CBRE just solidified a 50/50 JV between AIG Global Real Estate and Associated Estates Realty to develop a three-acre site at 8th and Harrison. The property will be branded 350 Eighth, comprised of 410 apartment units and 40k SF of office and retail spread across eight buildings. The man tasked with matchmaking Associated Estates with an equity partner was Brian Eisendrath of CBRE’s debt and structured finance group (shown here deboarding a teeny plane in Arizona to tour a deal his team financed for Bascom Group, he looks exactly like a member of Led Zeppelin).
Brian phoned us this morning from CBRE's Century City office in LA, telling us this is the first time Associated Estates and AIG have teamed up to work on a project together. Associated Estates, a REIT HQ'd in Richmond Heights, Ohio, liked that the real estate arm of the insurance giant AIG also wanted a 50/50 structure (that and it's got a good rep for being a JV on multifamily projects). Site work has begun and first occupancy is scheduled for Q4 '15. Right now, the site is a vast former bus parking lot, situated across from the IronWorks building and next to Stud's.
Brian estimates the entire project will cost some $220M. He said he explored a number of relationships he had, but at the end of the day AIG was the best fit. He thinks the project will blend into the area pretty well and garner high demand. He's not working on anything in S.F. at the moment but is doing a lot across the country, he tells us. (He'll put that or another plane to good use.)
