Cushman & Wakefield announced the firm has brokered a 99-year ground lease for a ±1.06-acre commercial site located at 411 Ivy Street plus an adjacent parking lot located in the Bankers Hill neighborhood of uptown San Diego. The lessee is Raintree Partners, which plans to redevelop the longstanding office property as a new multifamily community.
The lessor at the time of lease execution was 4th & Ivy Creative House North, LLC and 4th and Ivy Creative House South, LLC. Cushman & Wakefield’s Kevin Nolen, Tim Winslow and Jason Kimmel represented the lessor in the transaction.
“Securing 2021 peak market pricing for a ground lease in 2024 is a significant achievement, especially given the current challenges in the multifamily development sector. While new developments can be considered particularly risky, the Bankers Hill submarket has seen projects developed to some of the highest rents in the County.” said Kevin Nolen, Managing Director.
“This deal not only demonstrates exceptional negotiation and market insight from the Cushman & Wakefield team, but also highlights a rare success story in a time of widespread market contraction—achieving such terms in a difficult climate is noteworthy as it reflects resilience and strategic prowess in a turbulent environment. This deal also sets a benchmark for other deals in the multifamily space, showing that favorable outcomes are still possible amidst the challenged backdrop,” added Douglas Hamm, President of Creative House.
Specific details of Raintree’s plans for its new coastal multifamily redevelopment were not disclosed but the site is located in the sought-after established Bankers Hill area, is walkable or a short distance to numerous employment, amenities and attractions, and also offers views of Downtown San Diego, Point Loma, and the San Diego Bay.
Note, since the execution of this ground-lease transaction, 4th & Ivy Creative House North, LLC and 4th and Ivy Creative House South, LLC, has since sold the 411 Ivy Street site to a new ownership.
