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Bay Area blazes hit multifamily buildings

A late-night fire destroyed an under-development East Bay multifamily complex Monday night, hours after the San Francisco Fire Department got a fire in a downtown high-rise under control.

A West Oakland fire, which was first reported around 2 a.m. at West Grand Avenue and Filbert Street, burned six buildings under construction on the site — two that were near completion and four in early stages of construction, the San Francisco Chronicle reports. The project developer is City Ventures, which was planning 126 condos on the site.

Nearby residents were evacuated and power was cut off as a precautionary measure.

Another fire at a building on a construction site on the 3600 block of Peralta Street in the early morning hours was quickly extinguished, the Chronicle reports. The fire department is looking into the cause, which was deemed suspicious.

Monday evening, a 25-story building at 405 Davis Court in San Francisco’s Financial District caught fire, burning on the 12th through 16th floors.

No one was injured in the fire, which was first reported shortly after 5 p.m., according to the San Francisco Fire Department. While there were no injuries, multiple people had to be rescued. The cause of the fire is being investigated.

The fire burned for about 45 minutes.

 

 

Read more on Bisnow SF

 

 

 

More density and time for Brooklyn Basin development as proposed

With only 241 of the fully-entitled project’s 3,100 units of housing to rise on the Brooklyn Basin site along Oakland’s waterfront currently under construction, the Signature Development Group is now seeking approval to add another 600 apartments to the project’s total.

As proposed, the additional units could be “accommodated” within the building envelopes for the development as already approved, without any changes to heights, massings or setbacks. But if approved, the overall timeline to complete the Brooklyn Basin development, which was expected to be completed by 2029, would be extended to 2038.

In addition to the increased density, Signature’s proposed changes also include an additional 158 boat slips around the future Shoreline Park, a new water taxi loading dock, and the potential flexibility to shift the approved locations of the development’s five towers which are currently entitled to rise up to 240 feet apiece.

 

Read more on SocketSite

 

 

 

San Francisco startup to build 270-unit ground up development in SoMa as part of co-living push

Starcity, a co-living development startup that is known for building “dorm living for adults,” is planning to erect a 270-unit building dubbed “Minna” in SoMa as part of its latest development push.

It also is eyeing a downtown San Jose property three blocks from Caltrain for more than 750 units.

Starcity’s model of private rooms paired with shared spaces can boost the number of units or rooms in an apartment project threefold, the company said in a statement Wednesday morning. Along with ground-up developments, the company converts and renovates defunct or underused commercial spaces into communal living spaces geared toward a middle-income demographic squeezed by high housing prices.

The San Francisco-based housing developer said Wednesday that 50 percent of the units will be affordable in the project at Minna & 5th Streets. Starcity currently has four San Francisco properties it owns and operates, with nine more in the pipeline.

Read more on San Francisco Business Times

Apartment rentals make up a larger share of new housing units in the U.S. than they have in decades

New preferences, low affordability of new homes drive greater demand for apartment rentals.

Apartment rentals have been luring residents away from other kinds of housing since the housing crash—and that is not likely to change in the foreseeable future.

“Apartments should continue to play a role in the total housing market that goes beyond the historical norm,” says Greg Willett, chief economist for Real Page Inc., a property management software and services provider based in Richardson, Texas.

In the years after the Great Recession, millions of people lost homes to foreclosure and had to move, often into apartments. The extra demand for units was not expected to last more than a few years. However, today—more than a decade after the collapse of Lehman Brothers—the percentage of American households that own their own home is still near its low point. New households are still much more likely to chose to live in rental housing than in the years before the crash.

 

 

Read more on National Real Estate Investor

 

 

 

How will S.F.’s tallest buildings fare in the next big earthquake? Report expresses concerns

San Francisco’s tall buildings may be at risk of damage during the next big earthquake, a study released by research nonprofit Applied Technology Council (ATC) last week warns.

The 36-page report outlines vulnerability concerns over outdated building standards and provides a strategy for proactive safety checks.

The study’s release comes just days after cracks were found in two steel beams of San Francisco’s newly minted $2.2 billion Transbay Transit Center, and as Millennium Tower next door continues to sink and tilt. Last year, the late Mayor Ed Lee commissioned the report, which was prepared by a group of engineers.

The report probed the city’s 156 tallest buildings — either constructed or permitted for construction — that are at least 240 feet high, primarily located in San Francisco’s Financial District. About 60 percent of these buildings house business and office space, while the rest are zoned residential.

 

Read more on San Francisco Business Times

 

 

Making heads or tails of the U.S. multifamily sector

If you were to focus solely on the slowing pace of rent gains, burgeoning supply and the rise in interest rates, you might assume that the real estate market isn’t in a strong place right now.

But despite all of the above, the multifamily market is in a healthy position. Demand is being driven by encouraging demographic shifts and a strong economy. Despite moderating elements, because the economy is healthy, the apartment market is similarly healthy, even if the boom from earlier in this economic cycle has tapered off.

GDP growth came in at 2.3% for the year in 2017, and a whopping 4.2% in Q2 2018. Consumers are buying confidently provided that tax cuts will improve yearly income even despite stagnant wage growth. Our multifamily clients are anticipating that U.S. rent growth should maintain its current pace, largely thanks to cities in the South and West, where supply hasn’t outpaced demand.

