The city of San Francisco has dropped a requirement to include affordable housing units in a mixed-use project stalled more than a year ago by developer Lendlease, clearing the way for construction to restart, according to media reports.
The Australian property giant, which earlier this year decided to divest its construction and property operations in the US and UK, had made the project a key part of its US development business.
Globest.com reported that the company decided to sell the project, known as Hayes Point and located at 30 Van Ness Street. But San Francisco agreed to drop the requirement for below-market-rate affordable housing units to be among the planned 333 condo units. The city is trying to spur housing development, as it has typically ranked high on lists of the most expensive to live in. the standard of san francisco informed
“Council officials are finding room to compromise on issues such as rates, infrastructure and affordable housing requirements,” reported the standard
When work was halted, the project looked like a poster boy for post-pandemic real estate woes and high interest rates.
Lendlease had broken ground 11 months earlier on the $1.2 billion structure which was one of the company’s biggest projects starting in 2022, with key substructure work completed.
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In a May 27 announcement, the Sydney-based developer and contractor said it would refocus operations and real estate investment in its home market and divest projects and assets from the U.K. and U.S., a global transaction it said which would “recycle” $2.9 billion into the Australian market. while leaving international construction.
Almost immediately, Milford, Mass.-based Consigli Building Group Inc. said it will acquire Lendlease’s construction operations in New York and New Jersey, which comprise the bulk of its U.S. business; -Contract and pre-construction projects.
It could not be confirmed whether Consigli will take over or have any role in the restarted construction of San Francisco.
