By Jon Peterson
San Francisco-based Avant Housing, a joint venture of AGI Capital Group and TMG Partners together with the California Public Employees Retirement System, is planning to file permits for a 259-unit apartment development in the Dog Patch district of San Francisco. An official name for the project has not been determined at this time.
“We are planning to file our approvals for the development in May. Our expectation is that the project will likely be started sometime in the late third quarter of this year”, says Eric Tao, development principal with Avant Housing. He declined to comment on the total development cost of the project. He did say that the overall cost of the project has increased by 30 percent over the past 12 months.
The site for the development covers half of a city block. It is located between 3rd Street, 23rd Street and Tennessee Street. The site’s official address is listed as 1201 Tennessee Street. The location of the project now includes an old warehouse and a gas station. These facilities will be torn down for the project.
CalPERS will be investing equity into the project and there will be traditional construction financing involved in the development. The expectation is that it will take 18 to 22 months to complete the project from start to finish.
One of the unique features in the project will be what Avant is calling flex space units. “This is to be for live/work units. This could be a situation for people who have design firms, are artists or young entrepreneurs who are trying to start their own business and want to be where they live and work in a single location. These units are designed first as apartments, and we pay schools fees for them just like any other apartment unit. We think that these people are being priced out of San Francisco with the high cost of both housing and office space,” said Tao.
This will be the second time these kinds of units have been planned by Avant. “We first started this idea in our projects at 5th and Folsom in San Francisco that we are developing for Essex Property Trust. We have eight units planned there and they will be available for the first time this summer. At this point we are not sure how they will be received. We thought we would make it part of the design in another project,” said Tao. This kind of housing will make up from six to 10 units for the project on Tennessee Street.
The new development will also have an affordable housing component, which will be around 16 percent of the project. The remainder of the units will be market-rate housing.