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OCII hears update on efforts to secure grocery tenant at Transbay Block 8
Summary
OCII staff and the developer reported on outreach to grocers for the 12,385-sq-ft grocery space at Transbay Block 8 (part of an 18,000-sq-ft retail program) and said lease negotiations could produce letters of intent by mid-2018; commissioners pressed staff on parking, tenant mix and outreach to local grocers.
Commission staff and the developer updated the commission Oct. 3 on ongoing efforts to lease retail space reserved for a grocery at Transbay Block 8.
Shane Hart, Transbay project manager for OCII, said Block 8 includes 548 residential units (398 market-rate, 70 inclusionary rental units and 30 OCII-funded rentals) and 18,000 square feet of retail; 12,385 square feet is reserved for a grocery (about 2,254 sq ft at ground level and roughly 10,130 sq ft in the basement). Hart said the retail portion of Block 8 is scheduled for completion in August 2019 and that the developer and listing agent have complied with DDA requirements to use "good faith efforts" to secure a tenant and to provide quarterly updates.
Jonathan Shum, senior project manager for the Related Companies, described outreach and market work: a 2015 market study will be updated and staff is conducting hard-hat tours and site visits for potential tenants with a goal of signing letters of intent and negotiating a lease in mid-2018. Shum and Hart said they have reached out to multiple grocers and are monitoring marketplace changes, including Amazon's acquisition of Whole Foods and recent openings of smaller grocers in the neighborhood.
Commissioners asked whether the affordable units are rental (confirmed) and pressed staff about parking restrictions and outreach to local neighborhood grocers. Hart said parking for the project was intended for residents only under the DDA and project-area guidelines to promote transit-oriented, pedestrian development, and that staff will survey local residents and continue coordination with the East Cut CBD to assess retail needs.
No commission action was required; the presentation was informational and staff said a retail market update will be provided in the next quarterly report.
