280-Unit High Rise Proposed for San Francisco’s South Park Neighborhood

San Francisco, South Park, Dotcom, South of Market, Caltrain, Safeway, Whole Foods, Brickhouse Café, Cockscomb, Alexander`s Steakhouse, CBRE, Realtex

By Meghan Hall

San Francisco’s South Park is seeing renewed growth after the Dotcom boom that defined the neighborhood in the 90s ebbed with the Great Recession. Part of the greater South of Market district, South Park is one of many neighborhoods in the City juggling how to maintain its industrial and production spaces and its desperate need for additional housing. San Francisco-based multi-family development firm Realtex is looking to balance the need for both industrial space and housing by proposing a 20 story, 280-unit mixed use development with 5,648 square feet of Production, Distribution and Repair (PDR) space at 598 Bryant St.

The development would combine two sites, demolishing a 10,757 square foot industrial building and a gas station in order to create enough space for the 234,297 square foot building. 212,215 square feet of that space will be for residential units, of which 168 will be one-bedroom and 112 will be two-bedroom residences. 23 of the units will be designated as affordable to low-income households, and Realtex is requesting waivers for building height, upper story setbacks and dwelling unit exposure as part of the Individually Requested State Density Bonus Program. As part of the program, developers must designate 11 percent of the total units to very low-income residents to be eligible for the requested waivers.

Also proposed is 11,615 square feet of useable open space and a 16,434 square foot underground garage that will accommodate 36 vehicles. 147 bicycle spaces are also included in the project plans.

The project site is located right off of Interstate 80 and is just several blocks from Interstate 280. The San Francisco Caltrain station with several lines is within walking distance of the site, as is a Whole Foods, a Safeway and numerous eateries such Brickhouse Café, Cockscomb and Alexander’s Steakhouse. The neighborhood is growing and changing, and according to a CBRE Research report released in the third quarter of 2018, any industrial space will be a welcome addition to a cramped market that posted its lowest vacancy rate in years at the end of the second quarter, at 1.2 percent. The industrial market in San Francisco has seen steady demand over the course of the last five years, the report stated.

A handful of new spaces came to market during the third quarter of 2018, increasing the vacancy rate slightly to 1.5 percent. However, according to CBRE’s report, there are no new industrial developments under construction in the City of San Francisco. Just one industrial project was delivered during the third quarter of the year, a 46,500 square foot manufacturing/PDR development located at 150 Hooper St., just blocks from Realtex’s proposed project. According to CBRE, the building was already 70 percent preleased, indicating the market will be cramped for the near future.

According to City documents, Realtex still must submit a formal project application for the development, after which the proposed project will undergo a formal environmental review. The project application will need to include both a Large Project Authorization and a Conditional Use Authorization in addition to Density Bonus materials in order to proceed.

Realtex did not return The Registry’s request for comment.

West Coast Commercial Real Estate News