S
trada Investment Group is seeking permission to build homes on a former tennis club site in San Francisco's South of Market neighborhood, but only if the city rezones it and Alexandria Real Estate Equities sells the property. The developer has asked the Planning Commission to relax zoning for housing around 88 Bluxome Street, citing the area's struggling office market.

    Strada is currently building a 16-story housing highrise nearby, but wants to explore alternative uses for the tennis club site. The company's principal, Jesse Blout, noted that the city's Central SoMa Plan requires two-thirds commercial use at office development sites, which has made it difficult to build new offices in the area.

    However, with over 37% of San Francisco's offices currently empty and a state mandate to build 82,000 homes by 2031, the city is looking for ways to revitalize its neighborhoods. The Planning Commission voted unanimously to remove zoning restrictions on the site, but capped future housing projects at 600 feet.

    Alexandria Real Estate Equities, which owns the tennis club site, has been shedding real estate in recent months as it adjusts to a declining office and lab market. The company plans to sell several properties in the coming months, including some outside of the Bay Area, and has $1.2 billion in pending sales.

    The city's legislation, proposed by Mayor London Breed, would allow developers to switch from office development to housing in Central SoMa. If approved, it could pave the way for Strada to build homes on the tennis club site, but only if Alexandria agrees to sell.