One Cool Thing
San Francisco Headlines
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."
July 5, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
Salesforce park reopens
Plans to redevelop El Rey theater site submitted to planning
138-unit development planned for Ellis Street
Asking rents tick up in San Francisco
Salesforce Park reopened today [Monday]
"While bus service remains on hold, the Transbay Transit Center and Salesforce Park, the 5.4-acre megastructure that temporarily closed in August, has reopened. The transit center opened at 6 a.m. today with little to no fanfare compared to the massive public party it hosted when it opened last year. Of special note, the gondola at Fremont and Mission will begin working today—this will be the mini-funicular’s inauguration—and the over 200 species of plants have grown lush over the last few months, which is reason enough to check out the park again."
YIMBY in action: How pro-housing policies became a political rallying cry
"YIMBYism—Yes In My Backyard, an exhortation to build—began as a rejection of a rejection. But what started as refutal of Not in My Backyard sentiments has become an ideology in itself: a locally based, decentralized, pro-housing political movement. Just a few years old, the YIMBY push to add more homes to cities comes at a time when slow development, the power of single-family homeowners, and the status quo of restrictions and regulations that has shaped housing policy are facing backlash in major American cities. As advocates and backers see it, it also may form the centerpiece of a progressive coalition that could have a large impact on an increasingly urbanizing country."
Plans to Redevelop the Historic El Rey Theater Site Progress
"Purchased out of foreclosure for $1.06 million in 2015 and since forcibly designated as an official San Francisco Landmark (No. 274), plans to redevelop the former El Rey Theater at 1970 Ocean Avenue have been newly refined, rendered and formally submitted to Planning for a preliminary review. As envisioned, the existing facade of the theater and its commercial spaces would be restored along with the theater space itself and lobby, using a recovered set of Timothy Pflueger’s original construction documents for direction. And upon the theater’s parking lot parcels, which flank the rear of the building, and atop its two commercial wings, a total of 42 condos would be built, a mix of 28 one-bedrooms, 12 twos and two threes, along with a basement garage for 32 cars, designed by Goldman Architects to be 'compatible with the 1930’s Moderne style of the Pflueger El Rey Theater' while 'relat[ing] to the scale of the neighboring homes.'"
Big Plans for (Another) Former Armory Site Have Been Drawn
"...As envisioned by Forge Development Partners, which is now formally seeking an entitlement for the project, an all-new 13-story building would rise up to 135 feet in height upon the 819 Ellis Street site, with 138 units/bedrooms of “group housing,” shared lounges and amenity spaces for its residents and an 1,100-square-foot retail space on the ground floor."
Asking Rents in San Francisco and Oakland Inch Up
"The weighted average asking rent for an apartment in San Francisco, including one-off rentals as well as units in larger developments, has inched up to around $4,280 per month, which is roughly 1 percent above its mark at the same time last year but still 4 percent below its peak in the fourth quarter of 2015, with the average asking rent for a one-bedroom in the city having just dropped to around $3,600 a month."
SF office rents soar to fresh record amid supply crunch
"San Francisco office rents reached a record in June as the continued growth of tech — now turbocharged by capital raised in a series of initial public offerings — met a severe space crunch. Asking rents rose to $84.16 per square foot annually for the newest and highest quality offices in the central business district, according to commercial real estate brokerage Cushman & Wakefield. Citywide asking rents for such spaces, known as Class A, are up over 9% from the prior year."
June 28, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
36-unit development planned in Excelsior District
243-foot SoMa development slated for approval
Potrero Hill infill project has traded hands
Benchmark mortgage rate hits 31-month low
Big Plans for Shuttered Nightclub Site
"Having been shuttered back in 2016, the sale of the Club Tapatio building at 4742 Mission Street, which once housed the Rock Garden and Club New Yorker as well, closed escrow last month. Plans to raze the longstanding club to make way for a seven-story residential building to rise up to 75 feet in height on the Excelsior District site have since been drafted. And as envisioned by SIA Consulting, the proposed development would yield 36 residential units, a mix of studios, two-bedrooms and threes, over 6,000 square feet of commercial space and a basement garage for 7 cars, leveraging San Francisco’s HOME-SF program to build over the existing 65-foot height limit for the site."
The Next Major Development Slated for Approval in SF
"Plans to level the 41-foot-tall San Francisco Tennis Club at 645 5th Street and build up to 243 feet in height upon its 2.6-acre Central SoMa site are slated to be approved by San Francisco’s Planning Commission in two weeks time. 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."
Ambitious Potrero Hill Infill Project has Traded Hands
"...The 125-foot stretch of land between the Potrero Hill homes at 905 and 953 Kansas Street has never before been developed, perhaps because of the large rock outcropping which dominates the site. But said stretch is legally five developable parcels. And as newly envisioned, five modern buildings designed Dawson & Clinton and RG‐Architecture will rise up to five stories across the 923-939 Kansas Street site: a four-level single-family home; two four-level duplexes; and two five-level duplexes with a total of nine parking spaces between the five garages...And having recently been permitted, with a previously requested Discretionary Review (DR) having been withdrawn, the sale of the 923-939 Kansas Street site (which will need to be excavated down to a depth of 24 feet) and approved plans (which would yield over 33,000 square feet of developed space) have just closed escrow with a $7.15 million contract price."
