Urban West Associates

Castles in the sky┬áIt is often said that every manÔÇÖs home is his castle. In San Francisco, new residential castles are nearing completion at One Rincon Hill, despite local concerns about seismic disturbance.  One Rincon Hill is a two-tower residential complex currently under development in the capable expertise of Urban West Associates. Upon completion, the two towers and townhomes will contain a total of 709 residential units. According to the developer, the total cost of the Rincon Hill project will be around $300 million. The project is located on the apex of Rincon Hill, next to the western approach of the San Francisco ÔÇôOakland Bay Bridge. The North Tower will reach a height of 495 feet, while the South Tower will scale 641 feet. It was designed by Solomon, Cordwell, Buenz and Associates and contains a number of unique features, including high-speed elevators and a large water tank designed to help the skyscraper withstand strong winds and the threat of earthquakes.┬á┬áMike Kriozere, who heads up Urban West Associates, paid $28.6 million for 1.5 acres of prime property in June 2006, to commence work on the One Rincon Hill project. ÔÇ£Everybody is talking about a big housing slowdown,ÔÇØ he commented, ÔÇ£but this is a community that is completely, totally 100 percent underserved in this product. If you live in Santa Clara County and youÔÇÖve got money, whatÔÇÖs your choice? A lot of people donÔÇÖt want a 5,000- or 6,000-square-foot house in Woodside.ÔÇÖÔÇÖOne Rincon Hill is not the first San FranciscoÔÇôbased project that Urban West Associates has taken on as developers. Although headquartered in San Diego, all of the companyÔÇÖs high-rise projects over 14 stories are located in the San Francisco Bay area, including Embarcadero South, another residential complex.Although now nearing completion, the project has not always run smoothly; the building site formerly contained a clock tower that was demolished shortly after the city approved the One Rincon Hill project. The construction of the townhomes and the South Tower took place between 2005 and 2008 but work had to be interrupted on a few occasions as a result of seismic concerns and a construction accident. Consequently, the design includes a 12 foot thick foundation embedded deep into serpentine rock, the same basis used for high-profile constructions such as the Golden Gate Bridge. Rising out of the foundation are the concrete core and large, tall columns of steel-reinforced concrete called outriggers. The core is attached to large outrigger columns by steel restraining braces that are designed to transfer building loads in an earthquake. These V-shaped restraining braces are said to act like a shock-absorber during earthquakes. The braces are also encased in a concrete and steel casing in order to prevent the braces from buckling and losing their strength. Despite the challenges nature has thrown at the project, Urban West Associates has managed to work without compromising budget as Kriozere explained: ÔÇ£We have not had to lower prices or make any concessions.ÔÇØ Apartments will cost between $500,000 and $ 2.5 million each but despite the expense and the current economic climate, response has already been excellent. Commenting on the ideal location (close to the financial district) and luxury appeal of the complex, Kriozere said: ÔÇ£ItÔÇÖs not complicated; there is only one site sitting on top of this hill overlooking the bridge and the city. Once you have the site, the challenge is to come up with a unique, aesthetic design. I think weÔÇÖve done that.ÔÇØ┬á In April 2008 Kriozere announced that Union Labor Life Insurance would provide a construction loan in the region of $195 million, financing 65 percent of the $300 million project cost. Kriozere himself invested 5 percent equity, with an investment arm of CB Richard Ellis adding a further 30 percent. Sales on the second tower are likely to begin in the spring of 2009 and Kriozere remains optimistic for further success. ÔÇ£I donÔÇÖt think you can time the market when youÔÇÖre building a building that takes two or three years to do,ÔÇØ he said. ÔÇ£If the market is good, itÔÇÖs a home run with the bases loaded. If the market is lousy maybe itÔÇÖs a ground-rule double.ÔÇØ ┬á