According the San Francisco Business times JCN Development (think 1501 Greenwich) has purchased the “Quality Tune-up” site at 490 South Van Ness for $2,650,000.
The parcel, at South Van Ness and 16th Street, is zoned for up to 50 housing units under the Eastern Neighborhoods rezoning that was completed last year, according to Al Clifford of Gordon-Clifford Realty, who represented the seller.
The deal was a creative 1031 “direct exchange” between JCN Development and the seller, a family trust that has owned the property for decades. Here is how the exchange worked: Naughton’s group bought the development site. The seller then turned around and invested the proceeds in three condominiums in another project Naughton’s group built, the 29-unit Greenwich at 1501 Greenwich St. Both parties made out pretty well, Clifford said. The trust received handsome condos that will generate steady rental income, while JCN not only was able to sell out the three remaining units of the Greenwich, but also received a parcel that — when the market improves down the road — could be a development site.
The land was originally listed at $4.5 million. Elizabeth Moore, Shamrock’s project manager for development, said the South Van Ness project would be housing over retail.
Assuming no Native American burial grounds of course.
I hope that the entitlement of that ugly quad billboard goes away when the new development is constructed.
Bam! RE buy and hold investment strategy is back. betcha we’ll see more deals like this in 2010. Now that’s what I’m talking about!
Considering what the city paid under eminent domain for the Hugo Hotel, this purchase seems like a good deal. If the market doesn’t come back for condos, they could sell the land to an affordable housing developer.
The last thing this neighborhood needs is still more subsidized housing. This willful pattern of concentrating low-income housing in a few neighborhoods (North Mission/Octavia/TL/SOMA) shows we’ve learned nothing from the lessons of the past 50 years.
think the New Mission Hotel will ever go away? In addition to that area being a hub of the heroin trade, that place is frightening!
http://www.sfweekly.com/2007-10-10/news/the-vice-hotel/full
Somehow I think that lot will sit vacant for a long time.
zzzzzzzz, are you saying creating specific low-income neighborhoods is bad? I’m not so sure:
http://www.theatlantic.com/doc/200807/memphis-crime
It seems like more problems happen when you try to intersperse projects throughout a city.
I’m sure many people have ideas about what the solution is. One possible solution could be Geoffrey Canada’s approach where parents take more responsibility, but also receive assistance, and where there is more of a long-term view instead of a misguided short-term view:
http://www.amazon.com/Whatever-Takes-Geoffrey-Canadas-America/dp/0547247966/
Agreed zzzzzzzz. Massive amount of low-income new housing in the pipeline adjacent to acres of govt housing (Western Addition).
Give this developer an additional floor or two in exchange for an additional level of parking (underground?) — subsidized & reserved for neighborhood residents.
Get cars off the streets by giving neighborhood residents affordable options. Site by site. Win /win.
We need to rethink streets – with each dev opportunity that arises.
Agreed zzzzzzzz. Massive amount of low-income new housing in the pipeline adjacent to acres of govt housing (Western Addition).
Give this developer an additional floor or two in exchange for an additional level of parking (underground?) — subsidized & reserved for neighborhood residents.
Get cars off the streets by giving neighborhood residents affordable options. Site by site. Win /win.
We need to rethink streets – with each dev opportunity that arises.