Lendlease Hired Brokerage to Sell Hayes Point Site
San Francisco officials have removed affordable housing requirements as the project looks for a new owner.
Updated on Sept. 24, 2026 in Commercial
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Lendlease has moved to sell the stalled Hayes Point construction site at 30 South Van Ness. The developer is withdrawing from U.S. operations, putting the future of the massive residential and office project in doubt.
Why it matters
Rising interest rates and record-high office vacancies have complicated financing for the $1 billion development. The shift signals a major change for the Mid-Market neighborhood after construction halted last year.
The site was originally slated for 47 stories including 260,000 square feet of office space. City officials recently waived the 25% affordable housing requirement to encourage a potential sale of the stalled property.
The players
Lendlease
An international property and infrastructure group based in Sydney currently divesting from its U.S. construction portfolio.
The details
Lendlease broke ground on the project in September 2022 before stopping work in September 2023. The company is now winding down its U.S. construction business to focus on international investments. Any new owner may choose to pivot the design to an entirely residential building given the current office market climate.
Timeline
September 2022: Lendlease broke ground at 30 South Van Ness.
September 2023: Construction at the site halted indefinitely.
September 2024: The city officially dropped the 25% affordable housing mandate.
The Home Front
This site serves as a barometer for the Mid-Market area, which has seen numerous large-scale projects stall amid broader regional financing challenges. The move marks a departure from the high-density residential and office growth targets previously set for the Van Ness corridor.
Residents living near the Van Ness Muni Station should monitor city planning filings for updates on potential new ownership and updated development plans. Neighborhood stakeholders may want to check with city officials regarding future site cleanup or construction activity timelines.
The takeaway
The sale of the Hayes Point site highlights the extreme difficulty of financing mixed-use skyscrapers in the current economic environment. Homeowners in the area should keep an eye on official City Hall notices to see if a new developer modifies the site's footprint or usage.
Further reading
You can track broader regional development changes on the San Francisco Commercial page.
Source note: This article includes information reported by San Francisco Chronicle.
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