The pipeline signal
The San Francisco Planning Department granted final approval for a 23-story tower at 1965 Market Street. SF YIMBY reported the decision on 6 July 2026. The San Francisco Chronicle carried the story on 9 July 2026. The site covers about 0.4 acre at the southwest corner of Market Street and Duboce Avenue.
The tower runs 239 feet. SF YIMBY puts the yield at about 237,650 square feet, with 206,060 square feet of housing, 2,450 square feet of retail and 16,500 square feet for an underground garage. The approved total is 201 homes across 10 studios, 100 one-bedrooms, 81 two-bedrooms and 10 three-bedrooms. Parking covers 62 cars and 138 bicycles.
Twenty-eight units are affordable to households earning below 50 percent of the area median income, about $65,000 for a two-person household, the Chronicle reports. SF YIMBY counts 30 deed-restricted homes, split between low-income and moderate-income households. No publisher reconciles the two figures.
The sale that would price the approval
Keller Grover Properties owns the site and holds the approval. Chris Foley, a broker and developer who worked with the owner through the approval, told the Chronicle the project is the first going to market that was approved under all the new state laws. He said there are zero land comps and called the sale a barometer.
Riyad Ghannam of RG Architecture told the Chronicle the owners funded structural and mechanical engineering before any listing, so a buyer can start quickly after a sale. He said the project needs financing to leave the ground.
The approval a buyer prices
The application used Senate Bill 330, Senate Bill 423 and the State Density Bonus law. SF YIMBY records residential capacity close to 89 percent above base zoning, with entitlements closed in under two years. The waivers cover rear yard, usable open space, dwelling-unit exposure, ground-floor commercial use, parking sizes and retail concessions. The approval fixes a residential programme, and a change of use carries its own entitlement review.
The rest of the pipeline on the block
Across Duboce Avenue, 1939 Market Street carries a 15-story affordable plan with 187 units, and construction there is set to start. Mercy Housing and Openhouse co-develop it, Paulett Taggart Architects leads the design with Y.A. Studio, and Swinerton and Rubecon will form the general contracting joint venture. SF YIMBY reported in December 2025 that the project is expected to cost at least $117 million and finish as early as 2029.
The lodging base around the corner
An OpenStreetMap hotel search around the 1965 Market Street coordinate returned 15 named hotels inside one kilometre on 16 October 2026. The nearest are the Travelodge at 1707 Market Street at 437 metres, the Twin Peaks Hotel at 483 metres and the Perramont Hotel at 491 metres. Hotel Sunrise on Valencia Street sits at 545 metres, the Edwardian Hotel at 566 metres and 24 Henry at 609 metres.
The indicators to watch
Three numbers mark the outcome. The list price sets the first comparable value for a site approved under the new state laws. The buyer type shows whether local developers or outside capital fund the next one. The first construction permit shows whether the approval converts to homes.
SF YIMBY records the estimated cost and timeline for construction as not yet established.