Development Site Connecting to Transbay Rooftop Park Acquired by F4 Transbay Partners JV
A joint venture of Hines affiliate Urban Pacific Development, LLC and Goldman Sachs affiliate Broad Street Principal Investments, LLC was selected by the Transbay Joint Powers Authority (TJPA) to acquire Parcel F, the last development site in San Francisco zoned for a building height taller than 550 feet.
The venture, F4 Transbay Partners LLC, placed a $10 million deposit on the purchase, which includes a $15 million premium in the event the buyers are able to acquire an adjoining lot at 540 Howard, in a transaction expected to close by summer of 2016.
Zoned for a building height of 750 feet, Parcel F is the last remaining site available for development of a super-tall building in downtown San Francisco and the final parcel that directly connects to the Transbay Transit Center Rooftop Park via a pedestrian sky bridge. The Hines-Goldman Sachs F4 joint venture proposes to construct a mixed-use tower containing 200 to 300 hotel rooms, 200 residential units and 250,000-425,000 square feet of office space.
"With the sale of Parcel F, we will have sold more than $660 million worth of land to fund construction of the Transit Center," said Maria Ayerdi-Kaplan, executive director of the Transbay Joint Powers Authority. "The land sold for private development will also generate more than $1 billion in tax increment to fund the Transit Center."
The venture must win approval from San Francisco's Office of Community Investment and Infrastructure Commission and Board of Supervisors, which would grant F4 exclusive negotiating rights to purchase the Block 4 housing development site from the TJPA and the infrastructure commission.
Under current law, 15% of housing units built on Parcel F must have rents that qualify as affordable. The amount of affordable housing required for Block 4 could exceed 45% of the total units approved.
"What we create will be an asset to this vibrant neighborhood, and we look forward to enhancing San Francisco and its skyline with our plans for a mixed-use tower on Parcel F," said Mike Kriozere, a principal of Urban Pacific, in a statement.
The opportunity to develop Parcel F sparked interest from international, national and local bidder teams. The parcel is located mid-block between First, Second, Howard and Natoma Streets adjacent to the Transit Center and the new suspension bridge for the Bus Ramp connecting the Transit Center to the Bay Bridge.
Block 4, which occupies the north one-third of the TJPA’s Temporary Termina, is a Transbay redevelopment project fronting Howard Street between Main and Beale Streets. The site is planned for a 450-foot high residential building available for development in 2018 following the opening of the new Transit Center and the closure of the Temporary Terminal.