Mixed Outlook for Commercial Development in the Dublin Ranch Villages
Many residents in Dublin, CA, have been wondering about the status of Grafton Station, the Promenade, and Grafton Plaza in the Dublin Ranch Villages. The Grafton Station project is about half way through its planned build out. While plenty of space remains available for lease, the Around Dublin Team has heard whisperings that a handful of meaningfully interested businesses are looking to lease nearly all of the vacant square footage at Grafton Station.
Karma Fusion Lounge pulled its building permit for Grafton Station this past February and recently completed a successful inspection with the City of Dublin’s Building Inspector for its preliminary tenant improvements. Karma Fusion Lounge may need about another two to three months to complete all the proposed tenant improvements. Karma Fusion Lounge did not reply to Around Dublin’s request for comment.
Charter Properties maintains that it is still moving forward with Club Sport project and Phase I of the Promenade. The City of Dublin and other local agencies have reportedly demanded $8M in permit and impact fees from Charter Properties, before Phase I of the Promenade can begin construction. Given the tight credit market in commercial real estate, Charter Properties has not been able to obtain the startup capital needed to satisfy the $8M in fees. As a result, the project is at a standstill.
As reported in January, the Grafton Plaza project is going back to square one. The Dublin Planning Commission will be holding a public hearing on April 13, 2010, to review and discuss Charter Properties’ latest proposal for Grafton Plaza. The City Council had previously approved plans to build four 150-foot buildings at Grafton Plaza stretching up to ten stories high. The project was to include campus office, residential units, retail space, a hotel, and a day spa.
Charter Properties is now requesting to have two development options for Grafton Plaza instead. One option will allow Grafton Plaza to be Mixed Use with 50.1% commercial and 49.9% residential. The other option will turn Grafton Plaza into 100% campus office. Both options will have a new maximum footprint of 496,519 square feet. This maximum footprint is less than one-half of the square footage requested and approved by the City Council in 2008. The reduced square footage means that the buildings at Grafton Plaza will not exceed six stories, while the original square footage approved in 2008 would have allowed buildings up to ten stories.
11:23 AM on April 5th, 2010
8 mill just to get started? Wow that would really make me want to invest here in Dublin.
12:04 PM on April 5th, 2010
That can’t be right…$8M in permit and impact fees? Just for Phase 1? What percentage of the construction cost does this represent? Seems like the city is much more lenient toward residential developers.
1:23 PM on April 5th, 2010
Hi Anonymous – the phase I construction costs were estimated to be roughly $26M when calculating the public art fund contribution in the Planning Commission conditions of approval.
Related to your question, I had heard a rumor awhile back that 24 Hour Fitness had been considering opening their flagship gym in Dublin and the estimated fees were roughly $5M at that time. Not sure if this was/is true…but the amounts would be consistent when adjusting for the scope of Promenade Phase I vs. a stand-alone 24 Fitness gym.
Thx, John Z.
11:45 AM on April 5th, 2010
I live in Dublin and can’t wait for these retail projects to start up..
I love Dublin but wish we had more high end/additional options. My weekend consisted of going to ClubSport (pleasanton), Castro Valley (iSushi), Sport Chalet (Pleasanton), Draegers (Danville), Pleasanton Farmer’s Market, and Shell (Pleasanton)… I’d love to have options that are closer to me (yes, I know, the above-mentioned aren’t the only game in town, but yeah, i’d rather drive to Danville than shop at Safeway (long lines, so-so produce selection, no USDA Prime meat offered)…
I don’t really like to play Stoplight Frogger just to get to Target and other areas in West Dublin all the way from where I live in Dublin Ranch… I’m excited to hear that Grafton is supposedly on the verge of being leased out …
5:22 PM on April 5th, 2010
i agree with you, i would love to stay closer to home in dublin ranch. similar to you, i find myself spending time in danville and pleasanton to shop and dine. would be great to have more options close by and i suspect that would help with home values as well.
1:44 PM on April 5th, 2010
would that 8 mill be good for only for phase one, or would that be good for the other phases? Now I could see how opening something at Stacey’s old spot would be a good investment.
2:07 PM on April 5th, 2010
I couldn’t agree more…I try and plan my Target runs when I already have to be across town and honestly do a lot of my shopping other places (e.g. Trader Joe’s in Pleasanton). My gym is also in Pleasanton (Club Sport). It would be nice to have some things on the East Side, especially withing walking distance from our home.
6:48 PM on April 7th, 2010
333 fans of Karma Lounge on Facebook, looking at the comments there’s lot of excitement