One Cool Thing
San Francisco Headlines
August 9, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
Salesforce Transit Center adds food tenants
Condominiums scrapped from proposed tower on Battery
Plans revised for North Beach factory site development
Benchmark mortgage rate drops to near 3-year low
Salesforce Transit Center Adds Dim Sum From Koi Palace Chef, More Food Tenants
"SF’s $2.2 billion dollar Salesforce Transit Center, whose elevated park reopened in July after a surprise 10-month closure, has announced several new restaurant tenants to feed its comers and goers. Those are SF chocolatier Feve, North Beach pasta maker Acquolina, and a new, to-go dim sum restaurant called Dim Baos. That last quick-service spot comes from chefs Zhong Sheng Huang and Kam-Chiu Leung, the latter best known for his long tenure at James Beard award-winning dim sum restaurant Koi Palace. In total, the three retail newcomers bring the transit center’s tenants to 13, with 16 remaining to be leased. In terms of physical space, 59,000 square feet out of an available 92,000 has been leased, as the the Transbay Joint Powers Authority, the body in charge of the center, announced today."
Bigger Plans for Iconic North Beach Factory Site
"...Plans to redevelop the iconic Buon Gusto Sausage Factory building at 535 Green Street, which was once the largest sausage and salami producing facility in the west, and its adjacent parking lot parcel, were in the works... And if the project is approved and the ground is broken, a six-story redevelopment would now rise up to 74 feet in height across the site and yield a total of 34 condos (a mix of 9 one-bedrooms, 12 twos and 13 threes) over 19,000 square feet of commercial space (including 4,000 square feet of refurbished basement space beneath the Buon Gusto building) and off-street parking for 72 bikes."
Proposed Terraced Tower Take Two
"...The designs for a modern 200-foot-tall hotel and condo building to rise at 447 Battery Street, a site which is currently occupied by the three-story Cort Furniture Rental building at the corner of Battery and Merchant, have been drawn and formally submitted to San Francisco’s Planning Department for approval... But those plans have since been kicked to the curb. Instead, the project team, which still includes Heller Manus, is now planning to save the façade of the existing building and construct a 15-story “addition,” an approach which would still yield a new 200-foot-tall tower on the site. The condo component has been dropped from the proposed development as well. And as newly envisioned, the 18-story tower would now yield a total of 198 hotel rooms, ranging in size from 300 to 628 square feet, with a basement garage for 24 cars and two restaurants and bars, one fronting Merchant Street (which would be redeveloped as part of the project) and another across the tower’s top floor (with a private terrace)."
Developers kick off work on 240 microunits in the Tenderloin
"...The $100 million project, known as TL 361, combines 146 apartments at 361 Turk St. and 94 apartments at 145 Leavenworth St. that are targeted at various income levels. The idea behind the project is to create cost-efficient homes for low-income renters and those who fall into the "missing middle" — workers who don't qualify for subsidized housing, but also struggle to pay market-rate rents."
Benchmark Mortgage Rate Drops to a Near 3-Year Low
"On the heels of the Fed having eased rates last week, the average rate for a 30-year mortgage has dropped 15 basis points to 3.60 percent, which is now 134 basis points (1.34 percentage points) below its mark in the fourth quarter of last year and within 18 basis points of a three-year low. At the same time, the average rate for a 15-year fixed mortgage dropped 15 basis points to 3.05 percent, which is 100 basis points below its mark at the same time last year, and the average rate for a 5-year adjustable dropped 10 basis points to an inverted 3.36 percent, which is 54 basis point below its mark at the same time last year."
August 2, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
City suspending certain fees for affordable housing and ADUs
Plans for 9-story building on Geary Boulevard are in the works
Pending home sales inch up across the country
The weighted average asking rent for SF hits $4,300 per month
San Francisco ditches fees for affordable housing and in-laws to speed up housing
"San Francisco plans to give up nearly $2 million in projected fees on affordable housing projects and in-law construction over the next year, in hopes that cutting costs will encourage new housing development. On Tuesday, the Board of Supervisors unanimously passed a plan, created by Supervisors Vallie Brown and Gordon Mar and Mayor London Breed, which will suspend certain fees for certain new types of housing. The proposal is a pilot program that will last for one year, during which time the city hopes that 225 building projects will benefit from it, most of them new in-law units ('accessory dwelling units,' or ADUs in City Hall talk)."
