$150M City Office Development Approved

SAN FRANCISCO-The San Francisco board of supervisors last week approved a $150-million plan to develop a new city office building and 400 units of affordable housing at 10th and Market streets.

The Citizens Housing Corp. and Tenderloin Neighborhood Development Corp. own the 2.8-acre site. They are working on the project in partnership with Myers Development Co. The TNDC says it acquired the site in a “bargain sale” from the Bank of America. The purchase price was $4.5 million.

Terms of the transaction have TNDC selling the site to the city for $7.9 million and selling the completed office building to the city for a guaranteed maximum price of $143.2 million. Included in that price are $3.9 million in predevelopment and entitlement costs and a $5.8-million fee to the developer. The money will come from the city’s general fund.

In addition to the office space and apartments, the development will include underground parking, a public art plaza, a child-care center, ground-floor retail and public open space The office and retail portion of the development will be used to underwrite the two-phase multifamily component.