SAN FRANCISCO | 550 Howard Street (Transbay Parcel F) | 806 FT | 61 FLOORS

[whitty]

Redesign it as housing or I doubt it gets built now that Salesforce pulled out. Would be sad to lose such an iconic spot, but it’s tough out there.

[Zapatan]

Originally Posted by whitty

Redesign it as housing or I doubt it gets built now that Salesforce pulled out. Would be sad to lose such an iconic spot, but it’s tough out there.

As it's only partially office, maybe they would find another tenant?

I guess it's good they got an extension though...

[theskysthelimit]

Not too surprised on this decision.

With Hines facing $80 million worth of maturing loans this fall, the developer and its investment partners on Thursday listed for sale the high-profile Transbay project site where a 61-story tower was approved for construction in the midst of the pandemic.
The 806-foot tower, known as Transbay Parcel F, is slated to rise at 442-550 Howard St, next to the Salesforce Transit Center, and would become the fourth-tallest building in San Francisco. It won approval from the Board of Supervisors in March 2021, following an effort to entitle the project that spanned nearly four years and included community opposition over its shadow. In 2021, Salesforce Inc. (NYSE: CRM) pulled out of a 2018 lease commitment for the project's office component as remote work gained traction.

http://www.bizjournals.com/sanfranci...ate=2023-07-20

[Zapatan]

I'm guessing whoever buys the lot won't build the exact same project? I really liked this one.

[homebucket]

Originally Posted by Zapatan

I'm guessing whoever buys the lot won't build the exact same project? I really liked this one.

Not sure. It'd be nice if they could retain as much of the original design as possible but pivot to full residential (mixed apts/condos and hotel).

[homebucket]

Major Downtown Development Known as Parcel F Appears In Trouble, Developer Owes $70M Penalty

All signs are pointing to a major Transbay District development known as Parcel F, or 542-550 Howard Street, which was set to become the city's fifth-tallest building, being hopelessly stalled, and perhaps doomed, after the developer just missed another key deadline.

The development partners Hines, Goldman Sachs, and San Francisco-based Urban Pacific Development LLC are on the hook for a $70 million penalty to the Transbay Joint Powers Authority (TJPA), which owns the land on Howard Street — the last of the parcels zoned for a "super-tall" tower in the Transbay redevelopment district. That penalty was agreed upon in a 2016 development agreement between the developer and TJPA, in the developer failed to deliver the project by the end of 2023. As construction stalled, the two parties later agreed to a $40 million penalty to be paid in installments, the first of which was due by April 30, 2024.

As the SF Business Times reports, the development partners, known collectively as F4 Transbay Partners LLC, blew that deadline, and that means that they revert to the original $70 million penalty number unless they can hash out some other agreement.

https://sfist.com/2024/05/07/major-d...n-as-parcel-f/