Lennar Gains More Time for Shipyard Project

SAN FRANCISCO-The San Francisco Redevelopment Commission on Tuesday granted Lennar Corp. more time to fulfill its Hunters Point Naval Shipyard development agreement due to the poor economic climate. Infrastructure for the the first 1,500 housing units is largely in place. Vertical construction on the first phase of those residential units was previously slated to get underway in mid-2007. This latest time extension gives Lennar until late 2011 to complete the first 88 units.

Miami-based Lennar, one of the nation’s largest homebuilders, holds agreement to build out the Shipyard and Candlestick Point. The voter-approved plan would remake contiguous waterfront districts with 10,500 housing units, retail and commercial development, parks and possibly a new football stadium.

Lennar reportedly believes it won’t turn a profit on the first 1,300 units planned for the Shipyard but is moving forward regardless because it believes it can make a profit on future phases—future phases it may not maintain the rights to develop if it does not clear certain development hurdles, such as getting this first phase up and running.