By Alex Girda, Associate Editor
San Francisco is seeing a clear increase in the renting market, with many former homeowners or potential homebuyers renting instead. As a direct result, rent rates have been climbing rapidly in the East Bay, especially Santa Clara and San Mateo counties, as reported by MercuryNews.com.
It was only a matter of time before developers would start capitalizing on this situation. That is the case with one of the most recent housing projects in San Francisco, and the largest market-rate apartment building in The Mission. 1880 Mission St. is the address of Avant Housing L.L.C.’s newest project, a joint venture between AGI Capital, TMG Partners and CalPERS.
The as-yet-unnamed residential project comes to fill a void of apartment availabilities in its niche: those of institutional size. According to a press release related to the project, The Mission, one of the oldest San Francisco neighborhoods and now home to those more trend-oriented and heavily linked to the hipster movement, lacks market-rate residential projects of more than 150 units.
Not anymore. Avant Housing has broken ground on the development meant to end this residential draught, and with leasing set to begin in summer 2012, the 202 units are expected to lease up at a fast pace. And no doubt other companies will soon start exploiting the lack of market-rate rental units in such a market in an attempt to cash in on rental rates reverting to pre-recession highs.