Bonds Sold for Redevelopment Projects

SAN FRANCISCO, CA-The San Francisco Redevelopment Agency issued approximately $71 million of tax-exempt bonds last week to fund public infrastructure improvements associated with Catellus Development Corp.’s two largest Bay Area projects, Mission Bay in San Francisco and Pacific Commons in Fremont.

According to the San Francisco-based developer, approximately $17 million in bonds were sold to finance public infrastructure improvements in the North District, which is located adjacent to Pacific Bell Park. The improvements will serve the initial residential projects currently under construction in the District, including the Avalon Bay Communities 250-unit apartment complex and the SFRA’s 100-unit Orlando Cepeda Place affordable housing project.

In the South District, $54 million of bonds were sold to finance infrastructure and park improvements serving Catellus’ initial corporate and life sciences campuses which include a 283,000 sf office building under construction for Gap, Inc. and the University of California San Francisco biotech campus.

The North District bonds are secured by a letter of credit arranged by Bank of America Securities LLC and provided by Bank of America NA and BNP Paribas, and have a floating rate of interest initially set at 2.85%. A majority of the South District bonds have either 25 or 30-year maturities but include serial maturities as well. The overall issuance carries a fixed rate of interest with an average coupon rate of 6.02%.

The City of Fremont Community Facilities District No. 1 issued $30 million of Series 2001 bonds to finance the first phase of public improvements at Pacific Commons, which will include the extension of Cushing Parkway, a priority item for the City of Fremont. The bonds have a series of maturities up to 30 years and have weighted average fixed interest rate of 6.20%.