By Jon Peterson
Los Angeles-based CityView is planning to start this month on the development of a 243-unit apartment project in Union City located at 34588 11th Street in Union City.
The development cost of this project is $75 million. Bank of America is providing construction financing. The equity capital on the project is being provided by CityView, and the development partner is San Francisco-based Windflower Properties. This development will be the first project between CityView and Windflower.[contextly_sidebar id=”BNWbD3NAJWPGx5we0l1N5DSBTlkrNMh7″]“We view the location of this project being a very strong infill area. Its adjacent to the Union City BART station, so that the renters have public transportation to their jobs in places like the East Bay and downtown San Francisco. The residents of the apartment could be in downtown San Francisco in 42 minutes,” says Tony Cardoza, a managing director with CityView.
Construction on the project has started, and there should be a 19-month time frame to build the complex. The first units in the property should be delivered by July of 2017. CityView expects a lot of technology workers would fit the renter profile. “I would think that tech workers would be attracted to our project whether they work in the East Bay, Silicon Valley or San Francisco,” said Cardoza.
There are several planned amenities for the project. One part of this is 2,400 square feet of retail space that will likely be leased to an entity servicing the residents of the apartment complex and the nearby community in general. The project will also have a swimming pool, a yoga room, a fitness studio and outdoor barbeque area.
Union City officials are very pleased with the timing of the project and what it will bring to their community. “We are really excited for this project to get going, and it will be very beneficial to the city,” said Joan Malloy, economic and community development director for the City of Union City.
CityView made its equity investment in the Union City project for its CityView Bay Area II commingled fund. This is a commingled fund that has the Los Angeles County Employees Retirement Association as its only outside investor. The capital for the project in Union City will likely be the last investment in the fund. The other projects in the fund are located in San Jose, Foster City, Menlo Park and Mountain View.
CityView has other capital sources that it can use to find additional apartment projects to develop in the San Francisco Bay Area. The company favors projects that are in infill locations and are near mass transportation options.
Windflower does have an option for another development site that is adjacent to the one on 11th Street. This is for three acres that could become another project in the future. This site could support the development of addiitonal 300 housing units.
The City of Union City has issued an RFP this week to find a master developer for the development of commercial space around the BART station in Union City. The city now owns four parcels that range in size from 1.4 to 2.7 acres. Proposals are due on April 15th, and the city selects a master developer on May 10. The city expects the developer to pull building permits for the first phase of the project sometime in 2018.