Luxury Apartment Complex Fetches $101M-Plus

SAN BRUNO, CA-The Meridian Luxury Apartments here has changed hands for $101.2 million. The developer, a joint venture of Regis Homes, TMG Partners and MacFarlane Partners, sold the 300-unit complex just south of San Francisco to Colorado-based apartment REIT Archstone-Smith.

Opened in late 2004 and stabilized by summer 2005, Meridian Luxury Apartments is the first phase of the Crossing at San Bruno. The Crossing is being developed on 20 acres of former US Navy property located at 900-1000 Commodore Dr., across the street from Shops at Tanforan, a 1.1-million-sf retail center.

When complete, the Crossing will have about 1,000 residential units (including 300 units for seniors), 300 hotel rooms and a fine dining restaurant. A developer’s representative tells GlobeSt.com the second phase of development, the 185-unit Paragon apartment complex, got started in July and should open next summer. Last week, SNK Realty Group completed the purchase of two parcels at the Crossing for a 350-unit development. Set to start in the spring, the project will include two five-story buildings containing 187 condominium units and 163 apartment units and subterranean parking lots. The entire community is expected to be complete within four years, according to the source.

Regis Homes of San Mateo and TMG Partners of San Francisco bought the development site for the Crossing at auction from the US General Services Administration in October 2000. Regis, TMG and San Francisco-based MacFarlane Partners began construction of Meridian in late 2002. MacFarlane invested in Meridian on behalf of its venture with the California Public Employees’ Retirement System, which invests in urban-infill properties in major metropolitan areas nationwide.

Located at 1099 Admiral Court, Meridian was financed with proceeds from the sale of tax-exempt bonds issued by the Association of Bay Area Governments. Given the financing, 20% of Meridian’s apartment units designated for residents meeting state requirements for “very low incomes.” The complex is currently about 95% leased. Mary Ann King and Brett Betzler of Moran & Co. brokered the sale.