Is 30 Van Ness A Risky Investment?

Yesterday we told you about one of the hottest properties now up for grabs in the city: 30 Van Ness. But who would pony up the likely more than $50M for the development opportunity? Even though there is a lot of value in the development rights, given the time it will take to get to the point where you can develop it, our sources say the asset will have to be priced off the income. It will be an aggressive price, maybe a 3% to 4% cap rate, "but it is very risky given the time lag," our source says. Time will tell; Newmark Cornish & Carey is marketing the 38k SF parcel, which can go the creative office or residential route.

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