The DeLeon Insight - September 2019 by DeLeon Realty

THE DELEON INSIGHT S i l i c o n Va l l e y R e a l E s t a t e

September 2019

BEHIND-THE-SCENES FOR

1023 Forest Avenue

• Misaligned Incentives and Systemic Flaws of the Real Estate Industry

• Will Barron Park Get Its First $10,000,000 Home? • How Much Is Your Property Worth? • Surge in Demand from Hong Kong Buyers • Which City Is Best to Build In? • Vastu Shastra: It's "Elementary" Dear w w Watson! w . D E L E O N R E A LT Y. c o m

w w w . D E L E O N R E A LT Y. c o m

City Market Conditions

Average Sale Price

$10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0

Atherton

Los Altos

Los Altos Hills

Me nlo Park

Mountain View

Palo Alto

Portola Valley

Redwood City

Sunn yvale

Woodside

01/2018 - 07/2018

Average sale price for single-family homes from 01/2019 to 07/2019,

01/2019 - 07/2019

compared to the period from 01/2018 to 07/2018.

Price/Square Foot Ratio $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0

Atherton

Los Altos

Los Altos Hills

Me nlo Park

Mountain View

Palo Alto

Portola Valley

Price per square foot ratio for single-family homes from 01/2019 to 07/2019, compared to the period from 01/2018 to 07/2018.

Redwood City

Sunn yvale

Woodside

01/2018 - 07/2018

01/2019 - 07/2019

Data gathered from the Multiple Listing Service on 08/06/2019

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Table of Contents 04. Surge in Demand from Hong Kong Buyers

By Michael Repka

07. How to Best Take Advantage of Record Low Mortgage Rates

By Ken DeLeon

10. How Much Is Your Property Worth?

By Lisa Lombardi

13. Will Barron Park Get Its First $10,000,000

Home?

By Ken DeLeon

14. Are Chinese Buyers Vanishing From THE

DELEON INSIGHT OU R OFFICES ARE LO CAT ED AT : 1717 Embarcadero Road, Palo Alto, CA 94303 650. 900.7000 www.DELEO N REALT Y.co m DR E #0 190 3 2 2 4 Managin g Bro ker: M i c h a e l Re pka DRE #01 8 5 48 8 0 Founder — Ken DeLeon CEO & General Counsel — Michael Repka Copywriter — David Tobener Creative Director — Anthony Halawa Photographer — Zachary Kinion Marketing Manager — Melanie Yu Online Marketing Specialist — Mike Ran Senior Graphic Designer — Nora Xu Graphic Designer — Monica Casorla Corporate Counsel — Colette Thomason CONTRIBUTORS: Ken DeLeon, Michael Repka, Melanie Yu, Lisa Lombardi, Preeti Krishnan, and David Tobener Contact Ken DeLeon for exceptional buying opportunities at 650.543.8501 DRE #01342140 To learn about our Platinum packages and incredible listing services for sellers, contact Michael Repka at 650.900.7000 DRE #01854880

Our Horizon?

By Melanie Yu

16. The Hamilton: A Prestigious Palo Alto

55+ Community

By Preeti Krishnan

18. Loss, Love, Laughter By Ken DeLeon

20. Behind-The-Scenes for 1023 Forest Avenue By David Tobener

22. Misaligned Incentives and Systemic Flaws of

the Real Estate Industry By Michael Repka, Esq.

24. LPS Shanghai 2019 - China's Leading Luxury

Real Estate Expo By David Tobener

26. Which City Is Best to Build In?

By Ken DeLeon

28. Vastu Shastra: It’s “Elementary” Dear Watson! By Preeti Krishnan

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THE DELEON INSIGHT

Michael Repka, DeLeon Realty CEO, on a recent business trip to Hong Kong

SURGE IN DEMAND FROM HONG KONG BUYERS By Michael Repka Prior to Great Britain’s transfer of Hong Kong back to China in 1997, there was a significant increase in demand for US (and Canadian) real estate from Hong Kong buyers. Wealthy people from Hong Kong were understandably concerned that there would be a dramatic change to their way of life. Irrespective of whether the motivating factor was merely diversification, or an immediate desire to relocate outside of Hong Kong, the real estate market in international world-class cities benefited. The Bay Area and Vancouver were amongst the areas that benefited the most. Despite the fears, the turnover in 1997 went quite smoothly by almost any metric. China’s Central Government was apparently quite cognizant of the old adage: “If it ain’t broke, don’t fix it.” Put another way, Hong Kong had established itself as a major financial center, so the turnover offered a remarkable opportunity to serve as a gateway between Mainland China and the West. One Country, Two Systems The ultimate solution to Hong Kong’s integration into China was very innovative. China would bring its cultural and political influence, but Hong Kong would retain its currency, banking system, British common-law-based legal system, and access to uncensored news for a period of 50 years. This arrangement came to be known as “One Country, Two Systems.”

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Protests Beginning in March of this year, and intensifying since June, Hong Kong has experienced large-scale protests. The activists, generally sparked by students, have protested the policies of China’s Central Government and its impact on the people in the proud city of Hong Kong. What originally began over concerns about a relatively obscure extradition bill, has morphed into a movement that runs far deeper. Protesters are no longer merely concerned about the extradition of alleged criminals to Mainland China’s court system. It is clear that many in Hong Kong fear a strengthening of the Mainland’s control and influence over the territory, as well as perceived police brutality. These protests come on the heels of President Xi Jinping’s laudable efforts to crack down on corruption throughout the Chinese government and society. However, they also come amidst hard-wearing criticism of the Chinese government’s record on human rights. While life and business continue to go on in Hong Kong, the protests have had a significant impact on daily life. On August 5th, the protesters’ efforts paralyzed the vitally important Hong Kong Airport via a civil strike. Airport operations were further interrupted by an organized sit-in at the airport from August 12th to 14th.

R E A L E S TAT E I N F LU E N C E

It is not uncommon for people to find the need to change their plans to avoid protest areas. On a recent business trip to Hong Kong over Labor Day weekend, I had two meetings relocated due to concerns over the protests. Additionally, when I was in the car on the way to the Mandarin Oriental Hotel in Central Hong Kong, my driver received word that the roads around the hotel were all shut down due to the protests and “gas grenades.” The driver had to drop me off at a pre-determined location several blocks from the hotel, where I met two security people who escorted me the last few blocks and then through a small opening in a metal security barrier that separated the serene interior of the hotel from the potential dangers outside. Surprisingly, the staff at this fine hotel acted like this was normal.

Impact on Silicon Valley Real Estate While only a few months into the protests and the related concerns, we have already seen a significant increase in interest from Hong Kong buyers. In particular, we have seen a spike in demand for high end properties (i.e. DeLeon Platinum properties valued at over $5 million).

While the government appears driven to quash the protests, it also has a strong resolve to avoid anything that even resembles the situation in Tiananmen Square back in 1989, which was sparked by the Chinese government’s declaration of martial law. While the comparisons are inevitable, the current situation is very different from Tiananmen Square. China is a far more powerful, visible, and sophisticated country now than it was back in the Eighties. As a result, it is much more focused on handling the current situation in a way that can withstand international scrutiny.

Increased demand from people from Hong Kong is especially beneficial because they are already used to high prices. In fact, prime condos in Hong Kong often sell for over US $4,000 per square foot. Betty Yu from KPIX CBS News recently interviewed me about foreign buyers, and she mentioned that her research uncovered some ultra-luxury properties in Hong Kong that are selling for over double that amount (the entire interview is available at www.deleonrealty.com or on the KPIX website).

It is too soon to know whether this is all going to lead to a prolonged flow of buyers from Hong Kong, or merely a short term surge; however, it is likely that President Xi’s political power and influence will continue to grow with China’s prosperity. As it does, the Central Government may try to expand its control over Hong Kong, which may lead many traditionalists to consider moving away.

The DeLeon Team Goes to Hong Kong Seeing the opportunity, and benefiting from Silicon Valley’s strongest international marketing department, we have decided to expand the marketing of our listings in this fertile area. To that end, I went to Hong Kong for five days over the Labor Day weekend. There I met with some of the territory’s best real estate agents, marketing people, and advertising agencies. While focused on promoting our current listings, I also found it remarkably educational. As a result of what I learned, my team and I have formulated a solid game plan for our marketing to Hong Kong residents. Additionally, I met with executives from the SMART Investment & International Property Expo, to discuss our participation in a Real Estate event aimed at Hong Kong residents looking to acquire properties in America. I was quite impressed by the opportunity they presented. Therefore, in addition to the Luxury Property Showcase in Shanghai in December, the International Real Estate & Investment Show 2019 (IREIS 2019) in Abu Dhabi in October, and a trip to India in November, we are going to participate in the SMART event in Hong Kong in November. Thanks to enhancements in communications, technology, and transportation, the world is getting smaller every day. It is important that our marketing efforts keep up.

Protest starting to form - view from hotel window

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REBUILT LUXURY IN GREEN GABLES

STUNNING NEW BUILD WITH SPECTACULAR VIEWS

• 5 Bedroom

• Completely rebuilt

• 5 Bedroom

• Brand new home

• 4 Bath

• Bright and spacious

• 5.5 Bath

• Expansive recreation room

• 2,753 Sq. Ft. Home

• Open floorplan

• 3,746 Sq. Ft. Home

• Stunning views

• 7,946 Sq. Ft. Lot

• Great Location

• 7,623 Sq. Ft. Lot

• Prestigious Location

2388 LOUIS ROAD, PALO ALTO Offered at $3,988,000

1710 MILLER AVENUE, LOS ALTOS Offered at $3,988,000

For video tour and more photos, please visit: www.2388Louis.com

For video tour and more photos, please visit: www.1 710Miller.com

P EN DING

A BUCOLIC MASTERPIECE PERFECTLY LOCATED

ULTRA-MODERN HIGH-TECH ESTATE WITH STUNNING VIEWS • 5 Bedroom

• Prestigious Los Altos Hills

•

4 Bedroom

•

Luxurious and private

• 5 Full bath, 2 half bath

• Panoramic glass walls

•

5 Full bath, 1 Half bath

•

Tennis court and guest house

• 7,614 Sq. Ft. Home

• Fully-integrated smart home

•

10,969 Sq. Ft. Home

•

Exquisite landscape

• 42,984 Sq. Ft. Lot

• Breathtaking Bay Area views

•

Nearly 3.93 acres

•

Convenient access to trails

25055 LA LOMA DRIVE, LOS ALTOS HILLS Offered at $6,988,000 For video tour and more photos, please visit: www.25055LaLomaDrive.com

