Chinese investor enters North America
SRE Group, an integrated real estate developer focusing on high-quality development and renewal projects in first-tier cities in China, has acquired a majority stake in a parcel located at 75 Howard St. in San Francisco. This marks SRE’s first investment in North America.
The sales price was not disclosed; however, it is estimated between $88 million to $100 million.
SRE acquired an 80 percent interest in a joint venture with a fund controlled by New York–based Paramount Group and the San Francisco regional office of JBC 75 Howard LLC, an affiliate of Chicago-based The John Buck Co. 75 Howard has been entitled to build a harbor-front complex with high-end residential, retail and parking uses.
The property is a parcel of land with an area of roughly 20,020 square feet. The proposed project will include 120 units, rising 220 feet, 21 stories, replacing an eight-story parking garage, which was demolished in 2016. Designed by SOM, 75 Howard will sit between the San Francisco-Oakland Bay Bridge and the Ferry Building next to the Embarcadero.
China Minsheng Investment Group has a controlling stake in SRE.
According to the San Francisco Planning Department’s The Pipeline Report, there are more than 1,442 ongoing construction projects in the city. During the first quarter there were 26 projects approved, totaling more than $8.22 million.
The San Francisco consolidated pipeline consists of development projects that would add residential units or commercial space, applications for which have been formally submitted to the Planning Department or the Department of Building Inspection. Pipeline projects are at various stages of development: from applications having been filed to entitlements secured; from building permits approved and issued to projects under construction.