SAN FRANCISCO, CA - Trumark Urban announced the closing of two prominent development sites and a joint venture with Hillwood West, a division of Hillwood Investments, a Dallas-based development company. Hillwood West is committing to a substantial amount of equity necessary to build seven condominium projects with more than 600 units in desirable San Francisco neighborhoods with a total investment cost exceeding $400 million.
The first project proposes a redevelopment of the existing Dugoni School of Dentistry at 2155 Webster Street in Pacific Heights into 77 condominiums at a total cost of $155 million.
“We are proud to begin the redevelopment of this attractive property and tremendously improve the traffic in the area,” said Arden Hearing, managing director of Trumark Urban. “Our new residential plan works within the current building envelope and will reduce parking and traffic demands by more than 50 percent.”
Trumark will spend the rest of this year on design and entitlements and plans to break ground in 2014.
Trumark Urban also closed on property in the Cow Hollow neighborhood that is approved for 27 condominiums at a total development cost of $37.8 million. The project at 1501 Filbert, yet to be named, will feature homes ranging in size from 1,000 square-foot flats to 2,500 square-foot townhomes. $12 equity
“We are excited to offer this project, in such a special location to a market that is really under-served in terms of new condo inventory,” said Mark Higgins, senior vice president of sales and marketing for Trumark Urban.
Some offerings will be rare larger floor plans with outdoor patios or rooftop decks. Several higher-level homes will command spanning views of the San Francisco Bay and Golden Gate Bridge. Trumark Urban plans to break ground on the Filbert community by July of this year.
“We have an immense amount of respect for the planning efforts that San Francisco so thoughtfully engineered over the past decade. Now, the onus is on the development community to achieve that vision,” said Arden Hearing, managing director of Trumark Urban.
The developments on Filbert and Webster are the first projects that Trumark Urban has invested in with Hillwood West, which is looking to expand its existing portfolio in San Francisco.
“Trumark has assembled an unparalleled portfolio in one of the finest cities in the world,” said L.M. Cummings, president of Hillwood West. “We have a high level of respect for Trumark’s ability to execute development projects over its 25-year history. When we toured these sites and saw the vision, and then considered the stage of the economic recovery that we appear to be in, we were excited to team up with Trumark in pursuit of these opportunities.”
The companies targeted areas of San Francisco where city planners envision infill housing on repurposed lots in existing neighborhoods. All sites are zoned for residential use, comply with zoning codes and try to integrate with the fabric of changing communities.
“We are fortunate to work with a partner who is not only an investor but also a seasoned developer; one of the largest in the country,” said Gregg Nelson, principal and co-founder of Trumark. “Our organizations are very much aligned with respect to real estate development and our perspective on market dynamics.”
Trumark Urban continues to buy additional property in San Francisco and is exploring new acquisitions in markets beyond San Francisco, including in Los Angeles and New York.