The residential units are located on the top 17 floors of 88 Howard St., which consists of twin 23-story towers connected by a central lobby adjacent to the Ferry Building and the Embarcadero. Beacon Capital continues to own the first six floors, which house 470,000 sf of office space and 60,000 sf of retail, as well as the adjacent renovated historic US Post Office facility, which stands five stories tall.
When Capital Properties acquired the residential component, the mix included 194 market-rate apartments, 50 furnished corporate apartments being operated by a third party, and 76 below-market-rate apartments that must remain so. At the time, a source with Capital Partners told GlobeSt.com that its plan was to increase the number of corporate apartments to 70, reposition them as luxury accommodations and self manage the units.
"We are going to do really high-end units and operate it like a hotel," said 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." An explanation for the significant increase in furnished apartments in this latest plan was not immediately available. Capital Properties EVP and head of West Coast development Ingrid Summerfield could not be reached Tuesday for comment.
The apartments were originally approved as condos when the building was constructed in 1989. Capital Partners attributed the high vacancy at acquisition to the fact that Beacon, and the company from which it acquired the property, had been considering a condo conversion and, therefore, hadn't rented out vacant units for the previous two years.
The furnished apartments will be called Altavie. Plans for the unit interiors include Euro-kitchens, generous bathrooms, and well-designed workspaces. The design work is being directed by McCartan.
Including 76 below-market-rent units that will continue to exist under the new ownership, the weighted average rent in the building as of this summer was $2.67 per sf; the range was approximately $2 per sf to $3 per sf depending on size and location within the building, according to RealFacts, a Novato-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.
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