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370 MOUNTAIN HOME COURT, WOODSIDE Offered at $13,988,000 For video tour and more photos, please visit: www.370MountainHome.com

R E A L E S TAT E B U Y I N G S T R AT E G Y

HOW TO BEST TAKE ADVANTAGE OF RECORD LOW MORTGAGE RATES By Ken DeLeon

Few buyers fully optimize and research their mortgage rate before they purchase their home. As an illustration of this, a study published in the Washington Post showed that almost half of the buyers fail to shop around before applying for a loan, and three out of four buyers only apply with one lender or broker. But the most important flaw that the study noted, is that “most consumers get their information from lenders or brokers who have a stake in the outcome.” Realizing that a proper and unbiased advocate for DeLeon Realty buyers could save them hundreds of thousands of dollars over the life of their mortgage, DeLeon Realty has hired a financial consultant to help advise our clients on the ideal mortgage for them, given their goals and economic situation. While other brokerages have mortgage advisors, the biggest difference is that at DeLeon Realty, our financial consultant is provided as a loss leader solely for the benefit of our clients, and at no explicit or implicit costs to our clients. Other brokerages have a mortgage division, but their lending departments are utilized as a separate profit center, versus DeLeon having a consultant that provides clients greater insight without charging a penny for our service. Our DeLeon Realty financial consultant, with nearly two decades of experience at both large retail banks and elite private banks, helps our buyers find their ideal lender. Our consultant utilizes over ten direct lenders and mortgage brokers to source the best loans. With this insiders’ perspective, we can direct our clients to the banks that provide them with the best rates and service. With $350,000,000 just in home purchases and not counting our listing sales, our team has the volume that incentivizes lenders to do all that they can to provide lower rates and premium service for our clients. Many banks with off-the-shelf pricing and no volume discounts have mortgage rates that are at least a ½ point higher. On a $4M purchase, this ½ point differential is an extra $20,000 of interest payments in the first year alone, and this pricing differential can quickly reach hundreds of thousands of dollars over the life of a 30-year mortgage.

While we explore a multitude of banks that we get rates from on a weekly basis, other brokerages often direct their clients solely to their in-house lender. While their rates may be much higher, the buyers do not know this, since often they will work with just the one lender their agent referred them to, and they have no sense of comparison. How we advise our clients on mortgages is reflective of how DeLeon Realty operates. We negotiate for our clients at every step in the transaction. This often includes getting several competitive homeowners insurance quotes or remodeling bids from contractors and then negotiating on our clients’ behalf. While we seek savings for our clients at all times, these savings are passed on 100% to our clients, as DeLeon Realty never wants to profit from our clients beyond buying and selling homes. Whether it is our complimentary time with our financial consultant or our in-house contractors, interior designers, or attorneys, DeLeon Realty is proud to provide our clients with insight and expert advice on every facet of their purchase. Only DeLeon Realty, with its client-centric business model, can provide this extensive suite of services that lets us be a one-stop shop and save our clients’ money and time. Below are mortgage rates that my clients have recently obtained that illustrate why now is a great time to buy and lock in historically low rates. 7/1 ARM

10/1 ARM

2.125%

2.250%

15 YEAR

30 YEAR

2.500%

2.875%

FIXED

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GRACIOUS LIVING IN COVETED CENTRAL MENLO • 6 Bedroom

• Open and airy layout

• 4.5 Bath

• Extensive home automation

• 5,088 Sq. Ft. Home

• Prestigious location

• 10,710 Sq. Ft. Lot

• Great schools

BUCOLIC RETREAT IN THE FOOTHILLS • 4 Bedroom

• Naturally lit and airy interior

• 3.5 Bath

• Well-appointed kitchen

• 3,727 Sq. Ft. Home

• Simulating spaces

• 1.8 Acre Lot

• Park-like grounds

26600 ELENA ROAD, LOS ALTOS HILLS Offered at $4,488,000

For video tour and more photos, please visit: www.765Cotton.com

For video tour and more photos, please visit: www.26600Elena.com

PA RK L A N E

765 COTTON STREET, MENLO PARK Offered at $6,788,000

IMAGINE THE POSSIBILITIES • 1.43 Acre Lot

• Peaceful atmosphere

• Prestigious West Atherton

• Excellent Schools

• Great opportunity to build your dream estate

226 PARK LANE, ATHERTON Offered at $14,998,000 For video tour and more photos, please visit: www.226Park.com The above photo is an artistic rendering of the home and property line. Buyer to verify accuracy.

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CLASSIC STYLE MEETS NEW WORLD COMFORTS • 5 Bedroom

• California Mission style

• 5.5 Bath

• Contemporary amenities

• 5,036 Sq. Ft. Home

• Bright living spaces

• 40,075 Sq. Ft. Lot

• 60-foot pool

14780 MANUELLA ROAD, LOS ALTOS HILLS Offered at $7,488,000 For video tour and more photos, please visit: www.14780Manuella.com

B U I LT I N S I L I C O N VA L L E Y F O R S I L I C O N VA L L E Y

369 Churchill Avenue, Palo Alto

New World Estate in Old Palo Alto

A perfect melding of old-world flair and modern technology make this breathtaking 5 bedroom, 7 full, and 3 half-bath, estate of almost 11,000 square feet (per county) standing on meticulously tended, gated grounds of 1.12 acres (per city) a magnificent retreat in Palo Alto’s most prestigious neighborhood. Endowed in historic provenance, yet completely renovated in 2017 by Northwall Builders with interior design by nationally-renowned Ken Fulk, this neo-English Tudor enjoys every conceivable amenity and contemporary convenience and is wonderfully suited for grand-scale entertaining. A five-star lifestyle is achieved inside and out in dramatic gathering spaces, luxuriously outfitted master and secondary bedrooms, a showcase kitchen, and the latest in home automation. The elegant English country garden landscaping is a fitting prelude to the expansive, resort-like backyard.

For video tour & more photos, please visit:

www.369Churchill.com Offered at $39,988,000

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R E A L E S TAT E I N F LU E N C E

HOW MUCH IS YOUR PROPERTY WORTH? By Lisa Lombardi As the only Silicon Valley brokerage that we know of with a certified appraiser on staff, DeLeon Realty can provide its clients with much more in-depth insight into valuing a property. In this article, I wanted to share some advice on how to determine how much a property is worth. There are three approaches to value when appraising a single-family residence (SFR) or a 1 - 4 unit residential/incomeproducing property: the Sales Comparison Approach, most commonly used when appraising an SFR; the Cost Approach, most commonly used for new construction; and the Income Approach, most commonly used for investment properties. Most appraisals include at least two, and sometimes all three, approaches to value. The Sales Comparison Approach to value is the most widely used amongst residential appraisers when evaluating an SFR or 1 - 4 unit residential/income-producing property. This approach compares a piece of property with recent sales which display similar features as that property, and the comparable sales are positively or negatively adjusted for their differing features from the subject property.

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Sounds simple, right? Not quite. “What do you look for to determine my home’s value?” is one of the most commonly asked questions I receive from homeowners. “Lots of things” is always the answer. There are dozens of features and characteristics of a property that are analyzed and compared to recent sales in the area. Some of the major features are location, lot size, and gross living area (GLA) – living space size. “Location” isn’t just a property’s address; rather, it covers many aspects. It can cover a property’s positive attributes, like a waterfront lot, or a desirable neighborhood such as Old Palo Alto. It can cover a property’s external obsolescence, such as its location on a busy street, or near an airport. These are considered less desirable, and a negative market reaction can often be found when comparing them with properties that do not suffer from the same adversities. Location can also cover factors that are out of the owner’s control, such as the property’s ownership rights, zoning designation, flood zone, and school districts. A property’s lot size is another major feature that is compared to sales in the neighborhood, and an appraiser has to consider more than just dimensions. For instance, how much of the land is usable or buildable? Is the lot fairly level, or does it

September 2019

slope steeply from the street? A home’s location on a lot can also affect a property’s market value. For example, when the home is placed closer to the frontage of the property, leaving a larger fenced rear yard, it may be more desirable than the same lot with the home placed closer to the rear of the property. The shape of a lot is also a factor, as several properties can have similar lot sizes yet greatly differing values. A rectangular lot that doubles its frontage in length (100’ x 200’) is more desirable than a longer and skinnier lot with the same square footage. When analyzing the size of a home, there are other aspects to consider besides the amount of living space; for instance, floorplans. Say a home located in Palo Alto, known for its prestigious school district, has a layout with the master bedroom on the first floor and the additional bedrooms on the second floor. This will not be desirable to a couple with young children. Reverse floorplans, where the entry and living areas are on the top floor and the sleeping quarters are on the lower floor, may be considered less desirable than a home with a more traditional floorplan. Functional obsolescence, defined as “the impairment of functional capacity of a property according to market tastes and standards,” is another important factor that needs to be considered. A large home built with top-of-theline materials located in a tract neighborhood of smaller homes is considered functional obsolescence, or an overimprovement. An example of an under-improvement may be a 5 bedroom home with only 1 bathroom. Other examples of functional obsolescence can include a bedroom which is accessed directly off the kitchen and also has the only rear exterior door to the backyard, a bedroom within another bedroom, or a house without a bathroom on the first floor.

Comparable 1 has the same features as the subject; therefore, no adjustments were applied. Comparable 2’s lot is 2,500 sf larger than the subject’s lot; however, its location and GLA are the same. When I compare it to comparable 1, I can see that there is a market reaction of $250,000 for the difference in lot sizes, and I apply a -$250,000 price adjustment to comparable 2 for its larger lot. Comparable 3 has a significantly larger lot size and a larger GLA. Since I know that there is a market reaction of $250,000 for 2,500 sf of land, I can estimate a -$500,000 price adjustment to comparable 3 for having an additional 5,000 sf of land. Now, comparable 3’s adjusted value is $2,500,000. The subject and comparables 1 and 2 have the same GLA. Comparable 3 has 500 sf more GLA and I can apply a -$500,000 price adjustment to comparable 3. The subject’s estimated market value is: $2,000,000. Appraising a residential property isn’t as easy as comparing the subject’s location, lot size, or dwelling size with recent sales in the area. If it were, I’d be out of a job!

