Developer Proposed 45-Story Tower in San Francisco
The project at 1601 Mission Street aims to add 528 apartments to help address the city's housing shortage.
Updated on Oct. 12, 2026 in Commercial
Live Poll
Do you support the construction of large-scale high-density apartment buildings in your local community?
Developer Manna Capital filed a proposal to build a 45-story residential tower replacing the Tower Car Wash at 1601 Mission Street. The project aims to combat rising rents in San Francisco caused by the artificial intelligence boom and constrained housing supply.
Why it matters
This proposal responds to the city's ongoing rental affordability crisis by seeking to add hundreds of housing units to a high-demand urban corridor. The project aims to alleviate housing supply pressures that have intensified alongside local economic growth.
The 633,600-square-foot development includes 528 total apartments, with 80 units designated as affordable. Estimated construction costs for the tower are $312 million, following the property's $12 million purchase in October 2024.
The players
Manna Capital
A real estate development firm active in California with projects in Oceanside, Escondido, and San Marcos.
IPE 18 LLC
The current property owner of 1601 Mission Street that acquired the site for $12 million.
The details
The developer is utilizing the state density bonus law to facilitate the 45-story high-rise construction. The site plan includes 190 parking spaces and 900 square feet of ground-floor retail to integrate into the existing streetscape. Once cleared, the current car wash facility will be replaced by the residential tower, which is significantly larger than previous development attempts at this address.
Timeline
A previous development proposal for the site was submitted in 2014.
Property owner IPE 18 LLC purchased the site in October 2024.
Manna Capital proposed a separate tower at 38 8th St. in August 2026.
The 1601 Mission St. skyscraper proposal was officially filed on October 7, 2026.
The Home Front
This project follows a pattern set by the California state density bonus law to increase residential capacity in dense urban centers. It represents a major shift in local land use as developers target high-demand corridors to mitigate supply-driven rent increases.
If you live or work near 1601 Mission Street, monitor local city planning meetings for updates on construction impacts and project timelines. Renters should stay informed on how large-scale housing projects in their neighborhood may affect long-term rental market supply.
The takeaway
Large-scale developments are increasingly utilizing density bonuses to tackle the city's housing shortage amid the economic growth driven by the tech sector. Residents should track upcoming public hearing notices for the 1601 Mission Street site to understand the potential for local infrastructure changes.
Further reading
Learn more about local real estate shifts in the San Francisco Commercial section.
Live Poll
Do you support the construction of large-scale high-density apartment buildings in your local community?
