New San Francisco Building Will Provide Unique Mash-Up of Residential and PDR Space

Align, San Francisco, Perry Architects, Fitzgerald Furniture and Upholstery, Skyline Capital Builders
Courtesy of Perry Architects

By Meghan Hall

Mixed-use projects typically will include an assemblage of uses such as retail, commercial and residential. However, in a rarer move, Align Real Estate is pursuing a project that will incorporate condominium units and production, distribution and space (PDR) into the same project. Denoted in plans as 2750 19th Street, the project had its permits issued in the spring of this year and is in the preconstruction phase. Once completed, the new development will bring 63 condominium units and 10,000 square feet of PDR to San Francisco’s Mission District.

“2750 19th Street will be a stunning residential apartment complex in San Francisco’s Mission District that will house 63 contemporary units on floors two through six, 20 percent of which will be dedicated to affordable housing,” states Skyline Capital Builders website. “…The project will provide an amenity deck on the 2nd floor and roof level for tenant enjoyment.”

Designed by San Francisco-based Perry Architects, the building will be comprised of a mix of one- and two-bedroom units. A single level of below-grade parking will also be incorporated into project plans. The amenity space planned for the second floor will total 3,200 square feet, while the roof deck will total 4,800 square feet.

The base of the building will be clad in brick, while the upper stories of the façade will be composed of darker materials. Large, vertical windows with light wood frames will accent the almost black façade and provide additional interest and fenestration. Interior renderings show an entrance lobby with hard surface, stone-like flooring, wood paneled and dark metal accents and modern lighting.

The development is currently in pre-construction. The first phase of the project involves demolition of the existing building on-site while preserving the originally brick façade.

The property is currently developed with a single-story brick and timber building that has been long occupied by Fitzgerald Furniture and Upholstery. A family owned and operated business, Fitzgerald has been in San Francisco since 1953. After the completion of the project, the artisan furniture company is slated to return to 2750 19th Street as a tenant. Planning documents indicate that the intent is for the company to stay long-term.

Originally, Align and the project team had anticipated providing ground floor commercial or retail space, but pivoted to PDR after receiving feedback from the community prior to approvals. However, the unique mix of PDR and residential may prove to be beneficial to Align in the long run as many commercial businesses and retailers have shuttered as a result of social distancing orders. Over the third quarter, vacancy and unemployment for retail were up, while rental rates and construction deliveries declined. Asking rates dipped about 6.6 percent, while vacancy increased to just under four percent, according to a recent report released by brokerage firm Kidder Mathews. 

On the other hand, PDR space—classed as industrial—has been faring well despite the pandemic, as business operations for many across the sector are deemed as essential. And, in recent years, PDR space has been in short supply as competition for available land in the city has amplified. Reports by city officials in recent years have indicated that many of San Francisco’s eastern neighborhoods—the Mission included—saw a loss of PDR and industrial as growing companies sought those lots for conversion to office. As the city works to protect its PDR stock and as the industrial market has held strong over the  past several months, PDR on the ground floor could be an unexpected boon for Align, as PDR could provide more stable tenancy than retail or other commercial businesses in a post-COVID-19 environment.

Skyline Capital declined to comment for this story. As of this writing, Perry Architects had not yet returned The Registry’s request for comment.

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