By Jon Peterson
Over the past eighteen months, the Northern California multifamily market has gone through a number challenges, but the demand for housing in the region never waned. Some firms have worked really hard to get sites entitled and approved, and at time they can be sold at a premium. San Francisco-based Realtex Group is one of those firms now offering up for sale the apartment development site located at 300 Fifth Street in San Francisco. The pricing guidance on the site is in the range of $15 million to $17 million, according to sources familiar with the potential development.
The listing agent hired for the sale is Beckett Capital based in San Francisco. A person working on the sale is David Noravian, principal and founder of the company. Beckett declined to comment when contacted for this story.
The sale of the property will be a good test for the San Francisco market as far as new apartment development sites are concerned. While there has been less demand for urban living since COVID-19 started, in recent months the uptick on occupancy and rental rates has been significant, as well.
The new owner of the development site will have time on its side before the 300 Fifth Street would be ready for occupancy. Even though the site is fully entitled, the projection is that the project would likely break ground in the fourth quarter of 2022 and then take another 24 months before the complex is delivered to the marketplace.
The plans for the property include130 units on the site. This plan calls for a development of 16 stories and around 160 feet in height. The breakdown of the units is planned for 12 studios with an average size of 404 square feet, 65 one-bedrooms averaging 512 square feet and 53 two-bedrooms with an average size of 783 square feet. There is no parking planned with this project, but it does offer 1,144 square feet of retail/commercial space in the plans.
The new owners will also have to pay additional development fees to the city and county of San Francisco. This would be a draft impact fee of $4.2 million and an affordable housing fee to be estimated at $1.2 million.
300 Fifth Street was able to get entitlements approved through the Central SoMa Housing Sustainability District. This means that the project was approved on a streamlined process, and there were no public hearings on the development.
The project site is located at the corner of Fifth and Folsom Streets. It now is the home of an existing Shell gas station, which would have to be demolished to make way for the new apartment complex. The site is located three blocks from the Powell Street BART station and is one block away from the Brookfield 5M major mixed-use development that includes 648,000 square feet of office space.