San Jose Businesss Journal

New breed makes its mark on commercial development

Builders confront nearly endangered species: themselves

By Valerie Kowalewski

The Silicon Valley is widely acknowledged as the most dynamic commercial real estate center in the country. The scope and pace of activity has spawned a highly talented pool of developers, brokers and general contractors. Names like Peery and Arrillaga, CPS, Kimball Small Properties, Devcon Construction, John Sobrato, E.A. Hathaway and Co. are only a few.

And there is no lack of new talent in the area. Many are establishing themselves as the valley’s newest stars. In this report, San Jose freelance writer Valeries Kowalewski takes a look at some of the new breed in the valley’s commercial real estate community.

David Martin

David Martin has been turning heads since his arrival on the scene in 1978.

Martin is credited with “single-handedly” launching Union Bank’s real estate department, positioning that group as the No. 1 commercial real estate loan specialists in the area in 18 months.

“You couldn’t help but be impressed by his style, and the way he aggressively put Union Bank on the map,” says Jerry Engles, Devcon Construction Inc.’s vice president of marketing. “David is bright and has always demonstrated a unique understanding of the development business as a whole. I think everyone knew it was just a matter of time before he made the jump from banker to developer, and I’m convinced we can expect big things from him.”

In 1981, Martin became a developer, joining Joe Callahan to set up the Pleasanton office of CPS, a commercial real estate company, and to help launch Hacienda Business Park.

“At the time, Hacienda was the biggest project of its kind. I’m grateful to Joe for bringing me in on the ground floor of such an immense and exciting project,” Martin says.

“Hacienda was really a major catalyst in the development of the entire Pleasanton-Dublin-Livermore area,” Martin says.

Martin liked his involvement in land planning, but was disappointed when the company moved him into a management-oriented position the following year. Shortly thereafter, Martin and CPS parted company and Martin began to put together plans for his own development firm.

In assembling his “team,” he drew heavily from the talent pool he put together at Union Bank. Walt Kaczmarek joined him as chief financial officer; Michael Wilson became marketing man for the south bay; and Toby Taylor, with whom Martin had worked both at the bank and, later, at CPS, took over marketing efforts in the east bay.

“We’ve all been through the trenches together,” Martin says. “And we are all familiar with each other’s strengths and weaknesses.”

“At first glance, the fact that all of the partners come from a financial background may appear to be a drawback,” says Mike Covarrubias, senior vice president at Union Bank and the current head of the real estate loan department. “The strengths of such successful developers as Devcon and Renco rely heavily on the fact the partners come from diverse backgrounds, enriching the whole.  But all of the partners of The Martin Company are proving not only to be talented but extremely versatile as well.  They seem comfortable and well-suited to their new positions.”

The Martin Company is making its presence felt in the valley, assembling joint venture deals with the likes of Peery and Arrillaga and Aetna Life and Casualty.

“David has always been very focused in his approach to real estate; he pretty such lives and breathes the business,” says Covarrubias. “While it’s still early in the game,” he added, “I wouldn’t bet against him.”