A stalled residential project which could make up nearly 1,000 of the 82,000 new units San Francisco is mandated to build in the next half-decade appears to be back in motion and headed toward construction.

As the SF Business Times reported Wednesday, developer Crescent Heights is making some moves on 10 South Van Ness, a project that has been in the planning stages at least eight years. According to the publication's sources, the developer has begun pricing out its construction, design, and engineering teams, with preparations to begin construction in 2027.

The planned 67-story tower at the site of a former Honda dealership (currently SVN West) would contain over 950 apartment units, as we last reported in 2024, with 15 one-bedroom units, 408 two-bedroom units, and 29 three-bedroom units. Crescent Heights was seeking credit for contributions already made to affordable housing in the city, and it's not yet clear whether that will mean a portion of affordable units will still be allocated in this tower.

It's also unclear if the building will be primarily condos, or rentals, or a mix of both — the Business Times refers to both potentially being in the mix, but a decision about the unit mix might not be made until the market nearer completion comes into focus.

This is one of the remaining properties at the intersection of Van Ness and Market, and area the city formerly called The Hub, that has is zoned for extra-high heights that has not yet been developed. The completed projects, which began before the pandemic are 1550 Mission (known as the Fifteen Fifty Apartments) and 30 Otis (known as Chorus).

Construction was halted in August 2023 on a project catty-corner from this one, the 47-story Hayes Point, by Australian developer Lendlease. There was some movement on that last year, with Lendlease seeking a new arrangement with the city with regard to the affordable component. But construction still has not resumed at that site.

As Residential Builders Association President Sean Keighran told the Chronicle this week, with regard to Mayor Daniel Lurie's upzoning plan in other parts of the city, construction costs, interest rates, and city bureaucracy remain major impediments to getting construction started again in San Francisco. "Land prices are still expensive, the cost of construction is still expensive, interest rates are still relatively high, it still takes far too long to get a permit," Keighran said.

But Crescent Heights moving on 10 South Van Ness is another sign that developers are seeing signs of housing demand and market shifts that could make building worth their while in the near future, as the Business Times notes.