Related Buys Van Ness Development Site for $80M, Ups Affordable Housing
The city of San Francisco is selling its building at 30 Van Ness Ave for $80M, which is $7M less than originally approved.
The deal with Related California's 30 Van Ness Holdings will cover around $31.8M in outstanding debt and $440k in broker and marketing costs, leaving around $47.7M to help finance a new 17-story city office building at 1500 Mission St, according to SocketSite. That building is part of a larger mixed-use development Related is planning with 500 residential units and 450k SF of city offices.
The five-story building at 30 Van Ness sits on a parcel zoned for up to 400 feet high, and will likely be replaced with about 600 units of housing. Related California plans to use a tax-exempt bond to increase affordable housing at the site from the required 12% to 20%. A city subsidy could boost that to 33%.
The city has a leaseback agreement for the current building through late 2018. [SS]
