Northern California Office Park Begins Multifamily Conversion
- Jul 16, 2020
Pulte Homes plans to build One 90, a mix of 190 single-family homes, townhomes, rowhomes and condominium apartments, on an 11-acre site in San Mateo, Calif., it purchased for $106 million from Strada Investment Group. The property, the site of an under-utilized office complex known as Waters Technology Park built in 1979, will be redeveloped into four neighborhoods.
The Hoffman Group, an Irvine, Calif.-based firm that specializes in land transactions, arranged the deal. Cameron Fowler, a broker with The Hoffman Group, said in a prepared statement the sale is the largest real estate deal of the year for new residential-for-sale product in the supply-constrained market of the San Francisco Peninsula. Fowler credited Strada Investment Group, the developer and seller, with creating a project that offers a wide selection of housing types.
Strada, a San Francisco-based real estate investment group, paid $46.2 million for the two parcels on Waters Drive in 2017, The Mercury News reported. The firm had worked for three years on getting the project through the entitlement process. The property was sold to Pulte after the City of San Mateo granted Strada approval to redevelop the office park.
Nik Krukowski, managing director at Strada, noted in prepared remarks the project provided a chance to address the local housing deficit, provide new affordable housing and public open space while respecting the city’s blueprint for smart growth. San Mateo is one of the top San Francisco multifamily submarkets. While it is a small submarket, developers delivered almost 900 units in the city between 2010 and 2019, about 21.7 percent of its current multifamily stock. Construction activity has picked up over the past 18 months. Essex Property Trust’s $300 million, 600-unit Station Park Green mixed-use project, is now open.
Located between San Francisco and Silicon Valley, the new residential development is situated near U.S. Highway 101, State Route 92 and the San Mateo-Hayward Bridge. It’s close to the Hayward Park Caltrain station and a 15-minute drive to San Francisco International Airport. One 90 residents will be able to shop at the nearby Trader Joe’s, Whole Foods Market, Target and Costco, which are all less than 2 miles away.
The Hillside Shopping Center is also in close proximity and features Nordstrom’s, Macy’s and numerous other retailers, restaurants and entertainment venues. The location is also close to major employers including Sony, Oracle, Gilead, Electric Arts and GoPro in San Mateo as well as other major tech firms in Silicon Valley.
Pulte states on the One 90 website residences will be smart homes that have energy-efficient construction. Community amenities will include a community garden, playground, dog park and barbecue area with communal dining tables.