Crescent Heights Walks Away From $165M Transbay Deal

Crescent Heights says it cannot meet San Francisco's requirement for below-market-rate housing at or near its proposed high-rise on Transbay Parcel F, causing the developer to walk away from the $165M purchase of the last plot of land available in the Transbay District.

Crescent Heights had reached a deal last month to purchase the property, which is zoned for a 750-foot tower and requires that 35% of the apartments be below market rate. But the company says it isn't feasible to put those units on site or somewhere in the Transbay District as required, according to SocketSite. The Transbay plan demands that 35% of the 4,000 housing units planned for the site be below market rate, according to Curbed.

The lost sale means the money will not go toward financing the $2.1B Transbay Transit Center, already $360M into Phase 1 of construction (rendering shown above). The Transbay Joint Powers Authority plans to look for a new buyer early next year. [SS, Curbed]

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