Construction at the long-stalled Touchless Car Wash site at Divisadero and Oak streets is set to begin later this year, as Greystar, the largest developer in the US, has acquired the project from the previous builder.
South Carolina-based Greystar has secured financing for the 203-unit project at 400 Divisadero, allowing it to take on the risks that had stalled the development under 4Terra Investments, as the Chronicle reports. Public Works has reportedly issued permits for construction-related sidewalk and street closures along Divisadero and Oak streets, with an October 19 start date listed on the permit. A demolition permit for the former car wash is also in the works.
The eight-story mixed-use building will reportedly include 20 affordable apartments, about 1,850 square feet of retail space, 24 parking spaces, and storage for 144 bicycles.
The site has been tied up in development battles for more than a decade. Texas-based Genesis Real Estate Group initially secured approval for a 186-unit project in 2019, but abandoned the plans in 2022, citing rising construction costs and a weak rental market. During the approval process, Genesis held more than 1,000 community meetings, including weekly “beer with a developer” gatherings at Madrone Art Bar.
According to the Chronicle, the property later became part of a fight over whether it should be redeveloped as market-rate housing or acquired for a 100% affordable project. Former Supervisor Dean Preston had been facilitating a deal with the Tenderloin Neighborhood Development Corporation to purchase the site, which fell through after the city could not guarantee funding.
Reviving the car wash development became a campaign promise for Supervisor Bilal Mahmood, who defeated Preston in 2024. During that race, the moderate political group GrowSF paid for a billboard above the property promoting Mahmood’s support for getting the project built.
Mahmood later worked with 4Terra to help move the project through the remaining regulatory hurdles. The development reportedly received ministerial approval under AB 2011 in late 2024, using older building standards that helped avoid additional costs from years of changing building codes.
The real estate site Streamline reports that Mahmood also championed the SHADE Act, which allows stalled projects to use the building codes in effect when they initially applied rather than being forced to comply with newer requirements each time they are delayed. For the Divisadero project, the building code had changed three times during the lengthy approval process, adding an estimated 5% to 7% to construction costs.
The project also became more financially viable after the Board of Supervisors lowered the affordable housing requirement for market-rate developments from 20% to 5% this year.
The Touchless Car Wash closed in late 2021 during the pandemic.
Previously: Project to Redevelop Divisadero Car Wash Site Looks Alive Again, With 203-Unit Building Proposed
Rendering by BDE Architecture
