(To read more on the multifamily market, click here.)
SAN FRANCISCO-AF Evans has acquired a .81-acre site in the lower Pacific Heights area here for a 282-unit condominium development. The total project cost is estimated at $160 million.
The property is located at Pine and Franklin streets. The site is not yet entitled for the project. Jeff Kearns of Johnson Capital, which sourced the equity for the project, tells GlobeSt.com the timeline to get the condos entitled, built and sold is four or five years.
Kearns secured $38 million in equity for the project that will be distributed as costs are incurred. The portion of the equity necessary for the property purchase was provided at the time of closing several days ago. AF Evans did not return a phone call seeking comment.
The funds were provided by "a leading pension fund advisor," Kearns says. Issues that had to be overcome included the perceived risks of a large-scale project, the capital market's diminished interest in condominium product, and a 12-to-18 month entitlement process still facing the partnership.
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