Another Fully-Approved, Unbuilt Development Hits The MarketAugust 5, 2022
While plans to raze the shuttered Schwarz/Home/Engelhart sausage outlet at 1726-1730 Mission Street and develop a six-story building upon the Mission District site were approved back in 2017, and building permits for the project were approved and issued the next year, the ground has yet to be broken.
As designed by Natoma Architects, the modern development would yield 40 condos, a mix of 20 one-bedrooms and 20 twos, over 2,250 square feet of production, distribution and repair (PDR) space and a garage for 22 triple-stacked cars and 62 bikes.
And the parcel, which was acquired for $4.3 million back in 2014 and subsequently entitled over the next few years, and then held for a few more, is now on the market with a $7.349 million price tag and a plan check in progress. We’ll keep you posted and plugged-in.
Comments from Plugged-In Readers
fully approved SITE PERMIT only! I wish that “fully approved” would be used only for projects with signoffs from: building, DPW, BSM, mechanical etc. That is a fully approved permit. This project is still years away from that.
There needs to be some lawsuits along those lines. “Fully approved” and “Site permit only” are not synonymous.
I don’t grasp why it’s so difficult for the powers that be in San Francisco to understand, and to act upon, how absolutely messed up the Building deprartment has become. Truly, it’s mind boggling.
No Building dept sign off? on a large scale project? these days? You’re years away. years.
Even just a simple single family home permit is so difficult and time consuming to deal with anymore. It’s so broken. So broken. And, what, construction costs are going down? the cost of money is going down? no, and no.
We’re only making housing that much more expensive. Right now, after all the sturm and drang and the likes of Breed talking about “the building department is fixed” circa spring 2022. Please, it’s as broken a facility as it has ever been. San Francisco has probably made housing more expensive in the past 2 years than it even has at any stage in its strange dance with development since it became a municipality.
Escalating construction costs mean new developments don’t pencil out?
… or reduced revenue projections.
If I were a planning commissioner, I would ask the staff to report to the commission about how often fully approved site permits get “flipped” in this manner prior to construction. Because it seems obvious to me that each time a project is sold, the profit potential gets marginally reduced, and thus the probability that it actuallly gets built in the forseeable future is decreased.
This is kind of a losing investment, even though it looks like a huge gain. It probably won’t go for at asking. Even if it goes for 70% over the the 2014 price, that’s not a lot of money or a great investment for the flipper. They could have just jammed the S&P 500 with the money, went on vacation and made more than 100% their money without risk and dealing with the city and random fees.
This is pretty common since the “value” is created throughout the entire process, not just by the developer who finally builds the development.
Theoretically the market will work itself out since no one’s trying to spend millions on an inprogress project just to not build it in the end.
Sure. But by the same token, “value” is destroyed, or at least reduced, each time the property is sold prior to actual construction, until the development is finally built, reducing the total profit available to the developer who finally builds the development.
“The Sausage Factory” has a nice sound (and odor!).
The question on everyone’s, er, tongue, is whether Stanley’s units would smell more like freeway vehicle exhaust or hotdogs?
Wow, those “balconies” – which appear to be about 6″ deep – are very popular. You can’t fit any seating or other furniture on them, but just look at all the virtual people who are standing out there!
Just big enough to hang the laundry on line to dry.
San Francisco has many shallow people.
^^^ Comment of the week!
Comments are closed.