Chateau Group Trades San Gabriel Condo Project for $125M

UPDATED: JULY 12 at 10:30 a.m.:

Chateau Group recently closed a $125 million deal to sell its unfinished Province San Gabriel mixed-use project, according to property records. The buyer is an LLC called UP Province Holding.

The project has 50,000 square feet of retail space below 127 residential units, located around 400 West Valley Boulevard. The project is near to completion, according to a City of San Gabriel representative. In a 2021 city report, the residential units were identified as condominiums.

An architectural firm which worked on the project, KTGY, noted residential units would span 650 square feet to 1,360 square feet in a six story building based on more than 2 acres.

It is not known if the buyer bought the Province San Gabriel on contingency of completion, or whether the buyer will finish the project. The buyer’s LLC is linked to Unity Prosper, a developer of properties for seniors. Province San Gabriel is listed on Unity Prosper’s website unity-prosper.com.

This trade’s price per unit — at nearly $1 million — could be misleading, as it appears the deal could involve other land. Also, senior facilities don’t conform to standard real estate metrics as the costs of health care, meals and other services come into play. Chateau Group and UP Province Holding did not return calls requesting comment.

While this multimillion-dollar deal would be significant anywhere, it’s especially notable in the city of San Gabriel, with a population of around 39,000, said John Rodiles, national sales manager for The Mogharebi Group, a multifamily firm which has been active in San Gabriel Valley.

“Most cities want mixed-use,” Rodiles said. “It’s a major shot in the arm for Valley Boulevard. It’s new construction and it’s targeting higher-end retail.”

According to its company website, Chateau Group has a handful of multifamily projects under construction. They include a project called One Gallop in Arcadia, a short drive from the city of San Gabriel. One Gallop’s plans call for 96 condominiums, as well as restaurant and retail. Chateau Group has also worked on projects for luxury single-family homes and hospitality.

The company is not the only player seeking to develop multifamily projects in San Gabriel.

The City of San Gabriel approved plans last month for a four-story building at 205 East Valley Boulevard. Plans for the project include 51 apartments, divided into one- and two-bedroom floorplans, which would range from 755 to 1,126 square feet. There would be more than 10,500 square feet of commercial space and a 128-car underground parking garage.

According to a City of San Gabriel representative, construction is anticipated to begin in the latter half of 2023 for a 243-unit complex located at 700 San Gabriel Boulevard, which also would include 73,000 square feet of commercial space, as well as parking for 983 vehicles. Pacific Plaza Premier Development Group is behind the project.

Another San Gabriel area development that was put on the market was Rubio Village, located at 201 North San Gabriel Boulevard. It has 179 residential units, as well as 17,000 square feet of ground-floor commercial space and parking, according to media reports. It was listed for $39 million on March 30, according to the Trulia listing site.

Addition: Previous story did not include information about Unity Prosper, the developer of properties for seniors.