The True Life Companies Secures $77M for San Francisco Projects

Developer the True Life Companies has secured a total of $77 million in acquisition and construction financing to build two townhome projects in the Bay Area. Madison Realty Capital originated the funding for the developer, and noted limited new housing in the area and the high demand for high-quality single-family homes as its interest in the project.

True Life Companies secured $45 million for the construction a 50-townhomes property with 8,000 square feet of retail space in Sunnyvale, which is being built in partnership with Hillwood Investment Properties. The property will feature a mix of two, three, and four-bedroom floorplans, each with a two-car garage and a private deck. The project will be built in two phases, with the construction of 85 townhomes in phase one. Due to Sunnyvale’s below market rate housing requirements, 12.5% of townhomes will be sold at affordable prices.

In a second loan, TTLC partnered with 621 Capital to secure $32 million for the construction of a 55-townhome, 10-building property in Hayward, California, along Mission Blvd. The majority of the units will be three-bedroom floorplans, and nine of the units will be combined commercial and residential spaces. The property is proximate to the Bay Area Rapid Transportation Terminal, and has 134 parking spaces. Per the city’s below market rate housing requirements, 10% of the units will be offered at affordable rates.

The Bay Area has a deep supply-demand imbalance for housing, despite some exodus out of the market during the pandemic. In 2020, just before the pandemic hit, Three of Landsea Homes’ master-planned communities sold out in the Bay Area: The Vale in Sunnyvale, Siena in Milpitas and Stoneyridge in Walnut Creek. All three communities sold out in less than 30 months, illustrating the strong demand.

Throughout the pandemic, the region has continued to add market rate as well as affordable housing to keep pace with demand. In one example in early 2021, a virtual groundbreaking celebration marked the kick-off of Wilton Court, a 100% affordable residential rental community at 3705 El Camino Real. The new 59-unit development is slated for completion in summer 2022, according to nonprofit affordable housing developer Alta Housing, formerly Palo Alto Housing. The construction pipeline, however, continues to lag behind demand.

Gary Mozer, Miles Musalman, and Evan Kinne at George Smith Partners brokered the transaction.