{"id":25025,"date":"2023-02-03T13:42:17","date_gmt":"2023-02-03T21:42:17","guid":{"rendered":"https:\/\/occupysf.net\/?p=25025"},"modified":"2023-02-03T13:42:18","modified_gmt":"2023-02-03T21:42:18","slug":"this-historic-building-could-hold-the-secret-to-saving-downtown-san-francisco","status":"publish","type":"post","link":"https:\/\/occupysf.net\/index.php\/2023\/02\/03\/this-historic-building-could-hold-the-secret-to-saving-downtown-san-francisco\/","title":{"rendered":"This historic building could hold the secret to saving downtown San Francisco"},"content":{"rendered":"\n

J.K. Dineen<\/a><\/p>\n\n\n\n

Feb. 2, 2023 (SFChronicle.com)<\/a><\/a><\/a><\/p>\n\n\n\n

\"This
This historic brick building in Lower Nob Hill could become San Francisco\u2019s second office building to be converted into residential housing post-COVID.Gabrielle Lurie \/ The Chronicle<\/figcaption><\/figure>\n\n\n\n
\"This<\/figure>\n\n\n\n

A skinny, historic, brick office building in Lower Nob Hill could be a poster child for the elusive trend that many see as the secret to saving downtown San Francisco: the office-to-residential conversion.<\/p>\n\n\n\n

The 20,000 square foot building at 701 Sutter St., which was previously filled with tech tenants, has all the attributes that architects and investors say are needed for a conversion. The 1910 structure sits on a corner lot and is soaked in natural light. It has exposed beams, a mezzanine with arched windows, and original wooden floors. It is on a mixed-use block replete with restaurants, close to several Academy of Art University buildings and a quick downhill walk to Union Square.<\/p>\n\n\n\n

But what makes the brick-and-timber building particularly well-positioned for a residential conversion is that it was cheap: The property recently sold for $8.3 million, 40% less than the $13.5 million it fetched in 2019.<\/p>\n\n\n\n

It sold in November to the contractor SC Buildings and the residential investment group SCSH Development & Realty, which focuses largely on student housing. While the buyers did not respond to emails and phone calls seeking comment on their plans, the broker who represented the seller confirmed that the buyer plans to convert it to residential units.<\/p>\n\n\n\n

The broker, Rick Durazzo of North Beach Properties, said the property primarily attracted groups interested in converting it.<\/p>\n\n\n\n

\u201cIt\u2019s got great bones and is a rock star location for condos or apartments,\u201d he said.<\/p>\n\n\n\n

The deal comes as San Francisco\u2019s office vacancy rate has hit 27% and the availability rate, which includes sublease space, is 32.1%. Not surprisingly, none of the potential buyers who toured the property were looking to keep it as an office space.<\/p>\n\n\n\n

\u201cI have been in commercial real estate for 42 years and thought I seen every damn downturn you could imagine,\u201d said Durazzo. \u201cThis is the top of the heap.\u201d<\/p>\n\n\n\n

The concept of reviving the city\u2019s downtown neighborhoods by filling empty buildings with residents has been the topic of panels, white papers, task forces and media reports. But all that attention has not resulted in projects coming into the planning department.<\/p>\n\n\n\n

In addition to the 1910 Georgian structure at 701 Sutter, which has yet to apply for an application with the city, the one conversion proposal that has been filed with the city is for the Warfield office building at 988 Market St. That project aims to turn the 25,000 square feet in the building into 34 units, seven of which would be affordable.<\/p>\n\n\n\n

With the city\u2019s high construction costs, the key to make conversions work will be the ability to snag buildings at a bargain price, said Colin Yasukochi, research director for CBRE.<\/p>\n\n\n\n

Downtown San Francisco<\/p>\n\n\n\n