Three years ago, Victor MacFarlane handed over the reins of MacFarlane Partners — among the nation’s first Black-owned real estate development firms — to Landon Taylor, who had been working with MacFarlane on a major project in the area.
Now, MacFarlane is returning to his previous seat at the head of the San Francisco-based company, while Taylor is spinning out his own firm, LegacyFirst.
The two met while working on Freedom West 2.0, the long-planned redevelopment of the Freedom West Homes co-op apartments in San Francisco’s Fillmore and Western Addition neighborhoods. MacFarlane and LegacyFirst will continue to work together on the $2.3 billion project, which aims to overhaul 382 units of affordable housing built in 1973 with almost 2,000 new homes plus retail, office and hospitality space near the center of the city without increasing costs for residents.
The new firm, based in Seattle, plans to partner with family offices, select institutional investors, corporations, large nonprofits and government agencies to transform underutilized or undervalued commercial real estate into “enduring engines of economic prosperity,” LegacyFirst said in a press release.
As cochairman and CEO, Taylor said the new company’s mission is to build wealth for clients “while leaving a long-term legacy.”
When MacFarlane passed the reins in 2022, he said he intended to remain involved in the company he founded in 1987. MacFarlane, 74, told the San Francisco Business Times recently that the firm remained so tied to his name that it was difficult for Taylor to pursue business opportunities without MacFarlane’s involvement. He said the spinoff would allow Taylor to pursue those opportunities independently, though MacFarlane will serve on the company’s advisory board.
'Not many people of color'
“Over the past six years, Landon and I have built a trusted partnership working on transformative and high-impact projects,” MacFarlane said in a statement. “I’m proud of what we’ve accomplished together and look forward to continuing our collaboration — both in advancing Freedom West 2.0 and in supporting Landon’s vision for scaling LegacyFirst.”
In 2022, Taylor told Costar News: "This is an industry that doesn't have many people of color or many women at all."
Murad Siam, founder of Los Angeles-based IDS Real Estate Group, is joining Taylor as LegacyFirst's cochairman and minority equity partner.
The companies are spearheading the Freedom West 2.0 project along with Avanath Capital Management. The redevelopment of the Freedom West complex was approved back in 2020 but, like other projects, has faced delays as financing for major development efforts dried up in the post-pandemic era. Developers were due to break ground on Freedom West 2.0 this year, but now MacFarlane says the work won't begin till next year. He provided no approximate starting date.
The Freedom West homes were developed in response to the displacement of thousands of mostly Black residents in a neighborhood then known as the Harlem of the West for its vibrant jazz culture. The Rev. J. Austell Hall of Bethel AME Church helped establish Freedom West in an effort to preserve a piece of the Fillmore and provide affordable, long-term housing for some of the displaced residents.
But the walk-up apartments have been plagued by problems ranging from broken heaters and leaking pipes to violent crime. Meanwhile, the value of real estate on the surrounding blocks has soared.
The redevelopment would save around 1,000 residents from displacement, revitalize four city blocks and generate sustainable revenue for the nonprofit cooperative, ensuring the futures of residents and businesses.