Presidio Bay Ventures has closed on $120 million in construction financing to develop a mixed-income, 193-unit rental community in San Francisco. The AFL-CIO Housing Investment Trust, an impact investment firm focused on workforce and affordable housing, provided the senior construction loan for the project, Ventana Residences.
The project, a joint venture between Presidio Bay and American Realty Advisors with capital managed by TDA Investment Group, has recently broken ground in the Outer Mission and Excelsior District on the south edge of the city. Located at 99 Ocean Ave., the development marks the largest project built under the HOME-SF program, an optional program for developers of mixed-income housing in certain areas of the city.
In keeping with the program’s requirement that 20 to 30 percent of the units must be affordable, Ventana Residences will feature 25 percent affordable housing. The community will provide a mix of units ranging from studios to three-bedroom layouts, and 48 of the units will be designed as below market-rate. Presidio Bay said in a statement that this will triple the number of new affordable units built in the Excelsior district in more than a decade.
Boosting the Bay Area
Acquired by Ventana Residences in early 2016, the site is located near Interstate 280 and the San Jose and Ocean light rail stop on the Muni Metro J Church line. Ventana Residences, which will use 100 percent union labor and more than 500 prevailing wage jobs, forms part of the AFL-CIO Housing Investment Trust’s $1 billion Bay Area Investment Initiative, a program announced last September to create jobs and rental housing in the region over the next five years.
Presidio Bay specializes in new construction and renovation of special-use facilities including mixed-use urban infill multifamily projects as well as office and industrial real estate. American Realty Advisors, the company’s partner in the current development, is a private equity real estate investment manager with more than $10 billion in assets under management.