Related California Secures Over $400M In Construction Financing For 1500 Mission Project
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Related California and Deutsche Bank got a big boost in financing for their project at 1500 Mission St. in San Francisco. Deutsche Bank purchased $316.8M in tax-exempt bonds to finance construction. The bank also will purchase the balance of the financing, $141.7M of variable rate demand notes. This is one of California’s largest-ever construction financing deals.
Between 1500 Mission St., Transbay Block 8 and 1601 Mariposa, Related California has more than $1.5B of assets under construction and another $1B in development in Northern California. Additionally, Related California has seven affordable housing developments in pre-development in the region, totaling more than 1,000 units.
The project, designed by Skidmore, Owings and Merrill, will include two buildings. A 550-unit mixed-income, mixed-use residence will include a 31K SF Equinox Fitness facility, and a 460K SF office building will be owned by the City and County of San Francisco.
The project was entitled in partnership with the San Francisco Department of Real Estate. The office building will be a one-stop shop permitting center, and will be the future home for the Planning Department, Department of Building Inspection and the Department of Public Works.
Related California purchased the building from Goodwill Industries for $65M in 2014. Goodwill recently purchased a permanent home in the Tenderloin to be closer to the populations it most frequently serves.
Demolition began at the site in November and the City and County of San Francisco and Related California are expected to celebrate a formal groundbreaking at 1500 Mission in early 2018. Construction is expected to last 28 months with the grand opening in May 2020.