Argosy Real Estate Partners Exits Eviva Mission Bay
On August 8, 2017, Argosy Real Estate Partners III, L.P. and its parallel funds (“AREP III”), funds managed by Argosy Real Estate Partners, exited their investment in Eviva Mission Bay, a 129-unit Class A apartment development project in the Mission Bay District of San Francisco, California. The project was sold to a major institutional fund manager.
In June 2014, AREP III partnered with Integral Development to acquire and develop the project. The project consists of 103 market-rate units and 26 (20%) below market-rate (“BMR”) units with rents set at a specified affordability ratio for households earning 90% of area median income. Construction of the project began in March 2015 and was substantially completed in November 2016. During the lease-up period, average leasing velocity for market-rate units was 15 units per month, bringing occupancy of market-rate units to stabilized levels by June 2017. Lease-up of BMR units is still in process, proceeding more slowly due to strict regulatory requirements, but the units are heavily oversubscribed. At closing, leases had been signed for all 103 market rate units and nine of the 26 BMR units, bringing the project to 87% leased overall.