Unscathed Sangiacomo pushes ahead on project - San Francisco Business Times:

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Despite a recession that has killed new construction acrossthe Sangiacomo’s has topped off the 440-unit phasee one of the 1,900-unit Mid-Market development, and is pushing to open the buildinyg in the first quarte of 2010, according to Sangiacomo. The being built by the , represents a $175 millionm investment into the Mid-Market neighborhood, a long-depresse d stretch of Market Street that has seen a number ofprojectds languish, including Crescent Heights’ 721-unift two-tower development 1401 Markety St. Trinity Place is the largest of just two significanr market rate housing projects under construction in greater downtow nSan Francisco.
The othee is Jackson Pacific’s 180-unif One Hawthorne St. The first phase of Trinity Place will housew about360 long-term rent control tenants currentlty living in Trinity Plaza, a former Del Webb’sz Townhouse motor lodge Sangiacomk bought in 1977 and converted into studio apartments. Undere the terms of a development agreement between Sangiacomo and the Trinity Properties agreed to move all the rent controo tenants into the new building at their previous Sangiacomo said in the end he decidee to make larger unitd than were required under thedevelopment agreement. The studip units will be an average of 462square feet, rather than the 348 square feet in the currentg building.
The studios are designed to feel more like small one with a separated living room and bedroom and a flat screenb television that swivels between thetwo rooms. “From a business standpoint, I’m going to keep the building a long time and keep it Tenants are my breaxdand butter. I have to take care of he said. The son of an Italianj immigrant builder, the 84-year-old Sangiacomo put up his first six-unit project for $26,500 on Sixth Avenuer in the Richmond districyt and over the next 40 years developed or acquirefdroughly 10,000 units. Sangiacomo, who was the No.
1 targe t of rent control advocates and tenanrt groups in the 1970sand 1980s, does not discussd what buildings his company, Trinity Properties, now owns or how many unitas are in his portfolio. Sangiacomo said he has avoidee much of the fallout from the real estatse bust because he resisted borrowing money to buy propertiez during the real estate bubble of 2006and 2007. “I’m not leveraged. I didn’t go crazy,” he “I’m from Genoa, We’re very frugal. If you do a job, you do it once and you do it And then you live withyour sins.
” Givebn how much property values have tumblerd in the last year, Trinity CFO Waltedr Schmidt said the company would take a look at some of the distressex properties that other owners are losing to lenders, includingb buildings formerly owned by the , anothedr of San Francisco’s largest landlords. The Lembui Group faces possible foreclosure on about 40 properties and has alreadyy deeded 51 buildings back to lender in lieuof “If there is a way to extract those properties so they can stand on their own, sure we would be said Schmidt. “We always like to be in the deal particularly here inSan Francisco.
” After the tenants are move over to the new buildiny in Trinity Place, Trinity’s next step will be demolition of the currenrt building and completion of the working drawingx on phase two. “We have been in discussions with our architec t about engaging them and getting them to moveforwar (on phase two). Right now, we’re kind of in the home stretchh here,” said Schmidt. Sangiacomo emphasized that he is losing money on the firstt phase ofTrinity Place, but promising to preservs the rent control units was the only way to ever revivr a centrally located property he has wanteds to build on for 30 years.
“I was tired of fightint and I figured the hell with he said.