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The controversial Seagate Building, a nine-story condo-and-commercial project planned for Center Street, has been sold and renamed The Arpeggio of Berkeley. Construction is slated to begin this fall with completion two years later. 

According to the grant deed filed with the Alameda County Recorder’s office on May 18, Seagate Center Partners sold the project to SNK Captec Arpeggio, LLC, a joint venture corporation between an Arizona builder and a Michigan financial company. 

The same partnership is also involved in a 102-unit residential and ground floor commercial project in Emeryville, on the site of the bankrupt King Midas Card Club on San Pablo Avenue, with an adjoining 263-car parking structure. 

SNK Development, the Arizona half of the development team, has developed a serious of housing and commercial projects in the Bay Area, including: 

• The Franklin 88, an 88-unit condominium project in Oakland’s Chinatown. 

• The Allegro Loft Project, a 310-unit building at Third and Jackson streets in Oakland. 

• The Allegro, 312-apartment mixed use project at Jack London Square. 

• The Arioso, a 201-unit apartment complex in Cuppertino. 

• The Alborado, a 442-unit apartment complex in Fremont. 

Other projects are located in Utah, Arizona, New Mexico and Southern California. 

The Phoenix-based firm has its own construction company and is also a wireless and cable television provider. 

“We are delighted to develop this first of its kind project in the City of Berkeley and look forward to working with Seagate and the Berkeley Repertory Theater to bring it to fruition,” said SNK CEO Hal Watson in a prepared statement released Monday afternoon. 

On the firm’s website, Watson reports that the company began with garden-style apartments but had shifted focus to urban infill projects. 

“Anticipating future market trends, we’re adopting innovative design and construction models that provide multi-family housing that’s relevant to demand,” he said. “We’ve started to investigate urban ethnic markets, where future population growth will be greatest.” 

Captec Financial Group, the financial partner, is based in Ann Arbor, Mich., and specializes in development and equipment financing and holds a portfolio of leased properties. Founded in 1981, the company owns or manages approximately $1 billion in assets, according to the corporate website. 

SNK Realty Group, an arm of SNK Development, joined with Captec last August to create to form SNK Opportunity Partners LLC. According to a Captec press release, the firm plans to develop a minimum of 15 new projects over a five-year span. The agreement spelled an end to SNK’s 14-year relationship with Kishimoto Building Group, the firm’s previous bankroller. 

Announcing the creation of the joint venture firm, Captec Chair Patrick L. Beach said the new firm “has the development talent and balance sheet to successfully build and manage many types of properties, including multi-family rental, condominiums and mixed use retail.” 

The Seagate project has proved a lightning rod for criticism in Berkeley, especially because its nine-story height is four stories more than permitted by the Downtown Plan. 

The building will house 149 condominium units in addition to 5,675 square feet of retail space as well as a large rehearsal space for the Berkeley Rep and 160 underground parking spaces. 

Seagate principal Mark Polite, who signed the grant deed transferring the property to SNK Captec, expressed his thanks in the SNK press release to the city, the Planning Department, the City Council and Mayor Tom Bates “for their support in approving The Arpeggio of Berkeley.”