SF Real Estate By Joske Thompson

City To Pay Luxury Price For Affordable Mission District Development
July 8, 2015

The City of San Francisco has agreed to pay $18.5 million for the former “Quality Tune-Up” site at 490 South Van Ness Avenue and 16th Street in the Mission, a site which was purchased by a developer for $2.65 million in 2009 and successfully entitled for the building of 72 units of housing last year.

Assuming the purchase is approved by San Francisco’s Board of Supervisors on July 28, the Mayor’s Office of Housing and Community Development will then issue a request for proposals from developers to build out the site as permanently affordable rental housing for families, serving three-person households earning up to $55,000 and four-person households earning up to $61,150.

At at negotiated price of $18.5 million, that’s $256,944 per entitled unit, not including the cost of construction.

And at $256,944 per unit, that’s a premium of at least 30 percent above the average price which market-rate developers have been paying for sites around the city and “more than most luxury developers have been spending,” according to a plugged-in local developer.

Articles and photos sourced from www.socketsite.com