S.F. Supervisors Shut Down $80M Sale of 30 Van Ness to Related California
The San Francisco Board of Supervisors just shut down plans for Related California to purchase 30 Van Ness and replace the building with about 600 units of housing. Related California had no comment this morning on the vote.
The Board of Supervisors shot down the sale this week, stating the $80M offer was $7M less than originally approved. Related California had worked out the $80M deal by offering to have 20% below-market-rate housing on-site (up from 12% required by the city's area plan). A city subsidy could have increased the amount of affordable housing to 33%.
About $47.7M from the sale was set to go toward another complex Related is developing at 1500 Mission St nearby. Related plans to build a 560-unit luxury apartment tower next to a 462k SF office tower (the new home for the city's planning, building and public works departments). The city would have leased back 30 Van Ness for three years.
The board voted 7-4 against the deal, with opposition led by Supervisor Aaron Peskin, who reclaimed his District 3 seat in the November election. In his first meeting back on the board, he argued the deal should not be approved because it was $7M below the approved minimum bid and that the 20% of affordable housing was too low, according to Curbed.
One reason for the lower price was that the $87M minimum was set before it became clear the site would need around $60M worth of seismic work. Under direction from the Board of Supervisors, the city's Department of Real Estate will seek offers for the site that align with the board's directions. [Curbed]