197-Unit Development Planned for San Francisco’s Hayes Valley

By Meghan Hall

A medium-density transit oriented development located at 600 McAllister St. in San Francisco is currently working its way through the entitlement process and could bring up to 197 dwelling units to the popular Hayes Valley neighborhood.

According to public documents, Giannini Properties No. One — an entity associated with Alfred and Clara Giannini — put the site up for sale in April of 2018. According to previous reporting done by The Registry, the listing agent for the site is the San Francisco office of CBRE, which has been working on the sale since the property was listed. Pinyon Group, a real estate investment and advisory firm based in Los Angeles, is slated to develop the site.

“The sale is progressing,” said Mark Geisreiter, an executive vice president with CBRE working on the sale. According to Geisreiter, negotiations have not closed yet.

Currently, there are no buildings on the nearly half-acre site, and the parcel is used as a surface parking lot. When the property went up for sale earlier this year, the parcel was not yet entitled, but plans submitted to the City at the beginning of October 2018 show that in addition to the dwelling units, 44 below-grade parking spaces, 207 bicycle parking spaces and 10,166 square feet of useable open space will be part of the proposed development. The project would be 14 stories, or just over 129 feet, in height and total 178,345 square feet.

Bordered by the Van Ness performing arts district and the Western Addition, Hayes Valley is considered one of San Francisco’s most popular neighborhoods. The district is at the center of the North of Market, South of Market and Mission Street networks, and the area is considered a natural entry point to downtown. The new development would be a quarter of a mile from City Hall and half a mile from Twitter Headquarters. The Civic Center and UN Plaza BART Station is also about half a mile away, while several municipal bus lines are easily are located close to the site.

The neighborhood has changed rapidly since the 1989 Loma Prieta earthquake and removal of the Central Freeway, and the addition of 140,000 jobs in the city between 2010 and 2017 has greatly increased the need for housing in the area. The shortage of available housing stock has caused prices in the city to soar. According to estimates provided by Zillow’s Rental and Home Price Indices, the median rent price has risen from $2,974 in April 2011 to $4,281 in April 2018. Over the same period of time, the median home price has increased from $809,000 to $1.335 million.

Before moving forward, Pinyon Group will need to submit a Project Application and Site Permit while the proposed development undergoes an environmental review. The project team may also need to apply for a Conditional Use Authorization. While the base project is code compliant and no density limits exist in the area, buildings are regulated in height. The authorization would allow Pinyoun group to utilize California’s state density bonus. In exchange for an increased height allowance and therefore greater housing density on the property, the investor will provide on-site affordable housing.

As of this writing, Pinyon Group did not return The Registry’s request for comment.

West Coast Commercial Real Estate News