The developer is a public-private partnership consisting ofpublicly held AvalonBay Communities of Alexandria, VA, NewYork-based Millennium Partners the San Francisco Bay Area RapidTransit District and Contra Costa County. James Kennedy, thecounty's redevelopment director tells the project starthas been awaiting the completion of structured parking to replacethe existing surface parking surrounding the BART station. The$50-million project, paid for largely by the redevelopment agency,was completed two weeks ago.


That was the first phase of the project. The second phase is a422-unit apartment project with 36,000-sf of retail, and 100condominiums, at a cost of approximately $200 million. Theapartments and the retail will be built over the next 24-30 months,and 20% of the units will be leased to people with lower incomes.The condominiums are probably 36- to 40 months out given marketconditions, Kennedy says.


The $150-million office component is a bit of a wild cardbecause its construction will be market driven, Kennedy says. If ananchor tenant comes along sooner, it could go up along with therest of the project. If not, it will follow closely on itsheels.


Only the land for the condos will be sold. The remaining land isbeing leased to the developers by the county for a 99-year terms.Kennedy says the county's benchmark return for the money it hasinvested is 6.5%. "The county's return is enhanced substantially bygetting an office tenant sooner rather than later," he says. "Wewould start to accrue ground lease revenue for what is now a vacantsite much earlier if that happens."

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