San Francisco is a vibrant city – so much so that there isn't enough housing for all the people who want to live there. As a result, prices have skyrocketed and many service workers cannot afford to live where they work.
As part of the city's push to expand affordable housing, developer Tishman Speyer finished construction last year on a 190-unit, 15-floor housing project at 1400 Mission in the Mid-Market District, in partnership with the Tenderloin Neighborhood Development Corporation. Surrounding the development is some of the most expensive housing in the city. "It's really a project that adds another facet to an area of San Francisco that has become very driven by tech in terms of growth, and that has driven housing and rent prices," says Carl Shannon, senior managing director at Tishman Speyer. "It's serves a group in the city's social structure that is fundamentally underserved in housing."
The building features a full glass curtain wall, double height lobby, onsite parking, indoor bike storage, over 5,000 square feet of retail, and two landscaped roof terraces totaling 12,500 square feet for residents' exclusive use.
To purchase a unit, applicants must be first-time buyers whose income is at 90 percent of the area median income. For many who purchased a unit, owning a home was a life-changing event. "We've had people speak in the press and public about how thrilled they are," says Shannon. One couple and their son moved from a studio apartment, where they had been living for the past 17 years. Another purchaser, a speech-and-language teacher in the city's school district, was about to move away when she learned about 1400 Mission and was able to purchase a unit.
Ullico's Real Estate Investment Group (REIG) participated in the financing of this project with a $46 million loan through its Separate Account J (J for Jobs). As a condition of the loan, construction was built with union labor. "1400 Mission is a great project in a great union city," said Edward M. Smith, president and CEO of Ullico Inc. "We're proud to be part of a project that helps families own homes while supporting the economy with union jobs."