San Francisco Business Times - by JK Dineen Date: Friday, April 15, 2011, 1:43pm PDT
Suddenly a lot of money is riding on the success of rental housing in Mission Bay.
The San Francisco Business Times reported today that BRE bought two parcels of land near Fourth Street in the neighborhood for $41.4 million. Phase one will be 170 units with 17,000 square feet of retail while a second phase will add an additional 190 units. The price BRE paid -- $115,000 per buildable unit -- is some 30 percent higher than the $80,000 a door that Urban Housing Group and United Dominion Realty Trust paid for land there less than six months ago. Combine the three land deals and apartment builders have shelled out $76 million on Mission Bay land that is approved for about 800 apartments.
In a statement, BRE Executive Vice President Stephen Dominiak said “we are excited about developing two of the last remaining market-rate apartment parcels in the Mission Bay master plan.”
“The lack of available land, strong anticipated revenue growth, limited supply, and proximity to local employers and mass transit will create an ideal environment to support BRE’s future growth in the San Francisco marketplace,” he said.
The first of this next wave of developments to come out of the group will likely be UDR’s 315-unit project, which they are tentatively calling the (extremely original) “Mission Bay.” UDR Senior Vice President of Development Mark Culwell said they are looking to start construction this spring and the project will take 22 to 24 months, finishing in the middle of 2013. Nibbi Brothers has been selected to build the project.
“We like San Francisco in general. We like urban infill and Mission Bay creates a unique opportunity to snuggle up close to the financial district. We are seeing promising signs of jobs growth for the city.”
The project will have a “Las Vegas-style” rooftop pool, 4,000 square foot fitness center, and “some of the nicer finishes in the market,” he added.
So where are all these renters going to come from? The obvious answer is from Mission Bay workers. Of course, there is Salesforce’s 2 million square foot campus, phase one of which will likely be completed in 2013. And then you have biotech companies like Bayer Healthcare Pharmaceuticals, FibroGen, Nektar Therapeutics: all are up and running in the area. Even the Gap is adding to its Mission Bay workforce. The Gap’s Old Navy group was the first major employer to commit to Mission Bay South back in 2005, leasing all of 550 Terry Francois. While the Old Navy employees justifiably despised being exiled from the buzzing Hills Plaza to the desolate backwater of Mission Bay, the Gap did not capitulate to whining. In fact, as we write this, the Gap gearing up to build out the top floor of the Terry Francois, which has never been occupied; 300 workers from San Bruno will move into the space.
Read more: Apartment builders rush into Mission Bay | San Francisco Business Times
The San Francisco Business Times reported today that BRE bought two parcels of land near Fourth Street in the neighborhood for $41.4 million. Phase one will be 170 units with 17,000 square feet of retail while a second phase will add an additional 190 units. The price BRE paid -- $115,000 per buildable unit -- is some 30 percent higher than the $80,000 a door that Urban Housing Group and United Dominion Realty Trust paid for land there less than six months ago. Combine the three land deals and apartment builders have shelled out $76 million on Mission Bay land that is approved for about 800 apartments.
In a statement, BRE Executive Vice President Stephen Dominiak said “we are excited about developing two of the last remaining market-rate apartment parcels in the Mission Bay master plan.”
“The lack of available land, strong anticipated revenue growth, limited supply, and proximity to local employers and mass transit will create an ideal environment to support BRE’s future growth in the San Francisco marketplace,” he said.
The first of this next wave of developments to come out of the group will likely be UDR’s 315-unit project, which they are tentatively calling the (extremely original) “Mission Bay.” UDR Senior Vice President of Development Mark Culwell said they are looking to start construction this spring and the project will take 22 to 24 months, finishing in the middle of 2013. Nibbi Brothers has been selected to build the project.
“We like San Francisco in general. We like urban infill and Mission Bay creates a unique opportunity to snuggle up close to the financial district. We are seeing promising signs of jobs growth for the city.”
The project will have a “Las Vegas-style” rooftop pool, 4,000 square foot fitness center, and “some of the nicer finishes in the market,” he added.
So where are all these renters going to come from? The obvious answer is from Mission Bay workers. Of course, there is Salesforce’s 2 million square foot campus, phase one of which will likely be completed in 2013. And then you have biotech companies like Bayer Healthcare Pharmaceuticals, FibroGen, Nektar Therapeutics: all are up and running in the area. Even the Gap is adding to its Mission Bay workforce. The Gap’s Old Navy group was the first major employer to commit to Mission Bay South back in 2005, leasing all of 550 Terry Francois. While the Old Navy employees justifiably despised being exiled from the buzzing Hills Plaza to the desolate backwater of Mission Bay, the Gap did not capitulate to whining. In fact, as we write this, the Gap gearing up to build out the top floor of the Terry Francois, which has never been occupied; 300 workers from San Bruno will move into the space.
Read more: Apartment builders rush into Mission Bay | San Francisco Business Times
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