CSAAA breaks ground

0 Comments | Oakland Tribune, Feb 16, 2008 | by George Avalos

WALNUT CREEK -- Developers and local officials on Thursday broke ground on a new headquarters for the California State Automobile Association, which will move 1,000 workers to the East Bay.

The deal also marks the largest company relocation from San Francisco to the East Bay in years. When complete, the project will raise the East Bay's business profile, expand the local economy and job market, and bolster the region's commercial real estate market. CSAA is moving to a Walnut Creek-area site near the Pleasant Hill BART station.

A partnership of two developers, Harvest Properties and Equity Office, is building the site for CSAA, also known as AAA of Northern California. The developers intend to build a 255,000-square-foot, six-story office building that will risenext to a new parking garage.

CSAA officials said they had pondered a new headquarters site for six years. The automobile club, assisted by commercial realty firm Staubach Co., scouted numerous locations before they selected the site near the BART station.

"We wanted to make sure we did this right," said Jim Pouliot, CSAA's chief executive officer. "I am convinced we got this right."

The hunt included sites in California, Nevada and Utah. Once CSAA focused on the East Bay, three sites were still in the running before the company gave the edge to the Station Landing project in the Contra Costa Centre complex.

"We feel extremely fortunate to have been selected for this," said John Winther, managing partner with Emeryville-based Harvest Properties.

The company hopes it can use the new project to preserve its brand and bolster the CSAA culture. It also believes the location can be a boon for the company's employees

"We had a very strong desire to retain as many of our employees as possible," Pouliot said. The company wants to create "a culture of collaboration," he added.

That collaborative effort could be enhanced by the wide-open floors in the building, which can enable larger groups of employees to work with each other.

"This is a coup for everybody," said Kenneth Churich, a senior vice president with San Mateo-based Equity Office. "It's great for the tenant, it's great for the community, and it is a feather in our cap."

The deal also insures that the commercial real estate market will be aided because the building will open completely filled by a tenant. That means the project will not increase the vacant office space in the area. CSAA initially will rent the building from the developers. Eventually, the company is expected to own the building.

The developers said the project is in a unique location in the Bay Area.

"It is one of the last remaining premier sites next to a BART station," Churich said. The project is located on county-governed land, outside Walnut Creek and Pleasant Hill city limits.

The relocation will involve the headquarters staff and what the company calls "behind-the-scenes employees." These include people involved in human resources, marketing and product development.

CSAA will continue to expand customer-serving operations such as its branch offices, where members can obtain a variety of services and products.

Contra Costa County officials who attended the ground-breaking ceremony Thursday said they are pleased that the company is locating in a county transit village. They said they are looking forward to a cooperative effort.

"We are well aware that we in government cannot do our job without our business partners," County Supervisor Susan Bonilla said.

George Avalos covers jobs, economic development, commercial real estate, finance and petroleum. Reach him at 925-977-8477 or gavalos@bayareanewsgroup.com.