Garrett Leahy

George Kelly

Living in a tent behind fences at 325 Fremont St., Omar told The Standard he had no idea the dry grass lot he lives on in Downtown San Francisco was supposed to be a 26-story apartment tower.&nbsp;

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Living in a tent behind fences at 325 Fremont St., Omar told The Standard he had no idea the dry grass lot he lives on in Downtown San Francisco was supposed to be a 26-story apartment tower.&nbsp;

Omar also said he didn&#8217;t know about the nine 311 complaints about homeless encampments on the site. He declined to give his last name for privacy reasons.

Omar also said he didn't know about the nine 311 complaints about homeless encampments on the site. He declined to give his last name for privacy reasons.

Omar also said he didn&#8217;t know about the nine 311 complaints about homeless encampments on the site. He declined to give his last name for privacy reasons.

“Why do people care?” he said when told about a <a href="https://www.reddit.com/r/sanfrancisco/comments/1d825za/growing_encampment_in_neighborhood_311_has_been/">Reddit</a> post complaining about tents on the site.&nbsp;

“Why do people care?” he said when told about a <a href="https://www.reddit.com/r/sanfrancisco/comments/1d825za/growing_encampment_in_neighborhood_311_has_been/">Reddit</a> post complaining about tents on the site.&nbsp;

For a decade, plans to build 118 market-rate homes on the empty lot have been approved, but it still sits empty.

For a decade, plans to build 118 market-rate homes on the empty lot have been approved, but it still sits empty.

A tent seen at 325 Fremont St. in San Francisco on June 5. Debris on the site has since been cleared.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/1000011202.jpg?w=2500" alt="A person stands by a fence amidst scattered belongings and debris, including a stroller and barricades in a grassy, vacant lot near a building." class="wp-image-282989"/><figcaption class="wp-element-caption">A tent seen at 325 Fremont St. on June 5. Debris on the site has since been cleared.</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/1000011202.jpg?w=2500" alt="A person stands by a fence amidst scattered belongings and debris, including a stroller and barricades in a grassy, vacant lot near a building." class="wp-image-282989"/><figcaption class="wp-element-caption">A tent seen at 325 Fremont St. on June 5. Debris on the site has since been cleared.</figcaption></figure>

Debris and belongings seen at 325 Fremont St. in San Francisco on June 5. The site has planning permission for luxury homes that have not materialized.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/1000011206.jpg?w=2500" alt="The image shows an outdoor area with scattered belongings including a tricycle, a cooler, pillows, a bike, and various items on the ground, suggesting a makeshift living space." class="wp-image-282987"/><figcaption class="wp-element-caption">Debris, a Lyft bike and belongings seen at 325 Fremont St. on June 5. The site has planning permission for luxury homes that have not materialized.</figcaption></figure>

Planning officials said there has been “no activity” on the plans since they were filed and approved.

Planning officials said there has been “no activity” on the plans since they were filed and approved.

The early stage plans were also thin on details but showed a rooftop terrace and space for 61 underground parking spaces. Glossy renderings are still available online, showing a ritzy-looking glass and steel construction replete with balconies overlooking Rincon Hill.&nbsp;

The early stage plans were also thin on details but showed a rooftop terrace and space for 61 underground parking spaces. Glossy renderings are still available online, showing a ritzy-looking glass and steel construction replete with balconies overlooking Rincon Hill.&nbsp;

A 2017 building permit for the tower estimated a construction cost of $43.5 million.

A 2017 building permit for the tower estimated a construction cost of $43.5 million.

Developer Z&amp;L Properties, fresh from a corruption scandal, did not respond to multiple requests for comment. Its <a href="https://zlproperties.com/#">website</a> still loads but shows nothing but a landing page that reads “destined to become California’s premier condominium developer” and very little else.

Developer Z&amp;L Properties, fresh from a corruption scandal, did not respond to multiple requests for comment. Its <a href="https://zlproperties.com/#">website</a> still loads but shows nothing but a landing page that reads “destined to become California’s premier condominium developer” and very little else.

Xavier Pektelidis, center, was removed along with his possessions from an empty lot that had been causing a disturbance in a San Francisco neighborhood of high-rises on Wednesday, June 5, 2024.

