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.