By Jon Peterson
Trammell Crow Residential will be starting a new apartment development in Danville sometime during the second half of 2018, as stated by the developer in an email. The 144-unit project is being called Alexan Riverwalk. It’s not clear at this time what the development cost of the project will be.
TCR has paid $20.4 million to acquire the 3.75-acre site that is located at 373 and 379 Diablo Road, according to public records. The sale of this site closed on May 15th. The development is projected to have an 18- to 20-month construction time period.
The apartment complex will have a mix of studio, one, two and three-bedroom units. It will have both market rate and some below market rate units.
The seller of the development site was Los Gatos-based The Stanley Group. “The asset that we had owned in Danville was a 50,000 square-foot office building. We sold the site to Trammell Crow as an off-market deal with no listing agents involved,” says Russel Stanley, president of The Stanley Group.
This asset was sold by Stanley as a 1031 Exchange. Since this deal closed, it has acquired for $20 million the 71,742 square foot Parkway Center office building in Fremont. This asset is located at 3340 Walnut Avenue.
The seller of this property was Bayside Realty. It was represented in the transaction by NKF Capital Markets. “Parkway Center offered a great opportunity for an investor to increase NOI by bringing the current tenants to market rents to take advantage of the dwindling office supply. Given that Parkway Center is part of a multifamily zoning overlay, it is a prime candidate to be redeveloped in the coming years,” said Tim Walling, a director with NKF, in a prepared statement. He worked on the sale along with Steve Golubchik, a vice chairman with NKF.
Parkway Center currently has no vacancies. Its list of tenants includes Lipman Insurance Administrators, Coldwell Banker, Chicago Title and The Center of Speech. “The current rents in the property are around 10 percent to 15 percent below market. We plan on bringing the rents up to market as the current leases come up for renewal,” said Stanley.
The buyer plans a long-term hold for the property. “We are not planning to do anything with the property in the near term. The site could be re-developed into a significant apartment complex in the future. The current zoning would allow for up to 90 units per acre for our four-acre site,” said Stanley.
The Stanley Group is known as a multiple buyer and seller of many property types throughout the San Francisco Bay Area. This includes a mixture of office, retail and industrial assets.