The fire that consumed the former Cole Hardware at 3312 Mission Street and badly damaged the adjacent buildings – including the Graywood Hotel at 3308 Mission, a single-room-occupancy (SRO) hotel with 28 rooms – left 58 people homeless and the 3300 Club on the corner out of business.
While the former tenants of the Graywood technically have a right to return, unlike the operators of the 3300 Club or El Taco Loco, the hotel has since been gutted.
And the 3300-3308 Mission Street building is now on the market for $3.5 million, touting “a great opportunity for a developer to reposition the property into a cash cow.”
The hotel, which had racked up numerous complaints from tenants over the years and subsequent citations from the City, was purchased for $1.695 million in 2004.
Correct me if I’m wrong but, I believe it’s illegal to convert SRO units to regular rental units or condos. Can someone chime in? Either way, profiteering off of a devastating fire that left dozens of poor and vulnerable homeless is pretty low.
I think you’re right (but am not positive).
That said, it may be more cost-effective for the owner to not rebuild then it would be to rebuild as SROs.
That’s correct. But see “Polk Street “SRO” Going Upscale” for a hint of what’s being suggested.
a cash cow made from the killing off of a few businesses and pushing out some poors due to a fire. perfect for trump/lee’s amerika!
Great opportunity for a developer. I hope they keep the beautiful outside.
A joint venture led by three local developers including Bernal Heights Housing Corporation, Tabernacle Community Development Corporation, and Mitchelville Real Estate Group , but found that due to financing challenges, it wasn’t economically advantageous to retain the façade and still deliver 35 units of much-needed affordable housing. The new overall design is modern architecture. BAR Architects & Interiors is responsible for the design.
3300 Mission Partners LP is breaking ground on the replacement for this building. In contract to the most private developers intent on building nothing but unnecessary luxury housing targeted mostly at people who don’t currently live and work in San Francisco, the redevelopment of 3300 Mission St. aims to transform the 9,200 ft.² structure into a modern six-story building, including up to 35 studio units of affordable housing for single adults or small households. The proposal restricts rent levels for households earning between 30% and 80% of Area Median Income (AMI), which equates to $34,600 to $92,250 per year for a two-person household or $30,250 to $80,700 for a single adult in San Francisco in 2023. Each studio unit will be a minimum of 225 ft.² and feature its own private bathroom and food prep area.
I guess it’s hard to argue with value engineering low income housing, but what a shame they were not able to preserve the beautiful facade.
Also, they bait-and-switched the neighborhood by holding meetings showing the current building with a 3 story addition above, then immediately pivoted to this ugly modern design without showing it to anyone.
“It has now become clear that due to financing challenges, it is impossible to retain the façade and still deliver 35 units of much-needed affordable housing. Due to funding requirements, the project team had to adhere to a pre-determined development timeline, allowing only a few weeks to create a new design or risk losing funding altogether. As a result, we have decided to incorporate the modern architecture of the top three stories into the overall design. While such changes would typically be shared with the community through a more extensive outreach process, it was not possible in this case.”
If anything good can come from this, hopefully tthose who aren’t cheerleading development and have concerns about neighborhood character will get a signed contract establishing the developer’s commitments after community meetings come to a consensus. I’m not holding my breath waiting for that to happen.
With regard to the penultimate sentence in the post above, records show the property was sold in 2017 for $2.85 million to Oak Mission. By the summer of last year, the property was bought by Bernal Heights Housing Corporation for $3.85 million. So presumably Oak Mission sold it in 2023 and grossed a million dollars just holding it for six years. Nice work if you can get it.
Except that the S&P return during that same period was approximately 88%, without holding costs (albeit assuming this was leveraged, the return could be greater than 35%). Another example of the inflation we’ve had for decades before the Republicans decided it was an issue.
A pyromaniacs dream; I hope it’s either well secured while it’s in this state or (what looks like ) sprinklers are operational…preferably both.