strada assisted macquarie bank in evaluating the potential in an existing property located in san francisco, ca. the asset in question was an entitled residential project adapted to a previous office building entitlement in the mid-market neighborhood. brick was called upon to help evaluate potential re-entitlement strategies aimed at exploring the options available to increase the residual land value and to ascertain if it made more sense to try to dispose of the property as-is or to invest in securing a new entitlement for it.
brick evaluated the project at multiple levels of scale, construction cost, and density scenarios to fully explore the latent potential given the zoning controls in place. brick evaluated 3 schemes in concepts that considered:
1. a phased solution that explored a mix of building heights and typologies (mid-rise & high rise) that allowed a smaller initial development investment preserved increased density and capital requirements for a more favorable market cycle to complete the development potential.
2. a purely mid-rise first cost sensitive development with maximum density completed in a single phase.
3. a predominantly high rise development that maximizes the number of units with a view premium, with a mix of boutique garden units atop the parking podium.