By Jon Peterson
Mill Valley-based S. Hekemian Group has paid $10 million to acquire the development site in San Francisco located at 828 Brannan Street.
“We think that this site is located in a growing area of San Francisco where there is a lot of activity and demand going on,” says Peter Hekemian, a senior managing director with S. Hekemian Group.
The site is located between the headquarters of Pinterest and Airbnb. Directly across the street is a planned 432-unit apartment complex that will be developed by Chicago-based Equity Residential.
The new owners of the project are planning to develop a new mixed-use project on the site. “We are thinking now that most of the project will be occupied by a 65-unit residential project. The ground floor of the development will be some kind of retail. Our ideas being discussed [call for] some kind of a mixture of café, restaurant or coffee experience, which currently doesn’t exist in the area,” said Hekemian. The residential portion of the project will have a combination of market rate and affordable units.
The seller of the property was a family enterprise managed by two San Francisco-based brothers, Ken and Peter Page. They had owned the site and had operated their own business on the property, a high-end glass business. The property in the past did have some retail and office space, as well. The two brothers are moving their operation into the Potrero neighborhood of San Francisco.
Transwestern had worked on the deal with the seller. “The seller had acquired the property for $2.5 million in 2010. They then invested another $2.5 million into the property,” said Michael Cisternino, a senior vice president with Transwestern. He and Steven Orchard, another senior vice president, were the principal brokers on the sale with Transwestern.
Hekemian has two other projects that it has plans for in the San Francisco Bay Area. One of these is a project located at 888 Tennessee in San Francisco. This project could eventually have 110 residential units and high-end retail. The company also owns a site in downtown Berkeley for a potential future project.
Photo courtesy of Flickr user PROAnomalous_A