Insights from Eric Tao, Managing
Executive Principal, Avant Group, Inc.
By Jackie Matsumura
Recently, we had the pleasure of talking to Eric Tao,
Managing Executive Principal, Avant Group, Inc. The
real estate development company based in San Francisco
is one of BPM’s real estate clients. The AGI team has
developed more than 1,000 new transit oriented urban
infill multifamily units in the SF Bay Area. Eric shared
his company’s mission and his views on Bay Area
housing.
Please describe your business
and where you see it heading in
the next 3-5 years.
We are a boutique real estate development firm that
specializes in high-density urban infill housing.
the local distribution logistic needs that online businesses
have in order to deliver more on-line goods and services
to your door.
How do you see multi-family
rents in the Bay Area in
the next 2-3 years? What is
happening with development
costs? Will this trend continue?
Impact on rents?
Rents have stopped going up due to sudden supply of
housing which mitigated the demand. However, rents
will probably go up again because construction costs are
rising and, as a result, projects are halting. Construction
We are building urban smart housing projects that are
near transit, services and workplace. We face challenges
involving high construction costs and dealing with city
governments with multi-faceted agendas and politics that
may complicate the process. We are mindful of existing
neighborhoods and communities who resist development
and sensitive to the fact that CEQA (California Quality
Environment Act) is a powerful tool to stop you from
developing high-density housing.
We plan to continue to focus in the Bay Area due to our
expertise in understanding the goals of our communities
and government policies in San Francisco, San Jose and
Oakland, which are not translatable to other geographical
areas. We have access to deals and have an understanding
of competitive advantages, so it does not make sense to
expand out of this area at this time. Ultimately, unlike
other industries, real estate is still intensely local.
However, we do have plans to expand product type into
industrial properties that cover the “last mile” to serve
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BPM Real Estate Insights
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