Once recent sales of properties which display similar features as the subject are found, then adjustments to those comparables are made taking into account their differing features from the subject property. Here is a very simplified graph of how the Sales Comparison Approach to value works:

Lisa Lombardi is a full-time appraiser for DeLeon Realty. Lisa has been a licensed appraiser since 2002 and a certified appraiser since 2010.

SUBJECT Sale Price:

COMP 1

COMP 2

COMP 3

$2,000,000

$2,250,000

$3,000,000

Location:

AVERAGE

Lot Size:

10,000 SF

12,500 SF (-$250,000)

15,000 SF (-$500,000)

GLA:

3,500 SF

4,000 SF (-$500,000)

$2,000,000

Adjusted Sale Price:

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THE DELEON INSIGHT

B U I LT I N S I L I C O N VA L L E Y F O R S I L I C O N VA L L E Y

1340 Ranchita Drive, Los Altos

Gorgeous Nantucket Flair in Los Altos

This extraordinary 5 bedroom, 4 bath Nantucket beauty of 4,787 sq. ft. (per county) captures the spirit of the Northeastern Seaboard on meticulously-kept grounds of 9,265 sq. ft. (per Assessor Map). Fabulous curb appeal and a Ralph Lauren-inspired Americana interior, plus custom details, luxurious finishes, and construction quality make this 3-level home nothing short of stunning. A chef-worthy kitchen, elegant master suite with double-sided fireplace and balcony, plus an expansive, walk-out lower level with bar and kitchenette, bedroom, office, and a hobby room create flexible possibilities for on-the-go households. Formal and casual elements come together in the private backyard featuring a brick patio, pool, and spa. Children may attend top schools including Oak Avenue Elementary, Blach Middle, and Mountain View High (buyer to verify eligibility).

For video tour & more photos, please visit:

www.1340Ranchita.com Offered at $4,488,000

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R E A L E S TAT E TA X

WILL BARRON PARK GET ITS FIRST $10,000,000 HOME? By Ken DeLeon Generally, only the most elite neighborhoods such as Old Palo

$7,988,000, will assuredly sell and Barron Park will continue

Alto or West Atherton can command eight figure prices. Yet

its rise, as buyers love the centrality and rustic beauty of this

as Silicon Valley continues to be the epicenter of the nationâ&#x20AC;&#x2122;s

stunning neighborhood.

innovation and tech companies continue to thrive, high-end listings are cropping up in many different neighborhoods.

With great natural beauty and a large lot size, this home provides the privacy and peace of Woodside, but with Palo

It takes a bold developer to be a pioneer and seek to

Alto convenience. In addition to being next to Bol Park and

break through ceilings that have yet to be broken. The

the bike path that leads to Gunn High School, downtown

Dragonfly Group is one such developer that is setting new

Los Altos or California Avenue restaurants, this home is also

ceilings in neighborhoods. Previously, in the Sharon Heights

exceptionally close to all major employers of Silicon Valley as

neighborhood of Menlo Park, the highest sales price ever

the map below illustrates:

reached was below $7,500,000. So, when the Dragonfly Group listed their new Sharon Heights home for $9,950,000, 5

all of the naysayers were waiting for them to fail. But when they succeeded and the home sold this year, the question then became: what neighborhood will be next? Barron Park, a charming and rural neighborhood of Palo Alto, is the next frontier. Dragonfly Group is seeking nearly $10M for 995 Los Robles Avenue, which will be a contemporary home that is 6,485 sq. feet on a lot that is barely over 13,000 3

sq. feet. While cheering for them, this also makes our

upcoming listing at 953 Roble Ridge Road in Barron Park a steal of a deal.

In the estate section of Barron Park, where these few homes often have lots which can greatly exceed an acre, 953 Roble Ridge Road is a completely remodeled and expanded 6-bedroom, 4.5-bathroom home of over 6,000 sq. feet, plus it has a two-bedroom guest house that is over 700 sq. feet. The lot, the second largest in Palo Alto excluding homes in the hills, is over 71,000 sq. feet. This home, which will be listed at

1. 2. 3.

VMware HQ Wilson Sonsini Goodrich and Rosati Stanford University

4. 5.

Google Facebook HQ

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R E A L E S TAT E I N F LU E N C E

ARE CHINESE BUYERS VANISHING FROM OUR HORIZON? By Melanie Yu The recent ongoing trade war with the United States plus Hong Kong protests have put China back into the spotlight once again. How will this impact the housing market here in the U.S.? Will the housing market be affected by fewer investors? Soon after the U.S. recession, beginning in 2010, we started to see Chinese consumers purchasing properties in the U.S. Although Chinese buyers look for properties all over the world, the U.S. is the preferred market for many, as they feel properties here hold the best value and provide more stability. The housing market has been strong for the past ten years, especially in the last six years. Buyers from China purchased the highest value of U.S. properties than any other foreign buyers, totaling $30.4 billion in residential purchases, according to National Association of Realtors® (2019). Starting this year, it may seem like there are fewer Chinese buyers coming to the states. According to National Association of Realtors® – Profile of International Activity in U.S. Residential Real Estate report, foreign buyers purchased $77.9 billion of U.S. existing homes during April 2018–March 2019, a 36 percent decline from the level in the previous 12-month period ($121 billion). The slowdown in global growth, tighter controls on the outward flow of capital from China, and low inventory of homes for sale likely account for this huge drop.

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With tighter currency controls by the Chinese government, it stands to reason that this will result in a large decrease of Chinese purchases. But despite the decline in number of Chinese buyers, they still remained as the top foreign buyer group in terms of dollar volume ($13.4 billion), followed by Canadians ($8 billion), Asian Indians ($6.9 billion), U.K. buyers ($3.8 billion), and Mexican buyers ($2.3 billion). The research also showed that the majority of Chinese buyers are already residing in the U.S. as recent immigrants or as visa holders, staying in the country for professional, educational, or other reasons. And 70% of those buyers purchased the property for primary residential use, which means they most likely will call the States their home and settle here for the rest of their lives. In addition to these changes, the world itself has also changed rapidly in the past 10 years. The wealthy population has grown massively in the Asia-Pacific region, and during the past 10 years, Chinese are not only buying properties in the U.S. but also worldwide, in places such as Hong Kong, Japan, U.K., Australia, and Canada. Some buyers are using those countries as a springboard to move their money out from China, and the increase in Chinese buyers is impacting the global residential markets. Over the next 10 to 20 years, the money from Chinese buyers will not mainly come from mainland China. Since these investors already owned properties in various countries, they are free to sell and transfer that money anywhere else, most likely to places where they feel safer and with better price appreciation.

I N T E R NAT I O NA L

For example, Hong Kong is known as the most expensive place in the world to buy properties. Yet buyers keep flocking there because they believe that Hong Kong is a safe haven for their money, as well as an international financial hub and a place to do business. The ongoing protests in Hong Kong and the aftermath could put further pressure on those investors who have purchased properties there. This may drive more Chinese investors to move their money out of Hong Kong real estate to somewhere else, such as the U.S. This includes the Bay Area, which is considered one of the most popular destinations for the overseas Chinese buyers because of its strong local Asian culture, the beautiful weather, and high caliber universities. Plus, the Bay Area is also known for its tech-savvy culture and financial affluence, and international buyers understand that a region with plentiful jobs, high wages, and a low unemployment rate means houses here will continue to appreciate in value. To remain ahead of the trends, DeLeon Realty CEO Michael Repka recently returned from a trip to Hong Kong where he discussed marketing opportunities with Hong Kong marketers and real estate agents. On the topic of affluence, the DeLeon team has 2 of the 5 most expensive listings (27500 La Vida Real, Los Altos Hills, and 369 Churchill Avenue, Palo Alto) on the market right now, and many potential buyers who came to tour these houses are the wealthy Chinese buyers with celebrity status. As the only brokerage in Silicon Valley that not only has a Chinese Marketing department, but also has a Mandarinspeaking interior designer, the value that we add to our services benefits the clients in different ways. For instance, we help our Chinese buyers who may not be familiar with the area purchase furniture when they relocate to the States. We also have noticed that plenty of our buyers relocating from mainland China are from the tech industry due to many

DeLeon Listing: 27500 La Vida Real, Los Altos Hills successful Chinese tech firms expanding their businesses into the Bay Area. Chinese venture capital has also helped tech startups grow over the past few years, with many of those firms making investments in fields such as artificial intelligence. Furthermore, our Chinese Marketing department advertises our listings to Chinese communities, both locally and internationally. The variety of tools that we have at our disposal put us so far ahead of the competition that they canâ&#x20AC;&#x2122;t even come close to us. For example, we work with two local Chinese newspapers, two Chinese radio stations, and two Chinese TV channels. We also use WeChat, a multipurpose social media mobile app with over 1 billion monthly active users to appeal to potential Chinese buyers. Personally, I have friends who are living in mainland China that are not super rich but are upper-middle class with decent jobs. Nowadays in China, many of the middle class look to send their kids overseas to study, and they start to plan out early even when their kids are in kindergarten. The U.S. is at the top of their lists. I can see the trend there, and it is not just to get a taste of American dream, but simply a matter of being able to make a personal choice. More and more people in China now can have this choice.

D ELEONREALT Y.COM

| 15

THE DELEON INSIGHT

THE HAMILTON: A PRESTIGIOUS PALO ALTO 55+ COMMUNITY By Preeti Krishnan Spending hours upon hours in Bay Area traffic can cause our

Some highlights include:

imaginations to wander to the day we will be able to retire.

•

We may think about finally buying that dream car, or having unrestricted amounts of time to explore the world or spend it

Each unit comes with 1 deeded garaged parking space and a separate storage space.

•

The owners of the unit own 100% of the equity. When the

with our families. Retirement arrives quicker than we expect,

unit is sold, the owner or their heirs benefit from all of the

but we are rarely as prepared for it as we should be. We’re

appreciation accumulated during ownership.

told to secure our financial future by putting money away into

•

a retirement fund such as a 401K plan, but rarely do we think about something just as important: where will we live when

from any other property (Prop 13). •

we retire, or are close to retiring?

The owner is not required to downsize because they require extra care.

• At The Hamilton, a prestigious community in Palo Alto for those 55+, the lifestyle, state-of-the-art amenities, and the

Owners may be eligible to transfer Santa Clara tax base

Services such as full-time housekeeping, maintenance, and handymen staff are available to owners.

•

There are guest rooms that are available to the owner’s

location are nothing short of luxurious. Nestled in the heart

family to rent when they come to visit. The owners can

of Palo Alto, it’s no wonder why people are eager to join this

enjoy spending time with their grandkids, while keeping

tight-knit community.

the community homogenous and age specific.

