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EMERYVILLE, CA- Port Kihei Investments expects to generate $169 million in revenue selling off the 425-unit Emery Bay Club Apartments as condominiums at an average price of $397,000 per unit. The Pismo Beach-based investor acquired the 16-year-old complex in November for $106 million and likely will invest another $12 million or more preparing the units and the property in general for resale.
Emery Bay Club offers studio, one- and two-bedroom flat units situated in five four-story buildings above a two-story parking podium. About 35% of the units have views of the Bay Bridge, San Francisco skyline, Golden Gate Bridge and Alcatraz. Common amenities include a common building with community rooms, fitness center with sauna, pool, two spas and grill areas.
The development was mapped during its original development in 1989, but has been operating in conjunction with an adjacent development as an apartment project for the last 16 years. Both properties were developed by the Martin Group, now TMG. The property TMG sold to Port Kihei was the market rate property. The one TMG is holding onto was financed partially with public funds and includes affordable housing units.
As part of the property's separation from the neighboring development, TMG is paying to remove two upper-level bridges that connect the two developments. In addition, it is paying for a pool to be added to the property not being converted because its tenants have heretofore had pool privileges at the conversion property. The total cost of the projects is $1.28 million, according to separation documents approved by the Emeryville City Council.
To fund the acquisition and conversion, Pot Kihei is using a $109-million, three-year loan from Fremont Investment & Loan along with several million dollars of its own money. Interior unit improvements prior to resale call for a stainless steel appliance package, granite counters, new cabinetry, new flooring and lighting. Exterior improvements will include repainting of the common areas, replacement of flooring in common areas, resurfacing of the pool/spa areas, and some other repairs and clean-up.
The units are being priced between $295,000 and $530,000. The median housing price for the Oakland MSA is about $525,000.
Port Kihei is run by condo converter Al Nevis. Nevis did not return phone calls seeking comment.
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