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Project Summary
Located just two blocks from Still Property Group’s current investment opportunity, Pioneer Vista Townhomes, Pacific Gardens served as a critical proof point for SPG’s adaptive reuse thesis in San Mateo — one of the most supply-constrained micromarkets in California.
The project involved the acquisition, condo conversion, and sale of 38 townhome-style units, which had previously operated as a rental asset. SPG completed the condo mapping pre-close, pre-sold nearly 30% of the units, and fully exited the property in under 24 months — all while navigating the most volatile interest rate environment in over a decade.
| Key Project Facts | |
|---|---|
| Location: | 25 McAker Ct, San Mateo, CA |
| Conversion Type: | Rental-to-Condo |
| Units: | 38 |
| Average Unit Size: | 1,318 SF |
| Unit Mix: | 3 Bed / 2.5 Bath |
| Hold Period: | 24 months |
| Completion: | Q1 2024 |
| Sponsor: | Still Property Group |
We mapped the condos in advance, secured our exit up front, and had 11 units pre-sold before we ever closed. That’s the kind of discipline that lets you outperform — not guess.
Strategy & Execution
Still Property Group approached Pacific Gardens with a multi-layered execution strategy designed to control risk, reduce upfront capital exposure, and validate the business model prior to close. Here's how it played out:
Sales Strategy: Flexibility with Speed
Rather than rely solely on traditional resale channels, SPG worked closely with Redfin’s top-performing broker team in Northern California, optimizing exposure and transaction flow. The team utilized a hybrid retail and bulk sale strategy, which enabled:
- Speedier absorption of inventory
- Reduced reliance on retail demand at peak rate periods
- Full sellout in under 24 months, despite surging mortgage costs
Cost Control Through Direct Management
The conversion and buildout were managed entirely in-house through SPG’s construction division and direct vendor relationships. By bypassing third-party general contractors and procurement markups, SPG was able to deliver build costs at $708/SF, well below the regional average of $800–$950/SF for comparable new development.
SPG also staggered unit finish levels and scope to align with pre-sale timelines, keeping working capital light and accelerating closeouts.
Rate Environment Response
When mortgage rates spiked in mid-2023, many developers paused sales or failed to meet projections. But SPG’s early pre-sale strategy, cost basis advantage, and micromarket pricing confidence enabled them to maintain full pricing power.
- Exit PSF: $909 (10% above projections)
- Lender repaid within 7 months of acquisition
- Zero units required price reductions or extended absorption
Entitlement & Exit De-Risking Before Acquisition
SPG completed the condo mapping process before acquiring the property, a strategy that allowed the team to enter escrow knowing the asset was legally convertible and sale-ready. Even more importantly, the team secured pre-sales on 11 of the 38 units — roughly 30% of the building — before closing the deal. These units were sold at market-rate pricing, providing critical liquidity to fund the acquisition and immediately reduce SPG’s equity at risk.
Before & After Gallery
Before Conversion
After Conversion
Location Advantage
San Mateo County represents one of the most supply-constrained housing markets in the United States. Zoning barriers, lack of entitled land, and years of underbuilding have combined to create a market where demand consistently outpaces delivery.
The Pacific Gardens property — located just two blocks from SPG’s Pioneer Vista project — sits within a walkable, transit-connected pocket of San Mateo with median home prices exceeding $1.5 million and virtually no new townhome inventory under $1,200/SF.
Why this site worked:
- Zoning overlay allowed pre-approved condo conversion
- Immediate proximity to Caltrain and employment hubs
- Demographics supported high exit pricing despite macro headwinds
- Nearby sales comps provided pre-sale validation
Moreover, San Mateo remains an ideal SPG micromarket due to:
- Homeownership demand >70% in surrounding submarkets
- Stable income levels that support high PSF pricing
- SPG’s intimate knowledge of local policy, permitting, and neighborhood context
We secured our exit before our entry. That changed everything about the risk profile.
Proving our adaptive reuse thesis
Pacific Gardens isn’t just another conversion—it’s a living demonstration of Still Property Group’s disciplined, repeatable approach to unlocking value in supply-constrained markets.
- Pre-Deal De-Risking: Mapped and pre-sold 30% of units before closing to secure liquidity and validate pricing assumptions.
- In-House Cost Leadership: Delivered build costs of just $708/SF—over 10% below regional norms—by managing construction through our own division.
- Market-Responsive Sales: Leveraged a hybrid retail + bulk strategy to achieve full sell-out in under 24 months, despite rising rates.
- Sustainable Value Creation: Positioned for long-term upside in one of California’s most supply-tight micromarkets.
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