By Jon Peterson
Danville-based BHV Centerstreet Properties is gearing up to start construction on the 178-unit The Landing at Walnut Creek. The 1.78-acre project, located at the corner of Ygnacio Valley Road and Oakland Boulevard, promises to offer an affordable option to renters looking for an escape out of the record-high San Francisco market.[contextly_sidebar id=”V3dNZ81xUKrjGwS741IBkNgzXhPoBIdc”]“We think that there is a good segment of the population that will be interested in renting an apartment in Walnut Creek versus San Francisco due to the significant difference in the monthly rental rates. Many of the apartments in San Francisco are asking rents around $4,500 per month. The units in Walnut Creek can be $1,500 per month less than that. Another positive aspect for our project is that it’s located across the street from the Walnut Creek BART station. This allows people to have an access to public transportation for their commutes to San Francisco or Oakland,” says Brad Griggs, managing partner of BHV Centerstreet.
He declined to comment on the total development cost of the project or to name the U.S.-based life insurance company that has provided $70 million of equity towards the development. The equity for the project was arranged by the San Francisco office of HFF. The people working on this were Bruce Ganong, senior managing director, and Adam Simon, associate director.
BHV is hoping to break ground on the project in early August. The expectation is that the development will take around 19 months to complete with it being finished by the first quarter of 2017.
BHV likes the current market demographics of the apartment market in Walnut Creek. “It’s one that has lots of renter demand, limited new supply and significant barriers to entry. All of these factors make it a very appealing market to do business in,” said Griggs.
There has been strong increase in rents with the current apartment complexes in Walnut Creek. “On a year-to-year basis, rents for apartments in Walnut Creek have increased by 11 percent. For the newer complexes in the market, vacancy for these kinds of properties is 1 percent,” says Ganong.
BHV has several other projects planned in the future. One of these is a 185-unit development in Fremont. This will also be started in August. It’s also working on other future development projects in Berkeley and Foster City.