Blog : San Francisco

Mid-Market’s renaissance is getting more firepower as its roster of projects grows

Mid-Market’s renaissance is getting more firepower as its roster of projects grows

Synapse Development Group began renovation in fall 2015 of the handsome, historic Grant Building, replacing offices with a 239-bed hostel-hotel. The youth-oriented “yotel” is to have 203 “micro rooms” that are smaller and cheaper than standard hotels. The developer also plans to include a cyber café, game room, media room, laundry room, guest storage lockers and a rooftop deck.

In May, the city’s Board of Appeals rejected a challenge from hotel and restaurant workers’ union Unite Here Local 2. Aimed at travelers reliant on public transit (the hotel won’t have any off-street parking), the Planning Commission approved it, citing how its young guests would likely support neighborhood arts and theater. Development is scheduled to finish this fall.

“We’re in the heart of this revitalization with this Mid-Market area,” said Synapse CEO Justin Palmer.

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Synapse Development Group Announces Platform Joint Venture With Leading Kuwait Real Estate Firm Aqarat

Synapse Development Group Announces Platform Joint Venture With Leading Kuwait Real Estate Firm Aqarat

Synapse Development Group, a real estate investment and development firm headquartered in New York City, is pleased to announce its platform partnership with AQARAT, one of Kuwait’s leading real estate companies, and the first real estate company to be incorporated into the Kuwait Stock Exchange. The joint venture will be targeted on making general partner investments in urban market real estate opportunities across the country. The partnership will primarily focus on expanding its existing portfolio through additional acquisitions in New York and San Francisco, and will evaluate other markets on a deal by deal basis. -

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Tiny Hotel Rooms Follow High Land Prices in Yotel Growth

Tiny Hotel Rooms Follow High Land Prices in Yotel Growth

Real estate colleagues questioned Justin Palmer’s purchase of a boarded-up, eight-story San Francisco office building for $17.7 million, almost double the price paid for it six years before. Then he told them his plan.

Palmer, co-founder of New York-based builder Synapse Capital, is redeveloping the property into a Yotel, a minimalist hotel brand whose signature feature is tiny rooms, or “cabins,” of about 175 square feet (16 square meters). That means Synapse can fit 202 revenue-producing rooms into a building that would accommodate just 94 were it a standard hotel, he said.

“People in the industry in San Francisco thought we were crazy until they figured out that we were fitting in two times the amount of keys,” said Palmer, who bought the property with Yotel’s largest shareholder in April and expects to open the hotel in 2017.

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