Strada to Build 35-Story Apartment Tower in San Francisco
A 525-unit high-rise will go up at 395 3rd Street in SoMa.
Strada Investment Group has been approved by the city to build a 35-story apartment tower at 395 3rd Street in the South of Market District of San Francisco.
San Francisco-based Strada will put up the 524-unit residential high-rise over a parcel occupied by a parking lot. The 553K SF tower will include 96 studios, 299 one-bedroom apartments and 129 two-bedreoom apartments on a site about a block from the Moscone Center, San Francisco’s convention venue.
The project will include 4,500 SF of ground-floor retail and restaurant space, plus a four-level underground garage with stalls for 125 vehicles, according to a report in SF Yimby.
The new building will be clad in concrete but have overtones of California redwood trees. The white tower will be fitted with floor-to-ceiling windows and balconies. Trees will be on a rooftop deck and a landscaped terrace on the 11th floor.
The $200M tower is slated for delivery in 2027. Strada also is building a 500-unit tower at 555 Bryant Street.
News of the tower’s approval comes at the same time Australia-based developer Lendlease confirmed that its pause on construction at Hayes Point, a $1.2B, 47-story mixed-use tower in central San Francisco, will continue.
In an earnings call on Monday, CEO Tony Lombardo told investors that the Hayes Point project—the company’s largest US investment—would remain on hold, a decision that Lendlease originally announced in March.
The project, which originally was supposed to be delivered in 2026, was planned to encompass 300 condos and more than 300K SF of office space.
The confirmation of the pause on the project follows Lendlease laying off 10% of its global staff, including employees in the Bay Area, a total of more than 700 in mid-July, according to a report in the San Francisco Business Times.
In its earnings report release this week, Lendlease announced an AU$232M statutory loss ($150M in US dollars.
Lombardo said in the earnings call that Hayes Point was paused to “de-risk” the investment, which has cost AU$260 million to date, until Lendlease secures more tenants or a capital partner, the report said.
“So until we get one of those two things to come to fruition, we won’t restart,” Lombardo said, in the earnings call. “From a capital perspective, we still see good returns in that project. So we don’t feel at the moment there’s any risk of impairment.”
Lombardo said Hayes Point didn’t have outside capital backing the project.