$22M considered low bid for 200 Brannan sale
A partnership of LNR Property Corp. and parent Lennar Corp. has put a two-acre site at 200 Brannan St. and 1 Federal St. in San Francisco on the market for at least $22 million.
The site is fully entitled for 187 market-rate residential units and 51 below-market residential units.
A partnership of LNR Property Corp. and parent Lennar Corp. has put a two-acre site at 200 Brannan St. and 1 Federal St. in San Francisco on the market for at least $22 million.
The site is fully entitled for 187 market-rate residential units and 51 below-market residential units.
The land includes an existing 43,000-square-foot storage/light industrial building. That part of the site was donated by the San Francisco Redevelopment Agency to the property owner, in exchange for the developer building 51 units of below-market housing. The new owner would have to get agency approval to continue the agreement.
The site is being listed by Richard Johnson and Dan Cressman of Grubb & Ellis Co. Johnson said the asking price was actually low.
“I’m expecting it to go for significantly more that,” Johnson said. “You can start building this thing in the next two months.”
Justin E. Smith, a vice president at CB Richard Ellis who specializes in the residential market, said $22 million was obtainable. But, he added that there was more caution in the marketplace and land values have changed significantly since two quarters ago.
“Buyers are underwriting a little bit of rollback,” he said.
Johnson said he could expect the building’s highest-level condominiums to sell for anywhere between $700 to $1,000 per square foot, citing recent equivalent sales at nearby high-rise, The Brannan.
Lennar is selling the site because they are not long-term investors, Johnson said.
“They bought with the intention of renovating and selling,” he said.
The Lennar partnership bought three acres that include the site in 1999 for $15.2 million. Included in the purchase was 250 Brannan, which Lennar and developer Mariposa Management Co. are converting into a business services building. Johnson and Cressman are asking $50 million for the building.
Formal bids for that building might not be taken for another six weeks until the building is complete, Johnson said.
Amanda Bishop covers real estate for the San Francisco Business Times.
[original article on SF Business Times]
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Mark Choey is Senior Sales Associate, Top Producer and principal of Climb Real Estate Group | Vanguard Properties. Mark specializes primarily in condo and loft sales in SOMA, South Beach, Rincon Hill, and Mission Bay.
Specializing in large buildings and especially new developments like The Infinity where he is the top agent in total sales, Mark has a passion for city living. Mark is the creator of www.SFnewdevelopments.com to help buyers and sellers navigate the dynamic new development condo housing market.
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