This Week's Bay Area Deal Sheet
One of the city’s biggest residential developments in five decades is getting closer to becoming a reality. The San Francisco Board of Supervisors last week unanimously approved Brookfield Properties’ plan to develop 30 acres of new housing, a merchant main street and parks near Stonestown Galleria and Lake Merced.
Plans call for 3,500 residential units, 20% of which will be affordable, as well as 200 senior housing units. There will be 6 acres of new parks and a new Main Street with roughly 150K SF of retail along 20th Avenue.
“The Stonestown project is exactly the type of development we need to reach our housing goals and build a stronger, more affordable San Francisco,” Mayor London Breed said in a statement.
SALES
After years of nixed development proposals on the site, the Richmond City Council voted last week to sell 80 acres on Point Molate, a former Navy fuel storage and transfer site overlooking San Francisco. The East Bay Regional Park District negotiated the sale between the city and the property owner, the Guidiville Rancheria tribe.
The California Coastal Conservancy will vote on the sale in September, with closing expected in November or early December, according to the San Francisco Business Times. The state will use a $36M grant to acquire the land.
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Marcus & Millichap arranged the sale of Moreland Apartments, a $71M affordable housing complex in San Jose. The 160-unit Section 8 housing traded for approximately $444K per door.
The apartments are a mix of one- and two-bedrooms and are 620 SF and 850 SF, respectively, along with three-bedroom townhouses measuring nearly 1,200 SF.
FINANCING
Two office buildings at 222 Kearny St. and 180 Sutter St. are facing imminent foreclosure, according to the San Francisco Business Times. WeWork was one of the biggest tenants at 222 Kearny St., with 18K SF.
Foreclosure on the $47M in CMBS loans tied to the assets is expected in August. An affiliate of Gem Realty Capital in Chicago and San Francisco’s Flynn Properties appear “ready to walk away” instead of paying down their Goldman Sachs loan, the Business Times reported.
DEVELOPMENTS
West Oakland has a new fully affordable housing project at 1670 Seventh St. called The Black Panther. On Tuesday, the city of Oakland and others celebrated the opening of the complex, which houses low-income and formerly incarcerated residents three blocks from the nearest BART station.
Elaine Brown, former chairwoman of the Black Panther Party, helped raise $80M to fund the 79-unit development.
