Natalie Gubb Commons II
(Transbay Block 6)
Natalie Gubb Commons II (NGC-II) is an 8-story, 70-unit development in San Francisco’s East Cut neighborhood. The building is part of a larger market rate joint venture development with the Solaire, an adjacent 32-story, 409-unit luxury market rate residential tower. NGC-II and the Solaire are air rights parcels that both sit on top of a large shared parking garage; these three components make up the entire Transbay Block 6 project. In an effort to reduce costs, both properties shared design, construction, and consultant teams under separate contracts. Additionally, cost efficiencies were designed into the project through shared amenities (e.g. courtyard) and shared systems (e.g. electric and emergency).
Total Development Cost: $27.5M
Funding Sources: San Francisco Office of Community Infrastructure & Investment, 4% Tax Credits, Tax-exempt Bonds, Federal Home Loan Bank - Affordable Housing Program, Perm Mortgage, General Partner Equity, Deferred Developer Fee
Awards: 2017 San Francisco Business Times Real Estate Deal of the Year
Challenges & Lessons Learned
Various funding sources required NGC-II to adhere to a strict completion and lease-up timeline. Unfortunately, the market rate tower fell behind schedule and the affordable mid-rise building became the critical path in the overall project schedule. This required several components of the market rate tower, as well as the shared components of Transbay 6 (e.g. garage, courtyard, sidewalks, utilities, and building systems) to be completed out of a typical construction sequence.
Another major challenge was that, after both buildings were complete, it was discovered that the shared electric system had not been properly installed. Some shared and separate systems were crossed and not tied to the correct meter. By the time this was discovered it was too costly and too disruptive to adjust major electric systems, so a network of submeters was installed. This required renegotiating the Reciprocal Easement Agreement and agreeing to a methodology to back charge and reconcile certain electric expenses.
Role: Senior Project Manager
Managed project from 30% construction completion through perm conversion
Drove efforts with the market rate development partner, development team, and various City agencies to ensure that the affordable project completed construction on schedule and on budget
Led efforts to resolve electric system issues and renegotiated the Reciprocal Easement Agreement with the market rate partner
Image credits: (top to bottom) Michael O’Callahan Photography (header), Michael O’Callahan Photography, Michael O’Callahan Photography, Michael O’Callahan Photography, Michael O’Callahan Photography, Solomon Cordwell Buenz.