Redwood City, CA

1001 & 1003 Main Street

“A tale of two eras”

Posted In — Success Stories |
3,750 SF
warehouse property

In the newly energized downtown Redwood City core


In improvements to the warehouse property


In net operating income


Our team knew the husband and wife owners of an older 3,750 SF warehouse property in the newly energized downtown Redwood City core. The owners had operated a sheet metal fabrication and HVAC business out of the property for decades. When they were ready to retire, they decided to sell the business and to lease the property to the new business owner. The rent structure was gross in nature, so the owners were still paying for the property taxes and insurance. We advised them to terminate the existing lease as their bottom line or net operating income only about $30,000 per year.

Based on our experience with representing other tenants in the downtown cores of the Peninsula, we knew that there was an opportunity for the owners to convert their warehouse property to tech offices. We guided the owners through the City’s planning department process as well as introduced the owners to contractors to get estimates for the designs we created for the new office space.


The owners were reluctant to take this leap, as there was considerable financial risk associated with this move. After viewing our team’s additional office conversions in downtown Redwood City, the owners took out a sizable mortgage on their home in order to finance the nearly $800K in improvements to the warehouse property. Prior to construction being completed, we successfully leased the property to a tech company with great credit. With the new improvements and converted warehouse, the owners had increased their net operating income on the property by a factor of eight, making their property worth over $5M.

Return to Team Page

1001 1003 Main Street redwood city case study

Share This Story