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San Francisco Headlines
February 15, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
Salesforce Transit Center could re-open as early as June
New poll shows SF residents want to maximize housing
Mayor Breed wants to eliminate fees for affordable housing
12-unit development in Tenderloin closer to reality
High-speed rail from LA to SF still on, says Governor
Early Re-Activation Sequence for the Salesforce Transit Center
"With repairs to the fractured Salesforce Transit Center now officially underway and expected to be completed by the first week of June, the Transbay Joint Powers Authority (TJPA) is expected to release an official re-opening schedule for the center next month. But according to a preliminary framework for the center’s re-activation presented to the TJPA’s Board of Directors yesterday, in addition to a “probable” early opening of the center’s bus plaza on the ground floor, an early opening of the rooftop Salesforce Park is now “plausible” as well."
San Franciscans want city to ‘maximize housing,’ according to new poll
"On Tuesday, the San Francisco Chamber of Commerce released its annual City Beat poll, with unsurprising yet consequential results: By large margins, San Francisco residents favor more housing and more transit... Among the dizzying array of results were calls for more housing, greater density, and support for most major transit initiatives facing the region."
Mayor Breed wants to ax fees for affordable housing
"In another effort to prod housing in San Francisco, Mayor London Breed says she wants to eliminate Department of Building Inspection fees for 100 percent affordable housing projects and for new in-law apartments (or ADUs—“accessory dwelling units”—in City Hall parlance.) On Monday, Breed announced that she’ll introduce new legislation to cut fees at this week’s regular Board of Supervisors meeting on Tuesday ."
Slow approval process not only obstacle for city housing goals
"Plans for close to 45,000 potential homes are currently approved in San Francisco — the highest number tracked by The City’s Planning Department to date — but many of these projects have yet to break ground... 'The planning process is very complicated. You have architects who don’t know planning code that well, there are so many nuances. Administratively [The City] has to figure out how to make the process simpler and less cumbersome,' said Jonathan Moftakhar, a realtor with Vanguard Properties. 'The amount of power they give to neighborhood groups complicates the process. You have a public that opposes practically everything that’s submitted — I don’t think it’s responsible urban planning,' he said."
Eight-Story Development in the Tenderloin Even Closer to Reality
"...Opposed by a number of local residents seeking to have the development limited to no more than 5 or 6 stories in height, “in keeping with the immediate adjacent buildings” and to minimize “the anticipated loss of light and air” to their neighboring residences, San Francisco’s Planning Department is recommending the project be approved as proposed, without any required Planning Code variances or exceptions, by the City’s Planning Commission next week. And if approved as proposed and the ground is broken, the 8-story development at 820 Post would yield a total of 12 apartments – a mix of 5 one-bedrooms, 6 twos (one of which would be offered at below market rates) and 1 three-bedroom penthouse unit with a private balcony – over a new 1,200-square-foot retail or café space and off-street parking for 12 bikes but no cars."
California high-speed rail from LA to SF still on, says governor
"On Tuesday, Gov. Gavin Newsom appeared to pull the plug on the long-planned high-speed rail connection between San Francisco and Los Angeles during his first State of the State address... Despite Newsom’s statements, the governor’s office insists that the SF-to-LA connection is still on. In fact, it appears that little about the high-speed rail project’s plan has changed."
February 8, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
New studies find that IPOs do raise home prices somewhat
50-unit development on Polk and Pacific closer to reality
Plans refined for 36-unit development on Broadway
Pipeline of development and construction tick up in SF
Benchmark mortgage rate drops
'Monster in the Mission' battle grinds on as usual foes face off at hearing
"Developer Maximus Partners’ long-controversial plans for 1979 Mission St. in San Francisco — dubbed “Monster in the Mission” by opponents —may be in flux again after a tense informational meeting hosted by the planning commission. The “Monster” in question is Maximus’ 10-story, 331-unit project next to the 16th Street BART stop. For over five years, the developer has tried to push it through, while a group of about 100 local organizations called the Plaza 16 Coalition has tried just as hard to stop it."
