Catellus Selling $200M of Mission Bay Residential Land

SAN FRANCISCO-On the heels of selling Mission Bay land entitled for 500,000 sf of commercial space, Catellus Development Corp. has entered contracts to sell residential land there entitled for 2,300 housing units for $200 million. The continued sell-off of its 303-acres of entitled Mission Bay land follows the locally based company’s conversion in January to an industrial-focused REIT. The sales leave unsold entitlements for about 800 residential units and about one million sf of biotech space at Mission Bay. Most of the entitled residential land under contract is being sold to Bosa Development California Inc. for approximately $119 million. The transaction consists of the sale of the portions of Mission Bay Blocks 2, 11, 12, and 13 that are entitled for market rate residential units, and is structured with four closings scheduled to occur from April 2006 to April 2008. A source at Catellus tells GlobeSt.com that the land also includes entitlements for 40,000 sf of support retail.The other $81 million worth of residential land under contract comprises five parcels. Entitlements for the five parcels include residential for-sale, for-rent, and affordable housing units. These transactions are projected to close over the next 15 months. Earlier this month, Catellus sold off land entitled for 508,000 sf of commercial space at Mission Bay to publicly traded Alexandria Real Estate Equities, which focuses on developing office and laboratory space for the life sciences industry. The purchase price was not revealed, but local sources tell GlobeSt.com that Catellus was asking about $55 per sf of space that could be built. At that price, the value of the land would be about $28 million.The commercial sale includes Parcels 1, 3, 4, 5, 6 and 7 in Mission Bay Blocks 41, 42, and 43, which Catellus had planned for a life science campus located immediately adjacent to UCSF Mission Bay, the University of California at San Francisco’s new 43-acre biotechnology research and life science campus, and Gladstone Institute, an independent biomedical research group.According to SEC filings, Catellus’ Mission Bay land is entitled for a total of 5.4 million sf of office, 548,000 sf of retail, 3,158 units of residential and 500 hotel rooms. The book value of the land is $208.7 million, according to the filings.