Narrow Market Street Site on the Market Touting Tower PotentialMarch 7, 2017
Built in 1922, the narrow two-story building at 570 Market Street, which also fronts Sutter Street and is currently home to Daiso Japan, Creative Marketing Concepts, ABC Cleaners, Lucky Nails and Jack’s Shoe Repair, is now on the market for $16 million or roughly $1,000 per square foot.
While the price tag for the building, which currently only produces $480,000 in net operating income per year, might seem a little steep, keep in mind that the downtown parcel is being pitched as a development opportunity.
And the 570-572 Market Street parcel (a.k.a. 53-57 Sutter Street) is zoned for building up to 300 feet in height.
Comments from Plugged-In Readers
Poor property line windows. . .
If you’re going to build a tower here then build a real tower.
Isn’t this the old Grant’s Tobacco Shop site? I recently heard that the owner of Grant’s deeded this place to his employees who quickly ran it out of business. The price seems really low considering the potential for development and how much Lot F went for in the nearby Transbay zone.
No Grant’s was in the Arcade Building to the far right. Amazing customer service, I remember I ordered something from there once in the wrong color and they told me they’d let me know when the right one came in ; I thought “yeah sure” but about 18 mos later I got a phone call… Sorry to see them go.
Maybe a “hail Mary” offering before reality sets in and the price is lowered?
If this is built as offices the wait before it could get under way is 6/7 years. Assuming it wins the Prop M lottery which is not guaranteed. This area does not seem to be favored by the City for more office development.
The alternative is condos. But at 28 – 30 stories (its highly unlikely any increase in height from current zoning will be granted by planning) the number of units possible may not be enough to pencil out for the developer. Especially given the glut of pipeline condos set to come online in the next few years and what could be an extended period of flat or just small appreciation for SF condos. At 28 or so stories this building will be hemmed in by nearby taller building on 3 sides. Not especially an el primo location for a pricey condo development.
Don’t hold your breath on this one.
Me thinks this would be a great property for condos/apartments. Minutes walk from jobs and situated in a unique spot north of Market already built out, with good sun exposure. Yas!
I’m confused. The article says that it’s going for a little more than $1000/sqft and that they’re asking $16MM. There is no way that little building is 16,000 square feet.
As reported above, the little building extends from Market to Sutter. And it’s actually a 16,195-square-foot building on a 7,029-square-foot lot.
The First Republic Bank Building at 388 Market, just down the street, is full of condos. It’s certainly doable at this site with proper design.
The max height should be at least 500 ft on this one, not 300
It is fine to have an opinion, but developers have to work with reality. The maximum height permitted for the site is 300 feet, and that is not going to change any time soon. So, any proposed project is going to have to fit within the current zoning.
A lot like this one is utterly useless unless the developer can build really tall. Given how narrow the footplates would be, office space is out of the question. This really could only be built as condos. To build enough to warrant $16M price out of the gate, plus another $150-200M to build it out would require a minimum of 700-1,000 ft tower. Given the unrealistic zoning regulations, and anti-development stance in the city this site will sit forever.
I know in NYC they let developers put a larger package together with regards to height if air rights from neighboring properties are purchased. Why doesn’t SF adopt a similar pro-development law?
Biggest challenge of this site is the narrow street frontage: only 40 feet on Sutter and 50 feet on Market. That means at most 4 units per floor, about 100 units in all.
The super skinny building proposed at 524 Howard is on a 75 foot wide lot.
UPDATE: The Plans for a Skinny 300-Foot-Tall Tower to Rise Right Here
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