Presidio Bay secures $108M loan for 193-unit housing complex

A partnership between Presidio Bay Ventures and American Realty Advisors has secured a $108.3 million financing package backed by the largest project built under San Francisco’s Home-SF density bonus program, according to a news release from Presidio.

The property, known as Ventana Residences, is a 193-unit apartment building in Balboa Park that was completed in 2023. Located at 99 Ocean Avenue, the complex contains a mix of studio, one-bedroom, two-bedroom and three-bedroom units with rents ranging from $2,675 to $6,450 per month. The property is currently 96 leased, according to a press release from Presidio Bay.

The new financing package includes senior permanent debt from Wells Fargo and a mezzanine loan from TDA Investment Group. Mortgage banking firm Gantry brokered the deal.

Presidio Bay and American Realty also signed a voluntary agreement with the California Municipal Finance Authority and Pacific Housing that puts rent restrictions on half of the units in the building. When the partnership secured the construction loan on the property in 2021, only 48 units — or 25 percent of the total number of apartments — were set aside as affordable.

“By balancing financial flexibility with our commitment to affordable and workforce housing, we’re securing the long-term stability of this project, ensuring it remains a vital part of the city’s housing landscape for years to come,” said Cyrus Sanandaji, the managing principal and founder of Presidio Bay.

Home-SF is a local program that aims to boost the housing stock for low-income families. The city provides developers with density bonuses and zoning modifications in exchange for having 20 to 30 percent of apartments being set aside as affordable housing.

The mezzanine loan will retire the maturing construction loan on the asset, which was provided by AFL-CIO Housing Investment Trust in 2021. The investment trust, which is tied to the country’s largest federation of labor unions, provided the $120 million loan as part of its $1 billion Bay Area initiative.