Residential Developments Take Center Stage
- Nov 30, 2011
The Potrero Center is a large deal waiting to happen. The 227,000-square-foot shopping center has been listed for sale by current owner The Emerald Fund. The venture aims to sell the property by pitching the possibility of a redevelopment project that could offer the buyer a chance at producing 1,800 residential units.
The San Francisco Business Times reports that the retail center, which has been listed with Eastdil Secured, is on track to get its owner as much as $125 million, thanks to its 98 percent occupancy rate and the residential opportunities. The Emerald Fund’s main advantage in this sales pitch is definitely that the potential buyer will own a property that offers redevelopment opportunities besides the revenue coming in from the retail component. The addition of a number of residential units would be a great move in San Francisco’s market, seeing as past reports indicate a rental market that could very much be on the rise. The Potrero Center is anchored by grocery giant Safeway, a trait that ensures the shopping center’s relevance to the area in the long run, as well as being an added incentive for a possible residential development.
Another residential project could come from relative newcomer Oyster Development Corp. The company has acquired its third parcel in the span of less than a year, this time in Lower Pacific Heights. The San Francisco Business Times has deemed this site a rare find, since it can accommodate the development of a large residential project.
Oyster Development is led by Dean Givas, a professional schooled in the Bay Area’s development game. The company, along with partner Tricon Capital Group, is now the owner of 35,000 square feet that could accommodate around 200 units. The site, located at 1688 Pine St., cost the venture $15.5 million. The seller was Canyon Capital Realty Advisors, which was handling the property on behalf of the California Public Employees’ Retirement System.