Approved by San Francisco’s Planning department last in May, Portland Pacific’s proposed 113-unit development at 430 Main/429 Beale hit a Board of Supervisors (neighborhood led) speed bump in October.
And while Portland Pacific is moving forward with trying to secure a green light for development, they have also placed the undeveloped parcel back on the market with an asking price of $4,750,000.
Once again, the proposed development would be condo mapped but the developer had agreed to keep the project as rentals for at least 20 years before converting. No update on the FHA-backed construction loan that Wells Fargo was expected to provide.
Timing could not be worse. Strategy for approvals not executed well. This is really only a bubble market development site, that was purchased by the current developer way late. Expect no sale here.
This is the natural beginning of yet another leg down in the real estate market. The owners of buildable lots sell for far lower prices, allowing developers to build the newest houses for a far lower price.
Soon after, buyers can get the latest, new construction housing for a fraction of the current prices. Owners of the less desirable, older generation 2000-2009 construction will be able to compete when they sell by lowering their prices even further, so everyone wins.
tipster,
At this point I would question whethere or not it is a buildable lot.
In this case, the developer is asking $4.75 million, and had financed the original purchase (price not disclosed) for $4 million. So there is no evidence that San Francisco land, the construction necessary to build homes, or the homes themselves are available “for a fraction of the current prices,” unless that fraction is 9/10, 4/5, or perhaps 3/4 of the peak. And just because prices have dropped from the very peak doesn’t mean that land is available for less than developers paid just a few years ago, in the early 2000s.
tipster – You have absolutely no idea about what you are talking about. Even a significant reduction in the sale price of the land will only allow the developer to build units that can be be sold at a very slight reduction in price. The are so many other factors that go into the total cost of construction and I can tell you that very few of those cost are going to drop over time. Like so much else that you write on this site, your theory is bunk. Time will prove you very, very, wrong.
is this directly underneath the bridge?
It’s right next to “directly under the bridge”, across from the Portside II. Caltrans has a lot directly under the bridge. If you threw a coin from a car while driving over the bridge it would land on this building’s roof.
There’s another 113 units you can deduct from the revised figure of 46,000 proposed planned housing units in SF.
As mentioned above, so many of these proposlas were bubble driven and will never be built. As is the case with TRC among others.
HSR was part of this bubble phenomena too.
The bad news for HSR fans is that 4 lawsuits have been filed by Peninsula folks challenging the project – at least the Peninsula portion of it.
Plus another lawsuit is planned challenging the veracity of the projected ridership numbers.
Collapse or significant delay of HSR will result IMO in a lot more of these proposed SOMA projects being withdrawn.
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All lots are buildable. This one will need to be re-entitled. I agree it has no value with the current entitlements. But the city needs the property tax, builders need to work, construction workers will need work when the socialists get booted from power, and commodities will drop in price when China runs out of patience to continue the level of stimulus they are currently providing.
And when that happens, the planets will be in alignment and the cost required to build at a market price will occur and new construction will again start up in SF. The owners of condos in bland buildings for which the only thing going for them is their “newness” will discover just how easily that advantage is lost, as their HOAs skyrocket as they try in vain to keep up their tired, aging buildings in a building full of underwater homeowners who are getting less and less enamored of shelling out more and more money for something that has lost all economic value to them.
^^^
You left out that entitlements will just be rubber stamped, the city won’t take it’s 18% fees, insurance companies will cut rates, and unions will agree to cuts in pay.
^^^ And low interest construction loans will be plentiful and easy to get.
I think the 429 Beale Street parcel might be a nice spot for a “Wag hotel” or doggy daycare type thing with Caltrans on schedule to build out a dog park at Bryant/Beale and a ton of dogs in my neighbors’ condos in Rincon Hill and South Beach.
I don’t think the fate of high-speed rail has a ton of influence on the residential market …. the office space, probably. I think that San Francisco needs to work really hard at becoming a more business welcoming City where we want jobs and employment downtown – that’s the appeal of living in Rincon Hill, being able to walk to work among all the other fun/great stuff in San Francisco (Chinese New year parade this past Saturday, for example). My main worry about the Rincon Hill neighborhood is the lack of pedestrian safety for all of those residents stacked up along Harrison Street – if folks don’t feel safe walking around because the infrastructure hasn’t been improved, they’re going to jump into their cars … adding to traffic congestion during PM commute or just feeling trapped if they don’t have the gumption to get into the mix during PM commute. I think HSR is important, but not THE most important thing for RIncon Hill to build out …
Jamie:
Anything “doggy” here is a horrible use for this site and obviously not the highest and best use for the site. The best use for this site is obviously residential and it’s the best way to get problems fixed, I.E. Infrastructure Improvements. A “doggy” story won’t do anything. That’s simply NIMBY speak from someone who doesn’t want anything built directly behind the development he lives in.
Wags Hotel would not work here. Check with Chris Daly – I think a high percentage of the pooch condos would have to be BMR for homeless and milkbone addicted canines. I think the offset fees for that type of development are about $24.37 per sf for a program to get strays off the street. Of course their sh*t can stay – because what would SF be without sh*t on the sidewalks?
The Dude – I don’t think you’ve been paying attention. There’s a workable design for mid-rise residential on those two lots … to say that BayCrest folks do not want anything built there is making shit up.
Jamie:
A “workable design” that is feasible and might actually get built? Or a “workable design” by the 288 NIMBY BayCrest Architects that makes absolutely no structural/financial/etc. sense?
UPDATE: Waylaid Rincon Hill Development Plans Ramping up at 430 Main