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Marcus & Millichap Arranges Trade of Viking Apartments in Peninsula at Above-Average Per-Unit Price

31 Jul 2014, 4:37 am

By Alex Girda, Associate Editor

A Peninsula multifamily property recently traded hands in a deal worth $10.8 million. Marcus & Millichap arranged the transaction for the Burlingame, Calif. asset at a per-unit rate of $308,571. The seller is a family that owned the property for around 50 years, while the buyer is another local family trust. Both parties were advised by representatives of Marcus & Millichap’s Palo Alto office, with associate Richard Reisman handling the seller’s end, and vice president investments, Adam Levin, working on behalf of the buyer.   

The Viking Apartments residential complex in Burlingame offers a total of 35 units. The 1958-built apartment complex is located at 500 El Camino Real in one of Burlingame’s more high-profile neighborhoods. The residential property offers a total of 21,007 square feet of rentable space. According to a press statement announcing the transaction, Adam Levin predicted that Viking Apartments is set to become one of a number of properties in the area that have been acquired, and were then repositioned in order to boost gains from the property.

Sales Trends for Metro San Francisco

According to Marcus & Millichap’s San Francisco Metro Area Apartment Market Report for Q2 of 2014, the average sales price for multifamily properties stood at around $264,300 per unit for the last year. That means that the market has recorded a 17 percent increase over the previous 12 months, while buyers are reportedly still setting their sights on assets that bear value-add potential. This makes the aforementioned deal an above-market transaction with a per-unit sales price of more than 40k compared to the Metro Area’s average.

The report mentions that the market’s immediate future remains with buyers that can navigate local legal constraints of the low-yield market. Purchases might require an immediate capital infusion immediately afterwards, with amenity enhancement the primary focus.

Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com


Levi’s Stadium Announces Completion of NRG Solar Terrace as Facility Awaits LEED Gold Certification

24 Jul 2014, 7:20 am

By Alex Girda, Associate Editor

The San Francisco 49ers are moving to Santa Clara, as the newly-completed Levi’s Stadium will be the home of the NFL franchise starting with the upcoming season. The facility’s developer, the Santa Clara Stadium Authority, the San Francisco 49ers and NRG Energy Inc. recently announced the completion of the NRG Solar Terrace and the new photovoltaic systems for the three NRG Energy Bridges. This makes Levi’s Stadium the first stadium in the country that is home to a professional football team with LEED-level standards built into the design specs and architecture.

The amount of technological innovation introduced at the $1.2 billion, 68,983-seat facility is worthy of LEED Gold level certification. The sports arena will use a 375 kW solar installation, consisting of 1,150 solar panels installed on the NRG Solar Terrace, as well as the three NRG Energy Bridges as an important part of the power generation. The E20/327-watt solar panels used were provided by Levi’s Stadium’s official solar tech partner, SunPower Corp. The three bridges will act as the main entry and exit avenues to the stadium, and will also provide shade on warm game days. A host of environmentally friendly features are also part of the package at the stadium, including six eVgo electric vehicle charging stations in the Great America parking lot, with the capacity of charging up to 12 vehicles.

The President of the San Francisco 49ers, Paraag Marathe said that “the vision for an energy-efficient and visually-stunning stadium has been realized.”

Marathe also said that the developers never deviated from their original plans for the project, with sustainability always being one of the key elements of the planning process for the stadium.

NRG has made Levi’s Stadium its seventh stadium for college or pro football where it has installed its products. The other venues that have benefited from the company’s clean energy solutions are FedExField, NRG Stadium, Lincoln Financial Field, MetLife Stadium, Patriot Place and Arizona State’s Sun Devil Stadium.

HFF Arranges Acquisition of 1400 16th Street by ASB Real Estate Investments

16 Jul 2014, 2:23 pm

By Alex Girda, Associate Editor

As the city’s office market continues to be white-hot, San Francisco’s assets are increasingly in demand. The latest asset to trade hands is the building located at 1400 16th Street—a historic property sold by Jessica McClintock Inc. to a venture consisting of ASB Real Estate Investments, SKS Partners and ProspectHill Group. An HFF team led by managing director Steven Golubchik, director John Simerlein and senior real estate analyst Josh DiSalle represented the seller in the deal.

