Transbay terminal parcel coming off the market

Yet another project put on hold due to economic and market conditions:

The San Francisco Redevelopment Agency has suspended efforts to develop housing on a key Transbay District parcel after bids for the property came in “well below the potential value of the site in a healthier real estate market,” according to a memo from Executive Director Fred Blackwell.

Blackwell said the agency decided to suspend the request for proposals process for Block 8, a 42,600-square-foot parcel on Folsom Street between First and Fremont streets. The agency is looking for a developer to build two market-rate structures: a 550-foot residential tower and an adjacent 50-foot residential townhouse development. In addition, the RFP called for a 100 percent affordable building 65 to 85 feet.

“Staff believes that waiting a year and issuing a new RFP could potentially result in more interest from developers and higher purchase offers,” said Blackwell.

Blackwell said the agency will issue a new RFP in 2010.

SOURCE: BIZ JOURNALS