September 2017

BUILD / September 2017 7 NEWS , Jefferson Pacific Beach is a $103.5 million develop- ment with bay-front views, comprising of three-levels of podium construc- tion on a nearly three-acre site. For decades, the land had been home to the former Guy Hill Cadil- lac dealership. PCCP, LLC a Los Angeles-based real estate finance and investment management firm provided the construction loan. Jefferson Pacific Beach will pro- vide 172 luxury apartment homes and 14,000 square feet of ground floor retail and creative office space. San Diego’s award-winning architectural firm, Carrier Johnson + Culture, created an innovative, leading-edge design, which in- cludes unique amenities, such as a surfboard repair/DIY station and water sport storage space. Jeffer- son Pacific Beach will soon be an iconic addition to one of San Die- go’s most vibrant communities. In addition, the project includes upgrading seven existing traffic signals and the addition of one new traffic signal within the Mis- sion Bay Drive corridor with an ‘Adaptive Traffic Signalisation’ system. This state-of-the-art sys- tem allows real-time traffic coor- dination to achieve more efficient traffic flow and will relieve con- gestion on Mission Bay Drive. “JPI’s Western Region is in San Diego, so it goes without say- ing that this project has special meaning to our team,” said Todd Bowden, senior vice president and managing development part- ner of JPI West. “It brings us great pride to be a part of the city’s ef- forts to revitalise this area of our community.” “PCCP has enjoyed a successful relationship with JPI, which has an in-depth knowledge of and ex- perience in the local market,” said Michael Hoyt, Vice President with PCCP. “We believe that this pro- ject will provide quality product in an area that has a strong demand for new development.” JPI’s Jefferson Pacific Beach is located directly adjacent to Mis- sion Bay Park. Developed from the 1940’s through the 1960’s, Mission Bay Park is the largest aquatic park of its kind in the country. It consists of over 4,600 acres in roughly equal parts land and water. Mission Bay boasts 27 miles of shoreline, 19 of which are sandy beaches with eight loca- tions designated as official swim- ming areas. Annual attendance in the park is estimated at 15 million. San Diego City Councilmember Lorie Zapf said: “Jefferson Pacific Beach will be the catalyst for great improvements to the Mission Bay corridor. I look forward to watch- ing this project break ground and offer much-needed housing in Pa- cific Beach.” Jefferson Pacific Beach will be a neighbour to the iconic flagship Rubio’s restaurant on Mission Bay Drive. Rubio’s founder, Ralph Ru- bio, said of the project: “Jefferson Pacific Beach will bring a fresh, community-oriented development to the Mission Bay corridor, while preserving the uniqueness of our neighbourhood. I think it’s only the beginning of greater, well-de- serving things to happen here.” This represents $55 billion in property val- ue. More importantly, some 72,000 apart- ment units sit within the 100-Year floodplain and are likely to be flooded. “Unfortunately, the number of dis- placed residents could be far larg- er than current media reports indi- cate,” said CoStar group founder and Chief Executive Officer, An- drew Florance. “Our property by property review of the apartment buildings in the floodplain re- veals an outsized share are low to moderate income households, including those in Southwest Houston where the bayous have overflowed.” In total, there are 12,000 proper- ties with 400 million square feet of space that fall within the 500-year floodplain. Only 9 million square feet of space, including 4,000 apartments are within a designat- ed floodway and most are prob- ably inundated with floodwaters. However, 175 million square feet located in the 100-year floodplain, including 72,000 apartment units and 20 million square feet of of- fice space, are likely seeing wa- ter incursion. Another 225 million square feet sits in the 500-year floodplain and is also at some risk of flooding. “Of the $55 billion at risk, $16 billion are apartment buildings in the 100-year floodplain,” said Flo- rance. “As soon as CoStar is al- lowed, we plan to do an air survey to assess the damage.” JPI Announces Close of Financing for Jefferson Pacific Beach CoStar Group, Inc., the leading provider of commercial real estate information, analytics and online marketplaces assessed the potential impact Hurricane Harvey could have on the Houston commercial real estate market – multifamily, office, retail and industrial buildings - and found that 27%of the gross leasable areamay be flooded. JPI, a leader in the development of Class A multi-family communities, has announced the close of construction financing for Jefferson Pacific Beach, scheduled to break ground late last month. The submarket that will be most affected is likely to be Southwest Houston. This highly dense sec- tion of Houston is home to more than 66,000 apartment units, of which nearly 30% are estimated to be impacted. Within Southwest Houston, the Braeburn, Greater Fondren and Sharpstown neigh- bourhoods have the highest num- ber of units that are in the 100- year floodplain. Each of these neighbourhoods’ borders Brays Bayou, one of the river ways that snakes through Southwest Hou- ston and has overflowed because of the torrential rain. An additional five million square feet of space is under construc- tion within the floodplain, includ- ing 3,144 apartment units. This represents about one-fifth of the 25 million square feet of commer- cial real estate under construction in Houston (which includes more than 12,000 apartment units). Most of the apartment buildings (1,170 units) under construction within the 100-year floodplain are concentrated near the Medical Centre. The most impacted office submarket is Greenspoint, which has elevated vacancies after the departure of Exxon Mobil in late 2015. Here, some 3.5 million square feet falls within the 100- year floodplain. To view the map or list of po- tentially affected properties visit www.costar.com/houston