Shuttered Real Food Company Site on SaleApril 18, 2017
As we first reported last year:
While currently leased to Real Food Company, the neighborhood grocery which has occupied the converted auto garage for almost twenty years, the Cow Hollow buildings at 3060 Fillmore and 2169 Filbert Street have just hit the market.
The nearly 12,000 square foot site is zoned for development up to 45 feet in height. And while the pitch book for the property notes, “a grocery use remains a viable source of income for the property long term,” the site is also being marketed as a redevelopment opportunity for either a four-story residential building, or three stories of condos over a ground floor commercial space, to rise.
Seeking an eye-popping $17 million at the time, the Real Food Company vacated in October, the buildings remain empty, and the asking price for the property has just been reduced 16 percent to $14.75 million.
Comments from Plugged-In Readers
It doesn’t look anything like 12K gsf, and if you guesstimate by counting parking spaces – 3×5 – you have maybe 50×100>5K…does the property extend in some L-shape or include other buildings (than the corner) ??
Yes, it is L shaped because there is an adjacent building on Filbert. Total is 11,800SF.
[Editor’s Note: Or as we wrote above, “the Cow Hollow buildings at 3060 Fillmore and 2169 Filbert Street.”]
Naive non-developer math: Buy it for $12M, build 3 floors of condos on top and put retail on the bottom. 75% efficiency gives you 27k sqft for condos, and 12k sqft of retail on the bottom.
Build the condos at $500/ft => $13.5M and rough out the ground floor at $200/ft => $16M construction costs. Sell the condos at $1200/ft => $32.4M. You get $4.4M profit plus you get to rent the ground floor for probably $75k/mo?
Developers, correct my math.
Excluding entitlement fees, various development fees including the market rate in lieu fee (which would be roughly $1,200,000) and carrying the note with no income for at least 2 1/2 years. And that’s if the neighborhood allows you to develop such a large building on very tight corner with no additional parking for new residence in a transit oriented neighborhood.
Not much money left in my opinion at the end of the day.
Meanwhile the 24th St Real Foods, closed since the early 2000’s, sits empty and disheveled by it’s owner Nutraceutical, who has had an ongoing grudge with the neighborhood which supported it’s workers who wanted to unionize.
UPDATE: San Francisco’s First Shake Shack Could Open Right Here
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