Two Development Sites in San Francisco Sell for $62MM
Scarcity makes the San Francisco real estate market tenable in the long run. Or in the short run, depending on demand and the prospective buyer’s ambition. Martin Building Properties and Hines just disposed of a development site each in San Francisco to two separate LLCs affiliated with Hong Kong-based Zhuguang Holdings Group Company Limited. Martin Building sold 88 Arkansas Street site for $26 million, and Hines sold its property at 525 Harrison Street for $36 million. The transactions closed in January of 2017, according to public information. The buyer was identified by the San Francisco Business Times.
The Martin Building property at 88 Arkansas is approximately 30,000 square feet located in the Potrero Hill neighborhood within the Showplace Square/Potrero Hill subarea of the Eastern Neighborhoods Area Plan. The project site is comprised of two adjacent lots: 88 ArkansasStreet/1500 17th Street (Lot002) and 1530 17th Street (Lot 002A). The project site currently contains two industrial buildings, according to a document from the City of San Francisco.
The residential component of the proposed project was approved for approximately 25 studio apartments, 51 one-bedroom apartments,41 two-bedroom apartments and 10 three-bedroom apartments, for a total of 127 residential dwelling units. Twenty-five of the dwelling units (twenty percent) were designated affordable units.
The project was also projected to includ e approximately 30,000 square feet of below-grade parking that would provide off-street parking for about 98 vehicles. BAR Architects was the architect on the proposed development at this site.
Hines’ 525 Harrison Street project proposed 200 market-rate units in a 16-story building. The 159,302-square-foot Class A apartment tower, designed by Solomon Cordwell Buenz, is located in the Rincon Hill district of San Francisco, at the corner of Essex and Harrison Streets. The project was planned to includ e a fitness center, an underground parking garage, a garden terrace and a rooftop terrace.
Massachusetts Mutual Life Insurance Company was part of the deal with Hines, who also worked on the development plans with Richardson, Texas-based Genesis Real Estate Group.