A Mission Parking Lot Will Become 152 Apartments, One of SF's Biggest Market-Rate Starts in Years

A half-acre surface parking lot on Florida Street in San Francisco's Mission District is finally set to become housing. Developers Ascentris and DM Development say they plan to break ground in November on a nine-story, 152-unit apartment building at 321 Florida St., between 16th and 17th streets, SF YIMBY reported.

The two firms closed on the property and secured a $61.7 million construction loan from PNC Bank, according to a press release covered by SF YIMBY and Institutional Real Estate Inc. It's the first project the two companies have done together.

Why it matters

Very few large market-rate apartment buildings have started construction in San Francisco in recent years, as high interest rates and construction costs froze lending. SF YIMBY says the unit count makes this one of the largest residential projects to break ground in the city in the past few years. The San Francisco Business Times framed the deal as a sign that institutional money is returning to city housing, though one project alone doesn't prove a broader recovery.

The site has been in the pipeline a long time. SF YIMBY first reported on it in 2020, and Handel Architects' design was approved in 2021. The unit count and interior layout have changed since then.

What's planned

The building will have a mix of studios, one-bedrooms and two-bedrooms. Fifteen units are set aside as affordable, for households ranging from very low to moderate income. Plans include 39 covered parking spaces, about 10,000 square feet of rooftop and indoor amenity space, a gym, coworking space, hot and cold plunges and a resident theater.

Construction is expected to wrap up in late 2028, according to the developers.

The location is a block from Franklin Square and the Potrero Center shopping center, and within walking distance of the 16th Street BART station and several Muni lines.

The bigger picture

Under the state's housing targets, San Francisco must plan for 82,069 new homes between 2023 and 2031, more than 46,000 of them for low- and moderate-income households. A 152-unit building is a small dent in that number, but it's one more project actually moving from approval to construction.