Supersized Plans for Building up on Geary Boulevard
"...Plans to raze the one-and-a-half-story building at 3565 Geary Boulevard, which is currently home to Grand Hot Pot Lounge, are in the works. And as envisioned, a seven-story building will rise up to 65 feet in height upon the Lone Mountain site which is actually zoned for development up to 80 feet... A new set of plans has since been drafted for the site. And in addition to leveraging California’s Density Bonus law to build more units on the parcel, Shatara Architecure now envisions leveraging San Francisco’s Home SF program to build higher as well, with plans for a 9-story building rising up to 89 feet in height, with a mix of 42 two-bedrooms units, 4 four-bedrooms and 27 five-bedroom, two-bath units, over a 1,024 square foot commercial space and a garage for 15 cars."
Plans for New SRO Units to Rise in Western SoMa
"Plans to raze the white two-story garage/warehouse building at 262 7th Street, adjacent to Sightglass Coffee, between Folsom and Howard, are in the works.And as envisioned, a new six-story development would rise up to 65 feet in height upon the Western SoMa site, which stretches to Langton, with 96 new single-room occupancy (SRO) units, each with its own bathroom and kitchenette (i.e. studios), over four (4) small commercial spaces and a basement level with secured parking for 96 bikes. The development would actually be two buildings, one fronting 7th and the other Langton and a courtyard between. And the existing building’s façade on Langton would be retained and incorporated into the development as an architectural feature."
Pending Home Sales in the US Tick Up
"Having ticked up 1.1 percent in May, the National Association of Realtors Pending Home Sales Index, for which 100 denotes “an average level” of activity, gained 2.8 percent in June and now measures 108.3, which is 1.6 percent higher on a year-over-year basis but still 3.6 percent below its cyclical high of 112.3 recorded in early 2017. At the same time, the inventory of homes on the market at the end of June ticked up 1.0 percent to 1.93 million homes, which is even with the same time last year."
Asking Rents in San Francisco and Oakland Tick Up
"...The weighted average asking rent for an apartment in San Francisco, including one-off rentals as well as units in larger developments, has ticked up to around $4,300 per month, which is roughly 2 percent above its mark at the same time last year and within a percent of its peak back in the fourth quarter of 2015, with the average asking rent for a one-bedroom in the city now holding at around $3,600 a month."
July 26, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
Voters to decide on Uber and Lyft tax
Google will donate $50M as part of housing plan
Planning Department finishes drafting EIR for Hub District Plan
Giants positioning to break ground on Mission Rock Project
Demand for office space in SF jumps, rents climb
Tax on Lyft and Uber going to SF voters
"On Tuesday, City Hall gave the final go-ahead for a ballot measure that would level a tax on Lyft and Uber rides, and put the money toward transit programs, including a pledge to improve safety on San Francisco’s most dangerous streets. The measure will appear on the November ballot... If approved by voters, a 3.25 percent extra fee will be added for most individual rides, and a 1.5 percent fee for shared rides that start in SF. Individual rides in electric cars get discounted down to 1.5 percent."
Google loans $50 million as part of billion-dollar housing plan
"On Wednesday, Google announced that it will donate $50 million to Housing Trust Silicon Valley, a nonprofit that offers loans for affordable housing, as the first step in its much-touted $1 billion Bay Area housing plan. Google’s announcement singles out the Housing Trust’s “TECH” (Tech + Equity + Community + Housing) program, which “[creates] opportunities for philanthropists and large Bay Area employers to provide resources to be part of the affordable housing solution,” founded in 2017 by an initial donation from Cisco."
Big Hub District Plan and New Heights Closer to Reality
"On the heels of the adoption of San Francisco’s Central SoMa Plan, the legal challenges of which have yet to be resolved, San Francisco’s Planning Department has just finished drafting the Environmental Impact Report (EIR) for the City’s equally ambitious, and synergistic, Hub District Plan. In addition to improving and activating the area’s streets, alleys and public realm, the the Hub Plan would allow for the development of “a taller, larger, denser, and more diverse array of buildings and heights” within the boundaries of the 84-acre Hub District, which is effectively centered around the intersection of Van Ness and Market, within the City’s Market and Octavia Plan Area. Currently zoned for building up to a maximum of 400 feet in height, the proposed plan would increase height limits for 18 specific Hub District sites and allow for the development of up to six new towers, the tallest of which would now be allowed to reach up to 650 feet in height at 1 South Van Ness Avenue, cementing the intersection as the visual hub of the neighborhood."
