A $135m (€116m) apartment development in Oakland, California known as The Alexan Webster project will be funded with all equity by UBS Realty Advisors, according to sources familiar with the project.
UBS did not respond to requests for comment.
Alexan Webster is a 234-unit apartment and retail development. Construction began earlier this month and it is expected to open in 2019. The retail part of the development will total 15,000sqft.
A significant number of apartment projects are being developed in the US this year, with most funded with a combination of construction debt and equity. The UBS-funded development in Oakland is one of a limited number to be 100% covered by equity, according to industry sources.
Alexan Webster is being developed as part of a joint venture between UBS and Trammell Crow Residential.
Bruce Dorfman, senior managing director of the Northern California division of Trammell Crow Residential, said, “Trammell Crow Residential is excited to play an important role in transforming this downtown Lake Merritt neighborhood into a new, re-energised retail district and entertainment area. The addition of this new $135m mixed-use development will also help meet the rising demand for both market-rate and affordable housing and neighborhood-serving amenities in Oakland.”
The project will be the first new apartment development for Trammell Crow Residential since it re-established its Northern California office with the purchase of Thompson/Dorfman Partners in 2015.
The developer now has more than $1bn in its apartment development pipeline in the San Francisco Bay area. The company is continuing to look for additional opportunities in the region, particularly in Silicon Valley, according to Dorfman.
“We are pursuing larger-scale infill sites in which we can offer pedestrian-friendly environments,” he said.