The lot at 325 Fremont St. in San Francisco is private property and had been occupied by a homeless encampment. Local residents are frustrated that 311 continues to close the ticket for removing the encampment, citing its status as private property. Pektelidis complained that some of his possessions were disposed of by Waste Management.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/emptylothomelesscamp-2.jpg?w=2500" alt="A homeless man is forced to leave an encampment." class="wp-image-281341"/><figcaption class="wp-element-caption">Xavier Pektelidis, center, was removed along with his possessions from the empty lot on Fremont Street.</figcaption></figure>

In late 2023, the firm <a href="https://sfstandard.com/2023/10/05/billionaire-corruption-san-francisco-nuru-zhang-li-z-l-properties-fine/">pled guilty</a> to conspiracy to commit fraud and was fined $1 million in a federal case in which its owner, Zhang Li, admitted in federal court to bribing a San Francisco official to move forward with a high-profile development.

Chinese billionaire’s company fined $1M in San Francisco bribery scheme

In late 2023, the firm <a href="https://sfstandard.com/2023/10/05/billionaire-corruption-san-francisco-nuru-zhang-li-z-l-properties-fine/">pled guilty</a> to conspiracy to commit fraud and was fined $1 million in a federal case in which its owner, Zhang Li, admitted in federal court to bribing a San Francisco official to move forward with a high-profile development.

<h2 class="wp-block-heading" id="h-loud-yelling-at-night">‘Loud yelling at night’</h2>

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<h2 class="wp-block-heading" id="h-loud-yelling-at-night">‘Loud yelling at night’</h2>

There have been at least nine 311 complaints about the lot in the last two weeks, including multiple mentions of an encampment there, with one <a href="https://mobile311.sfgov.org/reports/18303688">describing</a> “loud yelling at night, with lots of glasses shattering,” “drug dealing,” and “unwanted harassment towards (female) pedestrians.”&nbsp;

There have been at least nine 311 complaints about the lot in the last two weeks, including multiple mentions of an encampment there, with one <a href="https://mobile311.sfgov.org/reports/18303688">describing</a> “loud yelling at night, with lots of glasses shattering,” “drug dealing,” and “unwanted harassment towards (female) pedestrians.”&nbsp;

An East Cut Community Benefit District spokesperson said the district was aware of the encampment and “liaising with the city to resolve it,” but only police officers and sheriff’s deputies had the authority to remove people from the lot.

An East Cut Community Benefit District spokesperson said the district was aware of the encampment and “liaising with the city to resolve it,” but only police officers and sheriff’s deputies had the authority to remove people from the lot.

A neighbor, blue shirt, speaks with East Cut Neighborhood Advocacy group member next to a recently cleared empty lot in San Francisco on Wednesday, June 5, 2024. 

The lot at 325 Fremont St. in San Francisco is listed as private property and had a homeless encampment on the property on Wednesday, June 5, 2024. Local neighbors are upset that that 311 keeps closing the ticket to remove the lot to be listed as its private property.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/emptylothomelesscamp-12.jpg?w=2500" alt="Two people speak to each other." class="wp-image-281345"/><figcaption class="wp-element-caption">A neighbor in a blue shirt speaks with an East Cut CBD member next to a recently cleared empty lot on Fremont Street.</figcaption></figure>

On June 5, a spokesperson for the Department of Emergency Management, which oversees encampment sweeps, said the lot “has been on our radar for a while,” with members of the police department’s Healthy Streets Operation Center Homeless Outreach team visiting the site.

On June 5, a spokesperson for the Department of Emergency Management, which oversees encampment sweeps, said the lot “has been on our radar for a while,” with members of the police department’s Healthy Streets Operation Center Homeless Outreach team visiting the site.

“We are continuing to clean up the debris left behind,” the spokesperson said. “Our team is now working with the owner to secure the site, and prevent it from being re-encamped in the future.”

“We are continuing to clean up the debris left behind,” the spokesperson said. “Our team is now working with the owner to secure the site, and prevent it from being re-encamped in the future.”

But by June 6, Omar was camped on the lot, seemingly unaware of the sweeps or that he may be trespassing, despite signage around the site warning against entry.

But by June 6, Omar was camped on the lot, seemingly unaware of the sweeps or that he may be trespassing, despite signage around the site warning against entry.

