Four years after rising interest rates all but froze apartment development across San Francisco, one of Wall Street’s biggest banks is making a bet few large financial institutions have been willing to wager: That it’s time to build housing again.
Though construction costs and development economics remain challenging, JPMorgan Chase has agreed to finance roughly $200 million for the next big milestone of the Dogpatch Power Station development: A 342-unit building on San Francisco’s Central Waterfront. Construction on the apartment complex planned at the site, long known as the Potrero Power Station, is expected to begin in the fall.
The Foster + Partners-designed building would rise at 151 Humboldt St. and follow The Quincy in Central SoMa, one of the only large market-rate developments completed during the city’s post-pandemic construction slowdown. The fresh financing for the Power Station is a sign that the capital markets underpinning the city’s housing industry may be starting to thaw…