Legacy Partners and AIG JV Closes on $3.2MM Development Land and $24MM Construction Loan

Legacy Partners, American International Group, Hayward, BMO Harris Bank, BART, Menlo Park, Bay Area, San Mateo, Kidder Mathews, Katerra
Rendering of Legacy@Hayward, courtesy of Legacy Partners

(EDITOR’S NOTE: According to public documents filed with the county, the sale of land closed on September 27th for $3.2 million, and the construction loan provided to the joint venture was in the amount of $24,067,547.)

HAYWARD, Calif. (Dec. 3, 2018) – Legacy Partners (Legacy), a privately owned national real estate firm, in a joint venture with American International Group, Inc. (NYSE: AIG), announced today the acquisition of a 1.78-acre development site located at 28168 Mission Boulevard in Hayward, California. BMO Harris Bank has provided construction financing for the project. Legacy@Hayward will include 97 apartment units and 1,700 square feet of retail space, all within walking distance of the South Hayward BART Station.

The 97 units are being designed and built by Katerra, a construction technology company, headquartered in Menlo Park, CA. Katerra’s design approach links standardization with customization, providing efficiency of manufacturing standard products, without sacrificing design freedom. Katerra will use building components produced at its Tracy facility in the development. Units at Legacy@Hayward range from one- to three-bedrooms averaging 883 square feet per unit.

“Hayward continues to seek smart, transit-oriented developments, staying competitive with the Bay Area’s explosive growth,” said Hayward Planning Manager Sara Buizer. “We’re excited to welcome Legacy Partners and Katerra to the area to help us build innovative housing solutions.”

Expected to open in April 2020, the property is located 0.3 Miles from the South Hayward BART Station and 3.1 Miles to the San Mateo Bridge. The community’s high-quality finishes and range of amenities are comparable to finishes typically found in the Bay Area’s condominium market.

Legacy@Hayward’s units will feature oversized unit patios and decks, movable kitchen islands, built-in closet organizers, stainless steel appliances, pocket doors, and solar shades. In the common areas, residents can enjoy a media room and kitchen, conference room, fitness center with yoga studio, pool and spa, an outdoor lounge area with fire pits and grill area, bike storage and repair room, electric vehicle parking, and an outdoor Skydeck with west facing views.

“Once complete, Legacy@Hayward will be one of the most unique transit-oriented properties in the East Bay,” said David Eichler, Senior Managing Director at Legacy. “Legacy is excited to be working with Katerra and believe that their vertically-integrated, technological approach will be transformative to our industry.”

“Katerra’s mission is to optimize every aspect of building design, materials supply, and construction. Our team combines decades of industry experience in technology, manufacturing, design, and engineering. Katerra’s industry experience also includes a fully integrated interior design team that curates every detail of interior spaces,” said Steve Weilbach, Head of Sales at Katerra. “Legacy’s five decades of development expertise is key to their being an excellent strategic partner for us as we continue to improve the construction industry.”

The seller, a private family, was represented by Kidder Mathews multifamily investment broker Matthew Clark.

“This will be the second market-rate apartment property to be built in Hayward since the Great Recession,” said Matthew Clark, Kidder Mathews First Vice President, Multifamily Investment Sales. “As employment remains strong in the Bay Area, there remains a need for housing projects across all markets.”

This year alone, Legacy Partners has developed and delivered more than 1,385 multifamily units in communities across the country, making 2018 one of their most active years.

About Legacy Partners
Legacy Partners (Legacy), a privately held real estate firm founded in 1968 and headquartered in the San Francisco Bay Area, owns, develops and manages multifamily communities throughout the United States. Legacy has regional offices in California, Colorado, Florida, Texas, and Washington and have developed more than 60,000 apartment homes in Arizona, California, Colorado, Nevada, Oregon, Texas, and Washington. Since inception, Legacy has worked with some of the world’s largest financial institutions, life insurance companies, and real estate companies, consistently returning exceptional results.

Legacy provides management services for its own portfolio, as well as other owners. Combined, Legacy manages a portfolio of over 60 multifamily communities with more than 14,000 apartment homes, and with a gross value in excess of $2 billion. For further information, please visit legacypartners.com.

About Katerra
Katerra is a technology company optimizing every aspect of building development, design, and construction. The global team includes leaders in design, software and building engineering, manufacturing, supply chain, and construction. Founded in 2015, Katerra has a growing number of domestic and international offices, factories, and building projects.

About AIG
American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Additional information about AIG can be found at www.aig.com.

About BMO Harris Bank
BMO Harris Bank provides a broad range of personal banking products and solutions through nearly 600 branches and fee-free access to over 40,000 ATMs across the United States. BMO Harris Bank’s commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. For more information about BMO Harris Bank, go to the company fact sheet. Banking products and services are subject to bank and credit approval. BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a highly diversified financial services provider with total assets of CDN$765 billion (as of July 31, 2018), and more than 45,000 employees.