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Nearly Dead Candlestick Heights Project Finds New Life in Affordable Rentals

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After sales, defaults, resales, stalls and general complications, the condo development planned for Candlestick Heights will go ahead—as affordable rental housing. The complex, a hot potato tossed until cold and bruised between original buyers James Noteware and Goldman Sachs, Citibank (who stepped in after the Noteware/Goldman Sachs partnership defaulted), and New York-based L&M Development Partners. Citibank is taking a $30 million bath on the sale to L&M, but slow sales of similar condo projects made the idea of completing construction unappetizing. The San Francisco Business Times puts it kindly: "The lender was willing take the loss in order to get the development finished and do right by the Bayview neighborhood." L+M Development Partners paid $29 million to finish, and then have rights to lease Candlestick Heights. Walkable to Candlestick Park, the 198-unit housing development near Candlestick Park that roughly 30 percent complete, and L+M Development "will immediately start leasing the 66 completed units, which will be available to families earning less 60 percent of Area Median Income for San Francisco"—or $65,600 for a family of five. Rents for a typical 2-bedroom unit will range from $1,100 to $1,335 a month, well below market rate, which according to Rent Jungle hit $2364 for a 2-bedroom this past December.
· Broken Condo Deal Near Candlestick Revived as Affordable Rental [San Francisco Business Times]
· Rent Trend Data in San Francisco, CA [Rent Jungle]
· Candlestick Heights [official site]