I recently met with the General Manager and Executive Chef

According to Mr. Andrysiak, as an additional convenience for

of The Hamilton, David Andrysiak, who was kind enough to

its residents, the Hamilton provides fine dining options that

give me a tour of the facility. The Hamilton was built for the

are “well-known and well-regarded for the cuisine.” However,

purpose of being an adult community, and opened its doors

the Hamilton’s true highlights are its manicured gardens,

in 1997. The 36-unit condo complex offers units ranging

state of the art fitness center, and a community venue that

from approximately 1,350-2,574 square feet, all of them well-

organizes social events. In Mr. Andrysiak’s words, “At the

appointed.

Hamilton we don’t tell you how to live your life, we’re here to help you live your life.”

16 | D E LEO N RE A LT Y.CO M

I N T E R NAT I O NA L

EXPANDED EICHLER DAZZLES IN CENTRAL MENLO

CONTEMPORARY JOINS CLASSIC IN CREEKSIDE CHARMER

• 5 Bedroom

• Prestigious neighborhood

• 4 Bedroom

• Newly built family room,

• 3 Bath

• Bright spaces

• 4 Bath

• 2,790 Sq. Ft. Home

• Office accesses backyard

• 2,630 Sq. Ft. Home

• Private backyard

• 10,174 Sq. Ft. Lot

• Great schools

• 14,000 Sq. Ft. Lot

• Easy commute

kitchen, and master suite

565 OLIVE STREET, MENLO PARK Offered at $3,988,000

105 SCENIC DRIVE, REDWOOD CITY Offered at $2,988,000

For video tour and more photos, please visit: www.565Olive.com

For video tour and more photos, please visit: www.105Scenic.com

CHARMING AND VERSATILE LIVING IN PORTOLA VALLEY

FANTASTIC OPPORTUNITY IN MENLO PARK

• 4 Bedroom

• Remodeled granite kitchen

• 3 Bedroom

• Built in 2013

• 3 Bath

• High-end appliances

• 2.5 Bath

• Smart & comfortable spaces

• 3,064 Sq. Ft. Home

• Separate downstairs unit

• 1,897 Sq. Ft. Home

• Well-appointed kitchen

• 9,630 Sq. Ft. Lot

• Solar-heated pool

• 3,638 Sq. Ft. Lot

• Easy commute

660 LA MESA DRIVE, PORTOLA VALLEY Offered at $2,788,000

770 15TH AVENUE, MENLO PARK Offered at $1,950,000

For video tour and more photos, please visit: www.660LaMesa.com

For video tour and more photos, please visit: www.770FifteenthAve.com

D ELEONREALT Y.COM

| 17

THE DELEON INSIGHT

LOSS, LOVE, LAUGHTER By Ken DeLeon

Above: Ken and his sister Jane

In real estate, they speak of the three L’s – location, location, location – as the most important components of a home’s value. In my life, the three L’s are loss, love and laughter; looking back, it was my greatest loss that put me on the path to finding love and embracing laughter. This essay is about how losing my sister, the most painful experience in my life, paved the way for future triumphs. This is a story of turning darkness into light.

deeply in love with a boy from the same school who was a year older. My sister fully immersed herself in the relationship and lost her sense of identity. I could only watch with concern when my sister began isolating herself from our parents and started being less open with me. Jane’s relationship was rocky from the start – she would be exuberantly happy, then despair when breaking up, only to get back with her boyfriend again shortly thereafter as if nothing had happened.

I generally do not speak about my sister, Jane. But given the prevalence of depression, anxiety, and resulting risk of suicide in our upcoming generations, I feel it is my duty to shine the spotlight on this topic to help address this borderline epidemic that is now the second leading cause of mortality amongst teenagers.

After dating on and off all through high school, Jane’s boyfriend went off to college a year before her. He and Jane still tried to date during this time. Then came the fateful day: on Labor Day of 1987, when I had barely turned 15, Jane’s boyfriend broke up with her for good. Jane took her own life later that night. I was the one who last spoke to her, and also the one who found her.

My sister committing suicide is the single greatest fork in my life. My parents went through a bitter divorce when Jane and I were seven and five, respectively. She had the same genius as my father, who was a brilliant math professor, and would always tutor me while also standing in as a replacement for my busy mother. We were amazingly close, both going to the same elementary and middle school, sharing a bathroom, and having daily nighttime talks. Our lives were inextricably intertwined and Jane was my guardian angel, in the truest sense of the word. Everything changed when Jane entered high school. The transition was hard on my sister, as all her friends went to the neighboring school instead. She was left to navigate the new school, with class sizes several times larger than what she was used to, all by herself. Shortly after school began, Jane fell

18 | DE LEO N RE A LT Y.CO M

Losing my sister was a hand grenade to my heart. At first, I was overwhelmed with guilt. I kept replaying the last fortyeight hours in my mind and desperately tried to pinpoint what I could have done differently to save my sister. I tried my hardest to recall all our most recent conversations, and started imagining what particular words I should have said in our final moments together. Almost scientifically, I traced all the events, and looked back at every fork in the road leading up to Jane’s death in order to figure out where I committed the fatal mistake. Guilt soon transformed into anger. I thought of this question thousands, even millions of times: How could she do this to me and our parents? No matter how hard I tried, I could not wrap my mind around Jane’s decision to end her own

September 2019

life, leaving everything behind, over a single boy. I recall the feeling of bewilderment – my entire face would burn red whenever I thought of my sister’s irrationality, and her resulting death. But the passage of time changed my attitude and emotions. Slowly but surely, I began to feel more and more empathy for Jane and started to wonder how she felt and what she saw before making that fatal decision. Then, there was just the feeling of acceptance, and no more anger. I came to realize that my sister was so depressed and distraught that she truly did not know what she was doing and did not think fully of the consequences. When I think of how much Jane must have been suffering, the feeling of pure love swells up within me and I can finally connect the dots. Jane was my saint, my guardian angel. She gave me love, warmth, and the courage to be myself. Surely, she would have wanted me to move forward, to create a better life not only for myself, but for others. And so I swore that I would live a life worth living, to leave behind a legacy that she helped start. It took me six years since Jane’s death, from when I was just fifteen, to come to this revelation. I hope by sharing this personal arc of healing, I can help others accept their loss and find the strength and motivation to move onwards and upwards.

better communicator. I ended every conversation with family members by telling them I love them, since those being my last words to Jane gave me solace. With Jane gone I wanted to achieve more in life and honor her memory by using her loss to fuel me to greater heights. My grades went from B+/A- to all A’s, and I sat in the front row and became fully engaged in school. Until age 40, I lived for Jane almost more than myself as I thought of her daily. I have now released this through finally coming to terms with her loss and now my focus is my children and my clients. 3. Become an inspiration to others: I became a motivational speaker so others could benefit. While it is wise to learn from your own life mistakes, it is even better to learn from the errors of others. I used the emotional loss of Jane and my other tragedies to speak to many local high schools. My four tragedies have given me a unique perspective on life, and I enjoy sharing this perspective on a volunteer basis at many local schools, to at risk youth, and suicide prevention groups. It is my hope that, having spoken to thousands of people over the last two decades, maybe the loss of Jane and then my speech might have helped a teenager get through a hard night to realize that the sun will rise just as beautifully tomorrow.

Since Jane’s death, I never take a life lesson for granted. Circling back to the three L’s of loss, love and laughter, the three main thoughts I would like to impart to readers to go from loss to laughter are: 1. Be 100% self-reliant. My sister’s fatal flaw was letting another person determine her self-worth. I am of a completely opposite train of thought: I do not need validation from others, as my self-worth can only be determined by myself. While I love being around others, I try to avoid the need to be liked by everyone, for that is such a limited way of living. I have the ability to generate my own happiness, motivation, energy, and satisfaction alone, and this has allowed me to create a new, more ethical and client-centric business model that has revolutionized real estate and forever changed the industry for the better. The paradox I have found is that when you do not care what everyone thinks of you, everyone cares to be around you. The great irony is that the key to setting others free is to first free yourself. 2. Focus on strengths and positives. Before Jane’s suicide, she was burdened with absurdly high expectations as the first born. Her 99% test scores in both Math and English were excellent, but the sad irony is that many geniuses use their intellect to overanalyze their flaws. Sadly, Jane focused on what she lacked versus what she had. To help myself recover, I vowed to take the best parts of Jane inside of me. I became more empathetic and aware, and also became a

Ken and his four children While I still think of my sister, I am actually thankful that my focus is now more on my children. This is what Jane would want, and I picture her smiling at my trying to give the joy she was meant to give the world, and knowing that her greatness still shines on through my speeches and actions of trying to help others love themselves as the loss of Jane taught me to love myself. My next article will detail the life lesson I learned when recovering from a nearly fatal accident when I was hit by a speeding car while walking on the sidewalk with my fater. D ELEONREALT Y.COM

| 19

BEHIND-THE-SCENES FOR By David Tobener

1023 Forest Avenue When the stunning Queen Anne Victorian home at 1023 Forest

Avenue in Palo Alto presented itself to us, we knew that a standard video shoot just wasn’t going to be enough to do it justice. Designated as a Landmark Property by Palo Alto Stanford Heritage (PAST) and a winner of the PAST Preservation Award in

2002, this circa 1896 home called for something special. Anthony Halawa, DeLeon Realty’s Creative Director, came up with an idea that would both honor the home’s amazing heritage while also showcasing its fabulous modern amenities. Inspired by films such as The Age of Innocence, Anthony brought our standard video shoot back in time to turn-of-the-century Palo Alto. Having

procured

period

costumes

from

the

American

Conservatory Theater in San Francisco, we went about filming a video meant to both inform and entertain. DeLeon CEO Michael Repka, along with DeLeon Team members Gene Wilkins, Kimmy Vigil, and Crystal Garcia, transformed into sophisticated socialites enjoying a fabulous dinner party on the grounds of 1023 Forest Avenue. The end result is a video that not only tells potential buyers of the home about its wonderful features, as all DeLeon videos do, but also gives them a sense of the property’s historic past. We had a tremendous amount of fun both writing and filming this video, and we hope it provides yet another example

20 | D E LEO N RE A LT Y.CO M

of what makes DeLeon Realty the best in the business.

