SAN FRANCISCO, CALIF. – KB Home has purchased a shovel-ready, 81-unit site at 2655 Bush Street in San Francisco's Lower Pacific Heights from Los Angeles-based investor Ares Management LLC and Mill Valley, CA-based multi-family developer Thompson | Dorfman Partners LLC, who 16 months ago bought the mixed-use site to build a high-end apartment community. Brett Betzler, director of Chicago, IL-based Moran & Company, represented KB Home in their off-market purchase of the property. The purchase price could not be disclosed.
"This is one of the few entitled multifamily sites in a traditional San Francisco neighborhood," said Betzler. "The location at the corner Bush and Divisadero is close to great restaurants and shopping, including those on upper Fillmore, and is adjacent to the UCSF/Mt. Zion Medical Center and near Kaiser Permanente’s San Francisco hospital campus. I think the project will be very successful for KB. When they open, they will be the only game in town.”
Bruce Dorfman, a principal of Thompson | Dorfman, said, "With over 25 years' experience in the Bay Area market, we felt that 2655 Bush Street had tremendous upside. We brought in Ares Management and purchased this property in August 2012, out of bankruptcy. Working with national architecture and planning firm KTGY Group, Inc., we redesigned the project and demolished the vacant two-story convalescent facility that occupied the site. While it would have been an excellent mixed-use rental community, the demand for condos has soared, and the design of this project is particularly well-suited for the condo market due to its features which include large units, luxurious finishes, and a parking space for each unit – this kind of product in this type of neighborhood is becoming increasingly rare in San Francisco.”
"2655 Bush Street is a perfect example of the type of urban infill projects that cities and experienced developers are focused on in this economic climate: core, urban locations that offer close proximity to jobs, amenities, transportation and established infrastructure where people can live, work, play and shop," said Betzler. Walk Score awarded 2655 Bush Street with a score of 95 out of 100, calling it “a Walker’s Paradise,” in its rating of the U.S.’s Most Walkable Neighborhoods.
Betzler noted that this was Moran & Co.’s sixth major multifamily San Francisco transaction in two years, and comes on the heels of its sales of the 160-unit Soma 788 (formerly Avalon Yerba Buena) for $103,000,000, and the 202-unit Vara for $108,750,000. Moran & Co. also raised co-investment equity for the 113-unit Venn apartments at 1844 Market Street, and brokered pre-sales of a 282-unit apartment community at 900 Folsom and a 182-unit apartment community that is under construction at 260 5th Street.
“2655 Bush Street transaction represents a real turning point in the market," said Betzler. "For years, we have seen condo projects being handed over to rental operators, and this is the first time since the for-sale market collapsed in 2006 that it has gone the other way."
About Thompson | Dorfman Partners, LLC
Thompson | Dorfman Partners, LLC is a real estate development and investment firm whose principals have a long history in California's housing industry. Formed in 1999 by Will Thompson and Bruce Dorfman, Thompson | Dorfman focuses on multi-family residential development, with particular emphasis on well-sited, urban in-fill and mixed-use properties located in high-growth, technology-driven markets in the western U.S. The principals of Thompson | Dorfman are 30+ year veterans in their industry with a reputation for quality and a track record of performance. Collectively, they have developed over 13,000 multifamily homes in 45 California apartment and condominium communities. They have also expanded their services to provide development advisory, management, and investment expertise to corporate land owners and financial institutions. See www.thompsondorfman.com
About Moran & Company
Moran & Company is an industry leading, third-party transaction services firm with a singular focus on the multifamily asset class, including mixed-use properties with predominant residential components. Its unmatched team of multi-disciplined senior partners and professionals is widely respected for providing leadership in complex sale and capitalization assignments at every point in the investment cycle.
Under the direction of founding partners Tom Moran and Mary Ann King, Moran & Company has handled the sale, capitalization or recapitalization of more than 127,000 apartments, representing $16 billion in value since its inception in 1994. Today, Moran operates throughout the United States from offices in Chicago, Dallas, Denver, Houston, Irvine, Phoenix, Seattle and Washington DC. Clients rely on Moran & Company for the breadth of our experience, the effectiveness of our customized execution strategies and the sophistication of our representation.
Unlike traditional brokerage firms, Moran is structured as a true partnership with each member of the firm incentivized to make the overall firm as successful as possible, thereby fostering absolute dedication to the provision of superior client service as the overarching goal of each Moran partner and employee. See www.moranandco.com
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