Archstone-Smith Picks Up Second San Bruno Asset
- GlobeSt.com March 21, 2006
- Brian K. Miller
SAN BRUNO, CA-The Colorado-based apartment REIT Archstone-Smith Trust has acquired its second asset here, paying $65.1 million for the Paragon Luxury Apartments. The 185-unit multifamily complex represents the second phase of the Crossing at San Bruno, a master planned mixed-use development rising from a 20-acre former US Navy Property.
In December, Archstone-Smith paid $101.2 million for the 300-unit Meridian Luxury Apartments located next to the Paragon development. The developer and seller of both properties is a joint venture of Regis Homes, TMG and MacFarlane Partners. San Francisco-based MacFarlane invested in Meridian and Paragon on behalf of its venture with the California Public Employees’ Retirement System.
The complex will include one-, two- and three-bedroom apartments ranging from 650 sf to 1,300 sf. Twenty percent of the units will be designated for low-income residents. The remaining units will be rented at market lease rates.
Paragon residents also will have use of the Club, an 8,000-sf, $4-million recreation center and fitness club located between Paragon and Meridian. The Club features a conference room, business center, home theater, card and game room, workout rooms and a swimming pool covered with a retractable roof.
The Crossing is being developed on 20 acres of former US Navy property located at 900-1000 Commodore Dr., across the street from Shops at Tanforan, a 1.1-million-sf retail center. The land for the Crossing was purchased at auction in 2000 from the US General Services Administration. When complete, the Crossing will have about 1,000 residential units (including 300 units for seniors), 300 hotel rooms and a restaurant.
Late last year, SNK Realty Group acquired two parcels at the Crossing for a 350-unit residential development. Scheduled to start in this spring, the project will include two five-story buildings containing 187 condominium units and 163 apartment units and subterranean parking lots.