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$116M Funds Crossing Apartment, Condo Project

SAN BRUNO, CA-The 350-unit development is the third phase of the Crossing at San Bruno, a 20-acre mixed-use development across from the 1.1-million-sf Shops at Tanforan.

By Brian K. Miller | Updated on March 13, 2008

SAN BRUNO, CA-One year after forming their partnership to develop phase three of the Crossing at San Bruno, Phoenix-based SNK Realty and San Francisco-based MacFarlane Partners have secured $116.41 million in construction financing for the project. The 350-unit development will include 187 condominium units and 163 apartment units in two five-story buildings that will sit atop a two-story parking structure. Mass grading for the development is expected to begin in the next few weeks. Completion is slated for mid-2010.

Hal Watson, chief executive of SNK, tells GlobeSt.com that because of the dislocated credit markets, the loan-to-cost for the $163-million project, at 71%, was substantially lower than it would have been in 2006. “This is the most equity that we’ve ever put into one of our development project,” Watson says. “About 29% of project costs.”

The fact that Corus Bankshares even funded the four-year loan and that SNK and MacFarlane are willing to put up the equity to make it happen are testaments to the confidence they all have in the success of the project. The apartments are expected to lease up as they generally all do in the Bay Area, and the developers and the lender are optimistic that the for-sale multifamily market will be ready for them when they are ready for it.

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