By Jon Peterson
San Francisco-based 7×7 Development is planning a new 69-unit condominium development at 388 Fulton Street in the Hayes Valley region of San Francisco.
The company recently acquired the .29-acre site for a price in the neighborhood of $11 million, according to sources with direct knowledge of the transaction. Included in the purchase price were the design plans and contracts with consultants who had worked on the project over the past two years from the previous owner.
The seller was 388 Fulton, LLC. This was a partnership with Equity Community Builders and The John Stewart Company. Both of these San Francisco-based firms did not return phone calls seeking comment for this story.
The site was sold through the San Francisco office of CBRE. The two people involved were Matt Kroger, a first vice president, and Mark Geisreiter, senior vice president. The property is now used as a surface parking lot.
“We are not able at this time to disclose what we paid for the site based on our purchase agreement with the seller. We are also working through the total cost of the development and what level of pricing we will have with the condos,” says Brian Saliman, a principal and co-founder of the 7×7 Development.
388 Fulton will be the first development for 7×7. “We think that our timing for our project should be good. Our site is fully entitled and we are now in with the city for building permits and hope to start construction in June,” said Saliman.
The condo market in San Francisco doesn’t have a great deal of existing supply. According to the most recent trend sheet released by the San Francisco-based The Mark Company, active condo listings in San Francisco now represent only one month of total inventory, a historically low amount.
This is likely to change in the near future. “There is a pipeline of new development projects that includes ours where they will be around 1,000 units added to the marketplace between now and the third quarter of 2015,” said Saliman.
388 Fulton Street will be designed by David Baker and with Fisher Development Inc. as the local general contractor. The project will be a mixture of studios and one- and two-bedroom units.
Saliman believes that there will be two main buyers coming into his project. “I would think that we would first attract the technology workers who would like to live in the Hayes Valley, which would be a good central location for them. I believe will draw some empty-nesters who might be looking to move from east, north and south bay areas of the Bay Area,” he said.
The development will have no permanent parking on site at all. “I think this is a trend that is happening in San Francisco. There are six car sharing sites in the neighborhood if the condo owners in our project need the use of a car. Our project has received a 98 walking score, a 100 transit store and a 95 biking score. Our project will have a 1-to-1 biking ratio,” said Saliman.
7×7 was formed in 2013 by Saliman and Kim Diamond. Both of them have a long history of working with housing companies in the region. Saliman had for four years working for San Francisco-based Carmel Partners and most recently was a consultant for developers in Northern and Southern California with apartment projects.
Diamond had her own company called ev8 that worked with clients on a broad range of services including development and advisory work. Prior to that, she was senior manager of land acquisitions and entitlements for Pulte Homes. Her region of coverage was San Francisco and the East Bay.