By Jon Peterson
Chicago-based Pritzker Realty Group LLC has partnered with San Mateo’s Sares Regis Group Northern California to be its West Coast developer for three Bay Area apartment projects already underway and the promise of more ahead.[contextly_sidebar id=”cee10d8979523b1355af36850618e30a”]Jeff Smith, a Sares Regis vice president for multifamily development in Northern California, said the projects in San Jose, Los Altos and Sunnyvale are in the planning stages or under construction. “We are hopeful of doing more developments with them in the future,” he said.
The partners are already building the 167-unit Colonnade project at 4750 El Camino Real in Los Altos close to The Village at San Antonio Center, where developer Merlone Geier Partners is building housing and retail and has announced plans to add 500,000 square feet of mid-rise offices. The Sares Regis-Pritzker development, which includes 12,000 square feet for retail and commercial businesses, is to be complete in 2014.
The other projects are in downtown San Jose and Sunnyvale, where it is so early in the development process that the Bay Area developer declined to say much. The two-acre development site in downtown San Jose is at 60 Pierce Ave. south of the 360 Residences high-rise apartment tower and Cesar Chavez Park. It involves a proposed 230-unit apartment complex with a 5,000 square-foot commercial and retail component.
The developer hopes the commercial square footage can be conceived for use in a way that keys on the neighborhood’s stature as an emerging arts district. “This could become an arts gallery or be leased to artists as a live-work arrangement, given that the development is located in the South of First [Street] area or SoFa district, known for its arts interests,” Smith said.
The company is pursuing entitlements for the project now and hopes to gain permissions by the end of this year. “That would allow us to start demolition of the four existing buildings on the site,” Smith said. Preliminary leasing on the project should begin in the summer of 2015. It is too early to estimate the project’s total development cost, he said.
The third, proposed development in Sunnyvale is very early in pre-development, and Sares Regis would not disclose additional detail.
Sares Regis manages the development process and property management on the projects with Pritzker, as the company does for a variety of equity partners including Northwest Mutual Life Insurance Co. and Deutsche Asset Management, formerly known as RREEF.
The equity invested by Pritzker in these projects comes from the company’s Pritzker Apartment Joint Venture with the Virginia Retirement System. The pension fund invested $200 million in equity in October. There is a three-year investment period for this capital.
The intent is to invest in new apartment development projects in select U.S. markets.
Pritzker Realty Group has invested more than $5 billion in real estate assets since 1991, according to its Web site. The company’s Centergate Residential operation is a multifamily development and management company that owns more than 12,000 apartments in 30 states.
Sares Regis has 1,641 apartments under development in the Bay Area. The company has more than 500 additional units in the pre-development stage. These projects are located in multiple markets including San Mateo, Pleasanton, San Jose and Redwood City.
Pritzker representatives did not respond to phone calls or e-mails seeking comment.
Rendering courtesy of Sares Regis & Steinberg Architects