— Piedmont Residential and Condos in California, the city’s biggest apartment building with more than 300 units, will sell as a hedging strategy against the effects of the global recession, according to an agreement announced Wednesday.
Paredmont is one of many projects in the city that have been in the works for months, as developers have been eyeing the development of a mixed-use neighborhood, said Jeff Smith, Piedmouth’s senior vice president of real estate.
“This is a great opportunity to get some capital to be able to start on something that we feel will provide jobs and be a good addition to the area,” Smith said.
The development will also allow Piedmore to tap into the Piedmorton and San Carlos projects, which have already attracted high-profile developers such as JB Hi-Fi, The Condo Group and the New Jersey-based Cushman & Wolfson, to name a few.
Smith said the deals, which are expected to be completed in the first half of next year, will allow Paredmont to build a larger building with apartments and condos that could be rented out for a period of time, while keeping some of the development’s existing tenants.
About 90% of Piedmirend’s current units will be used for rentals.
The $8.5 million sale of Paredmont’s remaining 10% of the apartment building and the leasehold of two other residential properties, including a parking garage, will bring the total value of the project to $11.2 million.
Piedmond has been struggling in recent years as construction has slowed to a crawl due to the financial crisis and rising property taxes.
Piedmolts vacancy rate last year was less than 1%, the lowest in the region.
But the city has been finding ways to generate revenue and maintain a robust construction industry, especially after it was able to raise nearly $2 billion in the latest round of sales.
In addition to residential and condo sales, the Paredmonds planned to lease out several other buildings to developers, including the nearby South Lake Union, to build an affordable housing complex.
On Thursday, Paredmaront officials said they would lease the South Lake City Tower, which would be the second tallest building in the area and be the tallest building to be built in the past two decades, to developers for the first time.
Last month, the company said it planned to open a second building, called the Predmont Community Center, which will be built next to the current PiedMont complex, with offices, restaurants, shops and residential units.
After Piedmunds latest announcement, the property was up for sale on the city of Povedmont’s website.