A newly created condominium development company with strong ties to the Bay Area plans to build more than 550 for-sale condominiums in San Francisco neighborhoods from Cow Hollow to the Dogpatch.
Trumark Urban, a spinoff condo developer launched by the Trumark Cos., has secured six sites, entitled and in the process of becoming so, in the Nob Hill, Cow Hollow, Hayes Valley, Mission District, South of Market and Dogpatch neighborhoods, said Arden Hearing, Trumark Urban managing director.
“We own or control over 550 units that are approved [for development] or are in the process of entitlement,” Hearing said. “We are set to begin construction on the first one later this spring with the others slotted for 2014 and 2015.”
These six projects represent an investment commitment of more than $300 million through build-out. Additionally, Trumark Urban is actively negotiating to acquire other projects that would allow them to break ground this year. Their goal is to have a pipeline of more than 1,000 condos in San Francisco by the end of 2013.
“Strategically, we like where we are in the real estate cycle—coming out of a major recession with job growth coming and a lack of [new housing] supply,” Hearing said. “We see demographic trends in our favor with the growth of the millennials, and the baby boomers moving down a bit, and we wanted to be in the neighborhoods where there is a real, high barrier to entry.”
The newly formed development platform is backed by an investment of more than $300 million, all of it internally funded thus far. It plans to start its first, 30-unit development this spring on a fully entitled site near Van Ness and the Cow Hollow neighborhood and to start its second development this summer South of Market.
The condos across the six sites will range from 500 square feet to 1,500 square feet with prices from $500,000 to $2 million.
Trumark Urban’s new offices are at 703 Market St.
The company plans 85 market-rate condos and ground-floor retail at 16th St. and Potrero Ave. in the Mission District, he said, and a SoMa project at 5th and Folsom streets. He is also pursuing another large-scale project in SoMa, Hearing said.
“We think we are late in the apartment cycle, and we really like the dynamics on the for-sale side, with no supply and burgeoning demand,” he said.
According to Polaris Group, a land-acquisition, entitlement-services and sales company for California condominium developers, there are five for-sale condominium projects under construction in San Francisco with 302 units and 19 apartment developments with not quite 3,600 units. Another 38 condo projects with 4,413 units have been approved, according to Polaris. Twenty-one additional apartment projects have been approved, with 4,665 units.