Transbay parcel slated for $45M sale for 45 percent affordable housing tower

With a recent $260 million bailout from The City, San Francisco’s Transbay Transit Center has come under increased scrutiny by city officials.

That includes the development deals springing up around the future transit hub — envisioned to include high-speed rail and Caltrain — providing vital tax revenues for the project.

Among the development sites under consideration is Block 4, site of the existing temporary bus terminal at the northern one-third of the block bounded by Beale, Howard, Main and Folsom streets.

On Monday, the Board of Supervisors Land Use and Development Committee approved a $45 million purchase sales option for the site.

Included in the deal is a discount price of $3 million if the property isn’t available by June 30, 2018. For that to happen, the Transbay Joint Powers Authority, which is overseeing the transit center project, would have to open up the new transit center and shut down the temporary one by that deadline.

“To the extent that their project continues to come in late and over budget it just gives me a little heartburn to think that that might cost us an additional $3 million,” said Supervisor Aaron Peskin, who sits on the committee in reference to the recent bailout.

Mark Zabaneh, interim executive director of the TJPA, said he is “pretty confident” the new terminal will open in December 2017.

Peskin added, “You have a six-month cushion. And if you fail to perform?”

“I will not fail to perform,” Zabaneh responded.

The $45 million sales price is based on market value factoring in a 45 percent affordable housing requirement. The parcel is zoned for a tower of up to 450 feet, which is estimated to result in a 47-floor tower with 480 housing units.

The sale price option is part of the land deal connected to the nearby Parcel F, between Natoma and Howard streets and First and Second streets. The same development team, which includes Urban Pacific Development LLC, Hines Interests Limited Partnership and Goldman Sachs, is slated to purchase Parcel F for $160 million and Block 4.

There is no final design for Parcel F but it is conceived as being a mixed-used tower with office space on the lower floors, a hotel in the middle and residential on the top floors.

Joshua Sabatini

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