East West Bank has provided $44.6m in construction financing to The Integral Group and equity investor Argosy Real Estate for the construction of Eviva Mission Bay, a 129-unit multifamily community in San Francisco, California, Real Estate Capital has learned.
The deal carries an approximate 78% loan-to-cost based on the project’s estimated $57.4m price tag.
Eviva Mission Bay, located at 360 Berry Street, will include 103 market-rate units and 26 units with rents capped at rates deemed affordable for moderate-income households. The project was a natural draw for East West Bank, which has funded over $1bn in approximately 100 affordable housing projects totaling over 15,000 individual units.
Argosy, which pledged up to $10m in equity financing on the project, has said that the business plan is to “construct, lease up, and stabilize the asset” before disposition within a five-year time frame. The firm estimated a gross exit value of $67.7m.
“Eviva Mission Bay is an excellent example of leveraging the CBRE national platform to provide our clients with a wide array of capital sources and allowing them to deliver above market returns to their investors,” said Andrew Behrens, vice chairman of CBRE’s Debt & Structured Finance, Multifamily team, who arranged the financing with Brady O’Donnell and Jesse Weber.
Construction has commenced and the project is scheduled for completion in the third quarter of 2016. It will consist of 72 one-bedroom, 53 two-bedroom and four three-bedroom units, along with 82 garage parking spaces. Amenities include a WiFi café/ bar, multiple barbecue areas, a fitness center, yoga room, roof garden and courtyard.
The parcel is considered one of, if not the, last undeveloped pieces of land in Mission Bay, a 303-acre master-planned redevelopment zone located just south of the San Francisco’s SoMa district. The neighborhood includes a new 2.7m sq ft research campus for the University of California San Francisco and 4.4m sq ft of office and biotech space.
Integral specializes in the development of multifamily projects in highly constrained urban infill locations with high barriers to entry, having completed in excess of $5bn of transactions in urban markets nationwide. It has previously partnered with institutional investors including CalPERS and Apollo Real Estate Advisors.