MetLife, Inc. (NYSE: MET) announced today that it has signed a joint venture agreement with UDR, Inc. (NYSE: UDR) to invest in the construction of a luxury high-rise residential development in San Francisco. MetLife will have a 49 percent share of the project, and UDR, a leading multifamily real estate investment trust, will own 51 percent.
The development will feature a 42-story tower, with 100 percent of the homes at market rate. It will be located at 399 Fremont Street in San Francisco’s Rincon Hill neighborhood, south of Market Street. With 447 residential units, the community will cost approximately $317 million to develop and is expected to open in 2016.
“San Francisco is a key market that fits directly into MetLife’s strategy to expand our investment in the top markets in the United States,” said Robert Merck, global head of real estate for MetLife. “We already have a successful relationship with UDR, and this significant deal in the Bay Area further cements our partnership.”
The high-rise tower will be composed of a best-in-market amenity package including a sky lounge and observation deck, pool, fitness center, pet care center and approximately 3,500 square-feet of retail space. Future residents will be within walking distance of a variety of nightlife destinations, high-end restaurants, the financial district and transportation hubs such as BART stations and the forthcoming Transbay Transit Center.“We are pleased to be expanding our relationship with MetLife, a stable, long-term, committed multifamily partner, with the construction of 399 Fremont,” said Tom Toomey, president and CEO of UDR. “San Francisco is a core market for UDR that continues to exhibit strong multifamily fundamentals.” With more than 100 years of real estate investment experience, MetLife is one of the largest investors in the industry with $55.1 billion in real estate invested assets, including $43.1 billion in commercial mortgages and $12 billion in equity investments at the end of 2012. Real estate ventures of this type provide MetLife with investment opportunities that match the long-term liabilities the company writes through its insurance products.