Maracor Development Teams up with Westbrook for Condo Development in San Francisco
San Francisco-based Maracor Development has plans to start construction this year on the development of a 95-unit condo development in San Francisco located at 950 Gough Street. This project will be constructed in a venture with New York City-based Westbrook Partners.
The development will be the first project that the two companies have built together. “We are hopeful of doing more business with Westbrook in the future,” says Brad Dickason, a partner with Maracor. Westbrook did not respond to an e-mail seeking comment for this story.
The parcel for this project totals around 18,000 square feet of land. It was acquired for $5.4 million, according to public documents. The project is now fully entitled, and the developer is planning to file building permits soon and would like to start construction sometime this year. The developer is expecting that it would take around 18 months to complete the project.
950 Gough involves the development of an eight-story building. The St. Paulus Lutheran Church will be occupying the space on the first floor of the project. “One of our best shared amenities for the project will be a roof deck that will give the condo owners a great view of the Jefferson Square Park that is located nearby,” said Dickason.
Maracor feels that the property is placed in a strong location. “The overall condo market in San Francisco is one where there is a lot more demand than there is current supply. Our project is adjacent to the Hayes Valley District, which should attract some strong interest for housing,” said Dickason. The developer is expecting a wide interest of condo buyers. This would includ e ranging from some first-time home buyers to some retirement couples.
Westbrook made its investment in 950 Gough Street for its commingled fund, Westbrook Real Estate Fund X. The fund manager completed its capital raise in March of 2016 with total commitments of $2.85 billion. One of the investors in the commingled fund with a $50 million commitment was the San Francisco Employees Retirement System.
Fund X looks to invest in a mixture of office, apartments/residential, retail, industrial and hotels. The commingled fund looks to invest in many gateway markets besides San Francisco like, Los Angeles, New York City, Boston and Washington, D.C. The targeted returns for the fund are a 12 percent net and 15 percent gross IRRs.
Maracor has another residential development project planned for the San Francisco area. This is a 133-unit Point Martin development in Daly City near the Cow Palace. The developer hopes to start the project sometime this year. This is a for-sale town home development. No financial partner has been identified for this project yet.
Maracor is known for building residential development projects in and around San Francisco. Most of its recent projects have involved for-sale projects. The company does have previous experience with for-rental properties as well.