The City acquired the property on March 20 for $12 million and plans to develop new affordable housing on the site that upon completion will be transformed into a mixed-use development with expansive ground-floor activation opportunities. Sheet Metal Workers also agreed to lease-back the property for 24 months.
Jason Parr, Mark McGranahan and Scott MacDonald with Cushman & Wakefield represented the seller in the transaction.
Located at 1939 Market Street at Duboce Avenue the site currently consists of a surface parking lot and a two-story office building (union hall) that would be demolished to develop the new housing project. According to the Mayor's Office, the planned project would provide 100 percent permanently affordable housing and would likely serve low-income seniors.
The city is acquiring the property with funds from the Educational Revenue Augmentation Fund (ERAF) and would draw from the $600 million Affordable Housing Bond passed in November to finance the construction of the housing project.
“San Francisco’s housing crisis coupled with statewide efforts to stimulate dense housing development near transit services, made 1939 Market Street an ideal site for a new housing project,” said Jason Parr, Managing Director. “Further, the property is also just a few blocks from Highway 101 and surrounded by nationally recognized retailers.”
The site is located at the nexus of Hayes Valley, Duboce Triangle and Mission Dolores and its zoning allowance places no limits on unit-density and allows for the construction of structures up to 85-feet in height.