Hotel Vitale Development Advisory Services​

San Francisco MUNI and Mayor's Office of Economic Development

BAE supported the San Francisco MUNI and the Mayor’s Office of Economic Development in redevelopment of a former bus yard located at a prime site near the San Francisco Waterfront.  BAE was first engaged to conduct a market and financial feasibility study of a boutique hotel project.  Following MUNI Board approval, BAE assisted the City with a developer/operator solicitation and proposal review.  BAE evaluated the five proposals received for financial return to the City, feasibility, and track record of the proposers.  BAE also served on the interview panel, and provided advisory services.

The development team of Emerald Fund and Joie de Vivre was selected to build the hotel. BAE formulated the business terms for a 55-year ground lease with renewal options, and reversion of all improvements to the City. BAE participated in the negotiation process, and supported the City Attorney’s Office to craft the development agreement and long-term ground lease. Issues resolved by BAE and parties to the negotiation included the timing of up-front payments, deferral of partial ground lease payments until the project achieved stabilization, logistical issues related to bus layover and transportation, and methods to ensure a quality operation of this flagship property. BAE also drafted an Economic Benefits Report for review by the Budget Office and elected officials.

This long-term partnership between the MUNI and the development team will result in over $300 million in revenue to the City of San Francisco. Hotel Vitale opened in 2004, and has enjoyed great success anchoring a thriving, revitalized San Francisco waterfront. The hotel is located across from the Ferry Building, along the Embarcadero.