that this asset will generate a buyer looking for a site downtown for an educational center.