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A Nob Hill Landmark Hits the Market

30 Jul 2015, 8:31 pm

By Alex Girda, Associate Editor

An historic apartment building in San Francisco’s Nob Hill neighborhood is up for grabs. Alain Pinel Realtors recently announced that the Steinhart Apartments at 952 Sutter St. is on the market with an asking price of $27 million. All but nine of the property’s 57 units will be vacant at closing, indicating that a new owner will be able to capitalize on the city’s robust rent growth.

The Steinhart Apartments

The Steinhart Apartments

Formerly operated as a hotel, the 115-year-old structure is listed on the National Register of Historic Places. Built by Ignatz Steinhart, a baker and entrepreneur who gave his name to the Steinhart Aquarium, the property is well preserved thanks to its past as a hospitality venue.

The building features a lobby, high ceilings and a mezzanine-level library. Units at the Steinhart building were designed by William Scofield, whose credits include the Ralph Lauren and Gucci boutiques. Jonathan Rachman, a local designer, renovated 15 of the units.

APR Investment Group Managing Director Mark Bonn and Senior Sales Associate Mirella Webb are leading the marketing effort. Webb noted in a statement that the Steinhart building offers a combination of studios, one-, two-, and three-bedroom apartments, plus a single four-bedroom unit. Many units are large enough to accommodate additional bedrooms or to subdivide into multiple apartments, she added.

Livermore Rolls Out the Welcome Mat

28 Jul 2015, 5:24 pm

By Alex Girda, Associate Editor

Three residential communities debuted in Livermore this month as KB Home held grand openings for The Cottages, The Reserve and The Retreat at Vineyard Crossing, a transit-oriented development located at 717 Misty Circle near an ACE rail station.

Residences are largely customizable with each community offering homes at a variety of price points. Residences include cost-saving features such as WaterSense faucets and high-efficiency appliances.

KB Home Vineyard Crossing

Rendering of Single-Family House at The Cottages

The Cottages offers buyers homes ranging in size between 1,640 and 2,079 square feet. The largest homes feature four bedrooms, three baths and two-car garages. Pricing for the courtyard-style homes starts at more than $600,000. The Reserve offers larger homes with sizes varying between 1,973 and 2,270 square feet.

Two-story homes are priced in the high-$700,000s. The largest homes at The Reserve offer five bedrooms and three baths. Homes at The Retreat are priced similarly to those at The Cottages and feature up to four bedrooms and two and a half baths.

Livermore offers potential buyers proximity to shopping, entertainment and the blossoming wine industry. The Vineyard Crossing master-planned community offers great access to science and technology centers, Lawrence Livermore National Laboratory and Sandia National Laboratory.

Rendering courtesy of kbhome.com

Harvest Properties Reaps Rewards in San Mateo

17 Jul 2015, 3:58 pm

By Alex Girda, Associate Editor

An office campus in San Mateo is under new ownership after a fluctuating eight-year stint in Harvest Properties’ portfolio. New York Life Real Estate Investors A joint venture of the company and Cigna Realty Investors recently received $49 million from New York Life Real Estate Investors for Bridgepointe Office Park. Harvest Properties acquired the property in the spring of 2007 for $42 million. Steve Herrmann, Robert Gilley and Eric Fox of DTZ arranged the sale on behalf of the seller.

Bridgepointe Office Park

Bridgepointe Office Park

Comprising two three-story Class A office buildings at 1500 and 1510 Fashion Island Blvd., the complex totals 130,107 square feet. it is near the 92/101 corridor as well as the Bridgepointe Shopping Center and a Hillsdale Caltrain shuttle service stop.

Five years ago, the property was slipping toward toward foreclosure when a $27 million mortgage from JP Morgan went into default. Cigna took the loan back and teamed up with Harvest Properties to renovate the property and attract new tenants. Since then, the joint venture has leased about three quarters of the property. Most recently, ACCO Brands, an office supply company, signed on to take more than 22,000 square feet in the fall of 2014.

Given the substantial amount of interest in Peninsula office assets, rents and occupancy are on the rise. Some spaces at Bridgepointe Office Park are renting for well under current market rates, indicating that the property has strong growth potential.

Image courtesy of harvestproperties.net

Ashford REIT Finds Ripe Pickings in Napa Valley

13 Jul 2015, 9:38 pm

By Alex Girda, Associate Editor

It may only be mid-summer, but Napa Valley is already ripe for investment. The local hospitality market is among California’s strongest, a fact underscored by the $85 million price that Ashford Hospitality Prime Inc. paid for the Bardessono Hotel and Spa in Yountville.

Bardessono Hotel and Spa

Bardessono Hotel and Spa

One of the area’s best-performing assets, the 62-key Bardessono was generating $554 in RevPAR on a trailing 12-month basis as of May 31. The hotel also achieved 81.9 percent occupancy and an ADR of $676 for the same period. The purchase price, equivalent to about $1.3 million per key, represents an estimated forward 12-month cap rate of 5.2 percent.

The Bardessono is one of three hotels in the United States, and the only one in California, to have earned LEED Platinum certification from the U.S. Green Building Council. Completed in 2009, the hotel offers the Lucry restaurant and bar, an on-site spa, more than 6,000 square feet of indoor and outdoor meeting space, as well as a fitness center. According to the statement announcing the sale, the Bardessono hotel is on a ground lease that expires in 2105.

Ashford Hospitality financed the purchase using proceeds from a recent preferred stock offering, $2 million in key money provided by parent company Ashford Inc. and cash on hand. Remington Lodging was appointed as the hotel’s new property manager.

Kilroy Sets Up Shop in SoMa

10 Jul 2015, 8:39 pm

By Alex Girda, Associate Editor

Kilroy Realty Corp. is setting up shop in South of Market following its acquisition of a site where it plans a $250 million project. The site is fully entitled for a 450,000-square-foot mixed-use creative campus, the Los Angeles-based REIT said in a statement on July 7.

Acquired by Kilroy for around $78 million, the 3.3-acre site is located at 100 Hooper St. It is one of only two fully entitled office development sites in the city that are not already under contract. In late June, Kilroy began construction of the other project, known as The Exchange on 16th and located in the Mission Bay submarket. The dual developments represent Kilroy’s vote of confidence in the demand for high-end office space in San Francisco, currently one of the country’s hottest office markets.

Kilroy said that it plans two LEED Gold-certified buildings totaling roughly 400,000 square feet at 100 Hooper. Another 50,000 square feet is designated for production, distribution and repair space and will be owned and operated by PlaceMade, a subsidiary of SFMade. The non-profit provides affordable space for manufacturers and other industrial space users in the region.

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