Finally, some insight on the impact of IPOs on home prices
"One of the hottest topics in local real estate is what will happen to home prices in and around San Francisco if an expected surge in blockbuster initial public offerings takes place... Three new studies that look at previous IPOs found that they do raise home prices somewhat, with the biggest gains coming closest to the headquarters of companies going public."
Pipeline of Development and Construction Tick Up in San Francisco
"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 fifth quarter in a row, the overall pipeline of apartments and condos under development in San Francisco ticked up to a record 70,960 in the fourth quarter of 2018, which is 5,710 more than at the end of 2017."
Benchmark Mortgage Rate Drops, Odds of Easing Emerge
"Having dropped to a 9-month low at the beginning of the year, the average rate for a benchmark 30-year mortgage, which hit a 7-year high of 4.94 percent this past November, has inched down another 4 basis points to a 10-month low of 4.41 percent, according to Freddie Mac’s latest Mortgage Market Survey data."
February 1, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
Salesforce Transit Center to remain closed until June
960-unit tower redesigned and closer to reality
Lucca Ravioli closing, corner buildings to hit the market
Fed signals future rate hikes are on hold
Salesforce Transit Center in San Francisco to remain closed until June
"The $2.2 billion Salesforce Transit Center in San Francisco will remain closed until at least June. The transit hub was shut down in September after workers found cracks in steel support beams. The Transbay Joint Powers Authority says repair and reinforcement work to fix the beams are underway. You'll want to avoid the area this Saturday and Sunday. There will be a one block full closure of First Street between Howard and Mission streets."
BIG Plans for a Pair of Swoopy Towers Closer to Reality
"...Tishman Speyer was pushing forward with their plans for two modern towers to rise up to 420 feet in height on the northeast corner of 4th and Townsend, stretching across seven Central SoMa parcels, including those currently occupied by The Creamery, Iron Cactus and HD Buttercup. And as newly rendered above and below by Adamson Associates along with the Bjarke Ingels Group (BIG), the design of the proposed development has since been refined and the proposed plans – which now include 960 condos, a 38-room boutique hotel and 24,500 square feet of commercial space over an underground garage for 276 cars and 18,500 square feet of ground floor retail space wrapped around a central courtyard – are now working their way through Planning."
Mission District Institution Closing, Corner Buildings for Sale
"...Lucca Ravioli’s detached parking lot parcel at 1120 Valencia Street was on the market in the Mission and has since sold to a developer with plans for a five-story development to rise on its mid-block site... Lucca Ravioli is now slated to close effective Easter 2019. And the corner buildings, which are owned by the owner of Lucca and stretch from 1100 to 1118 Valencia Street, are about to hit the market."
Approved Dollar Store Development on the Market in the Mission
"...Having subsequently agreed to provide four (4) of the twenty-seven (27) residential units at below market rates and offer the ground floor commercial space “to a lower-price-point, community serving business,” at a reduced rate and for a term of 50 years (for which Goodwill has inked a letter of intent for up to 25 years and MEDA has secured the right to select the future tenants), the proposed development to rise at 2100 Mission Street, as rendered below, was approved by Planning. And while building permits for the project have been requested, and the One $ Store is currently operating on a month-to-month lease, the corner siteand plans are now on the market with a $5.5 million price tag rather than positioning to break ground. "
Affordable Development in the Mission Finally Breaks Ground
"...The plans for a nine-story building with 127 units of affordable housingto rise on the northern half of the parking lot parcel at the corner of Folsom and 17th Street, adjacent to the new In Chan Kaajal Park on the southern half of the lot, were formally approved back in 2017. And yesterday, the ceremonial ground breaking for “Casa Adelante,” as newly rendered for the Chinatown Community Development Center and Mission Economic Development Agency (MEDA) by Mithun and Y.A. Studio above, was held on-site at 2060 Folsom Street."
