MacDonald pointed to the capital markets in San Francisco slowing down post-pandemic, as well as skyrocketing interest rates and decreased investor interest, which is “why you don’t really see any cranes in the sky in San Francisco now.”
Compounded with extended dialogue among the neighborhood and community, the permitting phase and entitlement process were lengthy, he said. But without SB 35, it would have taken even longer to get to groundbreaking.
MacDonald acknowledged that 300 De Haro became a point of contention among Potrero Hill residents upon its proposal, especially because a few small businesses like Cafe Da Fonk and Torraku Ramen, both situated at the development’s address, were given notice to vacate before groundbreaking began.
He said the building will have 6,000 square feet of space for retailers, but he did not specify which would operate there.
“We even invited some of our existing [retail] tenants at 300 De Haro back into the building should they choose to come,” he said. “We would welcome them with open arms if they do that.”
The Housing Action Coalition’s Executive Director Corey Smith said the community partners, which include his group, incorporated neighbors’ concerns and feedback into the process, but it’s difficult “to convince everybody that building housing is a good idea.”
“When this project first got introduced, there were a number of neighbors who were very upset with it,” Smith said. But, he said, it’s important to emphasize that the project entails “more residents in the neighborhood, that’s good for small businesses.”
According to MacDonald and the development’s website, the building will have a fitness center, a rooftop lounge, a coworking space, and a 7,000-square-foot yard for “green space.”
He said construction is projected to be complete by the summer of 2027, and that the development is already accepting names for its interest list on the website.
Smith said he hopes this project will inspire more builders and development firms to invest in San Francisco and its long-term economic sustainability.
“This project won’t solve all the problems,” he said. “But if we have a lot more projects like it, we will get closer to a solution.”