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<figure class="wp-block-video"><video autoplay loop muted poster="https://content.sfstandard.com/wp-content/uploads/2024/06/sfs_project_version-00_09_46_17-still007.jpg" src="https://content.sfstandard.com/wp-content/uploads/2024/06/emptylothomelesscamp_inline_video.mp4"></video><figcaption class="wp-element-caption">Neighbors are upset that 311 keeps closing the ticket on the empty lot despite the proliferation of encampments.</figcaption></figure>

A spokesperson for Supervisor Matt Dorsey, who represents the area, said Dorsey’s office was working with city departments to relocate campers. His office declined to comment further.&nbsp;

A spokesperson for Supervisor Matt Dorsey, who represents the area, said Dorsey’s office was working with city departments to relocate campers. His office declined to comment further.&nbsp;

The sheriff’s office said in a voicemail they don’t handle encampment resolutions and deferred to the city’s Healthy Streets Operations Center, a seven-department city body that clears encampments and provides outreach services.

The sheriff’s office said in a voicemail they don’t handle encampment resolutions and deferred to the city’s Healthy Streets Operations Center, a seven-department city body that clears encampments and provides outreach services.

Representatives from the police department and the Mayor’s Office did not respond to requests for comment by publication time.

Representatives from the police department and the Mayor’s Office did not respond to requests for comment by publication time.

Omar's tent seen on Tuesday, June 11, 2024 at 325 Fremont St. in San Francisco.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/1000011507.jpg?w=2500" alt="The image shows a vacant, fenced lot surrounded by tall buildings, including a beige and orange building. Safety barriers and a makeshift tent are visible." class="wp-image-282986"/><figcaption class="wp-element-caption">Omar&#8217;s tent was seen in a debris-free empty lot at 325 Fremont St. on Tuesday.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/1000011507.jpg?w=2500" alt="The image shows a vacant, fenced lot surrounded by tall buildings, including a beige and orange building. Safety barriers and a makeshift tent are visible." class="wp-image-282986"/><figcaption class="wp-element-caption">Omar's tent was seen in a debris-free empty lot at 325 Fremont St. on Tuesday.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/06/1000011507.jpg?w=2500" alt="The image shows a vacant, fenced lot surrounded by tall buildings, including a beige and orange building. Safety barriers and a makeshift tent are visible." class="wp-image-282986"/><figcaption class="wp-element-caption">Omar&#8217;s tent was seen in a debris-free empty lot at 325 Fremont St. on Tuesday.</figcaption></figure>

Meanwhile, after more than 30 years since its former life as two office buildings and a parking lot, Omar said Tuesday he now has permission to clean up the lot from the site owners—and live there free while doing so. It did look quite tidy, to his credit.

Meanwhile, after more than 30 years since its former life as two office buildings and a parking lot, Omar said Tuesday he now has permission to clean up the lot from the site owners—and live there free while doing so. It did look quite tidy, to his credit.

A downtown lot was supposed to be luxury homes. Instead, it’s a fenced-off encampment 

A shuttered San Francisco diner has sat empty for over eight years, despite long-standing plans to develop it into luxury apartments.

A shuttered San Francisco diner has sat empty for over eight years, despite long-standing plans to develop it into luxury apartments.

The Lucky Penny diner, next to a Trader Joe&#8217;s at 2670 Geary Blvd. in Laurel Heights, was a favorite for late-night hospital visitors and University of San Francisco students, as it stayed open around the clock.

The Lucky Penny diner, next to a Trader Joe's at 2670 Geary Blvd. in Laurel Heights, was a favorite for late-night hospital visitors and University of San Francisco students, as it stayed open around the clock.

The Lucky Penny diner, next to a Trader Joe&#8217;s at 2670 Geary Blvd. in Laurel Heights, was a favorite for late-night hospital visitors and University of San Francisco students, as it stayed open around the clock.

After it served its last patty melt on Christmas Eve in 2015, plans emerged in 2018 to demolish the diner and erect a building with 101 luxury apartments, dubbed the Laurel, by developer Presidio Bay Ventures.&nbsp;

After it served its last patty melt on Christmas Eve in 2015, plans emerged in 2018 to demolish the diner and erect a building with 101 luxury apartments, dubbed the Laurel, by developer Presidio Bay Ventures.&nbsp;

But it’s 2024, and the Lucky Penny remains a shell of its once-bustling self.

