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OAKLAND, CA-MacFarlane Partners of San Francisco and publicly held Forest City Enterprises have finalized their partnership agreement for development the 665-unit first phase of the Uptown residential project in Downtown Oakland. MacFarlane, a manager of pension fund money, is investing in the $187-million phase on behalf of the California Public Employees Pension System, which has allocated some $3 billion for urban-infill developments in major metropolitan areas nationwide.

The apartment units will be housed in five four- to six-story buildings situated on about five acres bounded by 19th and 20th streets, and San Pablo and Telegraph avenues. The site is one block north of the historic Fox Theater and one block west of the 19th Street Bay Area Rapid Transit (BART) underground-rail station. The building fronting on Telegraph, a major local thoroughfare, will have 9,000 sf of street-level retail. A 25,000 sf public park also will adorn the property.

About 25% of the apartment units will be designated as affordable units for rent to low- and moderate-income residents. The remaining apartments will be rented at market rental rates. The first units are scheduled for completion in the fall of 2007. All of Phase I is expected to be completed by the end of 2008.

The public-private project ceremoniously broke ground in December but the joint venture agreement between MacFarlane and Cleveland-based Forest City has only now been finalized. The Forest City/MacFarlane venture will develop and operate the property on the site subject to a long-term ground lease from the Redevelopment Agency of the City of Oakland. The agency also issued tax-exempt bonds to finance the project's construction, and the City of Oakland has provided funding for environmental remediation, public infrastructure, site acquisition, affordable housing and the public park.

The size of the Uptown project has gone up and down over the years. In the boom time of 2000, Forest City was planning for 2,100 units of housing and 100,000 sf of retail. By early 2002, Forest City's vision had shrunk to 807 units and 50,000 sf of commercial space. In fall 2002, the city approved a preliminary plan for 1,000 units and 28,000 sf of retail. Last year, the city approved a plan for 700 rental units, a 285-unit condominium tower and 14,000 sf of retail.

Uptown Phase I is the latest in a series of joint investments between MacFarlane Partners and Forest City. Other projects that the two firms have teamed to develop include Metropolitan Lofts, a 254-unit apartment building in Downtown Los Angeles; 1100 Wilshire, a high-rise office building in Downtown Los Angeles that is being converted into residential condominiums; and Mercury, an office-to-condominium conversion project located in the Mid-Wilshire district of Los Angeles.

Instant Insights /

MacFarlane, Forest City Finalize Partnership for $187M Uptown Project

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