By Jon Peterson
Los Angeles-based CityView plans to provide $26 million in equity to finance a new $74 million mixed-use development in Foster City being built in a joint venture with Mill Valley-based Thompson Dorfman Partners LLC.
Triton Pointe at 5541 Foster City Blvd. is to have 43,000 square feet of office space, 8,000 square feet of retail and a 166-unit market-rate apartment complex with approximately 20 percent of the units priced affordably. The retail is likely to be service retail and could include tenants like a coffee shop.[contextly_sidebar id=”b9595e9d7faa8a0638fffdf01a05e19e”]The 4.92-acre project is expected to break ground in June. The developers secured entitlements at the end of last year. It is part of the 21-acre Triton Pilgrim Master Plan approved by the city in 2009, which includes more than 700 housing units and nearly 300,000 square feet of offices. Triton Pointe is supposed to be completed by July 2015.
“We have not fully determined the amount of equity that we will invest in the project. This will be based on the final construction loan,” Tony Cardoza, a managing director with CityView, said in an email message. He works in the company’s regional office in San Francisco at 555 California St.
The development is two blocks from state Highway 92, a major east-west connector road in the Bay Area that crosses all three of the region’s major north-south arteries: Interstate 280, U.S. 101 and Interstate 880.
CityView has now invested in three apartment projects for its Bay Area fund. It owns a 25 percent interest in the 143-unit Arpeggio apartment complex in Berkeley and has an $18 million equity investment in San Francisco’s Arc Light apartment complex at 178 Townsend St. The Arc Light development, an adaptive reuse of a 19th-century electric company warehouse, has a total cost of $50 million.
CityView is making the equity investments on behalf of its CityView Bay Area Fund. CityView has only one investor in the fund: the Los Angeles County Employees Retirement Association. LACERA provided all of the $100 million in equity for the investment fund, which is targeting urban infill development opportunities in high barrier-to-entry locations in multiple Bay Area markets including San Francisco and the Peninsula and Alameda, Contra Costa and Marin counties.
CityView wants to invest from $10 million to $25 million of equity in projects that have a construction loan in place that covers up to 65 percent of the project’s cost. Properties can vary in size from 60 units to 250 units.
The Foster City site has existing office buildings with approximately 67,000 square feet. CityView plans to demolish all but one building with 11,800 square feet. “This we will keep in place until the vertical office building is developed,” Cardoza said.
“Our location is an area of Foster City that has good schools and is close to employment. This will allow families to be renters in our property, and we are going to have both two- and three-bedroom units in the complex to attract them,” Cardoza said.
CityView is aware that there are other apartments being developed nearby. “Sares-Regis is building a project close to ours. This is the 300-unit project called The Plaza. We still feel good about our project and site,” said Cardoza. The Sares-Regis project is located at Triton and Pilgrim drives near Highway 92.