SAN FRANCISCO — Construction crews have begun infrastructure work on the redevelopment of Treasure Island and Yerba Buena Island in the San Francisco Bay Area. The total development costs for the 10-year project will be $6 billion, according to the San Francisco Business Times.
The development team, known as Treasure Island Community Development LLC, includes Lennar Urban (NYSE: LEN), Kenwood Investments, Stockbridge Capital Group and Wilson Meany.
The San Francisco Planning Commission approved the project in 2011, and Skidmore, Owings and Merrill LLP developed the master architectural and engineering plan. The development will feature up to 8,000 residential units, including 7,700 to 7,850 on Treasure Island and 150-300 units on Yerba Buena Island. At least 25 percent of the multifamily units will be offered at below-market rates.
The project will also include up to 140,000 square feet of new retail space, 300 acres of parks and public open spaces, up to roughly 500 hotel rooms, a joint police/fire station and 100,000 square feet of office space. The development team will also repurpose Building 1 and Hangars 2 and 3 on Treasure Island and the historic buildings on Yerba Buena Island. According to Kenwood Investments’ website, the development could feature a 20-acre organic farm, 410-slip marina and a wind farm.
In Phase I, the former Navy buildings currently being demolished will be replaced with a hotel, ferry terminal and 300 condominiums, according to the San Francisco Chronicle.
The development of Treasure Island is being executed through a public-private partnership between the city of San Francisco and Treasure Island Community Development. Treasure Island was transferred to the city from the U.S. Navy in 2010. The Navy base on Treasure Island was decommissioned in 1996 as part of the U.S. Congress Defense Base Realignment and Closure plan (BRAC).
Lennar Urban is a subsidiary of Lennar Corp., a Fortune 500 construction company based in Miami. The company’s stock price closed on Wednesday, March 30 at $47.81 per share, down from $51.85 per share at this time last year.
Kenwood Investments is a Sonoma, Calif.-based investment firm with a focus on real estate development, land entitlement, media, tourism and hospitality projects.
Stockbridge Capital Group is an independent real estate investment management firm based in San Francisco. Stockbridge and its affiliates had approximately $9.8 billion of assets under management as of Dec. 31, 2015.
Wilson Meany is a boutique urban infill developer focused on developments in the San Francisco Bay Area and Los Angeles County.
— John Nelson