Manna Capital, a private equity firm based in Chicago, filed an application to construct a 40-story, 288-unit multifamily tower at the corners of Eighth and Stevenson streets in San Francisco.

It’s another sign that skyrocketing multifamily rents in San Francisco are spurring developers to jump-start construction plans, especially when they can take advantage of the city’s new development-friendly Family Zoning Plan housing initiatives that allow increased density and taller buildings in exchange for a set amount of affordable housing units included with new projects. The proposed tower would have 38 affordable housing units, the San Francisco Business Times reported.

Manna Capital is also using California Senate Bill 330, a state housing law that freezes local zoning rules, caps public hearings at no more than five, and expedites permitting. The skyscraper would be one of the tallest buildings in the city’s Mid-Market neighborhood and would be built on the site of a 0.2-acre surface parking lot. Manna’s proposal was filed on behalf of property owner Aslanian 2006 Revocable Trust of Napa.

The slender building would rise 433 feet and encompass 303K SF, with 37K SF dedicated to a six-story podium parking garage for 107 vehicles. The housing mix includes 99 studio apartments, 154 one-bedroom units and 35 two-bedroom units. Handel Architects is designing the tower that’s projected to cost upwards of $125M.

Manna’s project is the second high-rise multifamily project proposed in San Francisco this summer. In July, the city approved a 23-story apartment, 201-unit tower at 1965 Market St., the Business Times reported. Rising multifamily rents and dwindling vacancy are making it more feasible for developers to underwrite large-scale apartment projects in the city.

Occupancy in downtown San Francisco was 97.4% in the second quarter of 2026, up 70 basis points from the prior quarter, CBRE researchers reported. Average rent per unit was $4,007, up 17.1% from the same quarter in 2025. Occupancy in SoMa was even tighter at 98%, with average rent the highest among any Bay Area submarket at $4,363, a 17.3% increase from Q2 2025.