Emeryville barely missed out on the recent sale of The Towers Office Complex and last year’s sale of Bay Street to UBS prior to Measure V going into effect, but appears to have landed its first major commercial transfer tax from the sale of the Bridgecourt apartments. A venture of the Irvine, CA based Bascom Group and D.C. based Carlyle Realty Partners have reportedly closed a deal to purchase the complex for $45.1 Million.
The seller of the property was Denver based Prologis, who merged with the projects original developer, Catellus Development in 2005 in a $5 billion deal. Prologis then went on to sell most of the Catellus assets to TPG Capital in 2010. The deal that reportedly closed on March 17th will be financed through a $40.6 million loan provided by California Bank & Trust and arranged by CBRE Capital Markets. Last year’s passing of Measures U & V will enable the city to collect a tidy sum of $541K based on 1.2% of the estimated $45.1 million sale price. This will go toward helping fund city services & infrastructure projects.
Bridgecourt (The tri-colored stucco development along 40th) recently exercised a clause to opt out of condo-converting plan to retain apartments (Why would they give up the “gravy train” that is apartment rentals in this hot rental market)? The City will instead collect $1.4 million that will go toward affordable housing projects as a result of enacting this termination clause. An estimated 40 percent of the units of Bridgcourt are designated as “affordable” and are slated to stay as such according to Planning & Building Director Charlie Bryant.
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The original 1996 agreement for the project can be viewed on Ken Bukowski’s EPOA YouTube archive (with Councilmember Nora Davis presiding):
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Bascom Group/Carlyle Realty Close $45.1 Million 220-Unit Apartment Deal in San Francisco Area
The Bascom Group, LLC and funds managed by Carlyle Realty Partners have acquired Bridgecourt Apartments, a 220-unit Class A apartment community with five ground floor retail spaces in Emeryville, California. The $45.1 million sale closed on March 17, 2015. Stephen Jackson and Mark J. Feldman of Colliers International were the brokers for the sale. Brian Eisendrath, Brandon Smith and Annie Rice of CBRE Capital Markets arranged the $40.6 million loan with California Bank & Trust.
Bridgecourt was constructed in 1998 and is located at 1325 40th Street, Emeryville, California. Chad Sanderson, Principal for Bascom states “Bridgecourt is a very well located property with access to stong jobs centers, local retail and access to Bay Area public transportation. It offers a tenants great urban location with attractive rents when compared to Downtown San Francisco and many other nearby locations.”
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