The recent announcement that the upcoming development at 2655 Bush Street in Lower Pacific Heights has turned from apartments into condos may mean bigger things—like more new condos rather than apartments—on the horizon for San Francisco. As recently as early January, the lot on the corner of Bush and Divisadero was owned and being readied for the construction of 81 apartments by Thompson Dorfman Development. However, as construction was about to begin, KB Home swooped in to purchase the lot with plans to build condos instead of apartments. Condo prices have risen about 20% in the past year in San Francisco, which means the move to condos is a valuable one.
Brett Betzler of Moran & Co., which represented KB Homes in the deal, told Globest.com that the rise in condo prices has upped the purchasing power of condo developers and made KB Home's takeover of 2655 Bush possible. He also sees this deal as a possible sign of things to come, saying, "It could be the beginning of a trend in which condo developers will outbid apartment developers."
As for 2655 Bush Street, the project will retain both its planned 81 units and 3,800 square feet of retail space. Construction has already begun.
· New Rendering and Details Revealed for 2655 Bush Street [Curbed SF]
· Condo Developer Outbids Apt Developer [Globest.com]