A new tower at 536 Mission Street in downtown San Francisco that could potentially contain 385 residential units is moving ahead after the city approved plans for the project, per a Sept. 22 press release that developers McCourt Partners and Lincoln Property Co. shared with Multifamily Dive. Located in the South Financial District, it is one of the first new towers to be greenlit in San Francisco since the pandemic.
The project will move forward as either a commercial high-rise or a mixed-use development with residential, office and retail space, per the release. With two options approved, the build can be tailored to market conditions as work advances. Both of Skidmore, Owings & Merrill’s designs aim to bring new commercial activity and housing to the downtown area.
The mixed-use version would rise 698 feet and total 1.17 million square feet. It would include 643,500 square feet of office space, 4,380 square feet of retail and 521,450 square feet of residential space encompassing 385 units, ranging from studios to three-bedroom options. Offices would be located on the lower floors with residences above, and the building will feature setbacks for outdoor terraces and amenity spaces throughout.
Under the fully commercial proposal, 536 Mission would rise about 752 feet with nearly 1.35 million square feet of office space and 4,000 square feet of ground-floor retail. This concept “features a sculpted tower form designed to complement the site and its relationship with neighboring Ecker Street,” per the release.
Both development options include bicycle parking and below-grade vehicle parking in order to support a range of transportation needs for future tenants and residents, according to the release. Construction is expected to take about four years from groundbreaking to completion.
San Francisco is booming right now as the artificial intelligence industry grows and draws workers. Buoyed by strong AI- and tech-related demand plus limited new housing supply, San Francisco was a top rent growth market in the first half of the year, and remained the leader in both occupancy and rent increases in August.
Although some multifamily firms like Camden Property Trust have recently exited California or expressed concern about political risk, Sares Regis Group of Northern California’s new co-CEO Drew Hudacek said plenty of investors still want to be in the state.
“I think investors are like a moth to a flame when it comes to California,” Hudacek previously told Multifamily Dive. “California has historically been, and I think continues to be, one of the brightest markets anywhere.”
As San Francisco’s recovery gains momentum, McCourt Partners President Jordan Lang said his firm is excited to contribute to the city’s next chapter alongside Dallas-based Lincoln Property Co.
“With this approval, we have an opportunity to deliver downtown’s next great building: one that will set a new standard for commercial development and help attract the companies and talent driving San Francisco forward,” Lang said in the release.
536 Mission is not Los Angeles-based McCourt Partners’ first investment in San Francisco this year, per the release. In April, McCourt Partners partnered with Related California to co-develop 530 Sansome, a 41-story mixed-use tower at the intersection of the Financial District and Jackson Square.
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