With less than half the tower’s 298 units currently occupied despite having started leasing in early 2014, One Rincon Hill’s northwest tower is reportedly in contract to be sold for $400 million. And while currently operating as an apartment building, the application to clear the way for the individual units to be sold as condominiums has been approved by the state.
According to the Business Times, only one-fifth of the building’s 132 two-bedroom units were occupied as of February, at which point the tower was only 40 percent leased. And according to one of their sources, the development team “failed to do enough marketing to get leasing buzz, especially for a building poorly connected by public transit and without a full grocery store nearby.”
A partnership between Rockpoint Group and Maximus Real Estate Partners are said to be the buyers.
As we wrote in 2012 when the ground was broken for the development: “While currently being positioned as rentals, the second tower will be condo mapped and we expect to see a sales, rather than rental, office for the building which should be construction complete by the middle of 2014.”
And while our thinking appears to have been a year ahead of the development team, as we first reported when talk of leasing the tower first came up, re-establishing condominium sales for the tower has always been part of the plan.