By Jon Peterson
There is a 13,200 square foot lot planned for residential development up for sale in San Francisco located at 830 Eddy Street @ Van Ness Avenue. The listing agent on the sale of the property is the San Francisco office of Newmark Cornish & Carey through its NGKF Capital Markets Group.
The property is owned by San Francisco-based Build, Inc., which according to public documents had acquired the site in June of 2016 for $3.95 million.
The agents on the sale are Michael Taquino, Kyle Kovac and Daniel Cressman. These are all executive managing directors with the company. Kovac declined to comment when contacted for this story.
The site is fully entitled and ready to be developed into a 12-story 137-unit residential project. It could also have up to 85 parking spaces in a below-grade parking garage. It is unclear what the price point on the site might be.
An interesting feature of the development is that the project has a grandfathered BMR requirement as to the amount of affordable units that will be in the development. The amount for 830 Eddy Street is a fixed BMR of 14.5 percent on-site.
All new projects being proposed in San Francisco following the passage of Proposition C currently require a minimum of 25 percent affordable if on-site or 33 percent if off-site. This difference can severely affect the value of land that developers are buying for new development projects. In some cases, this difference can be as much as 60 percent, according to sources that are tracking land values for new development projects in San Francisco.
This becomes an issue as development projects will have a lower percentage of its income have a chance for growth in the future. The part of the project that is set aside for affordable units is considered fixed income with no chance for growth in the future.
The predevelopment of the design for 830 Eddy Street has been put together by San Francisco-based BAR Architects. The design has several luxury amenities. These include a rooftop deck, community garden, landscaped outdoor courtyard and multiple lounge areas.
The residential project is located two blocks from the $2 billion CPMC Sutter Van Ness and Geary Hospital that is now under construction and expected to be completed by the middle part of next year. 830 Eddy Street should benefit from the significant amount of doctors and medical professionals that will work in more than 1 million square feet of hospital and office space in the Sutter project. Another potential tenant group for the residential project will be the technology workers who are employed in the nearby Mid-Market region of San Francisco.