By Jon Peterson
Los Angeles-based Resmark Apartment Living and San Mateo-based Sares Regis Group of North California are planning to invest 1/3 of the development cost of the San Bruno Plaza apartment/retail project in San Bruno located at 406 San Mateo Avenue.[contextly_sidebar id=”Z1gODYg6n6sRMoAweNVpbtjLPJcqo0VU”]“Our plan is for us and Resmark is to invest 1/3 of the project’s total development cost, and the other 2/3 will be covered by a traditional construction loan that is in the process of being arranged,” says Drew Hudacek, chief investment officer of development properties for Sares Regis Group.
These two companies declined to comment on the amount of capital they invested in the project and its total development cost. According to public documents, the sale of this location was closed on April 30th for a price of $10.6 million.
The development will consist of a three-story, 83-unit apartment complex with roughly 7,000 square feet of ground floor retail space. Construction will commence in October and is planned to be completed by May 2017.
While Resmark has made investments in the area before, this is the first development project that the company is undertaking in the Peninsula city. “San Bruno is a new location for Resmark Apartment Living’s portfolio, but not our first investment in the area. Resmark had additional projects in the Peninsula, Silicon Valley, Milpitas and Pleasanton,” says Ziv Cohen, president of Resmark Apartment Living.
His company believes the San Bruno project is ideal for several reasons. “Its upper Peninsula location makes it an entry point for residents seeking adjacency to San Francisco and Silicon Valley. Its home to many employees from the YouTube headquarters and the Walmart’s e-commerce division. The project site is in a transportation rich location, with ready access to Caltrain, BART and area freeways. It’s one mile from the San Bruno BART Station; and there’s a SamTrans bus stop half a block from the project that includes a stop at the BART station. It’s less than a mile to I-280, I-380 and Highway 101,”said Cohen.
The companies plan a range of renters for the apartment units. “We are expecting a big mixture of renters in the project. Some will be the young millennials who will be either a single person or those with roommates that work either in downtown San Francisco on the Peninsula. We also envision attracting some empty nesters to the project,” said Hudacek.
The ground floor retail part of San Bruno Plaza is expected to provide residents and neighborhood shoppers with a variety of every day services. This would include a coffee shop. There are other kinds of retail outlets in the vicinity. This includes a Trader Jose’s and Safeway that is around one mile south of the project.
Remark Apartment Living is a division of The Resmark Companies, which is a private equity real estate firm. Resmark works with some of the major pension funds in the United States including the California State Teachers Retirement System and California Public Employees Retirement System.