Oct 28, 2008 6:18 pm US/Pacific
Rincon Hill Among SF Building Projects Put On Hold
SAN FRANCISCO (CBS 5) ―
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One Rincon Hill will stand alone, for now.
CBS 5
CBS 5 has confirmed with the developers of the huge Rincon Hill condo that the 2nd tower planned for the site has been cancelled, at least for now.
The 49-story tower was to have had 312 condos for sale. The developer has now decided to wait to sell-out the remaining 30 percent of Tower One that is still vacant.
"I think its the end of the boom, you know its the end of the historic spree in San Francisco, and nothing is going to be built in the next three years, probably," said J.K. Dineen of the S.F. Business Times, who cited financing is the primary hurdle to further construction.
The developers behind Radiance at Mission Bay also confirmed to CBS 5 that phase two of their construction has been postponed while they wait to move the initial 99 units in phase one.
Then there's currently a big hole in the ground on Fremont Street too. It was supposed to house 432 units, but there's no construction activity at all. There's another hole at 10th and Market, where the 719 unit Crescent Heights development was scheduled to be built.
"I don't think anyone is going to put shovel in the ground to start a major project, residential project in the next two to three years at a minimum," said Alan Mark, who has marketed some of the top condo buildings in the Bay Area.
Mark also sited financing and rising construction costs as barriers to construction. By his count, there are about 1,800 units on-hold right now in the city, with developers waiting for conditions to rebound.
Similar problems are hitting the commercial real estate business.
"Nobody is going to build any more office high rises until we know what's going to happen with the banks and the law firms, how many layoffs they're going to be, how many of these large lawfirms are going to be putting space on the sublease market," said Dineen.
If there's any good news, it's that there are some deals out there on the units that have been completed, with some developers accepting 10 to 15 percent off the asking price.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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