With several multifamily developments rising up around the Bay Area, many developers have started to turn their attention to Contra Costa County.
With rents and housing prices rising around the Bay Area, parts of Contra Costa are becoming more affordable comparatively and ideal places for millennials and other generations to raise families.
Developers are hoping to capture this shifting demographic as demand for housing shifts to the outer areas of the Bay Area. Walnut Creek and Concord have specifically benefited lately from new investment.
“We always wanted to be in Walnut Creek,” Bay Rock Multifamily CEO Stuart Gruendl said during Bisnow’s Future of Contra Costa County event in early November. “The government here in Walnut Creek is somewhat pro-development.”
The city has two active specific plans, and Bay Rock is a stakeholder in the North Downtown Specific Plan. The developer owns a large parcel and has plans to build 52 units, Gruendl said.
Unlike other Bay Area markets, there aren’t thousands of units teed up in Walnut Creek, Gruendl said. The costs are rising in the Tri-Valley and are becoming cost-prohibitive. A no-growth movement is growing in Pleasanton so there will be a natural cap on growth in that area, which bodes well for Walnut Creek, he said.
Bay Rock is focusing on projects in Walnut Creek, Berkeley and Oakland. “We find tremendous value in this market,” The Address Co. CEO and founding partner Eric Chevalier said. “There’s an affordability factor as well. People are getting priced out of the South Bay and the market. … They are migrating in this direction.”
The Address Co. builds both for-sale and rental properties. The company is working on a multifamily project called Riviera in Walnut Creek and has three other projects in the city. It also is working on entitling a project in Richmond, a city which the company is bullish on, Chevalier said.