7-story building in Duboce Triangle to become hotel-like residences
"...What appeared to be a new seven-story residence sprouting at 2100 Market is actually intended to be a hotel-like venture care of Sonder, a startup that offers Airbnb-like stays. The San Francisco-based company’s business model maneuvers around the city’s short-term rental regulations by requiring 30-night minimum stays. According to Sonder, its aim is to place short-term rentals in neighborhoods where people call home"
Giants Positioning to Break Ground on Massive Mission Rock Project
"Mission Rock Partners, which is a Joint Venture between the San Francisco Giants and Tishman Speyer, is positioning to break ground on the first phase of their massive (yes, massive) redevelopment of the Port’s 28‐acre Seawall Lot 337 (a.k.a Oracle Park’s Parking Lot A) by the end of this year or in early 2020 if pushed back a month or two. Currently slated to be developed in four phases over the course of a decade, “Mission Rock” will yield over 1.4 million square feet of office, retail and restaurant space; over 1,300 units of rental housing in buildings rising up to 240 feet in height; 3,100 parking spaces; and nearly 8 acres of open space and parks."
Tower Complex Could Be Razed for a 40-Foot-Tall Hotel
"Plans to raze the two-story Fisherman’s Wharf 'Tower Complex' on the Northwest corner of North Point and Taylor are in the works. And as proposed a five-level hotel, with a sunken bottom floor, could rise up to 40 feet in height upon the 2629 Taylor Street site. Designed by Stanton Architecture, the proposed development would yield a 134-room hotel, with a ground floor coffee shop/lobby fronting North Point and retail space along Taylor but without a signature restaurant or meeting space."
Demand for Office Space in San Francisco Jumps, Rents Climb
"Having ended 2018 at a record high, driven in part by the delivery of a record 3.7 million square feet of high-end Class A space, all of which was delivered pre-leased, the average asking rent for office space in San Francisco has ticked up another 4.5 percent in the first half of 2019 to a record $79.07 per square foot per year, which is 9.4 percent above its mark at the same time last year, according to Cushman & Wakefield. At the same time, the average asking rent for older Class B space in the city, which hadn’t really budged over the past couple of years, jumped 4.8 percent over the past quarter alone to a record $70.94 per square foot per year, which is up 9.7 percent since the second quarter of 2018."
Freddie Mac: Mortgage rates sink to a near 3-year low
"This week, the 30-year, fixed-rate mortgage averaged 3.75%, falling from last week’s 3.81%. A year ago, the rate averaged 4.54%, according to the Freddie Mac Primary Mortgage Market Survey... The 15-year FRM averaged 3.18% this week, retreating from last week’s 3.23%. This time last year, the 15-year FRM came in at 4.02%."
WeWork could speed up its IPO to September
"Office space manager WeWork Cos. could go public as early as September, ahead of when investors were expecting. The Wall Street Journal reported Tuesday that the company could file its IPO paperwork in August, with the public offering taking place in September. The company, which has aggressively expanded its office space in the Bay Area, is working with banks this week to obtain an asset-based loan that could lessen the amount of money it will need to raise with the IPO."
July 19, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
City close to cutting fees for in-law units
Google selects partner to develop $15B in Bay Area projects
24-unit development on Valencia Street closer to reality
Plans refined for San Francisco Tennis Club redevelopment
SF close to cutting fees for affordable projects and apartments in backyards, garages
"Legislation to get more affordable housing built and to encourage in-law apartments in people’s backyards and garages to deal with the city’s housing crisis gained traction Thursday. The city’s Government Audit and Oversight Committee unanimously approved a bill Mayor London Breed introduced in February that would cut the building-inspection fees faced by affordable housing developers and anyone looking to transform an unused garage, storage space or laundry room into a legal apartment."
Google selects partner to develop $15B in Bay Area projects
"Google and Australian developer and general contractor Lendlease will partner on the tech company’s ambitious plans to build 15,000 homes in the Bay Area, the companies announced Wednesday. As part of the deal, Lendlease expects to develop about 15 million square feet of residential, retail, hospitality and other uses in new ground-up neighborhoods in San Jose, Sunnyvale and Mountain View. The $15 billion plan will take at least a decade to play out, Lendlease said."