The Fed Signals Future Rate Hikes Are on Hold
"..The Federal Reserve not only failed to raise interest rates today but signaled a more “patient” approach in its adoption of any future hikes. Despite the Fed having previously signaled expectations for two rate hikes this year, traders were wagering against any more rate hikes in 2019."
PG&E officially files for bankruptcy
"Pacific Gas and Electric Company (PG&E), the San Francisco-based utility that provides power to most of Northern California, announced Tuesday that it has officially filed for Chapter 11 bankruptcy protection. In an early morning statement, the company framed the move as a “reorganization” and promised to continue paying employees and providing service to millions of California homes"
January 25, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
Mayor Breed seeks developer for Financial District tower
116-unit development in Mission Terrace closer to reality
3,300 square-foot Hayes Valley parcel on the market for $3.6MM
2018 ended with record high Bay Area employment
Mayor Breed seeks developer for 19-story residential tower in Financial District
"San Francisco officials are seeking proposals from developers to build a 19-story housing development atop a newly retrofitted fire station, a plan that could deliver roughly 100,000 square feet of new residential space to the city. Mayor London Breed and supervisor Aaron Peskin said Wednesday that developers have the chance to build market-rate housing above Fire Station 13 as part of a public-private partnership. The project is located at 530 Sansome Street in the Jackson Square neighborhood. The historic warehouse district is known for its pricey boutiques, upscale restaurants, and trendy shops such as shoemaker Allbirds, which recently expanded its headquarters."
Tax on vacant housing, storefronts proposed for November ballot
"Plans are in the works to place a vacancy tax on the November ballot for both residential and commercial properties as part of a citywide plan to address empty storefronts that is set to be announced today by Supervisor Aaron Peskin. The proposal is intended to free up units that are being kept off the market during San Francisco’s housing crisis and encourage property owners to lease out empty retail spaces. Peskin remains in talks with various groups about the measure, but intends to introduce it early next month after considering the idea for more than a year."
Potential Historic Resource on the Market in Hayes Valley
"Purchased for $900,000 back in 2012, the former Bruce’s Automotive building at 159 Fell Street, which measures roughly 4,700 square feet, is now back on the market with a $3.6 million price tag. While the circa 1927 garage has been flagged as a potential historic resource, its 3,300-square-foot Hayes Valley parcel, which extends to Hickory, is zoned for development up to 85 feet in height."
Monster Planning Meeting in the Mission Next Month, Take Two
"..With the legal battle between the family that held title to the 1979 Mission Street parcel and the development team behind the proposed 331-unit project to rise up to ten stories on the corner site having been resolved...San Francisco’s Planning Commission was planning to travel to the Mission for a special public hearing this past November. While the aforementioned special hearing was waylaid, it has been rescheduled for Thursday, February 7 in the auditorium of Mission High School at 3750 18th Street, starting at 4pm. In addition to 331 residential units, the development would also yield over 32,000 square feet of new ground floor retail space, a garage for 163 cars and 162 bikes, and various streetscape and plaza improvements as previously proposed but likely to be refined."
New Plans for Prominent Van Ness Corridor Site Progress
"Plans to raze the former KRON TV building at 1001 Van Ness Avenue and develop a 14-story building, with 239 condos over 5,000 square feet of retail space fronting Van Ness, were approved two years ago but never broke ground... In fact, both demolition and building permits for the site have been requested. But the previously approved plans have been scrapped. Instead, Oryx Partners is now planning to build a residential care facility on the Cathedral Hill site, with 247 assisted living units for seniors over 8,200 square feet of ground floor retail space...
Oryx Partners has since revealed that they’re planning to partner with Atria Senior Living on the project, as 'condos are not now financially feasible at the current location,'"
2018 Ended with Bay Area Employment at a Record High
"The number of people living in San Francisco with a job ticked up by 2,000 in December to a record 572,800, roughly matching the December increase in the labor force (1,900) which held the unemployment rate in the city, which hit a record low of 2.1 percent this past April, at 2.2 percent. And as such, there are now 136,100 more people living in San Francisco with paychecks than there were at the start of 2010 and 15,000 more than at the end of 2017."