But it’s 2024, and the Lucky Penny remains a shell of its once-bustling self.

Luxury apartment building The Laurel would replace the shuttered Lucky Penny diner with 101 apartments.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/screenshot-2024-01-12-at-4-15-11-pm.png?w=2500" alt="A rendering shows a luxury apartment building." class="wp-image-239340"/><figcaption class="wp-element-caption">A luxury apartment building called the Laurel was planned to replace the shuttered Lucky Penny diner with 101 apartments.</figcaption></figure>

Ex-cop Dominic Yin, who runs the family trust that owns the land and building, blames city red tape and swelling labor and building costs brought about by inflation for the delay.

Ex-cop Dominic Yin, who runs the family trust that owns the land and building, blames city red tape and swelling labor and building costs brought about by inflation for the delay.

“Take whatever the price [for development] was and double or triple it,” Yin said, declining to share how much construction would cost currently.

“Take whatever the price [for development] was and double or triple it,” Yin said, declining to share how much construction would cost currently.

A 2019 building permit for an eight-story building with apartments and a street-level commercial space pegged the cost at $25 million. The Planning Commission <a href="https://www.bizjournals.com/sanfrancisco/news/2020/01/24/project-for-100-homes-at-shuttered-lucky-penny.html" target="_blank" rel="noreferrer noopener">approved</a> the project in January 2020.

A 2019 building permit for an eight-story building with apartments and a street-level commercial space pegged the cost at $25 million. The Planning Commission <a href="https://www.bizjournals.com/sanfrancisco/news/2020/01/24/project-for-100-homes-at-shuttered-lucky-penny.html" target="_blank" rel="noreferrer noopener">approved</a> the project in January 2020.

Meanwhile, the diner sits empty, covered in graffiti and murals. The space in front is used for parking by Trader Joe’s customers.

Meanwhile, the diner sits empty, covered in graffiti and murals. The space in front is used for parking by Trader Joe’s customers.

Parking their Ford Fusion in front of a mural of a snarling dragon on the Lucky Penny building, Mike and Alicia Shore had mixed feelings about the state of the diner.

Parking their Ford Fusion in front of a mural of a snarling dragon on the Lucky Penny building, Mike and Alicia Shore had mixed feelings about the state of the diner.

“I like what they’ve done with the place,” Alicia Shore said, referring to the murals painted on the front.

“I like what they’ve done with the place,” Alicia Shore said, referring to the murals painted on the front.

Mike Shore said that while the parking is convenient, the building is an eyesore.

Mike Shore said that while the parking is convenient, the building is an eyesore.

“I wish they’d do something with it,” he said.

“I wish they’d do something with it,” he said.

Alice Tourian stands in front of the Lucky Penny diner on Friday.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/img_8305.jpg?w=2500" alt="A woman stands in a parking lot." class="wp-image-239347"/><figcaption class="wp-element-caption">Alice Tourian thinks the Lucky Penny diner should become another business.</figcaption></figure>

Walking past the Lucky Penny after shopping at Trader Joe’s, Alice Tourian said she likes the idea of having another business there but doesn’t want more housing.

Walking past the Lucky Penny after shopping at Trader Joe’s, Alice Tourian said she likes the idea of having another business there but doesn’t want more housing.

“A market or a coffee shop, yes,” Tourian said. “But a bunch more people living here, no.”

“A market or a coffee shop, yes,” Tourian said. “But a bunch more people living here, no.”

Al Haddad, owner of House of Hummus, was jubilant about the idea of 100-plus homes across the street from his restaurant. Haddad said the homes would be great for USF students and would probably bring more customers to his door.

Al Haddad, owner of House of Hummus, was jubilant about the idea of 100-plus homes across the street from his restaurant. Haddad said the homes would be great for USF students and would probably bring more customers to his door.

“I think it’s the best thing for this corridor,” Haddad said. “If there’s 300 people there, I bet I’d get at least 50.”

“I think it’s the best thing for this corridor,” Haddad said. “If there’s 300 people there, I bet I’d get at least 50.”

Plans filed in 2020 say <a href="https://presidiobay.com/projects/the-laurel/" target="_blank" rel="noreferrer noopener">the Laurel</a> would have a roof deck with fire pits, an indoor garden, a gym and 2,095 square feet of commercial space on the first floor.

