SF New Developments

By Amanda Bishop
San Francisco Times Contributor

In one deal, developer Joe Cassidy created housing for both the wealthiest and poorest of San Franciscans. The developments: 300 Luxury condominiums called the Palms and 56 below-market apartments on Brannan Street that were not part of the original plan. Cassidy acquired vacant land at 555 Fourth Street in 2004 and planned to build 172 live-work lofts. He changes his strategy during a conversation with Randy Shaw, director of Tenderloin Housing Clinic, a non-profit that provides legal services to low income tenants. “I said to Joe, ‘why don’t you build more (market-rate) units and provide off-site affordable housing?” it would be win-win for everyone,” Shaw said. As is typical of new residential construction in the city, the original live-work scheme met resistance from neighbors, who wanted more affordable housing.

At the time, regulations did not require developers to include affordable housing when building live-work units. Cassidy forged a deal with the city and the $205 million Palms condo project was born. Ultimately, condos turned out to be a more needed housing type than live-work, said Mitch Laufer, director of marketing at Vanguard Properties, the sales agents for the property. “At the time when it was built, there were a lot of lost residences but not a lot of full service buildings,” Laufer said. The location seemed ideal for upscale living, said James Nunemacher, principal of Vanguard Properties.

“The proximity to Moscone, Yerba Buena Gardens and the museum area is unique,” Nunemacher said. “We didn’t have to wait for the neighborhood to be something. The neighborhood was there.” Construction of the nine-story building wrapped up in August and 80 percent of the units have been sold, Laufer said. The amenities include a full time doorman, concierge, a 20-person theatre, business center, fitness center and parking garage. Prices range from the low $500,000 for a one bedroom unit to more than a million. Buyers include young singles and couples buying their first homes and as well as buyers who want second homes. Many of the building’s residents walk to work at nearby Mission Bay or the financial district. Others use the nearby BART and Caltrain stations.

To meet the affordability requirements, Cassidy built 56 apartments for the Tenderloin Housing Clinic on Brannan Street. The apartments serve people who formerly lived in residential hotels and have never had a private baths or kitchens. The units are the first that the Tenderlion Housing owns. While the below-market units may not have the flashy amenities of the Palms, Shaw said they are the “most beautiful” affordable apartments he has seen in San Francisco.