The new 341-unit, three- and four-story complex replaces 229 public housing units previously on the site, which spans two adjacent city blocks at 500 and 600 Francisco Street, three blocks from the San Francisco Bay. The one- to four-bedroom flats and townhouses will range from 490 sf to 1,680 sf and be targeted toward families earning 50% or less of the area median income. Property management services will be provided by The John Stewart Company. Ground floor retail will include a Trader Joe's specialty foods store.
Related Capital traded its equity for tax credits generated by the transaction. Bank of America will serve as the majority investor in the transaction, committing $34.5 million. Additionally, North Beach Place received $14.5 million in HOPE VI funds from the San Francisco Mayor's Office of Housing, and $1 million of Federal Home Loan Bank (FHLB) AHP funds from Citibank.
"North Beach Place marks one of the most significant developments in the City of San Francisco in years, both for its size and its community endowment," says Related Capital EVP and West Coast Regional Director Ronne Thielen. Carol Galante, President of Bridge Housing Corporation, adds: "This is a great development in an ideal location. North Beach Place is the missing piece of the puzzle for the Embarcadero area – an area always full of vitality and soon to be filled with quality residences that people can actually afford."
At market rates, residents of San Francisco have to earn more than seven times the minimum wage – over $37 per hour – to afford a modest two-bedroom apartment. North Beach Place will provide similar-size apartments that Related Capital says are about 400% less expensive (about $2,000 per month). For one-bedroom units, Related Capital says the units will be 700% less expensive than similar-size market rate apartments.
Since its inception in 1983, Bridge Housing Corp. has participated in the development of over 10,000 homes serving over 23,000 residents statewide. It has another 1,300 units in the planning stages. Related Capital Co. and its affiliates serve as one of the nation's premier multifamily financial service firms, with ownership interests in over 280,000 units of multifamily housing.
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