By Jon Peterson
While the multifamily market across the region has performed relatively well over the lasts 18 months, kicking off a development can have its own challenges, and some developers have instead focused testing the waters by selling their entitled projects. San Francisco-based Swift Real Estate Partners is one of these companies, and it recently placed on the market for sale a fully-entitled residential development site in Pleasanton called The Residences at Rosewood Commons, according to sources familiar with the property. There is no pricing guidance being offered on the property at this time.
The seller of the property has hired the Northern California Multifamily Capital Markets team from Colliers to lead the marketing initiative. The team representing Swift includes Matt Kroger, Rich Martini, Rich Knauf, Ryan Wagner and Brandon Geraldo. Colliers declined to comment when contacted for this story.
The address of the development site is 4452 Rosewood Drive, and it is located at the corner of Rosewood and Owens Drives within Pleasanton’s Hacienda Business Park. The project covers 8.4 acres of land and is fully-entitled for the development of 305 units. The current design calls for the development of 108 garden-style units and 197 podium-style units. There will be an affordable component to the property equal to 46 units, or 15 percent of the project.
The Swift development site represents the only fully-entitled new apartment development site in all of Pleasanton, and the last approved residential development site within Hacienda Business Park. Simon Property Group is planning the only other multifamily project in Pleasanton, a proposed 486-unit project at a former Sears store site at the Stoneridge Shopping Center. This project still has to go through the approval process.
A financial factor favoring the Swift project is lower impact fees. As currently entitled, the Residences at Rosewood Commons secured development impact fees when the project was originally entitled in 2013 and later modified during Swift’s hold. The City of Pleasanton has subsequently increased multifamily impact fees by almost 40 percent in 2019, so any new or planned development project not approved at that time will likely have fees that are significantly higher than Swift’s project.
The development site is a very strong transit location, both relative to BART and the primary East Bay freeway corridors of I-680 and I-580, sitting equidistant between San Francisco and San Jose, the Bay Area’s primary employment hubs. The site is a short walk to the Pleasanton BART station, allowing future residents convenient BART access to Oakland, Walnut Creek, San Francisco and San Jose.