These are the 10 largest construction projects in San Francisco
"While San Francisco still faces a housing crisis, it's also true that much of the construction currently happening in the city is of new residential units. Data from this year’s San Francisco Construction Projects List shows that the push for housing in San Francisco has created a boom for residential projects, which make up almost two-thirds of the List."
Benchmark Mortgage Rate Hits a 31-Month Low
"...The average rate for a 30-year mortgage dropped 11 basis points over the past week to 3.73 percent, which is now down 121 basis points (1.21 percentage points) since the fourth quarter of last year and represents the lowest 30-year rate since November of 2016. At the same time, the average rate for a 15-year fixed mortgage has dropped to 3.16 percent (which is 88 basis points below its mark at the same time last year) and the average rate for a 5-year adjustable has dropped to 3.39 percent (which is 48 basis point below its mark at the same time last year)."
June 21, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
Google pledges $1 Billion to develop 20,0000 new bay area homes
Pipeline of new developments totals a record 72,865 housing units
SoMa Mega-Project 5M has broken ground
136-unit development Eagle Plaza breaks ground
Mortgage rates hover near two-year lows
Google Pledges $1 Billion to Develop 20,000 New S.F. Bay Area Homes Over the Next Decade
"In an effort to “build a more helpful Google,” company CEO Sundar Pichai said Tuesday that the Silicon Valley giant would devote $1 billion toward building 20,000 new homes in the Bay Area, mostly in the southern part of the region near Google headquarters. Three quarters of the $1 billion commitment will come by repurposing Google-owned land zoned for office space into residential housing areas, which could support the development of 15,000 homes “at all income levels” over the next decade. The remaining $250 million will create an investment fund to offer developers incentives to build 5,000 affordable homes throughout the San Francisco Bay Area."
Luxury Condo Market in San Francisco Still Hot
"The half-floor penthouse designed by Jay Jeffers at The Avery is the newest of its kind to debut in San Francisco... It is listed at $15.95 million and it’s hitting a market that analysts say is still wild. The current median condo sales price in San Francisco is $1.25 million... Condo sales are basically back up to the peak prices they hit last year at this time, according to Nelson. Currently, condos make up the biggest share of sales in San Francisco."
Mega-Project Has (Partially) Broken Ground
"Approved by Planning back in 2015 but waylaid by legal challenges, the ground for the massive 5M Project – which spans a 4-acre South of Market site stretching from Mission to Howard and Fifth to Mary – has officially broken ground. Now championed by Brookfield Properties, which acquired Forest City last year, the first phase of the development includes the construction of a 640,000-square-foot office and ground-floor retail complex at “415 Natoma” Street, wrapped around The Chieftain at the corner of Fifth and Howard and designed by Kohn Pederson Fox and House & Robertson Architects to attract “modern HQs,” along with a 302-unit apartment building designed by Ankrom Moisan to rise at 434 Minna, stretching along Mary to Mission... But not rendered above, nor part of phase one, are the approved plans for a modern 400-unit condo tower to rise up to 470 feet in height along Fifth, between the new 415 Natoma complex and Hearst’s historic Chronicle building at Fifth and Mission"
Record Pipeline of Development, and Building Is Up, in SF
"With the number of newly proposed units of housing to be built in San Francisco having outpaced the number of units that recently finished up construction for the sixth quarter in a row, the overall pipeline of apartments and condos under development in San Francisco now totals a record 72,865 units of housing, which is 5,050 more than in the first quarter of 2018."
Long-Awaited Eagle Plaza About to Break Ground
"With Build Inc’s 136-unit development rising at 1532 Harrison Street, across from the Eagle in Western SoMa, the ground for the long-awaited Eagle Plaza, which will transform a portion of 12th Street between Harrison and Bernice into a new “pedestrian-oriented” plaza, will officially break ground tomorrow, June 18. While value engineered a bit since first envisioned, Eagle Plaza will feature a shared public way which can be closed to traffic for gatherings, events and performances, as well new green spaces, hardscape areas upon which street furniture can be assembled and a permanent pole upon which a leather pride flag will fly at the intersection of 12th and Harrison, celebrating San Francisco’s Leather and LGBTQ Cultural District, history and community."
Mortgage Rates Hover Near Two-Year Lows, Primed to Drop
"While the average rate for a 30-year mortgage was unchanged over the past week, holding near a two-year low of 3.82 percent, Freddie Mac’s latest Mortgage Market Survey was conducted prior to yesterday’s meeting of the Federal Reserve, after which the yield on the 10-year Treasury, which drives mortgage rates, dropped under 2 percent for the first time since the fourth quarter of 2016 and is down over one full percentage point since the fourth quarter of last year... And while the Fed elected not to adopt an easing of rates yesterday, it set the stage for a future easing (or two) and the probability of the Fed acting by the end of this year has jumped to 100 percent according to an analysis of the futures market."
PG&E agrees to pay $1 billion for deadly wildfires
"Pacific Gas and Electric Company (PG&E), the bankrupt power utility based in San Francisco whom fire investigators faulted for the deadly 2018 Camp Fire in Butte County, announced Wednesday that it will pay $1 billion in fire-related settlements to more than a dozen public bodies as part of its ongoing bankruptcy proceedings."
Prepared by: VANGUARD PROPERTIES - FORWARD THINKING REAL ESTATE