F4 Transbay Partners, a joint venture between Hines, Urban Pacific Development and an affiliate of Goldman Sachs, has agreed to pay $160 million for Transbay Parcel F which is zoned for development up to 750-feet in height. But there’s a catch.
The sale is conditioned on F4 being granted exclusive negotiating rights to purchase the northern third of the City’s Temporary Transbay Terminal site, a Howard-fronting parcel known as Transbay Block 4 which is zoned for building up to 450-feet in height and will be available for development in 2018 following the opening of San Francisco’s new Transit Center.
And the agreement, which could be challenged by other development teams interested in the Block 4 site, will need to be approved by both the City’s Office of Community Investment and Infrastructure Commission and Board of Supervisors, a Board which recently blocked the sale of another tower site for failing to secure an adequate price.
But if F4’s deal is approved, the sale, which includes an additional $15 million “assemblage bonus” payment to the City if F4 is able to secure the adjacent Temple parcel (540 Howard), which would be razed and rolled into the development as well, is expected to close “no later than the summer of 2016.” And as massed above, F4 envisions building a 750-foot tower with 200-300 hotel rooms, 200 residential units and 250,000-425,000-square-feet of office space on the greater Parcel F site.
The City’s attempted sale of Parcel F has failed twice before.