May 28, 2015
A joint venture with an initial capital commitment to fund $500 million for the development of Bay Area multifamily housing has been inked by Trammell Crow Residential and Thompson | Dorfman Partners LLC. This venture will seek mixed-use, multifamily development and acquisition opportunities in urban infill locations throughout the Bay Area.
Will Thompson, a principal of Thompson | Dorfman Partners, tells GlobeSt.com:
“The San Francisco Bay Area multifamily market remains one of the strongest markets nationally, with significant supply constraints and high demand. It is arguably one of the most difficult entitlement environments in the country, which has historically kept the market from being oversupplied.”
The $500 million joint venture will fund the development of multifamily housing including part of Alameda Point, which would add 800 residential units, including 200 affordable homes, as well as retail and other commercial space. Thompson | Dorfman is handling the 600 market-rate units in the project as part of a development partnership that includes srmErnst, Madison Marquette and Eden Housing.
Bruce Dorfman, a principal of Thompson | Dorfman Partners, tells GlobeSt.com:
“Certainly multifamily development has become overheated in certain markets across the country, and, even in the Bay Area, we have quite a lot of development in concentrated areas. However, if you look at the overall supply/demand dynamic, there is still a significant undersupply of housing at all levels. We will continue to focus on core Bay Area infill locations that are transit-oriented–given this focus, we are favorably disposed to sites that have a large retail component as part of a residential mixed-use project.”
Thompson | Dorfman Partners, a Mill Valley, CA-based developer of multifamily real estate and investment firm, was formed in 1999 by Thompson and Dorfman, 30+ year industry veterans. The firm focuses on multifamily residential development, with particular emphasis on well-sited, urban in-fill and mixed-use properties located in high-growth, technology-driven markets in the state. Collectively, the partners have developed more than 15,000 multi-family homes in 45 California apartment and condominium communities.
“With Thompson | Dorfman’s nearly 30 years’ experience in the San Francisco Bay Area market, this partnership allows us to tap into its local market expertise to invest in multifamily developments in this under-served region,” said Ken Valach, CEO of Trammell Crow Residential. “With more than 35 years of experience in residential development and asset management as a national firm, we look forward to re-establishing a presence in the Bay Area.”
Trammell Crow Residential, the multifamily division of Dallas-based Crow Holdings, has developed nearly 250,000 units in major metropolitan markets. Trammell Crow mixed-use developments were featured in the April 2015 issue of Real Estate Forum.