Including 76 below-market-rent units that will continue to exist under the new ownership, the weighted average rent in the building is $2.67 per sf; the range is approximately $2.00 per sf to $3.00 per sf depending on size and location within the building, according to RealFacts, a Novato, CA-based firm that tracks the market. Apartments higher up in the building have views of the Bay and the Golden Gate Bridge. The renovated apartments with the best views are expected to command $4 per sf, in line with the luxury apartment market.

The property currently does not have many amenities. There is no exercise room, pool or meeting room, according to the Tenants Association Web site, which says the property is generally in need of improvement. "The lobby carpet and elevators are seedy," it says. "The entrance needs paint. The laundries need upgrading."

The new ownership acknowledges the deficiencies and is planning an extensive renovation to the property, including a new lobby, an upgraded exterior, fully renovated units, a concierge and a rooftop exercise facility. "We are going to do really high-end units and operate it like a hotel," says the source. "We're looking into high-tech control systems where in people can control their shades, air conditioning and even door locks from a single console or their computer."

Capital Partners says it has developed over eight million square feet of commercial space and 18,000 residential units, predominately on the East Coast in markets such as Boston, New York and Washington. Current holdings include four million sf of commercial space and 6,000 residential units.