Downsized Affordable Housing Development On Mission Returns
In 2012, the Mayor's Office of Housing withdrew their financial support for the development of a 13-story building on the parking lot at 1036 Mission between 6th and 7th Streets, a site zoned for building up to 120 feet in height.
The approved project would have provided 100 apartments for low-income families and the formerly homeless. And to some, the move by the Mayor's Office seemed to suggest a position that SoMa real estate had become too valuable for any more low income projects.
In two weeks, the Tenderloin Neighborhood Development Corporation (TNDC) will return to the Planning Commission seeking approvals for a scaled-down project on the site, rising 9 stories with 83 apartments for households earning up to 55 percent of the Area Median Income and 1,000 square feet of retail space on the ground floor of the development.
Correction: While the TNDC had proposed to partner with the developer of 399 Fremont Street to finance the development of 1036 Mission Street and satisfy the affordable housing requirement for the Fremont Street tower off-site as originally reported, that proposal has been deemed "unworkable."
The downsized 1036 Mission Street development will, in fact, be financed by San Francisco's Mayor’s Office of Housing along with the State of California’s Housing and Community Development Department as the TNDC has successfully secured "some of the last remaining funds from the voter-approved Proposition 1C," according to Katie Lamont, the TNDC's Director of Housing Development.
April 11, 2014
The Cube House Is Now Noe's Third Most Expensive Home
Having been listed for $4.5 million, the sale of the Edmonds + Lee Architects designed Cube House at 4318 26th Street has just closed escrow with a reported contact price of $5,250,000.
The contract price for the Cube House ties it with 651 29th Street for the third most expensive home sale in the history of Noe Valley, behind 526 Duncan (the "T House") at $6.1 million and last month's sale of 625 Duncan for a record setting $7 million.
Office Rents In San Francisco Approaching Dot-Com High
The average asking rent for office space in San Francisco has ticked up to $56 per square foot on an annual basis, 21.5 percent more expensive than at the same time last year.
The least expensive area for office space in the city remains around Mid-Market (Yerba Buena) with an average asking rent of $49.90 per square foot, while the most expensive area is around the Ball Park (and Caltrain) with an average asking rent of $58.50, all according to Cassidy Turley
Cassidy Turley is expecting average office rents to approach $60 per square foot by the end of 2014, a mark only observed in San Francisco once before - during the "tech boom" of 2000. As plugged-in people know, employment in San Francisco is within reach of its all-time high as well.
Transbay Tower To Become "Salesforce Tower" With Monster Lease
Salesforce.com will lease just over half of the 1,070-foot-tall Transbay Tower rising at 415 Mission Street, adding 714,000 square feet of space to their collective San Francisco "campus."
The 61-story building will be renamed "Salesforce Tower" and be ready for occupancy in 2017, at which point Salesforce will control over 2 million square feet of office space in the city.
"Salesforce Tower represents an incredible milestone in our company’s history—it will be the heart of our global headquarters in San Francisco," said Marc Benioff, the company chairman and CEO. "We founded salesforce.com in San Francisco 15 years ago and this expansion of our urban campus represents our commitment to growing in the city."
Salesforce is paying $560 million for its 15-1/2 year lease and naming rights, with plans to move into the tower in early 2018. Salesforce will effectively occupy the bottom 30 floors of the tower along with the very top floor.
Proposed "Housing Balance" Ordinance Could Be Out Of Whack
Introduced by Supervisor Kim and co-sponsored by Supervisors Avalos, Campos and Mar, a proposed "Housing Balance" ordinance would require new developments of ten or more housing units to obtain special permission from the Planning Commission if the development would cause the overall ratio of affordable housing in Supervisorial District 6 to fall below 30 percent, as measured by the ratio of units constructed since 1993.
According to Kim, "Nothing in this legislation discourages development," but according to prominent developer Oz Erickson, chairman of the Emerald Fund, "the economics of trying to provide this ratio will eliminate the possibility of building any market rate housing."
Supervisorial District 6 includes Mid-Market, South of Market, Mission Bay, the Tenderloin and Treasure Island, and within which there are over 17,000 units of housing in the development pipeline, over a third of all the housing in the works in San Francisco.
April 10, 2014
Congestion Pricing Coming To Treasure Island, Transportation Too
The San Francisco County Transportation Authority has been named the Mobility Management Agency for Treasure Island and will be responsible for managing the transportation plan for the island’s approved redevelopment which includes up to 8,000 housing units, 300 acres of open space, 500 hotel rooms and 450,000 square feet of retail and historic reuse.
At the center of the transportation plan for Treasure Island, a congestion pricing program for those in cars, the first such program in the country, and better public transportation, too:
(Continue reading: "Congestion Pricing Coming To Treasure Island, Transportation Too")
The Makeover And Return Of A Townsend Street Warehouse
The former warehouse building on the southwest corner of Townsend and 2nd Streets is preparing for a makeover which will remove the non-historic elements from its façade (fire escapes, ducts and pipes), replace the windows, and repaint with a new color scheme.
And if approved, a deck will be constructed on the roof, although the deck seems to have been rendered without the new building between 101 Townsend and the ballpark:
(Continue reading: "The Makeover And Return Of A Townsend Street Warehouse")
Mortgage Rates Tick Down, Demand Remains Down As Well
The average rate for a conforming 30-year mortgage ticked down from 4.41 to 4.34 percent over the past week and is 24 basis points below the three-year high rate of 4.58 percent recorded this past August.
Having averaged 6.67 percent since 1990, the average rate for a 30-year fixed mortgage was 3.43 percent at this time last year while the all-time low of 3.31 percent was recorded in November of 2012.
In terms of the rate for Jumbo loans, Wells Fargo is currently advertising a rate of 4.25 percent for mortgages over $625,500, a discount of 0.25 percentage points as compared to the 4.5 percent rate they're advertising for both regular conforming and super conforming loans over $417,000 in high cost areas like San Francisco.
And in terms of mortgage activity across the nation as we head into the spring homebuying season, mortgage application volume for home purchases is running 14 percent lower versus the same time last year according the Mortgage Bankers Association.
April 9, 2014
Ground Broken For Development Of Entire West SoMa Block
Plans Emerge For Conversion Of Potrero Hill Convalescent Home
With the owner having retired and the convalescent home at 331 Pennsylvania Avenue having closed, plans to convert the historic three-story building which was constructed by the Bethlehem Steel Company in 1916 and first served as the Union Iron Works Hospital into six residential units have emerged.
As proposed, a two-story addition would be constructed behind the building and three private balconies would be added to the north. Five new off-street parking spaces would be accessed by way of garage door to be carved in the façade while a new rooftop deck and garden would sprout above.
The building's change in use will require authorization from the Planning Commission.