Built in 1942, the former Leemah Electronics building at 1301 Folsom Street, on the southeast corner of Ninth, traded hands for $8.5 million in early 2014. And earlier this year, plans to completely renovate and convert the 36,000-square-foot structure into a LEED Platinum, Net-Zero Energy office building, at an estimated project cost of $7.6 million, were drawn and permits were requested.
But the aforementioned plans have since been abandoned and 1301 Folsom Street is now back on the market without a specified price. From the offering memorandum prepared by San Francisco Capital Advisors:
“…the development value of 1301 Folsom Street is currently held down by the low 65-foot height restriction of the present zoning regulations. Nevertheless, height limits have been raised over time to accommodate growth pressures in a city with fixed horizontal boundaries. This upzoning is particularly true for corner parcels in the South of Market Area (SoMA).
Whenever this happens, development site prices dramatically increase. Few other locations offer the reward of purchasing a low-rise building, with the hope of someday owning a high-rise development site.”
Keep in mind that the City’s Western SoMa Plan doesn’t include an up-zoning for the 1301 Folsom Street site.