SAN FRANCISCO–Grosvenor Americas provided $35.5 million in structured financing for the residential developments at 815 Tennessee St. and 2290 3rd St. on behalf of DM Development. Both projects will break ground at the end of this year and deliver mid-2017.
Located in the amenity-rich Dogpatch neighborhood, which was awarded historic district designation, 815 Tennessee St. and 2290 3rd St. were acquired in March and April respectively by DM Development, a San Francisco-based real estate development and investment firm.
The proposed project on Tennessee Street is to include 69 residential condominiums with 59 market rate and 10 below market rate units. The offering will include one-, two- and three-bedroom homes with an average size of 832 square feet. The property is immediately accessible to public transportation and will offer parking. Nearby, the 71 apartments on 3rd Street will include studio, one-, and two-bedrooms plus loft units with an average size of 679 square feet. The property will include 1,025 square feet of retail space.
Mark Darley, senior vice president of Grosvenor Americas who heads the financing program for both the Bay Area and Los Angeles regions, tells GlobeSt.com:
“Our structured development financing program offers a desirable alternative to currently available development loans. What we offer to developers in the Bay Area and in key markets throughout the US and Canada is not only access to capital, but also access to Grosvenor's network of relationships.”
DM Development creates and invests in residential projects that combine unique architectural design with progressive sustainability features. The firm's residential projects currently under development include 8 Octavia (47 units), 400 Grove (34 units), 450 Hayes (41 units), Parcel T (26 units) and 311 Grove (8 units).
“Grosvenor tailored the financing structure to suit our needs and offered us the ultimate flexibility we were seeking,” added Mark MacDonald of DM Development. “As an experienced developer, they understand what makes projects successful. We are pleased to be working with them on two new significant development projects in the vibrant Dogpatch neighborhood as we bring much needed housing to a highly desirable part of the city.”
Grosvenor, a property development and investment company, provides flexible preferred equity debt financing to residential and mixed-use developers. It has a structured development financing program that has financed more than 50 projects to date and is unique to Washington D.C., San Francisco, Los Angeles, Seattle, Vancouver and Calgary, which are also the operating cities for the company.
“We have significantly expanded our structured development financing program to an established and growing portfolio of leading developers in all of our key markets – which is proving to be an attractive alternative to traditional development loans,” said Darley. “Part of the program's success is our ability to respond very quickly to a developer's immediate needs.”
Grosvenor Group has 17 offices in 11 countries and assets in 16 countries. Grosvenor Americas has a specific interest in retail, residential condominiums and apartments, and mixed-use sectors. Grosvenor has a portfolio of approximately 1.9 million square feet of office, retail and hotel space in the Washington D.C. metropolitan area alone.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