B U I LT I N S I L I C O N VA L L E Y F O R S I L I C O N VA L L E Y

1023 Forest Avenue, Palo Alto The Grand Dame of Crescent Park

The elegance of the Victorian era blends seamlessly with modern amenities in this stunning Queen Anne Victorian home. Offering 4 bedrooms and 3.5 baths, including the superb master suite, this home enjoys classic appointments like antique windows and embossed wall treatments, as well as modern delights such as updated baths, a gourmet kitchen, and third-level bonus space. Listed by Michael Repka of the DeLeon Team, the #1 Team in Palo Alto.*

*Search Criteria as compiled by BrokerMetricsÂŽ using MLS Data: January 1st, 2018 - December 31st, 2018, Palo Alto, All Residential Properties.

4 Bedrooms 3 Full Bathrooms 1 Half Bathrooms 4,516 Sq. Ft. Home 9,984 Sq. Ft. Lot $5,988,000 For video tour & more photos, please visit:

www.1023Forest.com

M i c h a e l R e p k a , M a n a g i n g B ro ke r, D R E # 0 1 8 5 4 8 8 0 | 6 5 0 . 9 0 0 . 7 0 0 0 m i c h a e l @ d e l e o n r e a l t y . c o m | w w w . d e l e o n r e a l t y. c o m | D e L e o n R e a l t y, I n c . | D R E # 0 1 9 0 3 2 2 4

I N T E R NAT I O NA L

MISALIGNED INCENTIVES AND SYSTEMIC FLAWS OF THE REAL ESTATE INDUSTRY By Michael Repka, Esq. Many people take issue with the real estate industry and the way transactions have been handled traditionally. Many clients justifiably believe that there are far too many conflicts of interest, too little oversight, inadequate training, and a general herd mentality that is often not in the best interest of the clients. Everything from the standard listing agreements, the purchase contracts, common commission structures, training, and access to information seemed biased in favor of the real estate agents. To make matters worse, few clients consult an attorney before signing “standard” listing agreements, which are written by the real estate industry and heavily biased towards the real estate agent’s interests. Nevertheless, many clients felt that engaging a real estate agent was a necessary evil if they wanted to buy or sell a property. Fortunately, all of that is starting to change. A relatively recent major step in the right direction was the 2008 case US vs. National Association of Realtors® (Civ. Action No. 05 C 5140), which ended with a final judgment that prohibited Realtors ® and/or the Multiple Listing Services (the “MLS”) from restricting Virtual Office Websites or otherwise monopolizing information about homes for sale. This case, and several similar cases that came before it, shifted access to information from Realtors® to the public. Setting aside any attempts at false modesty, the DeLeon Team has done a lot to improve the quality of the industry; however, we are not alone. Several innovative new companies and business models have emerged that will challenge the

22 | DE LEO N RE A LT Y.CO M

status quo associated with traditional brokerages affiliated with thousands of independent contractor agents operating in silos, such as Coldwell Banker, Sotheby’s, Compass, and Keller Williams. DeLeon Realty has attracted a lot of attention by shifting much of the risk away from sellers, to us as Realtors®. We invest far more time and money in the preparation and marketing of our homes than any other real estate agent or team of which I know. We also provide free access to attorneys, handymen, licensed contractors, interior designers, and the most robust marketing team in the industry. While I am unaware of any other individual Realtor® or real estate team that matches us in terms of scope or the quality of service, other agents have certainly improved their business practices and marketing. Over the past 5 years we have noticed a growing chasm between the quality of the area’s top agents and the masses of agents. Clients are also starting to demand more, as they should. Many sellers expect a listing agent to pay for the complete staging of their home, newspaper ads, and sometimes, the property and pest inspections. Naturally, the DeLeon Team pays for all of this, and much more. As a result, the agents who are willing to provide enhanced services are thriving, whereas agents who want to sit on their hands and do very little are losing tremendous amounts of market share to the DeLeon Team and other top agents.

Some Weak Agents Resent Us As one might imagine, some of our competitors are very frustrated with all of the services and marketing that we provide for our listings. Understandably, they liked the “goodol’-days” where all of the information was private, and agents could spend a mere fraction of what we spend on preparing a home for the market. Plus, in those days gone by, many sellers felt an added urgency to sell because the sellers themselves were paying monthly fees to keep the home staged. Additionally, the DeLeon team is very straightforward in sharing the scope of our marketing program. As a result, clients ask other agents to provide access to the highest echelon of stagers, television commercials, professionally produced videos, 12 to 32-page brochures for each listing, and a myriad of other things. Perhaps even more unsettling to other Realtors® and brokerages, especially those that regularly engage in representing both the buyer and seller in the same transaction, is the fact that we refuse to take commission from both sides of any transaction. Many agents love getting commission from both sides of the transaction, and they rationalize how it is perfectly okay to do so. To my knowledge, all of the other top brokerages take commission from both sides of transactions.

Recently, we were hosting a client appreciation party and many of the clients were raving about their experience with our listing team; however, I was disappointed to hear how a few struggling agents badmouthed us in a variety of different ways. I heard everything from agents saying that Ken DeLeon is on his deathbed, to us requiring sellers to pay us back for all of the marketing we do. While it is frustrating and annoying that real estate agents feel the need to lie about us in order to compete, I also realize that it’s a bit flattering. I encourage all potential sellers to invite me in to interview for listings. I will provide a detailed breakdown of all of the marketing that we’re going to do and the services that we provide for no extra charge. If nothing else, this will give the seller a tremendous amount of leverage with other agents. It will also give me an opportunity to explain exactly what has made the DeLeon Team the number one (#1) real estate team in the entire United States. In fact, 2018 was the second time in our seven year history that we were able to accomplish this very significant honor.

The Percentage of DeLeon Palo Alto Listings That Sold with a DeLeon Buyer Agent and Only 3% Commission was Charged

37%

OUR SELLERS HAVE SAVED

50% 2017

2017 – 22 out of 59 listings paid 3% 2018 – 23 out of 46 listings paid 3%

OVER $6.3 MILLION WITH OUR 2018

3% ETHICAL MODEL* * When a DeLeon listing agent receives and accepts offer from a DeLeon buyer agent, DeLeon Realty will waive 100% of the buyer’s side commission.

D ELEONREALT Y.COM

| 23

LPS Shanghai 2019

R E A L E S TAT E S E L L I N G S T R AT E G Y

China’s Leading Luxury Real Estate Expo

By David Tobener Another year is almost over, and 2020 is just around the corner. It’s time to start planning for the New Year, and for many people that means it’s time to start planning to sell your home. If you find yourself in this category, DeLeon Realty wants to inform you of an amazing opportunity – one that allows you to showcase your home to an international crowd of over 12,000 buyers! For the sixth straight year, we will be hosting a participation booth at the Luxury Property Showcase (LPS) in Shanghai, China from December 6-8, 2019. This prestigious event brings together the country’s elite property buyers, as well as buyers from around the world, plus some of the most influential property experts. All properties presented by the DeLeon Team will be directly promoted by our CEO Michael Repka, as well as Audrey Sun, Ann Ho, and Melanie Yu – our remarkable international marketing specialists and listing agents.

Michael Repka, Managing Broker, DRE #01854880 650.900.7000 | michael@deleonrealty.com www.deleonrealty.com | DRE #01903224 24 | DE LEO N RE A LT Y.CO M

Silicon Valley is a dynamic real estate environment, and LPS helps us stay in touch with international buyers’ desires not only during the show, but also before and after. This helps us maximize opportunities for networking with investors and homebuyers. We believe that the strong relationships we have built, together with the sales resulting from the shows, are the key reasons why we exhibit at LPS year after year. Even if you’re still in the beginning stages of deciding to sell, seizing upon this unique opportunity would garner international attention for your home at no extra cost. All you have to do is list your home with us by November 15, 2019. If you have any questions or would like to learn more, please contact Michael Repka at 650-900-7000 or visit http://shanghai.lps-china.com. We look forward to hearing from you!

List with Us Before

LPS Shanghai

NOVEMBER

DECEMBER

6-8

R E A L E S TAT E D E S I G N

B U I LT I N S I L I C O N VA L L E Y F O R S I L I C O N VA L L E Y

27500 La Vida Real, Los Altos Hills Silicon Valley’s Ultimate Estate

The long driveway entices you toward the arched beam portico that only hints at the magnificence within. This 5 bedroom, 12 bath, residence of 20,982 sq. ft. (per county) rests on more than 8 acres (per county) of resort-like grounds. Globally-inspired architecture, flawless construction by an award-winning builder, the finest selection of materials, finishes, and technology, and exquisite interior and landscape design, create spaces that are both inspiring and comfortable. From its sumptuous master suite, supremely appointed kitchens, and indoor pool under a retractable roof, to its 15-seat theater, 3,000-bottle capacity wine cellar, and comprehensive home automation, this residence offers every conceivable amenity. A separate office structure is amply-outfitted to host executive-level meetings and serve other business needs. As much as an heirloom to be cherished as a place to call home, this prestigious estate is surrounded by verdant views and is just minutes from all the major Silicon Valley tech companies, Sand Hill Road VCs, top-10 ranked California schools, major airports, and central to the best of Bay Area attractions.

For video tour & more photos, please visit:

www.27500LaVida.com $49,990,000

D ELEONREALT Y.COM

| 25

WHICH CITY IS BEST TO BUILD IN?