According to the Spring 2018 Yardi Matrix U. S. Multifamily Outlook report, given the state of supply and demand in most metro areas and the steady economy, rents are projected to increase by 2.9% nationwide this year, with heavy concentration in late-stage southern and western U.S. markets. However, concerns about affordability are keeping prices from rising at an exceptionally fast rate, and new supply is also helping to keep those costs level. As for the supply, completions are expected to maintain the same steady pace they have over the past few years. Absorption rates are anticipated to remain strong for the remainder of the year, and 290,000 additional units are expected to finish construction by 2018, resulting in a 2.2% increase of stock. Another big factor that’s supporting the real estate market is the steady flow of capital pouring into the industry.

 

 

Read more on Forbes

 

 

 

Cupertino approves massive development agreement for Vallco Mall

The city of Cupertino approved a specific plan and development agreement Wednesday night that could aid in bringing nearly 3,000 residential units and millions of square feet in commercial space to replace its dying Vallco Shopping Mall.

In a 3-2 vote, the council reluctantly approved the densest development ever proposed for the 58-acre site that sits about a mile from Apple Inc.’s new headquarters.

Cupertino Mayor Darcy Paul and City Councilmember Steven Scharf, who both favored a less dense redevelopment option, voted against the plan.

The vote marks the first move by city council members to willingly pave the way for a dense project on the site after years of community disagreement over what should replace the nearly empty, 1.2 million-square-foot mall has kept redevelopment in limbo.

That stalemate ended early this year when Vallco property owner, Sand Hill Property Co. invoked SB-35, a new and highly controversial state law aimed at speeding up residential development in housing starved California. That proposal set a tight deadline for the city to either approve Sand Hill’s redevelopment plans or come up with something better that the Palo Alto-based developer would consider building instead.

Read more on Silicon Valley Business Journal

 

 

 

 

BART picks developers for huge housing and office development at Lake Merritt in Oakland

Bay Area Regional Transit officials selected a development team to revamp three city blocks above the Lake Merritt BART Station in Oakland.

The agency picked Strada Investment Group and the East Bay Asian Local Development Corp. to develop 1.4 acres into two high-rise towers with 519 homes and 517,000 square feet of commercial space.

EBALDC is one of Oakland’s top nonprofit housing developers with 27 communities in the city. San Francisco-based Strada has owned multiple office buildings in downtown Oakland and has developed multiple projects in various Bay Area cities.

The winning team beat out proposals from global real estate investor Hines, Menlo Park-based Lane Partners and a partnership of Oakland-based McGrath Properties Inc. and Canadian investor Brookfield Residential. Lane Partners came in second, according to a BART staff report.

The BART board will formally vote to select the Strada/EBALDC Team at its meeting Thursday and start a two-year exclusive negotiating agreement to finalize the project. if the two sides fail to negotiate a project in that time frame, BART could then give Lane Partners a shot without having to do another selection process.

BART has wanted to develop its land above the Lake Merritt Station for years. The goal is to boost BART ridership and attract more residents, businesses, and pedestrians to a relatively quiet stretch of Oakland nestled between the city’s core downtown and the lake.

 

Read more on San Francisco Business Times

 

 

 

Sinking Millennium Tower’s window cracks, SF seeks answers about safety

The sinking Millennium Tower in San Francisco has another problem.

A cracked window on the 36th floor that’s prompted San Francisco officials to issue a citation requiring building engineers to report on the condition of the glass panel.

The window cracked early Sunday morning.

“At this time, we do not know what caused this fracture, though it appears to be limited to this one specific unit,” Bill Strawn, spokesman for the San Francisco Department of Building Inspection, said in a statement.

The 58-story residential tower has sunk more than 17 inches since it opened in 2009.

 

 

Full article on SFGate

 

 

 

 

City may scrap downtown cap on commercial growth

Planning commission to review council’s proposal to eliminate 350,000-square-foot limit on downtown non-residential growth.

The simmering community debate over how much office space Palo Alto should accommodate is set to flare up again Wednesday night, when the city’s Planning and Transportation Commission will consider abolishing a policy that limits new non-residential development in downtown.

The proposal to scrap the cap was prompted by the City Council’s 5-4 vote in January 2017 to amend the city’s policies for office growth as part of the city’s Comprehensive Plan update, which was completed in November of that year. At the time, the five council members who are more amenable to growth — Liz Kniss, Greg Scharff, Adrian Fine, Greg Tanaka and Cory Wolbach — all voted to abolish the 350,000-square-foot limit on downtown non-residential development, arguing that the policy is no longer necessary given the other restrictions on commercial growth that are already in place.

Palo Alto already has a citywide limit of 1.7 million new square feet of office and research-and-development growth. A citizen initiative to reduce that limit to 850,000 square feet will be on the November ballot.

The council has also recently adopted the annual 50,000-square-foot cap on office development in downtown, around California Avenue and along El Camino Real, which intends to meter the pace of growth.

Even so, the proposal to remove the downtown cap proved deeply polarizing at the January 2017 meeting. Wolbach and Scharff led the charge on removing the policy, with each arguing that downtown’s transit options make it more suitable for commercial growth than other parts of the city.

 

 

Read more on Palo Alto Online