Exclusive: Why A Higher Bidder Dropped 1125 Market
Last week we wrote about the US subsidiary of Great Eagle Holdings buying MacFarlane Partners' prime 12,400 SF parcel planned for a 12-story residential building. There have been reports that the deal closed at $19.8M, but Bisnow has learned there was an original bidder with a higher price ($21M) who pulled out: a JV between a S.F. developer and a NY-based group with money from the Middle East.
The big challenge was there was a potential EIR for the not entitled property, which could have been required because of how wind impacts the site and the shadows that would be cast on the UN Plaza across the street, says Beckett Capital principal David Noravian, who repped that high bid group. That means the proposed mapping of the 164 units would have had to be scaled back. An EIR can delay the project up to 36 months, he says, and "no one wants that" when it comes to market timing. Here's David on the roof of his new office at 156 Second. He left his First VP role at CBRE in January to start the boutique firm, which focuses on repositioning and redevelopment deals in the Bay Area.