By Ken DeLeon

Silicon Valley builders tend to be composed of one of two groups. One group of builders are construction foreman who rose through the ranks and build homes as they have done in the past. The other set of builders is more reflective of Silicon Valley, and these builders will be very analytical, discerning, and often have graduate degrees from an elite university like Stanford. With my analytical background, I tend to attract the more calculating developers, and they seek my advice on which town is the most profitable for them to build in. While this article focuses on the advice I give my clients who build homes for profit or speculation (“spec” builders), the analysis also applies to advice I provide custom builders who are building their dream home. While some agents may intuitively try to evaluate what city is the most lucrative to build in, I wanted to empirically evaluate the data to draw this conclusion. I compared the builders’ final sales price, and then subtracted out the price of the land and imputed construction costs; as a result, I was then able to determine which cities provided the most profit to speculation builders. Having worked with clients to build dozens of homes, and personally building a home now in Palo Alto with a client, I have gotten to know accurate estimates for the cost of construction and how that will vary by each city as determined by their topography and building codes. As a study in contrasts, in Mountain View, which is a town very open to property redevelopment and has a flat topography that is

26 | D E LEO N RE A LT Y.CO M

easy to build upon, a “spec” builder can still build a home for $350 per sq. foot or less. In Woodside, which has very restrictive building regulations, hilly topography, and the San Andreas Fault running through its center, necessitating very stringent seismic requirements, it is hard to build anything of quality for less than $800 per sq. foot. In my analysis, I normalized the construction costs to be reflective of the cities that I was examining. In higher end cities such as Atherton, Los Altos, Los Altos Hills (“LAH”), Menlo Park, Palo Alto, Portola Valley and Woodside, I also imputed a higher level of finishes to the homes to determine my estimated cost of construction in each town. While I share the detailed findings with my clients to best help them, I have some general conclusions that will be insightful for anyone interested in building in Silicon Valley: 1. Palo Alto has been a good city to build in: Intuitively, I always told my clients that Palo Alto is amongst the best cities in which to build. There is always high demand due to the exceptional schools and a vibrant downtown. This was empirically proven with Palo Alto having the highest return on investment amongst all local cities with an average profit of 39% for speculation homes built by developers. This is why I chose Palo Alto to partner with a client to build my first home, so that way I can gain greater construction expertise that I can pass along to my clients. While a 39% return per project sounds amazing, planning, permitting, and completing a home now takes over two years in most

September 2019

cases, so this return is fair given the risk involved of market fluctuations coupled with the large amount of time and money required. Palo Altoâ&#x20AC;&#x2122;s growing timeframe for reviewing and approving permits may deter future redevelopment if this trend continues. To illustrate, it is likely that the home I am building from the ground up will have a longer time for plans and permits (13 months) than the time to complete it (approximately 11 months). 2. Los Altos, Mountain View, and Menlo Park all had roughly the same return on projects: As both Los Altos and Menlo Park are viewed as sister cities to Palo Alto, and are both prestigious and in high demand, I anticipated strong and roughly equal returns for developers in these two cities. I was correct, as projects in these towns had just a slightly lower return of 33% and 35%, respectively. I anticipated Mountain View would have a lower rate of return due to lower sales prices of new homes, but with an average return of 38%, this city fared well. Lower land acquisition costs and lower costs of construction (due to lower buyer expectations plus ease of building there) netted out to have a higher profit margin than other cities. 3. Towns with large lots do best with expensive homes: I anticipated lower rates of returns for building in the hillside towns because of the high cost of construction (due to sloping topography and earthquake risks engendering more stringent seismic requirements) and overall lower demand.

While I was correct overall, with the rate of return a bit over half as high as other towns, I spotted an interesting trend: large homes that sell for over $10M had exceptional returns that, overall, were in the top range of all the cities. As I reflected upon this, I noticed that my upper-end clients are the most willing to spend money to save time. Whenever I have clients that want to buy a $20M speculation home, I try to be the hero and save them $6M by telling them that we can buy a nice tear down for $8M (either an acre in prime Atherton or 3 acres in Woodside) and spend $6M building the home that when complete will be worth $20M. Most of my affluent clients appreciate my trying to save them money, but say they will happily pay the $20M to enjoy the home immediately. The builders who regularly build these beautiful spec homes, such as Pacific Peninsula Group, have been very successful in catering to busy tech clients who value time over money. Interestingly, homes and lots that were smaller than average for these elite towns tended to provide very little return. For those who are considering building their own home in Silicon Valley, whether for their family or for profit, DeLeon Realty can provide more analysis and assistance (such as our interior designers assisting with selecting finishes during construction) than any other agency would ever offer. We look forward to sharing our continually growing expertise and experience with building to our clients.

D ELEONREALT Y.COM

| 27

THE DELEON INSIGHT

VASTU SHASTRA: IT’S “ELEMENTARY” DEAR WATSON! By Preeti Krishnan “I can’t buy this house, it faces south.” “I must have a house that faces north.” If you have ever heard such statements, you have just met a believer of the ancient Indian science known as Vastu Shastra, which is literally translated to be the “science of architecture” and deals with dwellings. Although I knew the basics, I wanted to learn more about the science, so I recently attended a seminar on Vastu Shastra at the Silicon Valley Association of Realtors®. The seminar was held by Gautam Rana, Vastu practitioner and Founder of Yogic Dwelling, and he enlightened us on this very intriguing subject. Vastu Shastra is analogous to the Chinese practice of Feng Shui, in that it promotes equilibrium using elements to balance one’s life. Similar to Feng Shui, where the main considerations are air and water elements, Vastu incorporates all 5 elements (air, water, fire, earth & space) to govern the “energies” in our home – it is, in fact, “elementary!” Vastu is intended to balance both internal and external elements with nature. It can be traced back 2,500 years to the Vedas, which is an ancient Indian scripture codifying the essential principles of existence. In the real estate market, Vastu is an important factor, not only to buyers but also to sellers who would like to appeal to a larger buyer pool. In India, it is so prevalent that “over 90% of home, office, and also commercial property buyers look for [a] Vastu Shastra compliant house or property according to [a] leading Realty Portal.”1 Facing north is important in Vastu because it governs the overall growth for the residents. In Silicon Valley, some builders were charging about 14% more for homes that were facing north in order to capitalize on those particular properties, according to Mr. Rana. However, many buyers incorrectly understand Vastu principles and do not take into account that they can overcome what may seem to be an inauspicious dwelling. The following is a snapshot of a subset of some Vastu principles. The east zone of one’s home is associated with the social network and healthy relationships, and the colors chosen should reflect that. The living room is considered an air element because that’s where one entertains guests, while the family room is considered an earth element because that is where family bonding takes place. A kitchen in the southeast is ideal because it contains the fire element in the form of the stove, and is meant to uplift one as fire travels upwards. One should not place fire element-related objects from the north to the northeast because it may affect the health of the residents.

28 | DE LEO N RE A LT Y.CO M

An opportunity occurs when the north zone of the dwelling is balanced if not disturbed by fire and earth elements, since the north is governed by the water element. The west part of the home is space, and it directly governs profits and returns. This is important in real estate because when selling your home, green should not be placed in that area because it will interfere with profits. Blue or grey should not be placed in the southeast if the property is not selling. Vastu educates us on how to improve our life by correcting negative influences in a structure caused by an imbalance of the elements. The principles of Vastu science guide us in constructing a building while keeping the five elements balanced, by paying attention to shapes, colors, paintings, objects, appliances, activities, and rooms. Many people seek a real estate agent that is knowledgeable about Vastu, or at a minimum, understands the importance of it. DeLeon Realty has the resources to assist with a Vastu Shastra consultation before selling or buying a home. Buyers may purchase based on site plans, and the majority of homes are built in a random orientation without regard to alignment. Being that Sunnyvale, for instance, is the fastest growing Indian population in the United States, it is wise to understand the principles behind Vastu. According to Mr. Rana, “if a home is not facing a certain direction or a room is not in the correct orientation, there are ways to circumvent the perceived ‘obstacles’ by the use of elements and by correctly placing the compass at the center of the home for accurate measurements.” These days it’s not only the location, staging, and marketing that sells a home, but many buyers also appeal to the principles of ancient science, whether it be Feng Shui or Vastu Shastra. Such principles may be taken into consideration. Selling one’s home can be emotional, but buying can be both emotional and in some cases, scientific! So the next time your home sits on the market longer than it should or you refuse to purchase a home because you believe that it is inauspicious, give DeLeon a call for a free Vastu consultation. 1

https://www.vastuplus.com/vastu-selling-home.html

B U I LT I N S I L I C O N VA L L E Y F O R S I L I C O N VA L L E Y

370 Mountain Home Court, Woodside A Bucolic Masterpiece Perfectly Located

This splendid estate of nearly four acres (per county) sits on the most coveted street in Woodside and is walking distance to downtown Woodside. The home is every entertainer’s dream, and includes a recreation room, gym, and guesthouse, for a total of 4 bedrooms, 5.5 bathrooms, and a living area of 10,969 sq. ft. (per drawings). Amenities include a pool, tennis court, exquisite landscape with lush grounds, pergola, and walkways that meander along the creek through wisteria-entwined arbors. Mere moments to Huddart Park, The Horse Park at Woodside, Highway 280, and extensive network of trails for equestrians, hikers, and bikers. Children may attend excellent schools, such as Woodside Elementary and Middle (ranked #13 elementary and #4 middle school in California per niche.com) (buyer to verify eligibility).

For video tour & more photos, please visit:

www.370MountainHome.com Offered at $13,988,000

D ELEONREALT Y.COM

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THE DELEON INSIGHT

Selling your home? First, meet with Michael Repka of the DeLeon Realty team. Unlike most real estate agents, Michael holds two law degrees, including an LLM in taxation from NYU School of Law, and has years of experience as a real estate and tax attorney, giving his clients a unique advantage. Further, Michael studied negotiation and conflict management in graduate school at Rutgers School of Law and Rutgers Graduate School of Business, as well as Harvard University. In addition, the expertise and marketing available through the team at DeLeon Realty are the very best in the business. Meet with Michael to discuss any preliminary tax and legal questions about selling your home, and let him tell you more about what makes DeLeon Realtyâ&#x20AC;&#x2122;s innovative approach to real estate so successful. There is no cost or obligation for this consultation.

