(EDITOR’S NOTE: According to public documents, the sale closed in May of this year for a total of $41,000,000. The site is planned for a residential development that would feature a new 270,000 square foot senior living building located in San Francisco’s Cathedral Hill neighborhood along the upcoming Van Ness Transit Corridor. The 13-story building is also planned to include 7,000 square feet of ground floor retail.)
Former KRON Building to Be Developed as Modern Senior Living Community
San Francisco, CA: In a transaction that closed May 17th, 1001 Van Ness has been sold by Oryx Partners to a joint venture among Related Companies and Atria Senior Living (the “Related|Atria JV”).
The sale comes on the heels of the April 4 unanimous approval by the San Francisco Planning Commission to transform the vacant building site into one of the city’s first modern senior living communities in well over a decade. The site is the former home of KRON-TV at the corner of Van Ness Avenue and O’Farrell Street, located just one block from the new Sutter California Pacific Van Ness Medical Center and along the Van Ness Bus Rapid Transit (BRT) line now under construction.
JC Wallace, Principal and Co-Founder of Oryx Partners, states, “Delivering a fully-entitled site for new development in San Francisco is no easy feat, we had to be creative and persistent to overcome a variety of challenges in the development landscape. We are so pleased to hand off the site knowing that hundreds of San Francisco seniors will find a home there.”
The Related|Atria JV, as announced in the Fall of 2018, plans to bring modern senior housing of the highest-quality to urban settings. This site acquisition is the first step in that bigger vision.
“There continues to be a severe shortage of urban senior-housing options throughout the country,” said Bryan Cho, Executive Vice President of Related Companies. “Related Companies has a long history and a deep commitment to investment in San Francisco and the Bay Area, and we look forward to meeting that need while delivering a great asset for the city and the neighborhood.”
The project will break ground in late 2019 with plans to complete the project by the end of 2021. Atria, a leading provider of high-quality senior living, will manage the community. Atria currently provides senior living services to over 4,500 Californians across its 43 communities in the state.
“We are thrilled to be in partnership with Related to build a project and a business serving San Francisco customers looking to live in a place that allows them to age well. Our aim is to create an option for seniors close to the cultural amenities that allow them to remain connected to the city they love. We look forward to providing additional details as the project moves forward, as well as announcing future locations of this partnership,” said John Moore, CEO of Atria Senior Living.
Welltower Inc. (NYSE: WELL) is the long-term capital partner for the Related|Atria JV for the project. “With Welltower’s participation, we have added a best in class, long-term financing partner to the already world class combination of developer and operator represented by our JV with Atria. Welltower has been invaluable in helping us complete this acquisition, and we are looking forward to working with them throughout the development of the project,” said Cho.
Shankh Mitra, Welltower’s EVP and Chief Investment Officer, added, “We are pleased to begin a relationship with Related and Atria on this highly-differentiated and much-needed offering in a marquee location. The Related|Atria JV represents a unique and distinct opportunity that will appeal to sophisticated, urban seniors and is consistent with Welltower’s strategy of providing the next generation of infrastructure for an aging population to live well.”
As part of the initial development, Oryx, Related and Atria will be supporting the neighborhood by making a contribution to Openhouse in support of the completion of the city’s first senior center dedicated to serving primarily low-income LGBTQ seniors at 75 Laguna. Oryx’s JC Wallace will also be joining the Openhouse Board of Directors. In addition, the group has agreed to make an additional contribution to Tenderloin Neighborhood Development Corporation (TNDC) aimed at supporting innovative homeless senior housing and wellness initiatives.
About Oryx: Oryx Partners, LLC (“Oryx”) is a San Francisco based real estate investment and development company focused on value-added real estate opportunities. Oryx has executed multifamily repositioning and development projects and complex public-private partnership construction projects. Oryx seeks to achieve superior returns by investing in locations with limited supply and significant barriers to entry and also prides itself on its strong commitment to the communities and neighborhoods it invests in.
About Atria: Atria Senior Living is an industry leading senior housing management services company operating more than 225 locations and 27,000 units in the United States and Canada. Focusing on high barrier to entry gateway cities, Atria has a leading presence in markets with strong wealth demographics, including 27 communities in metropolitan New York and 43 in California with concentrations in the Bay Area, Orange County and Western Los Angeles markets. Atria also has a significant presence in metropolitan areas of Toronto, Boston, Houston, Atlanta, Chicago and Philadelphia. Atria has built its reputation as a senior living industry leader with a focus on customer experience and quality. Its operating platform is one the most comprehensive in the industry and includes use of internally developed, proprietary, leading edge business support technology and advanced tools. Atria’s internal, self-auditing Quality Enhancement program measures beyond state regulatory standards ensuring quality service in all aspects of the resident experience and results in the highest quality relationships with regulators and other industry stakeholders. Atria employs more than 16,000 and operates a state-of-the-art Support Center in Louisville, Kentucky.
About Related Companies: Related Companies is the most prominent privately-owned real estate firm in the United States. Formed over 40 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington, D.C., Abu Dhabi, London and Shanghai and boasts a team of over 3,500 professionals. In California, Related has demonstrated a deep understanding of neighborhood placemaking with Grand Park and Frank Gehry’s The Grand and a large scale mixed-use development designed by Foster + Partners underway in Santa Clara. Related’s luxury residential portfolio in California includes: The Paramount, The Avery, 1500 Mission and 1601 Mariposa in San Francisco, and The Century, Ocean Avenue South, Argyle House and The Emerson in Los Angeles. For more information about Related Companies please visit www.related.com.