The art-deco warehouse and office building was originally developed in 1938 and has been under the ownership of Jessica McClintock Inc. for the past four decades. Totaling approximately 100,000 square feet of space, the reinforced concrete building occupying an entire city block at 1400-1450 16th Street offers great access to nearby I-80 and I-280, as well as Highway 101. The building is also located in the vicinity of several San Francisco Muni bus routes offering connections to heavily trafficked transport lines Caltrain and BART (Bay Area Rapid Transit).

The SoMa district is one of the best-performing submarkets in terms of its R&D assets. Along with Potrero Hill, the area features the largest prototyping and manufacturing tenant clusters, HFF managing director Steven Golubchik said in a press statement announcing the transaction. According to another member of the HFF team that handled the transaction, John Simerlein, “the property’s ideal location, and proximity to San Francisco’s most rapidly evolving neighborhoods with a mixture of housing, jobs, entertainment destinations, and transportation options – combined, provide a 24/7 live, work and play environment.”

According to the HFF reps, the opportunity to acquire a property of this type led to serious interest from a number of potential investors from both the local and national investment scene.

Image courtesy of Google StreetView 

Potential Alameda Point Developers Line Up for Development Opportunities as Initiative Gains Momentum

9 Jul 2014, 6:48 pm

By Alex Girda, Associate Editor

Local authorities have long tried to get a major development project going at former Navy base, Alameda Point. Currently, nine different development teams have submitted their applications in response to a request for qualifications, in order to have a shot at working on the 82-acre parcel located on San Francisco Bay. The list of applicants is currently under review by local authorities. The city previously issued a request for quotation (RFQ) for a 68-acre residential and commercial mixed-use project along the main entrance to Alameda Point.

The developers are vying for the opportunity to develop about 800 residential units, as well as a mixed-use component at the 82-acre site. The parcel, adjacent to the Seaplane Lagoon, is part of the plot of land that has been vacant for 17 years now, mainly due to local opposition directly linked to the fear that excessive development would clog the bridges and tunnel that facilitate traffic to and from Alameda.

According to The San Francisco Business Times, the companies that responded to the RFQ include names such as Alameda Point Partners, Brookfield Homes, Catellus, Mission Bay Development Group, Rising Realty Partners, CIM Group, Tim Lewis Communities, Trumark, Williams & Dame Development with Zelman Development and Langley Investment Properties. Of the nine applicants, four of the companies are in contention for the commercial component at Alameda Point. Mission Bay Development, Trumark, Catellus and CIM are the four companies competing for the commercial project.

Alameda Point is an 878-acre section of the decommissioned Naval Air Station Alameda, located in the inner part of the San Francisco Bay about four miles from downtown Oakland, Calif. The project is set to provide a significant number of economic development through job creation, millions of dollars in tax revenues, and over one thousand housing units.

Image courtesy of alamedapointinfo.com

Zendesk HQ Acquired by ASB Real Estate Investments in $60 Million Deal

2 Jul 2014, 7:43 pm

By Alex Girda, Associate Editor

989 Market Street, the San Francisco home of cloud-based help desk provider Zendesk, just traded hands in a deal worth approximately $61.3 million. The office asset was acquired by ASB Real Estate Investments from seller Harbert Management Corporation, a deal in which the seller received more than double what it had paid for the property back in 2011. This recent purchase was made on behalf of ASB’s Allegiance Real Estate Fund, a $3.5 billion vehicle.

Located between 5th and 6th Streets in the Mid-Market district, 989 Market Street offers a total of 111,497 square feet of Class A office space. Zendesk and Zoosk, a social dating service, are the two tenants at the six-story building, currently taking up approximately 94 percent of the available space. The building also provides 13,000 square feet of street-level retail space with Market Street frontage, currently under contract with Blick Art Materials, an art supplier.

The building offers floorplates of 17,000 square feet that also offer ceiling heights of between 10 and 15 feet. The property offers great proximity to Union Square, as well as Powell Street and Civic Center BART subway stations. The area will soon add a nearby access point to Caltrain. The President and CEO of ASB Real Estate Investments, Robert Bellinger, the new owner of 989 Market Street, noted that “led by Twitter, Spotify, Yammer and Intuit, new and expanding tech companies have made the Mid-Market District a location of choice, leading to a market renaissance, from which our investors can take advantage.”

He also pointed out that given the property’s proximity to Union Square and the amount of premier retailing along Market St., will translate into sustained interest for the retail component of the building.

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