August 2, 2011
Millennium Tower: "Confidential Investment Opportunity" (And Sales)
A plugged-in tipster delivers the email from the Managing Director of Carlton Advisory Services, Inc. with respect to a "Confidential Investment Opportunity" in San Francisco:
Carlton has been retained on an exclusive basis by a European investor to sell a membership interest in a luxurious 60-story residential tower in San Francisco, CA. The development was delivered in 2009 and consists of 419 units. At 645 feet, the development is the fourth tallest building in San Francisco and the tallest residential building in the United States west of Chicago.
Through June 30, 2011, 188 units have already been sold. During 2011, sales have accelerated substantially. The developer has closed 40 units for the period from January 1, 2011 through June 30, 2011 and approximately 16 more units are under contract.
Said building would be Millennium Tower.
To be clear, the offering isn’t for any specific units but rather an interest in the development by way of a minority investor within the development group. And it’s entirely possible the offering is simply an attempt to value said interest.
First Published: August 2, 2011 1:30 PM
Comments from "Plugged In" Readers
Ritz Carlton LA is officially the tallest residential tower west of Mississippi.
Posted by: sf at August 2, 2011 3:41 PM
That's a mixed use building. I think they are talking about purely residential buildings.
Posted by: Turin at August 2, 2011 3:53 PM
"sales have accelerated substantially"
Which probably means that prices have fallen substantially. Anyone know where these have been selling in terms of $ psf?
Posted by: Legacy Dude at August 2, 2011 4:25 PM
Look at that curb appeal!
Posted by: snark at August 2, 2011 4:42 PM
Which means we need capital infusion to keep the property.
I believe the owners of the Four Seasons (working from memory) and they almost lost that property until a capital partner came in and paid off debt
They are also trying to develop the Burlingame Drive Inn.
I guess the banks are still falling for a note from the borrower.
"I hereby, promise to pay this time"
Posted by: inclinejj at August 3, 2011 7:45 AM
Undoubtedly this deal was developed with a varied capital stack with multiple sources of leverage in the form of debt (loans) or equity. One of those pieces is probably tired of waiting fot its payoff and is likely selling that piece.
Posted by: Grubber2 at August 3, 2011 1:48 PM