KRON-TV HQ Sale Paves Way for San Fran Development
- May 14, 2014
San Francisco—The headquarters of Bay Area news station KRON Channel 4 has sold to a partnership comprised of Oryx Partners and South Beach Partners, who plan to redevelop the 106,777-square-foot commercial property into a new residential asset. Newmark Knight Frank Cornish & Carey Commercial (NKFC&CC) Capital Markets orchestrated the sale of the property, which is located at 1001 Van Ness Ave. KRON Channel 4 is relocating to a new site in the city’s North Waterfront submarket later this year.
“Oryx Partners has the unique opportunity to build a substantial residential project along one of San Francisco’s most recognized corridors, meeting the incredibly high demand in the marketplace,” says Daniel Cressman, executive managing director at NKFC&CC. Cressman worked with managing directors Mike Taquino and Kyle Kovac in representing the seller, publically traded Media General.
Newly formed Oryx Partners will manage the development. The project will conform to existing zoning, which allows for more than 200 units of housing. Oryx Partners intends to design a sustainable building of that will stand the test of time at the highly-visible intersection, one block from Sutter Health’s new $2 billion Cathedral Hill Hospital campus that is under construction.
The Oryx Partners deal is one of many transactions for the NKFC&CC Capital Markets team to date in 2014. Already, the team has negotiated the sale of two creative office buildings, a trophy retail asset, and two high-profile development sites in San Francisco.
L.A. apartment trades for $10M
Los Angeles—Marcus & Millichap has brokered the sale of a 22-unit apartment asset in West Los Angeles. Exposition Apartments was sold for $10 million, or roughly $452,300 per unit. Jerry Wise, first vice president investments in Marcus & Millichap’s West Los Angeles office, represented the seller. The Los Angeles-based buyer was secured and represented by Tony Azzi, senior vice president investments in the firm’s West Los Angeles office. Built in 2009 on a 16,588-square-foot lot, Exposition Apartments features a low-maintenance modernist design.
“Competing new product in the submarket is achieving higher rental rates, making this asset an excellent value-add opportunity for the new owner,” Azzi says.
Centerline Capital completes Georgia refinancing
LaGrange, Ga.—Centerline Capital Group has provided a $2 million FHA/HUD 223(f) loan to refinance Valley Ridge Apartment Homes, an affordable housing property in LaGrange, Ga. The borrower is Valley Ridge Apartments LP, an entity sponsored by The Gateway Cos. and principal Allan Rappuhn. The loan was coupled with the prior 9 percent LIHTC allocation, and the property remains subject to Section 42 guidelines.
“The new loan structure will result in the preservation of a valuable affordable housing resource in the local market,” notes Philip Melton, senior managing director at Centerline. “The borrower is a strong established sponsor with extensive experience in the multifamily arena, having developed nearly 60 properties throughout Alabama, Georgia, North Carolina, South Carolina, Tennessee; which includes the management of 4 HUD-insured properties.”
The asset sits on 8.8 acres and on the north side of LaGrange and is managed by Gateway Management co. The unit mix consists of one, two and three-bedroom units affordable to residents at 30 percent, 50 percent and 60 percent of AMI, as well as a few units available for market-rate renters. Amenities include on-site leasing/management office with a community room, playground, basketball court, swimming pool, fitness room, a picnic area and laundry facilities.