By Meghan Hall
Apartment development has largely dominated the multifamily market throughout the Bay Area over the course of the last economic cycle, with for-sale product taking a backseat. Condominium developments with more than a few units are even rarer on the Peninsula outside of San Francisco, something that Costa Mesa, Calif.-based Warmington Residential has recognized in its application to construct 68 new townhome condominiums at 1125 Arguello Street in Redwood City.
“For the most part we are a homebuilder for-sale, but we also just believe that this is the best use for the site,” said Mike Banducci, senior director of community development for Warmington Residential’s Northern California division. “There are a lot of apartments being built, or that have been built, and this is part of the market that hasn’t been met, so we think [condominiums] are the best opportunity here.”
Warmington Residential submitted its plans for the 3.21-acre site at the end of March 2019, and they are currently under review by Redwood City officials. The plans would demolish all existing buildings on-site and construct 11 three-story buildings containing a total of 68 for-sale units. The units would contain two to three bedrooms, an upper story deck and a two-car garage. 23 public and 138 private parking spaces are also included in the preliminary plans.
10 of the units would also be designated as affordable.
The complex, designed by Irvine, Calif.-based KTGY Architecture + Planning, will be modern, clad in light sand-colored stucco and brick veneer. Dark-framed vinyl windows, metal canopies and guardrails and aluminum garage doors will serve as accents to the light facades.
According to Google Maps, the property is currently home to A- Rental Center, an equipment rental business. The project site is surrounded mostly by single family and smaller-scale multifamily development. 1125 Arguello is also a short drive to downtown Redwood City, with restaurants and shopping. Bair Island Wildlife Trail is also not far from the property, and the project site is easily accessible El Camino Real and State Route 101.
“It’s a great location,” said Banducci. “You can walk to downtown. You can walk to Caltrain. It’s close to shopping and all of the amenities that downtown has to offer, so we’re really excited about the project.”
Banducci estimates that it will take another 18 months for the project to work its way through the entitlement process and begin construction. Warmington Residential was not able to disclose the final cost of the project at this time, given that the development is still in the planning stages.
The development will bring needed middle-market condominium development to the market, once completed. Further up the Peninsula, particularly in San Francisco, luxury condominium developments are springing up, with properties selling for millions—or even tens of millions—of dollars. According to Banducci, the project is important because it will allow potential buyers to invest and build equity, a difficult task in the region’s pricey market.
“We’re confident that we’re going to have a successful project here,” said Banducci. “House prices have stabilized and they’re still slowly gaining. We’re hoping [the project] will be a good complement to the neighborhood, and it will provide more business to downtown, which will be positive for everyone.”