5 Projects Transforming Mid-Market
Mid-Market's got a bevy of projects underway that will transform the area. And that's why we're excited to host our first Future of Mid-Market event on March 13 at Hotel Nikko, starting at 7:30am.
1. 1028 Market
A panelist, Tidewater Capital's Craig Young (snapped with colleague Ross Stackhouse at the opening event for The Hall on Market Street) calls The Hall a temporary activation of the development site at 1028 Market St via the creation of a multi-vendor food hall and community gathering space. Meanwhile, he's in the process of entitling the space for 186 apartments and about 10k SF of retail space. Craig says it's been stunning to see the change in the neighborhood. "Literally day to day we are noticing differences on the street and in the community."
2. 1036 Mission
Another speaker is Tenderloin Neighborhood Development Corp exec director Don Falk, who just sent us a rendering of planned apartments at 1036 Mission St, which will start construction next year. Getting fully financed has taken years, in part due to the state’s funding getting almost fully depleted after 2008, followed in 2011 by the demise of Redevelopment, which cut in half (or worse) the amount of local subsidy available. The state cobbled together enough money for one last RFP. The city saw the opportunity and bit the bullet, loaning TNDC enough money to be able to submit a competitive application. The building downsized from the original 12 stories and 110 units to eight stories and 83 units as a way to reduce the total amount of public subsidy needed.
3. Eddy and Taylor
TNDC's $72M Eddy and Taylor Family Housing project sits in the Tenderloin bordering Mid-Market and is slated to begin late next year or early 2017. The eight-story mixed-use project will have 103 units spread out as a mix of studios, one-, two- and three-bedrooms with landscaped open space. And 30% of the units will be 30% AMI or below. The remainder will be 50% AMI. It's got a similar story to 1036, also affected by the state's disappearing funding and the latter demise of Redevelopment. In this case, a private developer has stepped forward and offered to do a “directed in-lieu payment,” which is an untested idea, to provide some of the public subsidy that would otherwise be unavailable. That project has not yet been approved, but if it is, it will provide some of the needed financing. Don says TNDC is currently applying for state money—the new cap-and-trade and a special one-time allocation approved a few months ago.
4. 1400 Mission
Don also sent us a perspective of 1400 Mission St, which will be complete in July. Don says the project was really dependent on progress at LUMINA. Tishman Speyer is providing 100% of the gap financing, so moving ahead with it was a function of the approvals and Notice to Proceed at 201 Folsom. Craig anticipates an increasingly diverse collection of people and space coming to the area, with major drivers of that change being new office, hotel, retail and housing (both market rate and affordable).
5. 995 Market
Long Market Property Partners' Daniel Goldberg says his team is doing a full building upgrade of 995 Market (we were the first to report on WeWork's big lease there this week). He also completed the construction and lease up of 1035 Market St several years ago. Long Market is spending approximately $100/SF on base building upgrades. It's been a tricky building to work on for many reasons; the historic ownership groups spent virtually no money on the 1907 asset. Everyone has been saying Mid-Market was the neighborhood set to change for the last 25 to 30 years, and it finally is happening right before our eyes, he says. But we still need more critical mass between 5th and 7th streets. Projects in planning or under construction don't equate to immediate changes, he notes. A complete transformation will take time.
Here's Scott Peterson of Fine & Rare, snapped last fall. He's part of the team behind The Hall, which brought new life into the long-shuttered Hollywood Billiards site. Craig hopes the arts and community groups will be able to continue to generate positive influence in the community, as they have done for decades, coupled with thoughtful direction from the planning department, mayor's office and other government agencies. Hear more at Bisnow's Future of Mid-Market event on March 13 at Hotel Nikko, starting at 7:30am. Sign up here.