On December 5, 2013, the Company [UDR, Inc.] and MetLife announced that they have entered into a joint venture agreement to construct a luxury high-rise residential development in San Francisco. UDR will have a 51 percent ownership interest in the project, and MetLife will own 49 percent.
The development will comprise a 42-story tower and 100 percent of the homes will be market rate. With 447 residential units, the community will cost approximately $317 million to develop and be located at 399 Fremont Street in San Francisco’s Rincon Hill neighborhood, south of Market Street.
The high-rise tower will feature a best-in-market amenity package including a sky lounge and observation deck, pool, fitness center, pet care center and approximately 3,500 square feet of retail space. Home interiors, averaging 820 square feet, will include air-conditioning, hardwood flooring, washers and dryers, stainless steel appliances and luxury bathroom and kitchen finishes. Future residents will be within walking distance of a variety of nightlife destinations, high-end restaurants, the financial district and transportation hubs such as existing BART stations and the forthcoming Transbay Transit Center.
In conjunction with the 399 Fremont joint venture formation, the venture entered into a term sheet for a $174 million non-recourse construction loan with a rate of LIBOR plus a spread of 195 basis points which reduces to LIBOR plus a spread of 175 basis points upon completion of construction. The loan’s term is 48 months plus one 12-month extension. The project is expected to be completed in 2016 and will have a GMAX contract in place prior to commencing construction to mitigate construction cost risk.
About UDR, Inc.
UDR, Inc. (NYSE:UDR), an S&P 400 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of September 30, 2013, UDR owned or had an ownership position in 53,656 apartment homes including 2,068 homes under development. For 41 years, UDR has delivered long-term value to shareholders, the best standard of service to residents and the highest quality experience for associates. Additional information can be found on the Company’s website at www.udr.com.