Fortress Investment Group and Rockpoint Group LLC have sold a majority interest in the Parkmerced redevelopment project in San Francisco to a group of New York investors in a deal said to value the 152-acre residential complex at more than $1.35 billion. The group of investors, by developer Mark Karasick, will now control the redevelopment of 8,900 units, with a groundbreaking slated for 2015 or 2016. According to the Wall Street Journal, Karasick's group invested nearly $200 million for "more than a 70 percent stake" in Parkmerced's owner, Parkmerced Investors Properties, a group led by New York real estate investor Robert Rosania, and including San Francisco's Fortress and Boston's Rockport Group.
"It means (the project) has successfully recapitalized and now is poised for an incredible future," said Parkmerced spokesman P.J. Johnston. "The speed won't be impacted — we're still set for a series of four phases. But with the finances in order and the legal challenges behind us, the path is clear."
"The upward surge in rents generally over the past three years forgives a lot of problems," said Patrick Carlisle, chief market analyst at San Francisco's Paragon Real Estate Group. "That San Francisco has the highest employment growth rate in the country also helps.
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