The approval and the programme
San Francisco granted final approval for a 23-story, 201-home tower at 1965 Market Street. SF YIMBY reported the decision on 6 July 2026. The San Francisco Chronicle and SFist carried it on 9 July 2026.
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 of underground garage. The approved total is 201 homes across 10 studios, 100 one-bedrooms, 81 two-bedrooms and 10 three-bedrooms. Twenty-eight units are affordable to households earning below 50 percent of the area median income, about $65,000 for a two-person household. SF YIMBY counts 30 deed-restricted homes, and no publisher reconciles the two figures.
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 secured in under two years.
The bookable inventory stays where it is
Group planners book from the corridor's existing hotels. A bounded OpenStreetMap search around the 1965 Market Street coordinate returned 29 named hotels inside 1.5 kilometres on 16 October 2026, 16 of them inside one kilometre. The band runs from the Travelodge at 1707 Market Street at 437 metres to the Prita Hotel at 2284 Mission Street at 1,150 metres.
Each property sets its own group terms, and a planner assembling a block approaches the houses on that list.
The site is for sale
The entitled property is expected to be listed for sale. Chris Foley, the broker who worked with Keller Grover through the approval, told the Chronicle it is "the first project going on the market that was approved under all the new state laws", with "zero land comps", and called it a barometer for the city's recovery.
Riyad Ghannam of RG Architecture told the Chronicle the owners invested in predevelopment planning, including structural and mechanical engineering, so the project can move quickly once the site sells. He said the team needs financing to get it out of the ground.
A conversion needs its own review
The entitlement fixes a residential programme and a waiver set covering rear yard, usable open space, dwelling-unit exposure, ground-floor commercial use, parking sizes and retail concessions. A change of use carries its own entitlement review. No published source states a hospitality use, a conversion plan, an operator or a hotel brand for the site.
The signals to track
The listing and the buyer come first, and a merchant builder and a long-term holder set different schedules. The permit trail follows: a demolition or abatement permit for the 1926 building and a building permit for the tower each fix a step, and a recorded construction loan would do the same. A filing that moves the use away from housing would be a further signal.
The citywide baseline
NBC Bay Area reported SF Travel's forecast of about 70 percent citywide hotel occupancy for 2026 and closer to 72 percent for 2027, with 25 million visitors and more than $10 billion in spending next year.
Two sites at one intersection
1939 Market Street sits 68 metres away. Mercy Housing and Openhouse co-develop an affordable senior tower there at 15 stories and 159 feet, with 187 units. SF YIMBY reported in December 2025 that construction is expected to start in late 2026 or early 2027, at a cost of at least $117 million, with completion as early as 2029.