SF New Developments

by J.K. Dineen at the San Francisco Business Journal with photo by Douglas Zimmerman

Capital Properties has started a $19 million renovation of 320-unit Rincon Center apartments, a project that will eventually convert about 100 units into high-end corporate housing, according to the company.

The New York-based Capital Properties, which bought the two-tower complex in June from Beacon Capital Partners for $143 million, has hired former Joie de Vivre Hospitality Senior Vice President Ingrid Sommerfield to run its West Coast operations.

Sommerfield said the furnished and full-service accommodations will fill a corporate housing niche lacking in San Francisco. The city has about 1,000 units of furnished corporate housing, much of it operated by Oakwood Worldwide. The corporate units will cater to travelers who need space for 31 days or longer; monthly rents will range from $3,500 for the smaller units to up to $6,000 for the larger ones.

The Capital Properties approach represents a departure for the property. The prior two owners, Blackstone Group and Beacon, had both looked at the buildings as a condo conversion opportunity. Beacon went through the process of getting a condo map for the property, but ultimately decided going condo would be too expensive in a competitive SoMa residential market. Many of the units are small and most lack basic condominium amenities like a washer and dryer.

Beacon did not fill any vacancies while it was going converting the apartment building, and thus about 120 of the apartments are vacant.

Sommerfield said the goal is to combine boutique hotel services with domestic comforts often lacking in bland, corporate housing.

Read the full story here>>