Crescent Heights, a major players in San Francisco's development scene, is walking away from a huge project in SOMA. Socketsite reports that shortly after winning a $165 million bid to build on Transbay Parcel F, the developer is pulling out of the deal ostensibly because it can't meet the affordable housing requirements.
We aren't likely to know the true reason for Crescent Heights' about face, but the move follows a pattern throughout the city: despite soaring property values, developers are hesitant to launch new projects. A combination of politics, high construction costs and signs the boom may be coming to an end are forcing real estate's biggest risk takers to pump the brakes.
With funding for the first phase of the Transbay Terminal itself at stake, whether a new bidder emerges could be an early sign that the smart money is stepping to the sidelines in San Francisco.