San Francisco, California
In 2004 Forest City Enterprises, one of the nation’s premiere developers, was awarded the redevelopment rights to the 220,000 square foot historic Public Health Services Hospital building located in The Presidio of San Francisco National Park, the largest historic landmark in the park. The Presidio Trust, which is an entity chartered by the U.S. Congress for the development of The Presidio, chose Forest City for conversion of the building into “The Presidio Landmark,” a multi-family luxury rental apartment property that offers modern amenities with historic designs. In October of 2008, National (formerly known as NEBF Investments) made a mezzanine loan in the amount of $13 million. Alongside the mezzanine loan, National provided an $8 million partial repayment guaranty on behalf of the borrower to the project’s construction lender.
The adaptive reuse project primarily consists of the conversion of the 1932 hospital building into six floors of luxury rental apartments, containing 154 units. Seven new 3-bedroom townhomes were also constructed on a separate parcel adjacent to The Presidio Landmark.
The investment was appealing due to its unique combination of National’s priority mezzanine capital position, and an opportunity to invest in a historically significant property with a strong projected performance senior to a developer with whom National had a longstanding and successful relationship. The project was successfully completed in late 2010 and achieved LEED Gold certification for the renovation of The Presidio Landmark and LEED Platinum certification for the new construction of The Belle Townhomes by the U.S. Green Building Council.
Please visit The Presidio's website at http://www.thepresidiolandmark.com.
- 154 luxury rental apartment units
- LEED Gold and Platinum certifications
- Developed by Forest City
- 7 luxury townhomes
- Mezzanine financing
- Partial repayment guaranty