As we posted in June, the proposed new build to be erected atop the Arco Gas station (376 Castro) at the corner of Market and Castro Street designed by architect Mitchell Benjamin has met all the requirements of City officials and been given the green light by local neighborhood groups. Now the property owner is demanding an exorbitant $12 million dollars for that parcel of land.
SocketSite reports the developers attempting to build the six-story, 65-foot tall building have a $500,000 per door price increase on top of the budget they've already projected for construction.
That extra cheddar would have to be absorbed into the sale price by potential buyers who hope to own one of the 24 residential units -5 one-bedroom and 19 two-bedroom -proposed in the final design.
What kind of real estate gouge is that in reality? Industry average of 'per door' cost in San Francisco is currently being touted at around $150K. This would be an increase of well over 130%. If we use the units down the street at Castro and 16th Street from the new building Icon as a standard guide that would mean 1 bedroom units priced at an average of $739, 000 at Icon would now cost above $1 million plus the additional, per month, HOA fees at the 376 Castro build.
It's been seven years since the small pocket of prime Castro real estate was first offered up as potential space to be developed for a new residential build. It's been through multiple design changes, approval processes, official reviews and the subject of many a neighborhood association meeting. Will this new hurdle derail the current developers from continuing? Guess we'll have to wait and see. Stay tuned.