SAN FRANCISCO | Parcel F (Transbay) | 800 FT | 64 Floors

[homebucket]

Bumpity bump.





https://sfyimby.com/2021/12/number-5...francisco.html

[gillynova]

I was actually near the site today!

[MyCitySFO]

Thank you homebucket and gillynova for keeping us up to date on this project. You 2 really keep me coming back to this site to see what is happening in this city i left 4 1/2 years ago.

[gillynova]

Originally Posted by MyCitySFO

Thank you homebucket and gillynova for keeping us up to date on this project. You 2 really keep me coming back to this site to see what is happening in this city i left 4 1/2 years ago.

Of course! Thanks for the nice comment for the both of us

I'll be moving over to Austin Texas pretty soon but I will try to update the Bay Area threads when I come back to visit

[MyCitySFO]

Yeah, i saw that on previous posts. A change of scenery will do you good. I am not gonna tell you it's a mistake moving cuz i did it! I nave no regrets and the best part is you are never too far from The Bay via air travel. You will be fine.

[viewguysf]

Originally Posted by gillynova

I'll be moving over to Austin Texas pretty soon but I will try to update the Bay Area threads when I come back to visit

You will be missed--thank you for your frequent excellent contributions to so many SF and Bay Area threads!

I moved to Walnut Creek a little over three months ago, after finally tiring of the city and its conditions, and am loving it over here. The good thing is that I can take BART or drive over anytime.

[Iceman12]

Anyone have an update here? I know they were planning on breaking ground in Q1. Hines clearly bullish on SF with the Atlas Block push.

[Pedestrian]

No news about the construction but a great rendering (with {{sniff}} Oceanside):


https://pcparch.com/work/parcel-f

[deanstirrat]

https://therealdeal.com/sanfrancisco...tower-in-dtsf/

Sounds like they still don't have the money and its unclear if they are going to get it...

[Pedestrian]

Originally Posted by deanstirrat

https://therealdeal.com/sanfrancisco...tower-in-dtsf/

Sounds like they still don't have the money and its unclear if they are going to get it...

I read it just the opposite. It’s obvious the project isn’t going to be built by 2023 so if that was a requirement of the original land purchase, the developers owed damages. It’s also probably true that lenders wouldn’t lend for the project with uncertainty as to the amount and timing of those damages. So now the certainty exists. I don’t see much question that that development group, including Hines and Goldman Sachs can get the money and proceed when they think the timing is right. The only thing we won’t know until shovels hit dirt is their thinking on the timing.

[slock]

The supplemental materials from the meeting say they’re planning a June 2022 start.

https://m.box.com/shared_item/https%...xy7d1e9obqf8bn

[a very long weekend]

^ That seems pretty unlikely.

[urban_encounter]

I’m curious how a building with such a large component of office space can secure financing (in any city) given the new realities of hybrid work? Granted, they could probably replace some office space with more residential and work just fine, but the office space seems unnecessary.

[deanstirrat]

Wasn't this project supposed to begin construction by the end of the year? I know funding wasn't secured at the time, but I haven't seen any updates since April.

[memester]

Originally Posted by deanstirrat

Wasn't this project supposed to begin construction by the end of the year? I know funding wasn't secured at the time, but I haven't seen any updates since April.

I believe Hines recently requested an entitlement extension with a 2025/26 start date. With the amount of empty office space in SF and the new cost of money, this could be delayed longer.

[Zapatan]

Originally Posted by memester

I believe Hines recently requested an entitlement extension with a 2025/26 start date. With the amount of empty office space in SF and the new cost of money, this could be delayed longer.

That sounds overly pessimistic but sadly you may be right.

By "new cost of money" I'm assuming you're referring to inflation, in this case all other costs associated like rent / loans etc. would also be adjusted.




.

[colemonkee]

"New cost of money" would refer to borrowing costs now vs. even 6 months ago, which is substantially more expensive, and likely to get more expensive over the next 6 months or more.

[Zapatan]

Originally Posted by colemonkee

"New cost of money" would refer to borrowing costs now vs. even 6 months ago, which is substantially more expensive, and likely to get more expensive over the next 6 months or more.

Well if they wait until 2025 hopefully the economy will be in a better position (it could be worse too obviously but I'm trying not to catastophize too much).

[memester]

Originally Posted by Zapatan

Well if they wait until 2025 hopefully the economy will be in a better position (it could be worse too obviously but I'm trying not to catastophize too much).

I'm not sure if inflation will be sufficiently under control for central banks to start easing on interest rates for construction cost and mortgage rates to pencil out for this project. The city did allow a lot of projects entitled before the first dotcom crash to renew those entitlements until conditions changed.

[homebucket]

Finally an update on this one. Hopefully this one still ends up getting built somehow. It'd be a shame to lose such a nice design and skyline impactful tower.

A refresher on the specs:
- 806 FT | 61 FLOORS
- 325,000 sq ft of office space
- 165 apartment units
- 189 hotel guest rooms managed by Rosewood
- 9,000 sq ft for retail
- Parking will be included for 183 cars and 212 bicycles

The current site:
https://goo.gl/maps/U9E7gkqpmoP1o21X8

Hines Gets Loan Extension For 61-Story Parcel F, San Francisco
BY: ANDREW NELSON 5:30 AM ON JULY 7, 2023

Permits are approved, and construction was expected to start two years ago, but now the site remains undisturbed while the project developer has received an extension for two loans totaling $80 million. Both JPMorgan Chase Bank and United Overseas Bank have pushed the deadline for Hines through October for two $40 million loans pertaining to the 61-story proposal at 550 Howard Street in SoMa, San Francisco. If built today, the mixed-use tower could become the fourth tallest tower in the city.

The project is a joint venture with Hines, Urban Pacific, and Goldman Sachs Asset Management. The news of a loan extension was first reported by Laura Waxmann for the San Francisco Business Times this Wednesday. According to Waxmann, Hines “confirmed the loan extension on Friday but declined to comment on the status of the project or whether it is trying to sell the site.”

Waxmann also notes that Hines will be required to pay $160 million in quarterly installments starting next year and ending in 2027 to the Transbay Joint Powers Authority. The public authority sold 550 Howard Street to Hines in 2016 for $160 million.

The 61-story proposal is expected to rise around 806 feet. From its 957,000 square feet floor area, there is expected to be 325,000 square feet of offices, 165 apartments, and 189 hotel guest rooms managed by Rosewood Hotels & Resorts. Approximately 9,000 square feet of retail will open on the podium, alongside parking for 212 bicycles and 183 vehicles.

Pelli Clarke Pelli Architects, the same firm responsible for the Salesforce Tower, is responsible for the design. The project will be clad with a curtain wall facade extending to the street level. The public will find public elevators going to the fifth floor, where there will be some retail shops and a bridge connecting the building with the Transbay Transit Center’s blocks-long rooftop park.

https://sfyimby.com/2023/07/hines-ge...francisco.html