By J.K Dineen, Reporter – San Francisco Business Times
Trumark Urban has lined up Dallas-based Hillwood Investments as equity partner on its $400 million pipeline of San Francisco condo projects.
While the terms of the deal were not disclosed, Hillwood West is “committing to a substantial amount of equity necessary to build seven condominium projects with more than 600 units in desirable San Francisco neighborhoods,” Trumark said in a statement.
The announcement of the partnership comes a week after Trumark closed on the acquisition of two development sites, one in Pacific Heights and one in Cow Hollow. The first acquisition, a $37.8 million development on the site of a former gas station at 1501 Filbert, will break ground on July. The second purchase is the existing Dugoni School of Dentistry campus at 2155 Webster St. in Pacific Heights. Trumark is proposing to redevelop the building as a 77-unit condo project with spacious, ultra-delux unit. That project will cost $155 million. Trumark will spend the rest of this year on design and entitlements and plans to break ground in 2014.
Arden Hearing said Trumark had four or five properties under agreement when talks with Hillwood started hearing up. “They liked what we had but said ‘load the boat and get more,’” said Hearing. “So we have been aggressive in getting more.”
In addition to the seven properties the group controls, Trumark is in negotiation to buy two more sites.
Hillwood is part of a portfolio of companies headed up by Ross Perot Jr.
“Trumark has assembled an unparalleled portfolio in one of the finest cities in the world,” said L.M. Cummings, president of Hillwood West. “We have a high level of respect for Trumark’s ability to execute development projects over its 25-year history. When we toured these sites and saw the vision, and then considered the stage of the economic recovery that we appear to be in, we were excited to team up with Trumark in pursuit of these opportunities.”