The San Francisco Municipal Transit Authority Board of Directors this week granted a key approval for a redevelopment project that will transform an underused bus terminal in the city's Potrero Hill neighborhood.

The $500M Potrero Yard Modernization Project will turn the 100-year-old Potrero Bus Yard into a mixed-use property with 575 income-restricted housing units and retail space, in addition to an updated, all-electric bus terminal.

San Francisco's transit authority gave predevelopment approval to the Potrero Neighborhood Collective to serve as lead developer on the project.

Plenary Americas US Holdings Inc. leads the Potrero Neighborhood Collective, and also acts as the sole equity member for the project. Consultants with IBI Group and Y.A. Studio are also working on the project, along with Plant Construction Co., The Allen Group and WT Partnership.

Based on the timeline given on the SFMTA’s website, construction will begin in 2024 and continue through 2027.

The Potrero Hill project isn't the only transit-oriented development to receive approval in the area lately. The Bay Area Rapid Transit Board of Directors recently gave the go-ahead to a TOD in downtown Oakland, at the Lake Merritt BART station, led by Strada Investment Group and East Bay Asian Local Development Corp.