The third "under-developed" corner of Van Ness and Market, a city-owned office building at 30 Van Ness that's currently home to a Walgreen's and the Department of Public Works, is now slated to be razed in the coming years to make way for a 40-story residential tower. As the Business Times reports, city real estate director John Updike has been accepting bids and proposals for the property, with residential use now the most favored option, and the hope of building one third of the units as affordable. The five-story existing building, which will remain home to city offices until 2018, is expected to sell for at least $87 million.
The current bidders and details of their proposals have not been made public, but the Business Times surmises that three of the finalist bidders are Related California, Carmel Partners, and Rubicon Point Partners. Though the city only required the proposals to have 12 percent affordable housing, under current zoning, there is political pressure to keep to the new 33 percent level, which the city plans to help underwrite using funds from the sale of two of its other buildings, 1660 Mission Street and 1680 Mission Street.
The Board of Supervisors' budget and finance subcommittee are discussing the sale this week and will deliver a recommendation to the full board next week, for a final vote on July 21.
There are already 2000 units being built on opposite corners of this same intersection, including in this tower with a mouth on the other side of Van Ness, designed by Snøhetta; and in two 400-foot towers from developer Crescent Heights on the Honda dealership site, known as 10 South Van Ness.
The land sale at 30 Van Ness is expected to help fund the city's plan to build a new 17-story office building on the site of the current Goodwill, at Mission and South Van Ness, which is where the Department of Public Works will ultimately move.