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What's Up With the Belli Building in Jackson Square?

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A curious reader asks: I was walking down Hotaling place in Jackson Square and noticed renewed construction on the Belli Building. Do you know what will come of it? Will it be more condos? Looks like work has indeed resumed on the project at 722-728 Montgomery Street, better known as the Belli and Genella Buildings. Originally built in 1851, the buildings are both city historic landmarks and previously operated as a cigar warehouse, theatre, and public bath house (not all at the same time, of course). Famed/infamous SF attorney Melvin Belli bought and restored the properties in 1958, but they fell into major disrepair after he died in 1996. A project was approved back in August 2007 for a 12 residential and 5 commercial condo conversion out of the old office space, but due to issues with Belli's widow, the property was sold and the project stalled. It wasn't until December 2010 that building permits were finally filed to complete the work. According to the permits, the upper two floors will be converted into the residential units, with commercial space below.
· Previous "Ask Curbed SF" [Curbed SF Archives]
· Historic Landmark Listing for Belli Building [SF Planning]
· Belli’s Barbary Coast (And At One Time) Belle Of A Building [SocketSite]
· Historic Landmark Listing for Genella Building [SF Planning]