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Apple Takes Space in Downtown Cupertino

22 Mar 2015, 7:42 pm

By Alex Girda, Associate Editor

Apple continues to bolster its influence on the Silicon Valley office market, most recently signing on to anchor the office portion of Main Street Cupertino, a mixed-use venture that aims to create a new downtown for the city. The technology giant has leased 260,o00 square feet of office space, according to public records, The Silicon Valley Business Journal noted.

Located on a 2.5-acre site, Main Street Cupertino will feature a 180-key Marriott Residence Inn, 120 loft-style units and more than 130,000 square feet of retail, restaurants and professional services. Also planned is a smaller office building geared to startups and emerging companies. A parking structure and office auto court will offer 1,129 spaces between them.

Apple’s space at Main Street Cupertino will complement the nearby Apple Campus 2, its future headquarters. Main Street Cupertino will also be walking distance from Vallco Shopping Mall, the new Rose Bowl development, AMC Theatres, Starbucks, Benihana, and the Bay Club Cupertino fitness center.

Image courtesy of mainstreetcupertino.com

Despite Legal Hurdles, Millennium Plans Summer Kickoff for SoMa Tower

12 Mar 2015, 3:11 pm

By Alex Girda, Associate Editor

Millennium Partners is closing in on breaking ground on its controversial $500 million condominium tower in the SoMa district, but at least one major legal hurdle remains.

Handel Architects rendering of 706 Mission project

According to the San Francisco Chronicle, the company is waiting for resolution of a lawsuit by local residents so it can set in motion its plan for a 44-story luxury residential tower at 706 Mission St. Of note, the tower’s first four floors would be dedicated to a new home for the Mexican Museum. Millennium would also renovate the neighboring Aronson Building.

Designed by Handel Architects, the tower would rise 510 feet above street level and offer 169 luxury condominiums that, due to the coveted location and development costs, are expected to command premium prices.

Still standing in the way of construction, however, is two-year-old litigation filed on behalf of residents of the nearby Four Seasons residences. Citing the California Environmental Quality Act, opponents argue that the city green-lit the project through improperly approved zoning changes.

Millennium is already invested in the project through a $5 million gift to the Mexican Museum and a $5 million payment to San Francisco’s affordable housing fund. According to the Chronicle, Millennium expects the litigation to be resolved in time for construction to start in July.

Image courtesy of handelarchitects.com

Land & Houses USA Pays $74M for Upscale San Mateo Asset

6 Mar 2015, 9:10 pm

By Alex Girda, Associate Editor

In the Bay Area’s latest major multifamily deal, Land & Houses USA Inc. has paid $73.6 million for Mode by Alta, an asset in San Mateo developed by Wood Partners. The deal was arranged by Institutional Property Advisors.

Designed by Christiani Johnson Architects, the 111-unit complex was constructed by SBI Builders on a two-acre site formerly occupied by a commercial printing facility.at 2089 Pacific Blvd. It consists of two three-story buildings above a parking structure.

Mode by Alta features one-, two- and three-bedroom units with hard-surface floors, stainless steel appliances and solid-surface countertops. Common amenities include a fitness room, resident lounge and spacious amenity decks.

The property is located in the vicinity of a Caltrain line linking San Francisco and Silicon Valley. Oracle, Visa, Gilead, Sony and Franklin Templeton are among the area’s employers.

Mode by Alta is the second Bay Area multifamily asset developed and sold by Wood Partners. In 2013, Domain by Alta in Oakland commanded $103.2 million. The firm has more than 3,000 units completed or under construction in California, and a West Coast total of around 4,200.

Image courtesy of woodpartners.com

Napa Multifamily Asset Commands $58M

26 Feb 2015, 4:53 pm

By Alex Girda, Associate Editor

In a $58 million deal, a joint venture of Security Properties and Intercontinental Real Estate Corp. has acquired Saratoga Downs Apartments, a Class A multifamily asset in Napa. The deal marks the eighth acquisition for Security Properties Multifamily Fund II.

One of only five Class A assets in Napa, the property features garden-style apartments and newly constructed townhomes. Seth Siegel and Jason Parr of Cushman & Wakefield Inc. arranged the transaction, acting on behalf of both buyer and seller.

Located about two miles from downtown Napa, Saratoga Downs was developed on land previously occupied by Shevland Ranch, a former horse farm and race track. Its 124 apartments were constructed in 2006, followed by 54 townhomes in 2012. In a reflection of the property’s history, a reconstructed barn serves as its clubhouse and leasing office. Saratoga Downs also neighbors the Napa Yacht Club.

“The North Bay has been a target market for several years as cap rates are higher and supply is restricted compared to adjacent submarkets,” noted Mark Hoyt, senior director of investments at Security Properties, in a statement. “It is extremely difficult to build new product in Napa, evidenced by the fact only two market-rate apartment properties have been delivered in the past decade, with two more projected to be delivered in the next decade.”

Meridian Cinches 2-Part Financing for Union Square Deal

20 Feb 2015, 11:31 pm

By Alex Girda, Associate Editor

Meridian Capital Group arranged $35 million in acquisition financing for 166 Geary St. Representing the Jackson Group, Sun Equity Partners and Concord Real Estate, Meridian arranged a 36-month, floating-rate mortgage provided by a national balance-sheet lender.

The loan features full-term interest-only payments and is priced at 350 basis points over one-month LIBOR.

Located in the upscale Union Square district, 166 Geary offers 46,000 square feet of commercial space. To accommodate the sponsors’ plan to divide the asset into two commercial condos, the financing pre-allocated $25 million to one portion of the asset and $10 million to the remainder.

“In addition to the unique post-closing bifurcation feature of this loan, Meridian negotiated a competitive floating interest rate which includes flexible prepayment terms,” noted Shaya Ackerman, a Meridian managing director. Ackerman was joined in arranging the financing by Moshe Majeski, a fellow Meridian managing director.

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