Oyster, Tricon Bag $143M Construction Loan for SF Condo Development

Oyster Development and Tricon Capital have obtained a $143.5 million construction loan on their condo project, Rockwell, which is at 1634-1690 Pine St. in San Francisco.

San Francisco—Oyster Development Corp. and Tricon Capital have obtained a $143.5 million construction loan on their condo project, Rockwell, which is at 1634-1690 Pine St. in San Francisco. National Real Estate Advisors provided the financing in a deal brokered by JLL Capital Markets’ John Manning and Alex Witt.

Rockwell will consist of two 13-story towers and total 260 units. The development will also include one level of below-grade parking for 201 cars, and a 4,000-square-foot ground-floor retail component. Construction of the first tower is expected to be completed by July 2016.

The project follows on the heels of two previous condo developments for Oyster and Tricon. One was the 98-unit Marlow development in nearby Nob Hill, which exceeded projected pricing and absorption, according to the developers, and the other was 114-unit Vida in the Mission District, which is currently exceeding projected pricing and absorption.

Oyster president Dean Givas says that Rockwell represents an opportunity to deliver high-rise condos in Pacific Heights, which has been supply-constrained lately, without any projects of similar height and size for at least 10 years. Sales at Rockwell will commence in April 2015.

Overall, San Fransisco’s a hot market for condos, notes Paragon Real Estate Group in its Q3 2014 report on the Bay Area residential market. “Dollar per square foot values have continued to increase to new peaks,” the report said regarding residential property values. “This metric is particularly being impacted by new-development condo sales, which are breaking dollar per square foot records virtually everyplace they’re being built.”