A Texas developer plans to enter the Bay Area market with the development of 314 apartment units in place of a failed medical development in Hayward.
Houston-based Goel Hayward MF is taking over a medical office project that fell through due to numerous code enforcement complaints and pending public health and safety notices, according to Jeremy Lochirco, Hayward planning commissioner.
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The Hayward City Council approved lead developer Amit Goel’s plans for two buildings that would total 74,000 square-feet and sit on four-acres. The main building will be five stories containing 251 units, wrapping around a 420-space six-level parking garage structure. The second is a four-story building with 63 residential units and 7,100 square feet of ground floor commercial space. The price and timeline for the development is unknown at this time.
On-site amenities will include an 1,813 square foot indoor clubhouse on the ground floor that will serve as a communal space for residents, with seating areas and electric only appliances to prepare and store food, among other features.
Goel is looking to capitalize on a hot East Bay submarket that just saw Oakland-based Lakeview Land Partners put a 52-unit property in Hayward on the market for $26 million, or $500,000 a unit.
The East Bay multifamily market has remained relatively strong while neighboring cities such as San Francisco and San Jose have lagged, according to a report by Cushman and Wakefield. The average monthly rent in Alameda County––the core of the East Bay and home to Hayward––hit $2,197 per-unit in the first quarter, up six percent from a year earlier. East Bay Rents vacancies are dropping, too, finishing the first quarter at 5.2 percent, compared to 7.4 percent a year earlier
“Even with the significant construction pipeline, effective rents are likely to remain elevated as most of those deliveries will be in the more expensive markets and within trophy assets,” the report said.
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