SF cuts down landmark bid for old greenhouses, favors housing
"On Wednesday, San Francisco’s Historic Preservation Commission voted not to preserve the historic but decayed greenhouses at 770 Woolsey Street in the Portola District in the face of new housing development, nipping neighbors’ ambitions in the bud. A century ago, 770 Wolsey was a sprawling and successful flower nursery, but now the remaining buildings have fallen into disrepair and the onetime flowerbeds are overgrown. Developer L37 Partners bought the 2.2-acre plot in 2017 for $7.5 million and proposes a 63-unit townhome development on the site... 'Landmarking hijacks the process,' Commissioner Jonathan Pearlman said, noting that the greenhouses are in 'horrendous condition' and that the preservation bid 'sucks the life out of the property.'" CONTINUE READING ON CURBED
Bonus Plans for Building up Valencia Street Closer to Reality
"...Plans to level the 4.5-star San Francisco Auto Works shop at 1021 Valencia Street are in the works. And as envisioned, up to 24 residential units over a ground floor restaurant or retail space and a basement garage for ten (10) cars could rise up to 65 feet in height upon the Mission District site... And in fact, the plans have since been refined to yield a six-story building rising up to 65 feet in height, with 24 residential units over a 4,100-square-foot retail space (including “potential restaurant infrastructure”) but no garage (save a storage room for 26 bikes), as newly rendered below and formally submitted to Planning:"
Refined Plans for Redevelopment of San Francisco Tennis Club Site
"...In addition to over 840,000 square feet of new office space to be developed in two phases, with the westernmost building first, the proposed “88 Bluxome” Street development would yield over 16,000 square feet of retail/restaurant space and 8,000 square feet of space dedicated to production distribution and repair (PDR), with a basement garage for 163 cars and 318 bikes, a nearly 30,000-square-foot community/recreational center to be dedicated to the City’s Recreation and Parks Department, a 4,600-square-foot child care center, and an all-new private tennis club with (12) tennis courts hidden underground....Rather than build in two phases, an approach which was being driven by the limited pool of office space development rights available for allocation in the San Francisco, the project team has since refined the floor plans of the proposed development to reduce its overall office square footage from 840,000 to 775,000 square feet and for which the team is now seeking a full allocation and approval to develop in a single phase, a request which San Francisco’s Planning Commission is now slated to approve on July 25."
After lull, Bay Area rents charge back up
"A dearth of new apartments and a swell of new jobs have pushed Bay Area rents higher in recent months, keeping the region’s title as the most expensive place in the country for renters. Median rents rose 4.2 percent in San Jose, year-over-year, in the second quarter of 2019. In the Oakland and San Francisco metro area, monthly apartment payments grew 3.7 percent from the previous year, according to a new survey from listing site HotPads. The median rent for all apartments — from studios to multi-bedroom units — in San Jose was $3,760, while in San Francisco and the East Bay prices rose to $3,560 a month. Those rents top the U.S. market, more than doubling the $1,545 median across the country."
SFMTA votes to ban cars on part of Octavia
"On Tuesday, the San Francisco Municipal Transportation Agency Board of Directors voted unanimously to close Octavia between Hayes and Linden to vehicular traffic, effectively making the entire block a pedestrian-only zone. It’s all a part of the Octavia Boulevard Enhancement Program. The closure will also remove approximately 10 parking spots."
San Francisco supervisors to vote on tax for Uber, Lyft riders
"The San Francisco Board of Supervisors is scheduled to vote next week on a proposed tax on fares charged to riders of transportation services like Uber and Lyft. The proposed tax is a way to alleviate the congestion; Uber and Lyft drivers make up 50 percent of downtown traffic during peak morning and evening commutes."
July 12, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
44-unit development on Market Street breaking ground today
60-unit Mission District development slated for approval
Mission Bay almost complete as last site seeks approval
Benchmark mortgage rate holding at 32-month low
As housing crisis worsens, SF supervisors play politics
"San Francisco supervisors continue to treat the city’s worsening affordability crisis as a political game. Last week the Board’s majority broke over a month of silence in unveiling a rival ballot measure to Mayor Breed’s charter amendment exempting affordable and teacher housing from CEQA appeals and discretionary review. The Board’s measure is an ordinance, not a charter amendment. This means that the Board’s measure still subjects affordable and teacher housing to frivolous appeals and CEQA-related delays. Both can only be changed by the charter. I understand progressive supervisors’ quandary. They can win district elections despite supporting exclusionary single-family home zoning and guaranteeing constituents’ the power to file frivolous appeals against new housing. What these progressives cannot do is win a citywide mayor’s race. The election of Willie Brown, Gavin Newsom, Ed Lee and London Breed confirms that most voters actually want the city to build more housing."
