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Supervisors approve three property transactions amid debate over appraisals and acquisition policy
Summary
The board authorized leases and purchases of three properties for municipal use but several supervisors raised concerns about the absence of a formal appraisal policy and sought a future policy discussion.
The San Francisco Board of Supervisors on Dec. 15 approved a package of real‑estate transactions—leases and purchase agreements for properties at 450 Tollan Street, 555 Selby Street and 1975 Galvez Avenue—after staff presented additional market comparables and the board debated whether an independent appraisal policy should be required for city acquisitions.
John Updike, director of Real Estate for the city, told the board that CBRE had provided an independent analysis of comparable sales showing that the purchase price for the Galvez property was within fair market value. "We were able to secure an independent analysis of values in the area provided by CBRE Real Estate," Updike said, and that package had been given to the budget analyst’s office for review.
Budget analyst Harvey Rose said his office had not yet evaluated the materials. Several supervisors said they would vote to approve the purchases but urged a broader policy discussion about requiring state‑licensed appraisals for acquisitions above certain dollar thresholds. Supervisor Peskin said other governments require appraisals and reviews by state‑licensed appraisers and that comparable sales alone were not always sufficient.
Why it matters: Approving property purchases and leases for municipal use is routine, but supervisors flagged process and transparency issues — particularly the pattern of completing acquisitions without an independent third‑party appraisal. Supervisors sought a future policy discussion to set uniform standards that apply when the city buys property.
Vote: The package of three transactions was approved unanimously on a roll call vote.
Context and next steps: Board members asked the Real Estate Division and budget analysts to cooperate on a post‑approval review of the comparables and appraisal materials and to return with a recommendation on whether the administrative code should be amended to require appraisals or additional review steps for significant acquisitions.
Ending: The acquisitions move forward for the city while supervisors signaled they will pursue a policy to standardize how the city determines fair market value before future purchases.
