A micro-unit community in San Francisco has landed a $104 million refinancing. JLL arranged the three-year floating-rate loan for City Gardens, a community owned by Panoramic Interests. JLL told Multi-Housing News that Ready Capital provided the loan, which replaces a Pacific Western construction loan of an undisclosed amount.
Recently completed, the eight-story City Gardens offers 200 units in a 152,445-square-foot building. The units are split up into two-, four- and five-bedroom fully furnished micro-units that are all managed by Common. Common told Multi-Housing News that Panoramic Interests tapped the company last year to manage the property and began preleasing in August 2020 in time for the community’s fall 2020 opening.
The sustainably-built units are equipped with high-efficiency lighting and plumbing alongside laminated heat resistant glass and energy recovery ventilation. The community’s amenities include a lounge, workspace, roof deck, community spaces, meeting areas and bike storage.
Located at 333 12th St., City Gardens is surrounded by several restaurants and major retailers like Costco and Target. The co-living community is also located between two up-and-coming neighborhoods, Hayes Valley and the Design District. Hayes Valley offers many upscale boutiques and shops in a revitalized neighborhood setting while the Design District is known for its designer and furnishings showrooms.
CO-LIVING TREND CAPTURES UNIQUE DEMAND
A JLL team of Charles Halladay, Alex Witt, Jordan Angel, Jonah Aelyon and Lauren Mezzanotte represented Panoramic Interests for the loan. Angel said in prepared remarks that the borrower’s unique high-density community can take advantage of San Francisco’s high renter demand.
Outside of San Francisco, the co-living sector has been growing in popularity for years. Despite offering a very specific living arrangement, this style of housing has attracted certain renters, especially those in high-demand markets. Communities have even incorporated co-living units alongside its traditional units, like G8 in Los Angeles, a 228-unit mixed-use project that offers 23 affordable units and 68 co-living units.