January 18, 2019
WHAT YOU MAY HAVE MISSED THIS WEEK:
City seeking to get a handle on inventory of vacant storefronts
Plans for single, taller 984-unit Hub District Tower selected
Condominiums dropped from 555 Howard Street development
PG&E set to declare bankruptcy and close SF headquarters
San Francisco seeks to get a handle on its inventory of vacant storefronts
"To the detriment of commercial corridors, San Francisco doesn’t actually know how many vacant storefronts it has. But legislation from Supervisor Sandra Lee Fewer would close a loophole in The City’s existing vacant storefront registry law and make it easier for city officials to get a handle on the number of storefronts which are empty. Under the existing building code, a commercial storefront is not considered vacant if is up for sale or lease, leaving hundreds, if not thousands of buildings out of the count."
Developers Drop Condos from Permitted Tower Plans
"While the approval process for a 36-story tower designed by Renzo Piano Building Workshop, in collaboration with Mark Cavagnero Associates, to rise up to 405-feet in height at 555 Howard Street was, in fact, fast-tracked by Planning, and the development was approved back in early 2017, the project has yet to break ground... And while the building permit for the tower has since been approved, the project team is now seeking approval to scrap the condo component from the development and simply build a 406-room hotel, with one (1) off street parking space and a storage room for 20 bikes."
Plans for a Single, Taller 984-Unit Hub District Tower Picked
"While plans for a pair of 41-story towers with a total of 984 residential units to rise on the former San Francisco Honda site at 10 South Van Ness were drawn, an alternative proposal for a single 55-story tower to rise up to 590 feet in height on the site, which is currently only zoned for a maximum of 400 feet, have been in the works as well... And with the anticipated passage of San Francisco’s Hub District Plan, which would up-zone the corner for development up to 600 feet in height,Crescent Heights is now formally proposing to pursue the single tower design, as rendered by Handel Architects below, as their preferred plan for moving forward. The 55-story tower would yield the same number of (slightly larger) residential units and retail space (30,000 square feet) as the two-tower design, but with around 240 off-street parking spaces as now envisioned (versus 518 as originally proposed) and an enclosed mid-block pedestrian connection between Market and 12th Street, the sidewalk for which would be widened and specially paved."
New housing complex for older adults rises in SF’s Excelsior
"...Now the biggest development in the neighborhood in decades is taking shape on the hillside above the intersection of Silver Avenue and Mission Street, on the northern edge of the Excelsior. There, the San Francisco Campus for Jewish Living — formerly known as the Jewish Home of San Francisco — is undergoing a major expansion that will include 190 senior housing units and a new community center."
PG&E says it will declare bankruptcy; CEO resigns
"Pacific Gas and Electric Company (PG&E), which provides power to roughly 16 million people across California, is in a full-fledged crisis after its CEO resigned, the company announced bankruptcy, and its stock price imploded, all with less than 24 hours. On Sunday, PG&E CEO Geisha Williams announced she will step down. Williams moved into the CEO role in early 2017, the beginning of what turned out to be a disastrous period for the San Francisco-based utility company."
Busy months ahead: Here are the 10 biggest conventions heading to San Francisco in 2019
"San Francisco’s convention business is gearing up for a big year. With a larger Moscone Center open for business (see San Francisco Business Times Reporter Katie Burke’s recent cover story about the center’s $550 million expansion), hundreds of thousands of convention attendees are expected to flood the city in 2019."
Accuweather Forecast: Unsettled pattern this weekend
"Scattered light showers and pockets of sunshine develop over our sky today. The storm ranks 1-Light on our Storm Impact Scale. The North Bay experiences the best chance of rain. Potential rainfall totals begin with a Trace in the South Bay and East Bay Valleys to a .25" across the North Bay."
Prepared by: VANGUARD PROPERTIES - FORWARD THINKING REAL ESTATE