City Close to Deal On Sycamore North

The City of Hercules could close a sales deal on Sycamore North by early January, city real estate consultant Frank Fox said.

After months of searching for a developer to take the unfinished residential-retail project off its hands, the city has entered into exclusive negotiations with Presidio Development Partners, LLC. on Sycamore North.

The exclusive negotiations period lasts through January 10, Fox said. If the city and Presidio reach a purchase agreement, the San Francisco-based developers would begin completing the project immediately.

Fox said the city chose Presidio over a handful of other bidders in part because “(T)hey have been responsive to a majority of our deal points as it relates to our financial and potential affordable mix obligations,” Fox said.

The building was marketed with almost all affordable housing—96 residential units in all. But after to the high number of affordable units, the city re-marketed the property as market-rate in September.

“(W)e have requested that the developer seriously consider a minimum percentage of an affordable component as they analyze the feasibility of the property” Fox said.

Because the city is in negotiations, additional details on Presidio housing plans for Sycamore North were not made available. The company's president Mark Conroe said he would be willing to talk details once the deal has closed.