Mountain View, CA
412 West El Camino Real, Mountain View, CA 94040
Long term ground lease in an off-campus setting provides unique challenges for development
Meridian’s client identified a need for a dialysis clinic to be built in the City of Mountain View. Particularly, the client was interested in the area along the city’s only major thoroughfare, an area where Real Estate was booming with little to no vacancies. Meridian identified a perfect parcel, only to find its owners were not open to selling the property. Meridian used its creative thinking to come up with a situation that would make all parties happy and after overcoming numerous challenges was able to deliver a gorgeous facility on time and on budget.
CHALLENGES
Meridian’s client, a dialysis provider, identified a need for a dialysis clinic within a narrowly-defined trade area along the city of Mountain View’s only major thoroughfare, El Camino Real (ECR). ECR is also a state highway and under the jurisdiction of Cal-Trans for all off-site improvements, which complicated the situation. The city is home to some of the largest high tech companies in the country, and is experiencing explosive growth in every real estate sector, which made the task of finding a suitable building or site extremely difficult.
SOLUTIONS
After a lengthy search and numerous feasibility studies, Meridian found a small parcel that was owned by a family for generations that didn’t want to sell the land. After proposing a joint venture and fee development arrangement options, Meridian finally landed on a long-term ground lease. This arrangement in an off-campus setting was new for Meridian. The site work on this small site required careful coordination with the Public Works Department, Cal-Trans, and a difficult neighbor (the leasehold owner and their tenant). The challenge was to design and develop an integrated site that would provide better circulation and parking for both buildings. Construction was closely monitored and managed to assure the neighboring operation was not interrupted. The building’s Type II- construction, very tight site constraints for civil improvements, right of way work, new city walk, and existing setbacks, all contributed to the complexity of this project.
RESULTS
Despite the many challenges, Meridian came in under budget and ahead of schedule by working closely with the project team, the tenant, city leaders, Cal-Trans, and the adjacent neighbors to creatively resolve every difficulty. Meridian delivered a state-of-the-art facility that serves up to 144 patients per week at 24 stations, with a financial structure that worked for the family that has owned the land for generations, and a building that achieves the City’s objectives to activate the street with its retail look and wide sidewalks.