By Opportunity Zone Magazine Staff
HFF, a provider of commercial real estate and capital markets services, has partnered with BUILD, a San Francisco residential development company, to find investment partners for its new project. The team is in the construction phase of its India Basin development located in an opportunity zone in San Francisco. India Basin is in San Francisco’s Eastern Waterfront south of the Dogpatch and Mission Bay neighborhoods, in close proximity to major job centers in downtown San Francisco and the peninsula.
BUILD plans to transform the former gravel yard on the San Francisco waterfront into a pedestrian-friendly, walkable residential village. The size of the development, which was originally 30 independent parcels combined into one master-project, is located in a rare San Francisco opportunity zone, considering the city’s scarcity of available real estate.
“Having spent a lot of time on opportunity zone deals, this one represents an extraordinary deal to invest in the one relevant opportunity zone in San Francisco. With a 25-year development agreement and uninterrupted shoreline access this is a one-of-a-kind project in the hottest housing market in the country,” says Jordan Angel, managing director, HFF.
The land encompasses 3.4 million gross square feet of new development, including approximately 1.5 million gross square feet of residential space. Upon completion, the mixed-use village will contain 1,575 residential units, 200,000 square feet of commercial space, expansive open and recreation space, enhanced waterfront access and underground parking.
“BUILD, in partnership with HFF, is seeking investment partners for the construction phase of this unique development,” said Scott Eschelman of BUILD, in a statement.
HFF senior director Chris Gandy described the long-term nature of the entitlements and opportunity zone location as providing investors with “tremendous optionality for value creation over time in one of the most constrained residential real estate markets in the world.”
Angel says the phase of the project they are currently capitalizing does not include any vertical construction of units. He says it will include the utilities and site work that will prepare the site for vertical development of buildings in the future.
“A capital partner may participate in just this phase or be part of the $1 billion project over the next few years,” says Angel.