Multifamily Stays Hot in Bay Meadows Development

SAN MATEO, CA—The high-profile Bay Meadows project hit another milestone with the $48.64 million financing for the development of the Morgan at Bay Meadows, an 82-unit class-A multifamily project. The Morgan is within the pedestrian-friendly Bay Meadows master-planned community, which will feature approximately 1,100 residential units, 780,000 square feet of office space, 18 acres of parks, a new private high school and 40,000 square feet of retail once complete.

The Morgan at Bay Meadows will consist of 82 luxury units located above a single-story below-grade secured parking garage. Amenities will include a central entertaining and gathering space with a kitchen, library and game room; a landscaped courtyard with outdoor entertaining area, fitness and meditation studio, storage facilities, bike storage, and park views. Units will include a mix of two- and three-bedroom homes averaging more than 1,500 square feet. The project is expected to be delivered in the summer of 2020.

An HFF team worked on behalf of the developer, an affiliate of Stockbridge Capital Group and Wilson Meany, to secure the floating-rate construction loan through Union Bank. The HFF debt placement team representing the developer included senior managing director Bruce Ganong, senior director Chris Gandy and analyst Bercut Smith.

“The Morgan will be an excellent addition to the other successful residential communities developed by Stockbridge and Wilson Meany at Bay Meadows,” Ganong said. “The interest in the construction loan was extensive and numerous lenders competed for the opportunity to work with the developer.”

The Morgan at Bay Meadows is situated to the southwest of the US 101 and Highway 92 interchange, which positions it midway between San Francisco and Silicon Valley. The transit-oriented property is just north of the Hillsdale Caltrain station.

“The Bay Meadows development is ideally situated in San Mateo County, which is one of the hottest residential and commercial markets in the country as evidenced by the strong demand for the existing office and multifamily properties within the community,” Gandy tells GlobeSt.com. “The project’s location is truly irreplaceable given its direct access to Caltrain, the main mass transit corridor connecting San Francisco, the Peninsula, San Jose and US 101, as well as the surrounding amenity-rich neighborhood that includes walkable parks and retail.”

There were 2,750 units completed in San Francisco/San Mateo counties last year, according to a report by Marcus & Millichap. Deliveries remain on a downward trajectory, with total completions being projected to fall nearly 600 units last year. Supply growth was dominated by assets in San Mateo County and SoMa.