Go_Kart Racer expanding to Dublin
09-09-2008, 10:09 AM
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Go_Kart Racer expanding to Dublin
http://www.insidebayarea.com/business/ci_10412368
DUBLIN — Amateur racing enthusiasts will be able to rev up their need for speed at an indoor go-kart racing center that is slated to replace a one-time Chevron Corp. document warehouse here.
An affiliate of the Robison family, a group of local real estate investors and developers who are active in the East Bay, bought the 203,000-square-foot Dublin building in May from Chevron USA Inc. The developers disclosed recently that they intend to start a go-kart operation at the property.
"This is an upper-middle-class, affluent area that should have a lot of racing enthusiasts," said David Robison, principal owner of GoKart Racer LLC, which already has an outlet on the Peninsula.
Robison believes the go-kart track will appeal to race aficionados for multiple reasons. For one thing, the karts can go 35 miles an hour, much faster than the karts people can often race at entertainment centers that include miniature golf courses. The go-karts at mini golf entertainment centers go about eight miles an hour.
"Our karts are fast," Robison said. "This is a very high-end, serious racing experience."
Plus, several vehicles can be on the track at the same time.
"It's side by side racing," Robison said. "It's a thrill to race against your friends or other people and get bragging rights."
A realty entity called 6400 Sierra Court Investors LLC bought the building from Chevron for an estimated $20 million. Wells Fargo Bank provided
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$20.8 million in financing to the buyers at the time of the sale, Alameda County property files show.
The go-kart operation is expected to occupy about 85,000 square feet or a bit more of the space. The remaining 100,000-plus square feet could be rented to one or two businesses. The property sale was arranged through Colliers International brokers Gabe Arechaederra and Mark Triska and CB Richard Ellis brokers Doug Norton and Carter Corbitt.
Chevron had been using the Dublin building to store and archive paper records and other physical materials, said Alexander Yelland, a spokesman for San Ramon-based Chevron.
"We wanted to move to a state-of-the-art archiving facility in Fairfield," Yelland said. "That is why we decided to move the archives."
The anticipated new operation in the building is a welcome event at a time when commercial real estate activity is decent but not sizzling, according to local brokers.
"It's nice to have this much interest in a building when the market is not on fire," Triska said. "We are talking to two additional parties for the remaining space."
The developers say they are confident they can complete leases with the two companies that want to rent the remainder of the building. Once that's done, the developers can apply to the city of Dublin for a specific use permit for the go-kart operation, Robison said. But first, the developers have to determine precisely how much square footage each user will need, since that would affect how the space is divvied up.
No one under 12 is allowed to race, he said. Drivers who are under 18 are given a junior driving school class before they can race. The average customer age is 35 years old.
Prices range from $20 to $25 for practice sessions that last 15 to 20 laps. Long endurance races average about 90 laps and cost $75. That pricing works out to about 80 cents to $1.50 a lap.
Corporate managers like to schedule company events at go-kart tracks because the races can help with team-building, Robison said.
When it opens, the Dublin go-karts outlet will have competition from an existing indoor racing center in Fremont. LeMans Karting, located near Interstate 680 and Mission Boulevard/Route 262, offers a variety of lap options with prices ranging from $25 for shorter races to $100 for endurance races.
Even with the prospect of competition, Robison is convinced that his venture will be successful.
"Our track in Burlingame is doing very well, which is why we are opening another one in Dublin," Robison said.
DUBLIN — Amateur racing enthusiasts will be able to rev up their need for speed at an indoor go-kart racing center that is slated to replace a one-time Chevron Corp. document warehouse here.
An affiliate of the Robison family, a group of local real estate investors and developers who are active in the East Bay, bought the 203,000-square-foot Dublin building in May from Chevron USA Inc. The developers disclosed recently that they intend to start a go-kart operation at the property.
"This is an upper-middle-class, affluent area that should have a lot of racing enthusiasts," said David Robison, principal owner of GoKart Racer LLC, which already has an outlet on the Peninsula.
Robison believes the go-kart track will appeal to race aficionados for multiple reasons. For one thing, the karts can go 35 miles an hour, much faster than the karts people can often race at entertainment centers that include miniature golf courses. The go-karts at mini golf entertainment centers go about eight miles an hour.
