Board authorizes 75-year ground leases for 151-unit Transbay Block 2 West senior housing

The Board of Supervisors on Feb. 13 adopted a resolution authorizing the Office of Community Investment and Infrastructure (OCII) to execute separate 75-year ground leases for the residential and commercial parcels that will enable construction of Transbay Block 2 West, a 151-unit senior affordable housing development at 200 Folsom Street.

Supervisor Shamann Dorsey introduced the item and described the project as a nine-story, 151-unit building developed by Chinatown Community Development Center (CCDC) that will serve seniors including formerly homeless seniors. "Transbay Block 2 West will be a 9 story, 151 unit affordable senior housing project at the corner of Folsom Street and Beale Street," Dorsey said during the Committee of the Whole hearing.

Jasmine Kuo, a development specialist at OCII, presented financing and valuation details. She said the project's total development cost was estimated at about $125,000,000, comprised of roughly $60,000,000 in federal low-income housing tax credit equity and a $65,000,000 gap loan from OCII. For affordability, Kuo said 150 units will serve households earning between 15% and 50% of area median income (AMI) and one unit will be set aside as a manager's unit. The project will include resident amenity spaces, public and private open spaces, streetscape improvements, bicycle parking and three ground-floor community-serving commercial units.

Kuo told supervisors OCII calculated the restricted-use value for the residential parcel at approximately $292,000 and said the highest-best-use value estimates were approximately $15,300,000 for the residential parcel and $2,400,000 for the commercial parcel. She explained that the restricted-use lease payments are substantially less than fair market value, noting that the lower rents are necessary to operate the project as permanently affordable housing. With board approval the project was on track to close construction financing and begin construction in early March.

The board called the roll on the resolution (item 22). Supervisor SafaYi was recorded absent; the motion passed with 10 ayes and one absence. OCII staff and a CCDC project manager were available during the hearing for questions; none altered the final roll call vote.

Why it matters: The Transbay redevelopment plan obligates OCII to achieve 35% affordability across the project area; Block 2 is one of the remaining sites in Zone 1 and the development adds 151 affordable senior units toward that obligation. The action authorizes OCII to finalize ground leases and proceed to construction financing.