Market Street Mortuary Redevelopment Breaking Ground
"In the works since the end of 2014, as we revealed at the time, the Prado Group will formally break ground on the redevelopment of the Sullivan’s Funeral Home site at 2238-2254 Market Street, on the border of Duboce Triangle and the Castro, this morning. The redevelopment, which should take around two years to complete, will rise up to 55-feet in height adjacent to the Beck’s Motor Lodge building and will now yield a total of 44 new residential units – a mix of 11 studios, 9 one-bedrooms, 20 two-bedrooms, 3 three-bedrooms, and one four, with five of the units to be offered at below market rates – over 5,200 square feet of new ground floor retail space and a basement garage for 24 cars with its entrance off 15th Street."
Opposed Development Redesigned, Slated for Approval (Again)
"...While opposed by a number of neighborhood factions, two new buildings could rise up to 78 feet in height upon the Mission District parking lot parcels across from the Armory on 14th Street... And on April 4, San Francisco’s Planning Commission voted to continue the hearing for the proposed development for the sixth time and channeled a whole host of suggested/requested changes. The two three-bedroom units have since been eliminated in favor of additional, smaller, residential units (the count of which now totals 60 with a mix of 4 studios, 17 one bedrooms and 39 twos). The building’s garage has been eliminated. And the building’s façade and windows have been redesigned, as newly rendered "
Newly Proposed Development on the Rise in San Francisco
"Having dropped to a seven-year low in 2018, the number of newly proposed plans for major developments in San Francisco has been on the rise this year. In fact, plans for nearly 40 new major developments having been submitted to Planning since the beginning of the year, which is up from 25 in the first half of 2018 and slightly above average for first half of the year activity as measured since 2010, driven by the adoption of San Francisco’s challenged Central SoMa Plan."
Deal(s) for Massive Flower Mart Redevelopment Inked
"Tentative development deals between the San Francisco Flower Mart Tenants Association, Kilroy Realty and the City of San Francisco have been inked, clearing the way for the massive redevelopment of the existing San Francisco Flower Mart site along Brannan, between 5th and 6th Streets, to be approved by San Francisco’s Planning Commission on July 18. As designed by Adamson Associates and RCH Studios and newly rendered above and below, the proposed development of the Key Central SoMa site would rise up to 236 feet in height and yield over two million square feet of new office space, along with a new Wholesale Flower Mart, over 80,000 square feet of new restaurant and retail space (including a(nother) big Market Hall fronting 5th and Brannan), over 35,000 square feet of privately owned public open space (POPOS) forming a new pedestrian corridor, the “Market Alley,” between 5th and 6th Streets, and off-street parking for 769 cars and 410 bikes."
SF’s Mission Bay is almost complete, as last commercial site seeks approval
"A new lab and office building could fill the last commercial development site in San Francisco’s Mission Bay, capping off a two-decade transformation of 303 acres of warehouses and rail yards. Developer Alexandria Real Estate Equities has proposed a 175,000-square-foot lab and office project at 1450 Owens St. It would be the only new commercial project in the area without a tenant. It would add new research facilities in a neighborhood with no empty lab or office space for lease, according to brokerage Cushman & Wakefield."
Affordable Waterfront Development Has Broken Ground
"...As designed by Leddy Maytum Stacy Architects for The John Stewart Company and Bridge Housing, whom were awarded the development rights for the 88 Broadway/735 Davis Street site back in 2016, the development will yield a total of 178 below market rate apartments, including 53 units for seniors in the 735 Davis Street building, rising up to 65-feet in height and priced to be affordable to households earning from 30 to 120 percent of the Area Median Income (AMI)."
Benchmark Mortgage Rate Holding at a 32-Month Low
"The average rate for a 30-year mortgage has been holding at around 3.75 percent over the past two weeks, which is down 119 basis points (1.19 percentage points) since the fourth quarter of last year, down 78 basis points on a year-over-year basis and is effectively the lowest 30-year rate since November of 2016."
Prepared by: VANGUARD PROPERTIES - FORWARD THINKING REAL ESTATE