"Our karts are fast," Robison said. "This is a very high-end, serious racing experience."
Plus, several vehicles can be on the track at the same time.
"It's side by side racing," Robison said. "It's a thrill to race against your friends or other people and get bragging rights."
A realty entity called 6400 Sierra Court Investors LLC bought the building from Chevron for an estimated $20 million. Wells Fargo Bank provided
Advertisement
$20.8 million in financing to the buyers at the time of the sale, Alameda County property files show.
The go-kart operation is expected to occupy about 85,000 square feet or a bit more of the space. The remaining 100,000-plus square feet could be rented to one or two businesses. The property sale was arranged through Colliers International brokers Gabe Arechaederra and Mark Triska and CB Richard Ellis brokers Doug Norton and Carter Corbitt.
Chevron had been using the Dublin building to store and archive paper records and other physical materials, said Alexander Yelland, a spokesman for San Ramon-based Chevron.
"We wanted to move to a state-of-the-art archiving facility in Fairfield," Yelland said. "That is why we decided to move the archives."
The anticipated new operation in the building is a welcome event at a time when commercial real estate activity is decent but not sizzling, according to local brokers.
"It's nice to have this much interest in a building when the market is not on fire," Triska said. "We are talking to two additional parties for the remaining space."
The developers say they are confident they can complete leases with the two companies that want to rent the remainder of the building. Once that's done, the developers can apply to the city of Dublin for a specific use permit for the go-kart operation, Robison said. But first, the developers have to determine precisely how much square footage each user will need, since that would affect how the space is divvied up.
No one under 12 is allowed to race, he said. Drivers who are under 18 are given a junior driving school class before they can race. The average customer age is 35 years old.
Prices range from $20 to $25 for practice sessions that last 15 to 20 laps. Long endurance races average about 90 laps and cost $75. That pricing works out to about 80 cents to $1.50 a lap.
Corporate managers like to schedule company events at go-kart tracks because the races can help with team-building, Robison said.
When it opens, the Dublin go-karts outlet will have competition from an existing indoor racing center in Fremont. LeMans Karting, located near Interstate 680 and Mission Boulevard/Route 262, offers a variety of lap options with prices ranging from $25 for shorter races to $100 for endurance races.
Even with the prospect of competition, Robison is convinced that his venture will be successful.
"Our track in Burlingame is doing very well, which is why we are opening another one in Dublin," Robison said.
09-09-2008, 05:20 PM
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cool. Hopefully that real estate isnt worth as much as Burlingame. But i bet the prices will be the same.
Triple Tuesdays is cool, 45 laps for $45
Triple Tuesdays is cool, 45 laps for $45
09-09-2008, 05:49 PM
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it's going to be a while before dublin+pleasanton+san ramon real estate picks back up. there's too much new home inventory and not enough buyers in this economy.
imo, good investment for the long run tho. 5-10 years from now, things should be healthy again, and it shouldn't be much trouble to dismantle the track+facility to resell or redevelop the land. there's no way the new buyer paid $20 MILL to turn it into a permanent go kart spot. even w/all those bored, boojee suburbanites+teens, it'd take A LOT of lap$ and snack bar food to make that a worthwhile venture.
imo, good investment for the long run tho. 5-10 years from now, things should be healthy again, and it shouldn't be much trouble to dismantle the track+facility to resell or redevelop the land. there's no way the new buyer paid $20 MILL to turn it into a permanent go kart spot. even w/all those bored, boojee suburbanites+teens, it'd take A LOT of lap$ and snack bar food to make that a worthwhile venture.
Last edited by CLsmooth71; 09-10-2008 at 02:09 AM.
09-10-2008, 01:37 AM
#12
I've known about this since about Mid-June, I work at RPM in sac and GKR is owned by my bosses brother in law. So basiaclly when I go home I get my discount even closer then driving to burlingame 
.
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09-10-2008, 10:01 AM
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My sense is GKR has a more defined business model: go after the corporate money (ie. team building events); I'm guessing that's how the Burlingame site makes a lot of their revenue. With Oracle and the Bishop Ranch Business area in the Tri-Valley neighborhood, they'll probably do pretty well.
My cousin also pointed out the Dublin Hooters is not far the GKR-Dublin site, so it all kind of goes hand-in-hand: go-karting and hooters...
