(To read more on the multifamily market, click here and for more retail coverage, click GlobeSt.com/RETAIL.)
SAN FRANCISCO-An eight-story residential-over-retail development is slated for a 1.5-acre vacant lot at 555 Mission St., about six blocks from the University of California's new San Francisco campus. The developer is a joint venture of affiliates of AIG Global Investment and Urban Housing Group, the Los Angeles-based multifamily development subsidiary of Marcus & Millichap Co.
Dubbed 555 Mission Rock, the eight-story building will consist of 192 one- and two-bedroom apartment units and about 10,000 sf of street-level retail space. The development timeline calls for site work to begin in March 2007, with occupancy slated for March 2009.
Urban Housing Group president James Brooks tells GlobeSt.com that the estimated cost of the project is $90 million including land costs, which he declined to break out. The land acquisition and the construction are being financed by JPMorgan's Real Estate & Lodging Investment Banking Group.
Planned amenities in the residential units include granite countertops, maple cabinets, high-speed Internet, washer & dryer and 9-foot ceilings. Community amenities include a 3,000-sf clubhouse surrounded by an outdoor courtyard with fireplace and sun deck. The clubhouse will house a lounge and demonstration kitchen, a state-of-the-art fitness center, a business center and an eight-seat theater.
The retail component is a requirement of the entitlements for the land. Brooks tells GlobeSt.com that the development entity otherwise likely would not have included the retail component in the project. "It's not that we don't believe in the retail concept, but rather that we do not believe the timing of future development in the balance of the neighborhood will create a significant retail opportunity for a number of years," he says.
It's too early to tell what kind of rent might be achieved on the retail space, he says. The market rate for apartment units in the area is approximately $3 per sf, he says.
Urban Housing Group also is developing Edgewater, a similar 193-unit apartment project also in Mission Bay. Edgewater, which broke ground in August 2005 and is scheduled to be completed in July 2007, is located at 355 Berry St., between Fifth and Sixth streets.
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