April 15, 2011
Mission Bay Neighborhood Block And Construction Watch
Blocks 5 and 11 down in Mission Bay have just changed hands for a combined $41.4 million according to the San Francisco Business Times. Entitled for 198 and 170 units respectively, the acquiring BRE Properties plans to start construction of rental units on the two blocks by the end of the year.
In related neighborhood block news, United Dominion Trust is planning to break ground on 315 rental units and 9,000 square feet of retail on Block 2 in the third quarter; Mercy Housing will likely break ground on 134 affordable units on Block 13 East by the end of the year (with Bosa following with 285 condos on Block 13 West); and Urban Housing Group is expecting to break ground on 147 rental units on Block 3 in 2012.
And of course, construction on Bosa’s phase two construction of close to 400 condos on Block 10 continues and has since been dubbed "Madrone" as Salesforce moves forward with plans for its 14 acre campus stretching from blocks 26 to 34 to the south.
∙ BRE pays $41.4 million for last apartment sites [San Francisco Business Times]
∙ Radiance West (325 China Basin Phase Two) Construction Underway [SocketSite]
∙ Salesforce.com Acquires 14 Mission Bay Acres To Build 2 Million Feet [SocketSite]
First Published: April 15, 2011 10:00 AM
Comments from "Plugged In" Readers
Me thinks that with Salesforce.com at Mission Bay, Twitter and hopefully others at mid-market the residential market looks bright in west, mid, east SOMA. But having said that, the Western SOMA planning underway (now for like 4 years?) it is likely that status quo will prevail in that part of SOMA. Then we have the MO plan and the highrise development along Mission planned...could all balance out in the end. What do people think?
Posted by: Me thinks at April 15, 2011 10:18 AM
So a total of 685 new condos. Pretty bullish given the current market.
Posted by: anon at April 15, 2011 10:46 AM
I guess the recession is over.
Posted by: 47yo hipster at April 15, 2011 11:06 AM
Apartment rents are projected to increase in the 8-12% range per year over the next 2-4 years. IMO it makes sense that rental developers are coming back. Not sure about the demand for condos but I'm assuming the employment growth projected in MB has condo developers excited about this neighborhood.
Posted by: Karl at April 15, 2011 11:22 AM
I remember reading somewhere (probably here in ss) that a shopping district will be put on 4th st. Anyone knows if this is still the case?
[Editor's Note: The Future Fourth Street And Envisoned Hub Of Mission Bay (and yes).]
Posted by: Samuel at April 15, 2011 11:50 AM
Doesn't make any sense to put taxpayer subsidized housing on prime park-water front property. That property could sell for a premium and increase the city's tax base. It would make much more sense to put the subsidized housing on a crappy parcel.
Posted by: ChrisDalySucks at April 15, 2011 11:59 AM
also, building 19A is nearly complete, and buildings 17A and B have been open for a while. Blocks 18 and 15 are going to be tennis courts and a soccer field.
I also noticed the first crane erected at the Mission Bay hospital site go up yesterday too. (on block 36)
Blocks 6 and 7 are the ones that need to be filled the most-- they are the biggest eyesores as you drive/walk through the area. The rest are farther from major roads.
Posted by: rr at April 15, 2011 1:32 PM
Maybe with some new buildings and a good plan they will be able to fix the wind-tunnel problem down there. It gets insane on windy days.
Posted by: lolcat_94123 at April 15, 2011 2:47 PM
Putting affordable housing on the crappy parcel, and with crappy funding, was the 1940s-1970s approach to affordable housing - leading to ghettoization, demolition, and a cycle of social ills. Sometimes you've gotta put real resources into addressing poverty.
On the map above, Block N5 is actually called Crescent Cove, not Mission Bay Apartments.
Posted by: yentu at April 15, 2011 4:05 PM
Oh you mean when they demolished all of the Victorian era homes that would have been worth a fortune today to build ghettos. My suggestion is to not build any subsidized housing at all and let those who can afford to live in San Francisco pay the market rate instead of having their neighbors pay a portion of their mortgage. I'd like to live in the Marina with a view of the GGB. Should someone else have to pay a part of my mortgage for my choice of where to live? These people can afford a mortgage, just not in San Francisco.
Posted by: ChrisDalySucks at April 15, 2011 5:38 PM
"Pretty bullish given the current market"
Most of these large apartments and condos will take 20-24 months to construct. The bullishness is not for today but for 2014 & 2015 when most of these buildings are completed and units placed on the market for sale or lease.
It's a GREAT time to build. Developers are getting very good bid pricing due high competition for work in this down economy. Subcontractors are cutting profit and working lean to keep in business.
Construction material cost of steel has gone up. I am seeing construction in the multi-family housing sector is starting to pick up this year, not just in the Mission Bay. In particular SF redevelopment projects under Jerry Brown's threat of elimination.
If I were in these developer's shoes, I would build now also. Waiting later will cost more in construction, not just material, but all the LEED and environmental requirement the City is now requiring $$.
Posted by: ncydr at April 16, 2011 5:52 PM