Plans for a supersized building to rise across the two Hayes Valley parcels at 618-630 Octavia Street have been in the works since 2019, as we first reported at the time.
Since redesigned and then further refined by Handel Architects to yield 40 condos, a mix of 12 one-bedrooms, 27 twos and one three in an 8-story building that would rise up to 85 feet in height on the site, with a setback top floor and a rooftop terrace for the building’s residents, the proposed development could be approved/entitled by San Francisco’s Planning Commission next week.
In addition to the 20 off-street parking spaces that San Francisco’s Planning Code unconditionally allows for the 40 units as proposed, the project team is seeking authorization to include an additional 10 parking spaces in the building’s stacked garage, for a total of 30 off-street spots, noting that “the slight construction cost increase [for the additional 10 parking spaces] is outweighed significantly by the revenue generated from the sale of the additional parking spaces” and is “essential to making the project viable, especially in this day and age with all-time high construction costs and a volatile real estate market.”
From the project team:
The fact is that larger units without parking are more difficult to sell. This means that the units are more likely to be vacant longer, which increases the project’s carrying costs, decreases the ability to provide for affordable units and affordable housing costs. The granting of the parking concession is anticipated to make the market rate units more sellable and to decrease their marketing time, thereby resulting in actual cost savings to the construction of the units.
And in addition to yielding an estimated $1.2 million in additional revenue, which would cost $231,875 to produce, the project team notes that larger units without parking are typically worth “15-20 percent less” than comparable units with parking, despite the popular notion that demand for residential parking in San Francisco has dropped.