By Jon Peterson
Danville-based BHV Centerstreet Properties will be starting soon on two new apartment projects in Walnut Creek and Fremont with a total development cost of $150 million.
The project in Walnut Creek is the 178-unit The Landing. BHV is acting as a fee developer on this project. The actual owner of the property is Milwaukee, Wis.-based Northwestern Mutual. The life company is providing all of the $70 million cost for this project through an equity investment.[contextly_sidebar id=”8UUtVPy4UtsDLKSP1UOEMSw3vLh1fUEH”]“This is BHV’s first project that we are doing with Northwestern Mutual. I did have a previous relationship with them when I was the chief investment officer with BRE Properties. We are very excited that they are investing with us,” says Brad Griggs, managing partner of BHV.
The Landing is located at the corner of Ygnacio Valley Road and Oakland Boulevard. The groundbreaking for this project is planned for November 16th. There is a 19-month construction time period assumed for the project, and completion is anticipated to be around April 2017.
The primary audience targeted for this project is the millennial generation who are looking for housing to commute into San Francisco. “We believe that our project will save renters about $1,000 a month renting in Walnut Creek versus renting in San Francisco. This development has major mass transit options. We are directly across the street from the Walnut Creek BART station. There also is the CCTA mass transit option and a city bus stop is nearby, as well. All of these transportation options are something that is very important to us,” said Griggs.
The Landing will be all market rate apartment units. “We have agreed to pay the City of Walnut Creek more than $2 million, which the municipality can use to fund new affordable housing projects in the future. This allows us to keep all the units in our project market rate units,” said Griggs.
The Walnut Creek apartment market remains very tight. “We see the Walnut Creek market as one that has a current vacancy in the range of 1 percent to 3 percent. This fact makes it an attractive market to bring new product into,” said Griggs.
The project in Fremont is a 6.24-acre mixed-use project known as Artist Walk, located at 37070-37222 Fremont in the Centerville District of Fremont. The project has a development cost of around $80 million. Around 60 percent to 65 percent of the development will be funded by a construction loan provided by PCCP. The balance of the project is equity from BHV and JD Capital, a China-based private equity investment firm.
The project has 185 units of apartments and around 30,000 square feet of retail. The complex will have a groundbreaking on the 18th of November and should be finished in April of 2017, as well. The retail component of the project will have tenants serving the community like banks and restaurants. There is a road that goes through the project, which can be closed on the weekend to have special events such as art exhibits and craft maker shows.
Like the development in Walnut Creek, the firm presumes that strongest interest for the apartment complex will likely come from technology workers. This site does have mass transportation options available to them, which includes the ACE Train that is 300 feet from the project and the Fremont BART station, which is 2.5 miles away.