Just last month, a major developer agreed to pay $165 million to build a skyscraper at Parcel F, the final plot of land in the Transbay District. Crescent Heights—the company behind rental behemoths Nema and Jasper—also signed on to make 35 percent of the apartments at its new Transbay property below market rate. Now, according to the San Francisco Chronicle, Crescent Heights is walking away from the deal because it says that it is unable to put those BMR units on-site or somewhere in the Transbay, as required.
The Transbay's plan calls for 35 percent of its 4,000 housing units to be built as below-market-rate, so there was no wiggle room for Crescent Heights on the requirement. But the money from the developer's purchase of Parcel F was supposed to be financed the Transbay Transit Center, which is currently $360 million in the hole for phase one of its construction. The Transbay Joint Powers Authority has vowed to find a new buyer for Parcel F, which is zoned for a 750-foot tower, early next year and is looking for a loan from the city in the meantime to bridge its funding gap.
· A Florida Firm Wins the Right to Develop Transbay's Parcel F [Curbed SF]
· Developer pulls out of $165 million Transbay deal [San Francisco Chronicle]