Plans filed in 2020 say <a href="https://presidiobay.com/projects/the-laurel/" target="_blank" rel="noreferrer noopener">the Laurel</a> would have a roof deck with fire pits, an indoor garden, a gym and 2,095 square feet of commercial space on the first floor.

Al Haddad, owner of House of Hummus at 5 Masonic Ave., is excited at the prospect of a housing project across the street from his restaurant.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/img_8329.jpg?w=2500" alt="A man wearing an apron prepares food with a knife." class="wp-image-239350"/><figcaption class="wp-element-caption">Al Haddad, owner of House of Hummus at 5 Masonic Ave., is excited at the prospect of a housing project across the street from his restaurant.</figcaption></figure>

<h2 class="wp-block-heading" id="h-san-francisco-s-housing-crisis">San Francisco’s Housing Crisis</h2>

San Francisco is a notoriously <a href="https://sfstandard.com/2022/09/13/how-san-francisco-makes-it-insanely-hard-to-build-housing/">difficult and expensive place</a> to build housing due to many fees, a slow permitting process and opportunities for projects to be denied approval by the Board of Supervisors.

How San Francisco makes it insanely hard to build housing

San Francisco is a notoriously <a href="https://sfstandard.com/2022/09/13/how-san-francisco-makes-it-insanely-hard-to-build-housing/">difficult and expensive place</a> to build housing due to many fees, a slow permitting process and opportunities for projects to be denied approval by the Board of Supervisors.

The <a href="https://sfstandard.com/2023/12/22/san-francisco-record-low-housing-permits-despite-shortage/">struggle to build housing</a> comes as the state tries to force the city to build <a href="https://sfstandard.com/2023/01/23/what-to-know-about-sfs-plan-to-create-82000-new-homes/">82,000 homes</a> by 2031.

Despite crisis, San Francisco housing permits fall to 13-year low

What to know about SF&#8217;s plan to create 82,000 new homes

The <a href="https://sfstandard.com/2023/12/22/san-francisco-record-low-housing-permits-despite-shortage/">struggle to build housing</a> comes as the state tries to force the city to build <a href="https://sfstandard.com/2023/01/23/what-to-know-about-sfs-plan-to-create-82000-new-homes/">82,000 homes</a> by 2031.

The feds are also <a href="https://sfstandard.com/2023/03/01/indicted-executive-fingers-ex-boss-in-san-francisco-nuru-corruption-case/">investigating corruption</a> at City Hall. Four <a href="https://sfstandard.com/2024/01/02/san-francisco-van-zeng-building-inspector-charged-conflict-of-interest/">building inspection officials</a> face criminal charges. Two have been <a href="https://sfstandard.com/2023/08/25/san-francisco-corruption-ex-official-prison/">convicted</a>, and the other cases are ongoing. One of the four is being charged for an alleged conflict of interest after <a href="https://sfstandard.com/2024/01/02/san-francisco-van-zeng-building-inspector-charged-conflict-of-interest/">inspecting his own home</a>.

Indicted executive fingers ex-boss in Nuru corruption case

San Francisco building inspector who inspected his own home gets fired, faces charges

Ex-San Francisco official gets 2.5 years in prison for stealing $1.5M, other crimes

The feds are also <a href="https://sfstandard.com/2023/03/01/indicted-executive-fingers-ex-boss-in-san-francisco-nuru-corruption-case/">investigating corruption</a> at City Hall. Four <a href="https://sfstandard.com/2024/01/02/san-francisco-van-zeng-building-inspector-charged-conflict-of-interest/">building inspection officials</a> face criminal charges. Two have been <a href="https://sfstandard.com/2023/08/25/san-francisco-corruption-ex-official-prison/">convicted</a>, and the other cases are ongoing. One of the four is being charged for an alleged conflict of interest after <a href="https://sfstandard.com/2024/01/02/san-francisco-van-zeng-building-inspector-charged-conflict-of-interest/">inspecting his own home</a>.

“Working with the city can be a lengthy process,” Yin said, although he did not elaborate further, deferring to the project’s developer, Presidio Bay Ventures. The developer did not respond to questions by publication time.

“Working with the city can be a lengthy process,” Yin said, although he did not elaborate further, deferring to the project’s developer, Presidio Bay Ventures. The developer did not respond to questions by publication time.

