Troubled Transbay Parcel Finds New Buyer
F4 Transbay Partners has reached an agreement to buy Transbay Parcel F for $160M, which would mark the sale of the district's final development site.
The JV of Hines, Urban Pacific and Goldman Sachs' Broad Street Real Estate Credit Partners plans to close the deal by this summer. The agreement comes months after Crescent Heights walked away from plans to purchase the site for $165M, stating it was impossible to meet the district's 35% affordable housing requirement, according to SF Gate.
The Transbay Joint Powers Authority has been seeking a new buyer since then, especially since funds from the sale need to go toward the first phase of building the Transbay Transit Center. The authority had to take out a $171M bridge loan last month.
F4 Transbay Partners plans a mixed-use tower with around 300 hotel rooms, 200 residential units and up to 425k SF of office space. If the JV can acquire a nearby piece of privately owned land (at 540 Howard St), it will pay the authority an additional $15M. The deal for Parcel F hinges on whether the city will give the developer an exclusive negotiation agreement for Block 4, where F4 Transbay Partners proposes building 70 required affordable units plus additional housing. [SFG]
