Rescore Plans $92MM Apartment Development in San Francisco
Boca Raton, Fla.-based Rescore Property Corp. has plans to develop a $92 million apartment complex in San Francisco called The Rise Market Street, according to sources familiar with the project.
Rescore did not respond to several phone calls seeking comment for this story.
This development will be the company’s first apartment development in the San Francisco Bay Area, and it seems it will not be its last. The privately held real estate investment trust is looking at starting a second Bay Area project in July. This will be the 120-unit The Rise of Walnut Creek, as stated by sources aware of the company’s activities.
The project in San Francisco will be funded by a $66.5 million construction loan. This debt was provided by New York City-based Square Mile Capital. It was arranged by Bethesda, Md.-based Walker & Dunlop. The construction loan has a two-year term with two one-year extension options.
“The loan that we were able to put together covers around 72 percent of the project’s total development cost. This project received a lot of attention from lenders interested in the development. We had a total of eight different lenders put in bids to provide construction debt on the project,” says Kevin O’Grady, managing director capital markets for Walker & Dunlop. He works out of the company’s regional office in Miami.
The development in San Francisco is located at 1699 Market Street. The main target for its renters would likely be the young professionals in the age group of 25 to 35 years. Rescore is known as a long-term holder of the assets that it develops. It’s not a merchant builder. The company will likely arrange some permanent financing on the property once the construction loan runs its course.
Walker & Dunlop plans to be involved in the Walnut Creek project with Rescore, as well. “Sometime over the next 30 days, we are hopeful of being out in the market to arrange the construction debt on this other new project for them,” said O’Grady.
Rescore is a private real estate investment trust. Its capital sources are major institutional investors like pension funds, sovereign wealth funds and significant family offices. The company does have a regional office in San Francisco, according to its Web site. This is located at One Letterman Drive.