The Lucky Penny parking lot is used by Trader Joe's customers.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/img_8279.jpg?w=2500" alt="A parking lot sits in front of a shuttered diner." class="wp-image-239362"/><figcaption class="wp-element-caption">The Lucky Penny parking lot is used by Trader Joe&#8217;s customers.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/img_8279.jpg?w=2500" alt="A parking lot sits in front of a shuttered diner." class="wp-image-239362"/><figcaption class="wp-element-caption">The Lucky Penny parking lot is used by Trader Joe's customers.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/img_8279.jpg?w=2500" alt="A parking lot sits in front of a shuttered diner." class="wp-image-239362"/><figcaption class="wp-element-caption">The Lucky Penny parking lot is used by Trader Joe&#8217;s customers.</figcaption></figure>

The pandemic didn’t help either.

“Covid stopped everything,” Yin said.

“Covid stopped everything,” Yin said.

Supervisor Catherine Stefani also alluded to construction costs, saying in a text message that “economic factors outside of our control” were factors in the project not moving forward.

Supervisor Catherine Stefani also alluded to construction costs, saying in a text message that “economic factors outside of our control” were factors in the project not moving forward.

Stefani said she wants to streamline the permit process and will continue to meet with the developer to try to get the project completed.

Stefani said she wants to streamline the permit process and will continue to meet with the developer to try to get the project completed.

Apparent difficulties with getting the project to make financial sense are continuing despite the project being 100% market rate, which the Board of Supervisors allowed in 2020 after the developer <a href="https://www.sfexaminer.com/archives/project-wins-approval-at-lucky-penny-site-with-no-affordable-housing/article_4b94db4a-7b15-5e18-8831-61b9b7e77605.html" target="_blank" rel="noreferrer noopener">paid $4.5 million</a> to fund affordable housing elsewhere.

Apparent difficulties with getting the project to make financial sense are continuing despite the project being 100% market rate, which the Board of Supervisors allowed in 2020 after the developer <a href="https://www.sfexaminer.com/archives/project-wins-approval-at-lucky-penny-site-with-no-affordable-housing/article_4b94db4a-7b15-5e18-8831-61b9b7e77605.html" target="_blank" rel="noreferrer noopener">paid $4.5 million</a> to fund affordable housing elsewhere.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/san-francisco-copper-penny-1977-film-still-exterior.png?w=2500" alt="A blurred image of a coffee shop named &quot;Copper Penny&quot; with passing cars in front." class="wp-image-239521"/><figcaption class="wp-element-caption">Before it was the Lucky Penny, it was the Copper Penny. This still from a 1977 film shows its facade.</figcaption></figure>

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<div class="wp-block-column"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/san-francisco-copper-penny-1977-film-still-exterior.png?w=2500" alt="A blurred image of a coffee shop named &quot;Copper Penny&quot; with passing cars in front." class="wp-image-239521"/><figcaption class="wp-element-caption">Before it was the Lucky Penny, it was the Copper Penny. This still from a 1977 film shows its facade.</figcaption></figure></div>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/san-francisco-copper-penny-1977-film-still-exterior-sign-png.png?w=2500" alt="A glowing sign reads &quot;COPPER PENNY.&quot;" class="wp-image-239520"/><figcaption class="wp-element-caption">The Lucky Penny&#8217;s sign back in 1977 when it was the Copper Penny.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/san-francisco-copper-penny-1977-film-still-exterior-sign-png.png?w=2500" alt="A glowing sign reads &quot;COPPER PENNY.&quot;" class="wp-image-239520"/><figcaption class="wp-element-caption">The Lucky Penny's sign back in 1977 when it was the Copper Penny.</figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/san-francisco-copper-penny-1977-film-still-exterior-sign-png.png?w=2500" alt="A glowing sign reads &quot;COPPER PENNY.&quot;" class="wp-image-239520"/><figcaption class="wp-element-caption">The Lucky Penny&#8217;s sign back in 1977 when it was the Copper Penny.</figcaption></figure>

<div class="wp-block-column"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/san-francisco-copper-penny-1977-film-still-exterior-sign-png.png?w=2500" alt="A glowing sign reads &quot;COPPER PENNY.&quot;" class="wp-image-239520"/><figcaption class="wp-element-caption">The Lucky Penny&#8217;s sign back in 1977 when it was the Copper Penny.</figcaption></figure></div>

