Trumark To Build Six Condo Properties in San Francisco
Total Investment Will Exceed $300 Million As For-Sale Housing Supply Dwindles
January 14, 2013
Trumark Cos. will make a major push into San Francisco's underserved condominium market with the acquisition of six sites for development of more than 500 units
The new Trumark Urban division of the company will spend more than $300 million to develop the mid- and high-rise condos, with the first project expected to break ground in early 2013.
Urban housing has been in high demand as the economy has rebounded, especially along the coast, but the bulk of the supply created so far has been rental housing, said Trumark principal and co-founder Gregg Nelson.
"We see an exploding opportunity, and an exploding demand, for for-sale housing in core urban areas because there's almost a complete lack of supply," Nelson said.
A November report on San Francisco housing inventory illustrates the dearth of condominiums in the pipeline. New condominium construction is expected to be minimal from 2012 to 2015, the Polaris Group reported in its November 2012 analysis of San Francisco real estate.
The sites are located in Lower Nob Hill, South of Market, Hayes Valley/Mid-Market, Potrero Hill, the Inner Mission and The Marina.
Besides lack of supply, the company is debuting its Trumark Urban division in San Francisco for three strategic reasons, says Michael Maples, who co-founded Trumark with Nelson in 1988. Tech companies opting to locate in San Francisco over Silicon Valley.
Second, a large portion of the young tech work force is choosing to live in San Francisco, and third, move-down baby boomers are choosing to maintain a residence in highly urbanized areas, Maples said.