30 | D E LEO N RE A LT Y.CO M

DeLeon Realty, Inc. DRE# 01903224

Michael Repka, Managing Broker, DRE #01854880 | 650.900.7000 | michael@deleonrealty.com | www.deleonrealty.com

UPDATES AND CHARM CONVENIENTLY SITUATED

STYLISH CHARM IN OLD PALO ALTO

• 4 Bedroom

• Peaceful cul-de-sac

• 2 Bedroom

• Great Location

• 3 Bath

• Open-concept floorplan

• 2 Bath

• Updated granite kitchen

• 2,709 Sq. Ft. Home

• Large deck and pool

• 1,333 Sq. Ft. Home

• Detached living quarters

• 43,995 Sq. Ft. Lot

• Great schools

• 5,000 Sq. Ft. Lot

• Top Schools

11600 OLD RANCH LANE, LOS ALTOS HILLS Offered at $3,488,000

138 COLERIDGE AVENUE, PALO ALTO Offered at $2,488,000

For video tour and more photos, please visit: www.11600OldRanchLane.com

For video tour and more photos, please visit: www.138Coleridge.com

CONTEMPORARY NEW CONSTRUCTION SUPERBLY LOCATED

CONTEMPORARY LIVING W ITH UNPARALLELED VIEWS

• 4 Bedroom

• Newly built home

• 4 Bedroom

• Amazing views

• 3.5 Bath

• Open-concept layout

• 3.5 Bath

• Wrap-around observation deck

• 2,709 Sq. Ft. Home

• Low-maintenance yard

• 3,200 Sq. Ft. Home

• Lower-level guest quarters

• 7,564 Sq. Ft. Lot

• Great schools

• 29,000 Sq. Ft. Lot

• Top schools

839 DARTSHIRE WAY, SUNNYVALE Offered at $3,050,000

77 LERIDA COURT, PORTOLA VALLEY Offered at $3,488,000

For video tour and more photos, please visit: w ww.839Dartshire.com

For video tour and more photos, please visit: www.77Lerida.com

D ELEONREALT Y.COM

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R E A L E S TAT E M A R K E T P U L S E

ATHERTON Atherton Median Sales Price & Price/Sq. Ft. Ratio

Atherton Inventory # of New Listings

$12,000,000

$2,500

$10,000,000

$2,000 $1,500

$6,000,000

$1,000

$4,000,000

10 5

$500

Sale Price, Median

0 ug -1 8 Se p18 O ct -1 8 N ov -1 8 D ec -1 8

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

Dec-18

Nov-18

Oct-18

Sep-18

Aug-18

$2,000,000 $0

Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9

$8,000,000

Price/SqFt Ratio

LOS ALTOS Los Altos Median Sales Price & Price/Sq. Ft. Ratio

Los Altos Inventory # of New Listings

$5,000,000

$1,700

$4,000,000

$1,600 $1,500

$3,000,000

$1,400

$2,000,000

$1,300

$1,000,000

Sale Price, Median

ug -1 8 Se p18 O ct -1 8 N ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9

$1,100

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

Dec-18

Nov-18

Oct-18

Sep-18

$1,200 Aug-18

60 50 40 30 20 10 0

Price/SqFt Ratio

LOS ALTOS HILLS Los Altos Hills Median Sales Price & Price/Sq. Ft. Ratio

Los Altos Hills Inventory # of New Listings

$5,000,000 $4,000,000 $3,000,000 $2,000,000

Sale Price, Median

Price/SqFt Ratio

32 | DE LEO N RE A LT Y.CO M

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

Dec-18

Nov-18

Oct-18

Sep-18

Aug-18

$1,000,000

$2,000

$1,500

$1,000

$500

ug -1 8 Se p18 O ct -1 8 N ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9

$6,000,000

$7,000,000

R E A L E S TAT E M A R K E T P U L S E

MENLO PARK Menlo Park Median Sales Price & Price/Sq. Ft. Ratio

Menlo Park Inventory # of New Listings

$2,500,000 $2,000,000 $1,500,000 $1,000,000

Sale Price, Median

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

Dec-18

Nov-18

Oct-18

Sep-18

Aug-18

$500,000

$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0

70 60 50 40 30 20 10 0 ug -1 8 Se p18 O ct -1 8 N ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9

$3,000,000

$3,500,000

Price/SqFt Ratio

MOUNTAIN VIEW Mountain View Median Sales Price & Price/Sq. Ft. Ratio

Mountain View Inventory # of New Listings

$2,000,000 $1,500,000 $1,000,000

Sale Price, Median

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

Dec-18

Nov-18

Oct-18

Sep-18

Aug-18

$500,000

50 40 30 20 10 0 ug -1 8 Se p18 O ct -1 8 N ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9

$2,500,000

$1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0

$3,000,000

Price/SqFt Ratio

PALO ALTO Palo Alto Median Sales Price & Price/Sq. Ft. Ratio

$1,500 $1,000

Sale Price, Median

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

Dec-18

Oct-18

Nov-18

Sep-18

$500 $0

60 50 40 30 20 10 0 ug -1 8 Se p18 O ct -1 8 N ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9

$2,000

$2,500

Aug-18

$4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0

Palo Alto Inventory # of New Listings

Price/SqFt Ratio

D ELEONREALT Y.COM

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R E A L E S TAT E M A R K E T P U L S E

PORTOLA VALLEY Portola Valley Median Sales Price & Price/Sq. Ft. Ratio

Portola Valley Inventory # of New Listings $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0

$5,000,000 $4,000,000 $3,000,000 $2,000,000

Sale Price, Median

15 10 5 0 A

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

Dec-18

Nov-18

Oct-18

Aug-18

Sep-18

$1,000,000

ug -1 8 Se p18 O ct -1 8 N ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9

$6,000,000

Price/SqFt Ratio

REDWOOD CITY Redwood City Median Sales Price & Price/Sq. Ft. Ratio

Redwood City Inventory # of New Listings

$2,000,000 $1,500,000 $1,000,000

$1,100

100

$1,050

$1,000

Sale Price, Median

ug -1 8 Se p18 O ct -1 8 N ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

$850

Dec-18

Nov-18

Oct-18

$900 Sep-18

Aug-18

$950

$500,000

Price/SqFt Ratio

We don’t get great listings. We make great listings.

DeLeon Realty

At DeLeon Realty, we are not limited to accepting only turn-key, luxury-grade listings. Our innovative team of specialists enables us to transform every one of our listings into a truly must-have home. Let us show you what we can do for your home. www.DeLeonRealty.com

34 | DE LEO N RE A LT Y.CO M

R E A L E S TAT E M A R K E T P U L S E

SUNNYVALE Sunnyvale Median Sales Price & Price/Sq. Ft. Ratio

Sunnyvale Inventory # of New Listings

Sale Price, Median

120 100 80 60 40 20

ug -1 8 Se p18 O ct -1 8 N ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9

Jul-19

$900

Jun-19

$950

$1,300,000

May-19

$1,400,000 Apr-19

$1,000

Mar-19

$1,500,000

Feb-19

$1,050

Jan-19

$1,600,000

Dec-18

$1,100

Nov-18

$1,700,000

Oct-18

$1,150

Sep-18

$1,200

$1,800,000

Aug-18

$1,900,000

Price/SqFt Ratio

WOODSIDE Woodside Median Sales Price & Price/Sq. Ft. Ratio

Woodside Inventory # of New Listings

$10,000,000

$2,000

$8,000,000

$1,500

$1,000

Sale Price, Median

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

Dec-18

Nov-18

Oct-18

Aug-18

Sep-18

$2,000,000

Price/SqFt Ratio

LPS Shanghai 2019

China’s Leading Luxury Real Estate Expo

$500

ug -1 8 Se p18 O ct -1 8 N ov -1 8 D ec -1 8 Ja n19 Fe b19 M ar -1 9 A pr -1 9 M ay -1 9 Ju n19 Ju l-1 9

$4,000,000

$6,000,000

List with Us Before

LPS Shanghai

NOVEMBER

DECEMBER

6-8

For the sixth straight year, DeLeon Realty will be hosting a participation booth at the Luxury Property Showcase (LPS) in Shanghai, China from December 6-8, 2019. This prestigious event brings together the country’s elite property buyers, as well as buyers from around the world, plus some of the most influential property experts. List your home with us by November 15, 2019, and we will showcase your home at LPS Shanghai 2019. Call 650-900-7000 to learn more. D ELEONREALT Y.COM

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THE DELEON INSIGHT

ATHERTON

LOS ALTOS

Musically Inclusive Storytime

Farmer’s Market

This interactive program focuses on an important builder

Find fresh vegetables, fine food, and fun every Thursday

of literacy: music. Have fun exploring your musical side the

through September 26th at the Downtown Los Altos Farmer’s

second and fourth Thursday of every month. Sing songs and

Market.

read stories together at Atherton Library.

TIME: 4:00 PM - 8:00 PM WHERE: Located on State Street between 2nd and 4th

Thursdays, September 12 and October 10, 2019

TIME: 4:00 PM – 4:30 PM WHERE: 2 Dinkelspiel Station Lane, Atherton

Thursdays in September, 2019

Streets, Los Altos

Downtown Los Altos Halloween Spook-tacular Thursday, October 31, 2019

LOS ALTOS HILLS Hoedown

Trick or Treating throughout Downtown Los Altos!

TIME: 12:00 PM - 4:00 PM WHERE: Downtown Los Altos

Saturday, September 7, 2019

MENLO PARK

This year’s Hoedown will feature Capelo’s BBQ Food Truck, live bluegrass music by Sidesaddle & Co., old-fashioned arts & crafts, farmers market, and free entertainment for the entire family. At 4:30 pm, come view our equestrian exhibitions in the upper arena, featuring mini horses and riding demonstrations by Victoria Dye Equestrian.

TIME: 3:00 PM - 7:00 PM WHERE: Westwind Community Barn, 27210 Altamont Road, Los Altos Hills

Meeting with the Mayor All Tuesdays in September, 2019

Mayor Roger Spreen is available to meet with residents of Los Altos Hills to listen to their concerns and comments on an appointment-only basis. He is generally available on Tuesday and/or Thursday mornings from 9:00 -10:00 a.m., but please call ahead to the City Clerk, Deborah Padovan, at 650-9417222 (dpadovan@losaltoshills.ca.gov) to check his availability and to make an appointment to meet with him.

TIME: 9:00 AM -10:00 AM WHERE: Los Altos Hills Town Hall, 26379 Fremont Road, Los Altos Hills

Menlo Movie Series

Fridays, August 2 to September 20 Launched in 2014, the Menlo Movie Series features free movies in downtown Menlo Park. Be sure to bring a chair, blanket, and some snacks to enjoy, but most of all, don't forget to bring the family. Enjoy a night of watching the stars, under the stars. All movies are subject to change. Parental discretion advised.

TIME: Start time varies WHERE: Burgess Park, 701 Laurel Street, Menlo Park

Halloween Hoopla Day Saturday, October 26, 2019

The annual Halloween Hoopla Parade and Trick-or-Treat is held the Saturday before Halloween each year. Come in costume and participate in the parade to Fremont Park. Participants will receive a bag to trick-or-treat through Downtown Menlo Park at participating stores. Fremont Park will also host carnival games, crafts, and a magic show. Activities are co-sponsored by the Menlo Park Chamber of Commerce and Cheeky Monkey Toys.

