The long-delayed Oceanwide Center project in San Francisco’s SoMa Neighborhood may be getting new life with a deal to change the property’s ownership. Last week, a new developer put down a nonrefundable deposit on the 50 First Street site, with hopes of closing a full deal within the next two months.
The developer looking to purchase is The San Francisco Recovery Fund, a new organization formed in partnership by a former SKS executive and a capital investments executive. The group’s stated objectives include revitalizing San Francisco properties in the wake of the COVID-19 pandemic.
Previously, the city approved a 910-foot tower with 1.2 million square feet of office space and 109 residential units that was to become the city’s second-largest building. Plans also included a 600-foot tower that would hold 156 residential units and a Waldorf Astoria hotel.
Oceanwide Center Original Design Elevation, illustration by Foster and Partners
However, in 2019, Oceanwide Holdings started looking for new capital funding. Failing to find sufficient investment, Oceanwide Holdings stopped construction on the shorter building in 2019 and on the taller tower in the fall of 2020. With the following years’ investment options being significantly affected by the COVID-19 pandemic, the project never restarted.
Oceanwide Center, image by Andrew Campbell Nelson
The new developers are hoping to turn things around for the site on a smaller budget. Before the pandemic, the total cost of the development effort was valued at $1.6 billion. However, the likely sale is for approximately 100 million, making it more than a 90% drop from the previous site investment.
Currently, no plans or specifications have been released for what the developers may do with the property. However, the San Francisco Recovery Fund has shown interest in creating high-end office space at other locations, creating speculation about their intentions for Oceanwide. One such speculation is a repeat of SKS’s success story at 181 Fremont Street. However, a new era and different demands on the market may push the property in a different direction.
The property is located along 1st Street and Mission Street, directly across from the Salesforce Tower, and on a block bound by Market Street. Its central location means the current empty pit is a regular eyesore. However, the mixed-use potential allowed by the city’s general plan will keep the city and potential developers interested in its future.
50 1st Street Site Location, image via ArcGIS Online
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Can we just make sure the design stays the same? Maybe a bit taller? This is exciting!
+1, the original proposal (at least for the larger tower) was so striking, hopefully that gets retained. Even if they modify the proposal for the site, they should try to keep with at least part of what the foundation has already been built for.
Agreed, keep the same design of the taller tower and make it taller