Lennar Corp. has agreed to a $1.7 billion loan from China Development Bank that would resurrect two San Francisco residential projects, a person with direct knowledge of the matter said.
The loan from the Beijing-based bank would fund an estimated six years of construction at the Hunters Point and Treasure Island development sites, said the person, who asked not to be named because the information was private. Work may begin next year, the person said.
Redeveloping the former U.S. Navy bases would create two new neighborhoods in a city short on housing, with prices on the rise. Plans approved by San Francisco call for 10,500 homes at Hunters Point and 8,000 residences on Treasure Island.
Lennar, based in Miami and the third-largest U.S. homebuilder by revenue, is the majority investor in the groups that control each development. The deal should be completed by the end of the year, the person said.
Marshall Ames, a Lennar spokesman, declined to comment on the loan. Feng Qihua, a Beijing-based spokeswoman for China Development Bank, didn’t answer calls to her office and mobile phone before normal business hours today.
San Francisco Mayor Edwin Lee “continues to be hopeful” that Lennar will obtain the funding, Christine Falvey, a spokeswoman, said in a text message. Lee said in August that the builder would set final terms with the Chinese bank for a $1.7 billion loan by the end of this year.
The agreement was reported earlier today by the Wall Street Journal.