Palmer: Mid-Market is a prime corridor, and the projects that are planned and being developed are helping to revitalize this part of the city. There is a significant amount of job creation happening as well, which is tremendous for residents.

GlobeSt.com: Although broadly speaking, there is no “bad time” to invest in San Francisco, why now?

Palmer: We are still seeing opportunities to acquire existing assets in San Francisco below replacement cost, with cash flow in place. We like that fundamental metric, as well as the growth potential we see happening over the next few years.

GlobeSt.com: What property types offer investment opportunity (multifamily, hotel, etc.)?

Palmer: We are opportunistic investors and we focus on investing in transitional neighborhoods, so naturally, we are excited about the Mid-Market corridor. We currently own office, retail, multifamily and hotel assets in New York and San Francisco. Our firm is certainly interested in the hospitality market in the city, and we really like some of the opportunities we are seeing in the retail asset class as well.

GlobeSt.com: What are the trends driving demand for residential property (employment trends, demographic, supply and demand, etc.)

Palmer: One of the key drivers for residential demand is job creation. The San Francisco market overall has seen tremendous GDP growth over the past several years and that has created a lot of opportunities for people to move to the city. We do not build condominium projects, so we have had limited exposure to the residential market, but it's a market that we are actively looking to make investments in.

GlobeSt.com: What are the strategies for success in an increasingly competitive market?

Palmer: The real estate business is notoriously competitive, especially in a market like San Francisco. Being in the development business provides a lot of valuable information from a real estate investment perspective, which can help guide investment strategy in a market. In addition, we are delivering some pretty innovative projects in both New York and San Francisco, and in a way, creating a market for new types of properties that focus on efficient use of the space.

GlobeSt.com: How does San Francisco stack up to other cities in which you are doing business?

Palmer: We are very focused on expanding our portfolio in San Francisco right now. It is a market that we have made a long-term commitment to and we look forward to delivering unique projects to the market.

SAN FRANCISCO—So much has happened since Synapse Development Group acquired 944 Market St. a short 11 months ago. The YOTEL SF project is picking up steam and many other key projects are getting underway. Justin Palmer of Synapse recently discussed activity in Mid-Market in this exclusive.

GlobeSt.com: What are some of the key elements at play in the Mid-Market area?

Justin Palmer: Several key projects have commenced and/or completed construction in the area and properties that were vacant or underutilized are now filled with active tenants. We think this is a testament to the economic goals that the city has put in place to revitalize the neighborhood and we are proud to be a part of the positive changes happening in Mid-Market.

GlobeSt.com: What ROI value does it have?

Palmer: Mid-Market is a prime corridor, and the projects that are planned and being developed are helping to revitalize this part of the city. There is a significant amount of job creation happening as well, which is tremendous for residents.

GlobeSt.com: Although broadly speaking, there is no “bad time” to invest in San Francisco, why now?

Palmer: We are still seeing opportunities to acquire existing assets in San Francisco below replacement cost, with cash flow in place. We like that fundamental metric, as well as the growth potential we see happening over the next few years.

GlobeSt.com: What property types offer investment opportunity (multifamily, hotel, etc.)?

Palmer: We are opportunistic investors and we focus on investing in transitional neighborhoods, so naturally, we are excited about the Mid-Market corridor. We currently own office, retail, multifamily and hotel assets in New York and San Francisco. Our firm is certainly interested in the hospitality market in the city, and we really like some of the opportunities we are seeing in the retail asset class as well.

GlobeSt.com: What are the trends driving demand for residential property (employment trends, demographic, supply and demand, etc.)

Palmer: One of the key drivers for residential demand is job creation. The San Francisco market overall has seen tremendous GDP growth over the past several years and that has created a lot of opportunities for people to move to the city. We do not build condominium projects, so we have had limited exposure to the residential market, but it's a market that we are actively looking to make investments in.

GlobeSt.com: What are the strategies for success in an increasingly competitive market?

Palmer: The real estate business is notoriously competitive, especially in a market like San Francisco. Being in the development business provides a lot of valuable information from a real estate investment perspective, which can help guide investment strategy in a market. In addition, we are delivering some pretty innovative projects in both New York and San Francisco, and in a way, creating a market for new types of properties that focus on efficient use of the space.

GlobeSt.com: How does San Francisco stack up to other cities in which you are doing business?

Palmer: We are very focused on expanding our portfolio in San Francisco right now. It is a market that we have made a long-term commitment to and we look forward to delivering unique projects to the market.