Sale of key parcel provides hope for Transbay Transit Center

Parcel F is the last remaining site available for development of a very tall building in downtown San Francisco and one of three sites with direct connection to the Transbay Transit Center rooftop park via a planned pedestrian sky bridge.

The development group — a joint venture of Hines, Urban Pacific Development and an affiliate of Goldman Sachs — plans to build a 60-story, 750-foot-tall, mixed-use tower containing office space, a luxury hotel and residential units at the top.

“Our vision for Parcel F and Block 4 will create core located, transit-oriented Class A office space, hotel rooms, and a substantial supply of affordable housing in the most dense and dynamic neighborhood in San Francisco,” Hines Senior Managing Director Cameron Falconer said in a statement.

In December, residential builder Crescent Heights backed out of a deal to pay $165 million for the property after concluding that it would not be economically feasible to meet the 35 percent affordable housing requirement set by the Transbay District Plan.

In April, the city announced a $260 million emergency bailout of the struggling Transbay Transit Center construction project, a loan that officials say is needed to prevent work on the $2.25 billion transportation hub from shutting down this summer.

“The sale of Parcel F is good news as a critical part of the interim financing solution needed to complete Phase 1 of the project,” San Francisco Controller Ben Rosenfield said.