By Meghan Hall
Strada is moving forward with big plans for a multitude of projects throughout San Francisco and has recently added another development to its docket. Public records filed with the City’s Planning Department show that the developer has begun to plan for 559 new units in the South of Market (SoMa) neighborhood.
The project, located at 395 Third St., would total 559 units. Plans indicate that 127 studios, 207 one-bedrooms and 225 two-bedrooms would be provided. Rising 35 stories, the development is expected to cost in the realm of $200 million, and 7,470 square feet of retail space facing Third Street and Harrison Street, as well as below grade parking are planned. Preliminary Project Application documents also show that Strada intends to take advantage of the State Density Bonus Law and as a result, 20.5 percent of the units will be designated as affordable.
“Strada is just beginning our plans for 395 Third St., but we really think it is one of the best high-rise residential sites in the city,” explained Will Goodman of Strada Investment Group. “We see the light at the end of the COVID tunnel and believe strongly in the long-term fundamentals supporting the San Francisco housing market.”
Currently, the property is developed with a surface level parking lot. Strada has recruited international architecture firm Solomon Cordwell Buenz to help design the development and see it through the entitlements process.
Goodman added, “We’re excited to create a plan and signature building design that suits such a prominent location.”
395 Third Street is just a number of blocks away from another Strada project at 555-585 Bryant Street. In October of 2020, Strada submitted plans for a 16-story residential tower with 503 units, of which 53 will be studios, 170 will be urban one-bedrooms, 73 will be one-bedrooms and 205 will be two-bedrooms. All units will be for-rent, and 100 will be designated as affordable.
The development will also include 8,925 square feet of production distribution and repair (PDR) space, replacing some of the PDR space that will be demolished to make way for the new project. 100 parking spaces are also allocated in the plans. Like 395 Third Street, Solomon Cordwell Buenz is the architect of record for the project.
Strada is also working on a residential development at Piers 30 and 32 for the Port of San Francisco. There, the developer intends to construct 850 new residential units. Strada is developing the property with Trammell Crow Co.; the pair of firms were initially selected in the fall of 2020 by the San Francisco Port Commission to pursue development at the property.
The fate of San Francisco’s multifamily market remains somewhat uncertain, as the vitality of the industry remains closely tied to tech employees returning to their offices. However, in recent months, Pinterest paid $90 million to walk away from leasing commitments, and Salesforce—the city’s largest employer—announced employees will be given the option to work remotely full time.
Vacancy currently sits at about 10.2 percent. Overall rents over the past year have also fallen 11.4 percent, while Class A product saw rates decline 19.6 percent. Despite these fundamentals, development is ramping up again. 2021 is expected to have the largest number of deliveries since 2017, with 4,100 units coming online.