By Jon Peterson
As the commercial real estate industry in San Francisco continues in its attempt to find its footing, this may be a good year for investment into future development sites. An entity associated with a San Francisco-based Wayrauch family has offered up for sale the development site in the city located at 1690 Valencia Street, according to the property’s offering document. The offering did not provide pricing guidance, but the site represents a unique opportunity for a development located in an area bordering Noe Valley, Bernal Heights and the Mission District.
The seller has owned the half-acre property for a very long time, and it will be selling the property with the assistance of the Colliers San Francisco office. Those working on the sale include Darren Kuiper, vice president, and Tony Crossley and Tim Mass, both executive vice presidents.
There is an existing structure on the site presently, which is a single-story commercial restaurant building that is fully leased to Burger King. This lease runs through October of this year, and there is a possibility of the tenant may want to sign a lease extension at the conclusion of the current term.
In addition, the property also has a surface parking lot on site.
There are a number of things that future owners may be able to accomplish on this site, and one of those ideas is the transformation of the property into a residential asset. The current owners had engaged San Francisco-based RG-Architecture to conduct a massing and feasibility study, which evaluated three potential sizes for the future of the buildings. These options could include the development of the site anywhere from 35 to 126 units. Condo development could be a possibility on this site, as well.
There will likely be a number of different types of developers or capital sources with interest in the site, including affordable housing groups. Converting the property into housing would require the new owners to go through an entitlement process. The sellers, according to the offering document, are open to including this as an option in the contract while the new owner goes through the entitlement process.
The development site has a strong and well-connected location. Any residents that would make it a home in the future would be able to walk to the 24th Street BART station in 10 minutes. If they were employed at CPMC Mission Bernal Hospital Campus, they could walk to work there in three minutes. On top of that, the location sits along Mission Street, which in this area offers a number of retail options. Also, the property is just a block away from Cesar Chavez Street, which connects the location to US Highway 101 and a quick exit either south or north of San Francisco, as well as access to the East Bay via the Bay Bridge.