30 Van Ness Avenue

Speaking of underutilized city property, the sale of the five-story building at 30 Van Ness Avenue which sits on a Mid-Market parcel zoned for development up to 400 feet in height has been authorized by San Francisco’s Board of Supervisors with a price of no less than $87 million.

The city received 15 bids for the building which have since been whittled down to four.

Each of the final four bids for the property include commitments for redeveloping the Mid-Market site with a primarily residential development with around 600 units of housing, at least 12 percent – and up to 33 percent – of which are expected to be below market rate units affordable to those with incomes of no more than 55 percent of the Area Median Income.

If the 30 Van Ness building is sold for $87 million, the City will receive $54,755,000 in net proceeds after paying $435,000 in broker commission; $40,000 in marketing costs, and paying off the outstanding debt on the building of $31,770,000.   The building was appraised at $43.5 million in 2012.

The sale of 30 Van Ness Avenue, which the City is aiming to close in September, will be structured with a leaseback to the City until late 2018 and the proceeds will help finance the City’s proposed development of a new 17-story building at 1500 Mission Street, on the eastern half of the Goodwill site at the intersection of Mission and South Van Ness Avenue.

And while the City’s existing Surplus City Land Ordinance designates that proceeds from the sale of surplus property be used to finance affordable housing in San Francisco, a carve-out for the sale of 30 Van Ness has been approved by the Board of Supervisors.

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Comments from “Plugged-In” Readers

  1. Posted by Orland

    As I recall from the item a couple weeks ago about Transbay Block 5, that parcel sold for something like $100 million more than this land which price I believe was arrived at even before the decision to convert the RFP from residential to commercial office.

    Seems like quite a discrepancy.

    • Posted by Dave

      I think the viability of this corner is not a given hence the lesser price. Exactly what (how high) will folks pay to live on the windiest corner in SF. One with no street life.

      • Posted by Joel

        No street life? Clearly you haven’t met Mr. “Spare Change” outside Walgreens.

        And it’s a block away from Twitter… so it’s perfect for those folks.

        • Posted by Dave

          The AAA rentals may work. In terms of condos the jury is out. What – 3 condo towers planned for the corner? Will they be be able to sell them at near the price of the SOMA condos? Doubt it. A big reason this garnered so much less from developers.

          The huge wind tunnel or wind funnel at this intersection ain’t going away. That makes for a hard to creat street life even w/o “spare change”.

      • Posted by Alai

        Well it’s no surprise that there’s no street life– all four corners are set for reconstruction in the near future. Presumably, the results, and the amount of street life, will be radically different when it’s done.

      • Posted by Orland

        I really doubt that the wind condition will be much of a factor in arriving at a price for this property. I realize that the 87 mill figure is only the minimum amount for which sale has been authorized. Presumably, with several prospective developers bidding, actual sale price will be greater.

        What’s truly amazing here is that the Transit District got 172 5 million for what is essentially a corner lot at Beale/Howard.

        • Posted by Dave

          I think aside from the open question on how the Van Ness corner will turn out there is the housing cycle which may be peaking. Making the Van ness projects set to come online at not the best time. Didn’t the Howard corner lot get rezoned for office? That may be a surer bet in the intermediate future.

          • Posted by anon

            I could swear that you’ve mentioned that no companies are moving to SF and the office market is toast, no?

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