By Meghan Hall
More than six months after Santa Monica, Calif.-based Macerich Companies and Five Point Holdings called it quits on their joint venture at Candlestick Point, Five Point has submitted a fresh round of plans to the City of San Francisco indicating that instead of retail, the master developer now intends to pursue roughly 750,000 square feet of office space in the first Phase of Development of Candlestick, as opposed to the originally approved 134,500 square feet allotted. The bulk of that square footage was once allocated as retail.
“That’s not what tenants would have wanted,” explained Mike Moran, a senior vice president at Cushman & Wakefield, to The Registry in March when Macerich and Five Point announced the dissolution of their partnership. Moran and Cushman & Wakefield have been tasked with leasing some of the office space proposed in the original plans. “They want collaboration, indoor/outdoor restaurants. They want neighborhoods. They don’t want malls, much more mixed-use, tangible, walkable, amenities.”
Five Point Holdings declined to comment, stating that the firm is currently in a quiet period.
According to a presentation given to the City of San Francisco CAC at the beginning of October, Five Point also plans to alter the amount of proposed housing units, square footage for community facilities and the size of the planned performance venue. During the first phase of construction, Five Point has increased the number of housing units from 2,521 to 2,949, while planned square footage for community spaces will decrease from 32,000 square feet to 20,000 square feet, and the performance venue will shrink from 75,000 square feet to 65,000 square feet. Retail will also shrink; 465,000 square feet of the originally-planned 635,000 square feet will be reallocated, much of it now designated as office space. The 220-key hotel and 9.3 acres of open space remain unchanged.
Upon completion, the project is expected to bring up to 2,725 office and 1,100 retail, dining and entertainment jobs to San Francisco.
Prior to these changes, the property was originally called The Fashion Outlets of San Francisco at Candlestick, indicative of the heavy retail presence the project was expected to have. The plans for the property dated back to 2014, when Macerich and Five Point announced their intentions to develop the former stadium—once home to the San Francisco 49ers and the Giants—into one of the largest urban mixed-use projects in the country. In March, Five Point paid Macerich, a mall operator, $65.1 million in promissory note agreements and an additional $5.5 million in interest to end the deal and allow Five Point to pursue an alternate course of development.
The importance of the addition of the project’s office space is also apparent in its project timeline: all of the office space will be built within the first several years, whereas the multifamily and retail portions of the project will be constructed over the course of nearly seven years. As it now stands, the vertical construction schedule for the property will kick off in 2022 with Candlestick Center Outfield, which will include 579 housing units, 70,000 square feet of retail and 750,000 square feet of office. Anticipated completion of this phase will wrap in 2025. Between 2023 and 2026, Candlestick Center Infield will be under construction and will include 1,718 housing units, 235,000 square feet of retail, the 64,000 square foot film arts center and the hotel. Between 2027 and 2029, an additional 351 housing units, Alice Griffith Park 1 and a community block will be added.