Crescent Heights, a developer based in Miami, is advancing plans for a 67-story residential tower at 10 South Van Ness Avenue in downtown San Francisco. The $1 billion project, which could feature 1,000 units, is currently under review with construction, design, and engineering teams. Construction may begin as early as 2027.
This development represents renewed activity in San Francisco’s high-rise sector after a period of stagnation caused by high construction costs and expensive debt. If Crescent Heights moves forward with the tower, it would be among the first major residential high-rises built in the city’s recently supply-constrained market.
The project’s progress comes as rents in San Francisco have increased by 4.6 percent year-over-year—the third-fastest rise nationally—according to Apartment List data reported by the San Francisco Business Times. Improved financial models are also attributed to rising investor confidence and a decrease of between five and ten percent in construction costs from their peak levels. Borrowing costs have eased somewhat as well.
Equity Residential has told investors that downtown San Francisco’s recovery is gaining momentum with more workers returning, occupancy rates increasing, and rents nearing pre-pandemic levels.
Investor-driven lenders now account for about 30 percent of construction loans in the city while regional banks have reduced their share to around 25 percent. However, both office and apartment project starts remain significantly lower than last year, suggesting that overall capital investment is still cautious.
Other developers are also making progress on downtown projects; Lincoln Property Company is moving ahead with plans for approximately 370 residential units as part of Golden Gate University’s campus redevelopment.
Local government officials are working to encourage new housing development. On Tuesday, city supervisors approved a rezoning plan aimed at increasing housing capacity by over 36,000 units. Additionally, impact fees were recently waived for developments within the Hub and Market-Octavia districts—including the site of Crescent Heights’ proposed tower—in an effort to reduce upfront costs for approved projects.
“We are doing all of this work to be better able to deliver what our public needs,” said Leigh Lutenski, director of development at the city’s Office of Economic and Workforce Development.
