San Francisco Condo Project Lands $77M Construction Loan
- Jul 17, 2019
Z&L Properties has received $76.8 million in financing to develop 1554 Market St., a 109-unit condominium project in downtown San Francisco.
JLL represented the borrower in placing the five-year, floating-rate construction loan with Barings, on behalf of one of its managed accounts.
The JLL Capital Markets team included Senior Director Brandon Roth and Senior Managing Director Charles Halladay.
The transaction is a legacy HFF deal that closed before JLL acquired HFF on July 1, in a cash-and-stock $1.8 billion deal that was first announced in March.
1554 Market St. is a fully-entitled project located near the intersection of Market Street and Van Ness Avenue directly across from the Van Ness Muni Metro Station in the city’s Hub District. Slated for completion in 2021, the project will have two 12-story buildings connected by a concrete corridor with the residential units situated above a ground-floor lobby and 5,010 square feet of retail space. There will also be a 28-space underground parking garage.
The transit-oriented project also has a Walk Score of 99, a Transit Score of 100 and Bike Score of 99. It is located within eight blocks of more than 400 restaurants and bars.
Roth cited the city’s severe housing shortage and employment growth from companies like Uber, Lyft, Pinterest and others as contributing to sustained demand from potential new buyers. He also noted the San Francisco condo market continues to be strong and achieved record pricing in the second quarter.
More Multifamily Deals
Last month, Stockbridge Capital Group and Wilson Meany secured a $99 million construction loan from Cottonwood Group and Pacific Western Bank to develop a mid-rise, 124-unit condo project on Yerba Buena Island in San Francisco. Part of the larger Treasure Island redevelopment, the three-phase Yerba Buena Island development will have 262 residences on 72 acres of land. Overall, Treasure Island is expected to have as many as 8,000 new homes built with about 25 percent of them designated affordable. The larger project will also feature 14,000 square feet of commercial and retail space, 100,000 square feet of office space and up to 500 hotel rooms.
In May, Northwestern Mutual acquired a 319-unit high-end apartment property in San Francisco’s China Basin neighborhood from Crescent Heights. Jasper, a 40-story LEED Silver certified building, is located at 45 Lansing Street and is three years old. It is about a mile south of the Financial District and within walking distance of the Embarcadero Bay Area Rapid Transit (BART) station.