BXP Tapped to Advise on Revitalization of Stalled Oceanwide Office Project in San Francisco

Boston developer BXP Inc. has been appointed as a development adviser by the San Francisco Recovery Fund (SFRF) to revitalize the long-stalled Oceanwide project at First and Mission streets. This move aims to transform the unfinished site into a pure office tower, potentially marking San Francisco's first new office delivery in nearly a decade. BXP, a co-developer of the Salesforce Tower, will offer expertise on design, building systems, leasing, and market dynamics.

The Oceanwide development, acquired by Oceanwide Holdings in 2015 for $296M, began as a 2M SF mixed-use project. Construction halted on one tower in 2019 due to capital shortages and on the second in 2020 with the pandemic's onset. The 1.2-acre site, nicknamed "The Pit," was foreclosed in 2021. Haitong International Equity Investment Management acquired it for $100M, with SFRF later purchasing the site for $60M and settling multiple liens.

SFRF's plan to convert the larger mixed-use tower into a dedicated office space aligns with San Francisco's improving office market. The city has experienced four consecutive quarters of positive net absorption, a trend not seen since 2019. This revitalization effort could significantly impact downtown San Francisco's commercial real estate landscape, introducing new supply to a recovering market.