Hearst Corp. Sells Off Land In San Francisco To Forest City
Hearst Corp. is selling portions of its planned 5M waterfront project to Forest City Realty Trust. As part of the deal, Forest City will purchase land at Fifth and Howard streets that was approved for a 618K SF office tower and land at Mission Street that will become a 288-unit apartment complex, SFGate reports. Terms of the deal were not disclosed.
Hearst was advised in the transaction by Ackman-Ziff, Century Urban and Goodwin Procter LLP.
Hearst plans to maintain its ownership of The Chronicle building at 901 Mission St., home of the San Francisco Chronicle, and a site at Fifth Street where a 400-unit condo project is planned.
The two companies have been partners on the project for nine years. In 2007, Hearst reached out to CBRE to explore development opportunities on several lots between Howard and Mission streets. In 2008, Hearst partnered with Forest City to create 5M, transforming a transition block between South of Market and downtown San Francisco into a mixed-use project with housing, including senior housing and low-income housing as well as office, arts and open space.
The plan was widely opposed by condo owners in the neighborhood and nonprofits, but it was approved by the city in 2015. It has since been tied up in court.
CORRECTION, OCT. 20, 10:50 A.M. PT: A previous version of this story did not mention the brokers that advised the land sale. The story has been updated.