TIME: 11:00 AM - 2:00 PM WHERE: Fremont Park, Middle Avenue at Fremont Street, Menlo Park

36 | D E LEO N RE A LT Y.CO M

September 2019

Spooky Carnival

Saturday, October 26, 2019 Bring your family and friends to the Onetta Harris Community Center for the annual Halloween Spooky Carnival, a Menlo

MOUNTAIN VIEW 48th Annual Art & Wine Festival 2018 Saturday & Sunday, September 7 & 8, 2018

The Mountain View Art and Wine Festival is an authentic

Park tradition since 2008. Enjoy fun and exciting games to

and moveable feast for the senses, embracing the cool,

play, yummy snacks, face-painting, a costume contest, candy

vibrant, and multicultural Castro Street vibe. Come by for live

guess, and more! Don’t forget to wear your costume and

music, great food and drink, local artists' and craftmakers'

prepare for a spooky good time!

exhibitions, family-friendly fun, and more!

TIME: 12:00 PM – 3:00 PM WHERE: Onetta Harris Community Center, 100 Terminal Ave, Menlo Park

TIME: Sat 11:00 AM – 7:00 PM; Sun 10:00 AM – 6:00 PM WHERE: Castro Street in Mountain View, between El Camino Real and Evelyn Avenue

Trick-or-Treat Downtown Saturday, October 26, 2019

Kids 12 and under can wear their favorite Halloween costume and come downtown for some hauntingly good fun!

TIME: 1:00pm to 3:00pm – Pioneer Park

REDWOOD CITY Coding for Kids

Every Sunday in September, 2019 FREE Library Code Workshops for beginners! All materials provided. Learn how to code and make your own video

3:00pm to 6:00pm – Castro Street at participating businesses (look for the orange window signs)

WHERE: Pioneer Park and Downtown Mountain View

Sing & Play Along Ukulele Monday, September 23, 2019

Would you like to learn some fun songs on the ukulele?

games! All ages welcome - ten students will be admitted on

Beginners and ukulele enthusiasts are welcome to join us to

a first come, first served basis.

sing and play together. Bring your uke, or use one of ours.

TIME: 2:00 PM – 3:00 PM WHERE: Downtown Library, 1044 Middlefield Road, Redwood City

Tai Chi for Balance with Joan Tay Thursday, September 5, 2019

Join for a morning of movement and breathing. Learn to improve your balance.

Registration welcome, but not required!

TIME: 6:30 PM – 8:00 PM WHERE: Mountain View Public Library, 1st Floor Program Room, 585 Franklin Street, Mountain View

Exercise with the YMCA

Every Wednesday in September, 2019 A refreshing look at gentle, beginner level strength training.

Registration is not necessary, members of the community

This class helps to develop balance, flexibility, strength,

are welcome to participate and classes are free. For more

posture, coordination, and fall prevention. This class is

information, please call 650-780-7058.

appropriate for all levels and backgrounds. Offered in

TIME: 10:45 AM - 12:00 PM WHERE: Downtown Library – Community Room, 1044 Middlefield Road, Redwood City

partnership and led by instructors from the YMCA. Please bring your own Yoga mat or towel. This is an adult only class. The class cannot accommodate babies, infants, children, or strollers. RSVP Required: www.mountainview.gov/librarycalendar

TIME: 11:30 AM – 12:30 PM WHERE: Mountain View Public Library, 1st Floor Program Room, 585 Franklin Street, Mountain View D ELEONREALT Y.COM

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THE DELEON INSIGHT

PALO ALTO Hike for Health

Monday, September 16, 2019 Join Saved By Nature and Environmental Volunteers at the EVols EcoCenter, Palo Alto Baylands, and locations around

STANFORD Leonardo's Library: The World of a Renaissance Reader

Ongoing every day from July 1 through October 13, 2019 Lists of books that Leonardo da Vinci made in his notebooks

the Bay Area. We’ll take you on nature hikes set-up to

indicate that he was widely read and that written sources

encourage you to stay moving and stay healthy. These hikes

played a key role in the formation of his ideas. This exhibit of

are particularly designed with seniors in mind and led by

rare books and manuscripts from Stanford's special collections

naturalist Richard Tejada. Take a nice easy stroll, breathe fresh

explores themes related to Leonardo’s life and work—classical

air, and enjoy the scenic views and company of one another.

and vernacular literacy, philosophy, natural history, human

The length of the hike will be based on participants capability.

anatomy and veterinary medicine, religion, astronomy,

Bring water, snacks, sunscreen, and/or a hat.

architecture, mathematics, optics, and cartography. It

TIME: 9:30 AM – 11:30 AM WHERE: EcoCenter, 2560 Embarcadero Road, Palo Alto

considers the question "How might Leonardo have engaged with this text?" and offers a window on the world of the Renaissance reader in general, and Leonardo in particular.

Mexican Tin Art Workshop Thursday, September 19, 2019

TIME: 10:00 AM – 6:00 PM WHERE: Green Library Bing Wing, 2nd floor

Mexican tin art is a popular art form that has been passed down for generations. Come enjoy an evening of learning the craft yourself. We will use the garden as inspiration to create a beautiful and colorful tin hanging decoration for your home. You will trace and color only, no need to cut metal. For adults (18+) only.

COST: $40 Member (use Promotion Code IRIS) / $50 Nonmember Price

TIME: 6:30 PM – 8:30 PM WHERE: Gamble Garden, 1431 Waverley St., Palo Alto

Rapunzel

Saturday and Sunday, September 21 & 22, 2019

Kerry Tribe: The Elusive Word

All Mondays and Wednesdays through Sundays from July 1 to September 30, 2019 The Cantor Arts Center will be presenting the 2nd film by Los Angeles-based visual artist Kerry Tribe. Afasia (2017), on view from May 3–September 30, pairs the verbal journey of Christopher Riley, a photographer and friend of the filmmaker who struggles to speak after experiencing a left-hemisphere stroke that left him impaired, with Tribe’s own narrated effort to relearn the Spanish language. Engaging in repetition and vocalization, the two friends find commonalities in a mutual curiosity about life at the limits of language. Tribe offers

Palo Alto Children's Theatre presents Rapunzel in the 2019-

modern viewers a fresh look at the struggle to find the words

2020 Playhouse Season. With very simple sets and costumes,

to express how one feels.

and lots of opportunities to get up and wiggle, this story-teller

TIME: 11:00 AM – 5:00 PM WHERE: Cantor Arts Center, 328 Lomita Drive at Museum

style theatre is perfect for our youngest audience members, suggested ages two to six years old. Performances are approximately 55 minutes in length.

COST: $12 to $14 TIME: Saturdays and Sundays at 10AM and 12PM WHERE: Palo Alto Children’s Theatre, 1305 Middlefield Rd, Palo Alto

38 | D E LEO N RE A LT Y.CO M

Way, Stanford

September 2019

PORTOLA VALLEY Design and Create Your Own 3D Object All Thursdays in September, 2019

Volunteer Chris Atwood will guide you in using TinkerCad to create any object you desire that can be done on the Ultimaker 2 printer. For all adults including 55+, Registration required.

TIME: 4:00 PM – 7:00 PM WHERE: Portola Valley Town Hall, 765 Portola Rd, Portola Valley

entire family, including: The Mayor’s State of the City Address and Community Awards presentation, Live entertainment, Free kids' activities, Live chalk art exhibits, and more.

TIME: 10:00 AM - 3:00 PM WHERE: Murphy Ave in Downtown Sunnyvale

Anime Watching Party Wednesday, July 24, 2019

Come watch some anime with your friends! We’ll be showing the first episodes of a variety of shows, so everyone will have a chance to discover a new favorite show. Registration not required but space is limited.

SUNNYVALE Sunnyvale Farmers Market Every Saturday Year-Round

Open only to teens in grades 6 - 12.

TIME: 2:00 PM - 5:00 PM WHERE: Library Program Room, 665 W. Olive Ave., Sunnyvale, CA, 94086

Open year-round, rain or shine. Enjoy fresh fruits, vegetables, and arts and crafts from local growers and artisans.

TIME: 9:00 AM – 1:00 PM WHERE: Murphy Avenue at Washington Ave, Sunnyvale

Free Yoga Class

Every Tuesdays in September, 2019 Work on balance, strength, flexibility, and relaxation while building self-awareness. Bring an exercise mat or towel. Open to: Adults 18, middle youth (ages 10 to 13) only if accompanied by parent/guardian and high school youth (ages 14 to 17) with signed waiver from parent/guardian.

TIME: 6:00 PM - 6:50 PM WHERE: Gym, 785 Morse Avenue, Sunnyvale, CA

VUDU Movie Night Under the Stars Every Saturday from September 7 to 28, 2019

Bring a lawn chair and blanket and sit back and enjoy a free movie as a gift to the Sunnyvale Downtown community! Stay tuned for the line-up of movies thanks to VUDU Movies & TV!

TIME: 5:30 PM – 8:30 PM WHERE: Downtown Sunnyvale

Sunnyvale State of the City Saturday, September 14, 2019

WOODSIDE Tai Chi

Every Wednesday in September, 2019 Join Tai Chi instructor Ben Dineen in the Native Plant Garden as he leads a sixty-minute class open to all ability levels. This centuries-old Asian exercise builds stronger bodies, better balance, and a sharper mind, and is also a great stress reliever. For all adults including 55+.

TIME: 10:00 AM – 11:00 AM WHERE: Woodside Library. 3140 Woodside Road, Woodside

Creative Writing Group

Every Fridays in in September, 2019 Have a novel, poem, essay, or memoir in the works? Interested in hearing what others are writing? Join our new creative writing group to exchange constructive, encouraging feedback with other writers and readers. All are welcome! For all adults including 55+.

TIME: 11:15 AM – 1:00 PM WHERE: Woodside Library. 3140 Woodside Road, Woodside

Join us for the annual State of the City event, as we celebrate all the great things happening in Sunnyvale. The event will feature a variety of fun and informational activities for the

D ELEONREALT Y.COM

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PRSRT STD ECRWSS U.S. POSTAGE PAID UNION CITY, CA PERMIT #35

DeLeon Realty , Inc. 1717 Embarcadero Road Palo Alto, CA 94303

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RESIDENTIAL CUSTOMER

REAL ESTATE SEMINAR

HOW TO DETERMINE OPTIMAL PRICING AND STRATEGY WHEN SELLING A HOME Mitchell Park Community Center El Palo Alto room 3700 Middlefield Rd, Palo Alto, CA 94303 Wednesday, October 16, 2019 6:00 PM - 8:00 PM Ken DeLeon, DRE #01342140 Michael Repka, Managing Broker, DRE #01854880

RSVP: 650.543.8500

RSVP@DELEONREALTY.COM

Seminars are for prospective clients only. No outside real estate professionals permitted.

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