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<div class="wp-block-columns"><div class="wp-block-column"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/san-francisco-copper-penny-1977-film-still-exterior.png?w=2500" alt="A blurred image of a coffee shop named &quot;Copper Penny&quot; with passing cars in front." class="wp-image-239521"/><figcaption class="wp-element-caption">Before it was the Lucky Penny, it was the Copper Penny. This still from a 1977 film shows its facade.</figcaption></figure></div><div class="wp-block-column"><figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/01/san-francisco-copper-penny-1977-film-still-exterior-sign-png.png?w=2500" alt="A glowing sign reads &quot;COPPER PENNY.&quot;" class="wp-image-239520"/><figcaption class="wp-element-caption">The Lucky Penny&#8217;s sign back in 1977 when it was the Copper Penny.</figcaption></figure></div></div>

The diner, which first opened in 1972 as the Copper Penny, was well known for <a href="https://www.sfgate.com/food/article/Lucky-Penny-closing-Christmas-Eve-San-Francisco-6717742.php" target="_blank" rel="noreferrer noopener">being cheap and open late</a>, said Yin.

The diner, which first opened in 1972 as the Copper Penny, was well known for <a href="https://www.sfgate.com/food/article/Lucky-Penny-closing-Christmas-Eve-San-Francisco-6717742.php" target="_blank" rel="noreferrer noopener">being cheap and open late</a>, said Yin.

This reporter remembers settling into a vinyl booth at Lucky Penny as a USF college freshman in September 2015 with dorm mates. I was grateful for a plate of bacon and eggs at 12:30 p.m., even if the eggs had a curly strand of dark hair in them.

This reporter remembers settling into a vinyl booth at Lucky Penny as a USF college freshman in September 2015 with dorm mates. I was grateful for a plate of bacon and eggs at 12:30 p.m., even if the eggs had a curly strand of dark hair in them.

Yin, whose parents ran the diner from 1979 before buying it in 1985, said he remembers working as a cook in the back as a teenager.

Yin, whose parents ran the diner from 1979 before buying it in 1985, said he remembers working as a cook in the back as a teenager.

He said the developer plans to include the diner’s lacquered counter embedded with “thousands” of pennies, as well as the diner’s wallpaper with penny designs, into the project to pay homage to the greasy spoon of yore. Yin hopes a diner will return to the finished project.

He said the developer plans to include the diner’s lacquered counter embedded with “thousands” of pennies, as well as the diner’s wallpaper with penny designs, into the project to pay homage to the greasy spoon of yore. Yin hopes a diner will return to the finished project.

“There’s potential to bring back a version of the Lucky Penny,” Yin said.

“There’s potential to bring back a version of the Lucky Penny,” Yin said.

This San Francisco diner has sat empty for 8 years, despite luxury homes plan. Here’s why

Liz Lindqwister

It’s not quite 2008, but rich homebuyers in the Bay Area may be holding their purses and wallets a little tighter in the new year.&nbsp;

It’s not quite 2008, but rich homebuyers in the Bay Area may be holding their purses and wallets a little tighter in the new year.&nbsp;

Luxury home sales fell rapidly in San Francisco last year, and the downward trend only accelerated in the final quarter of 2022. The Bay Area clocked 35 ultra-luxury home sales—properties worth at least $5 million—in December, down 69% from the same month in 2021, according to a Compass Real Estate analysis.&nbsp;

Luxury home sales fell rapidly in San Francisco last year, and the downward trend only accelerated in the final quarter of 2022. The Bay Area clocked 35 ultra-luxury home sales—properties worth at least $5 million—in December, down 69% from the same month in 2021, according to a Compass Real Estate analysis.&nbsp;

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San Francisco proper saw only 21 total luxury home sales in December. Of the <a href="https://sfstandard.com/business/san-francisco-most-expensive-home-sales-real-estate-prices/">top 10 most expensive home sales in 2022</a>, only two occurred in the last half of the year.&nbsp;

San Francisco proper saw only 21 total luxury home sales in December. Of the <a href="https://sfstandard.com/business/san-francisco-most-expensive-home-sales-real-estate-prices/">top 10 most expensive home sales in 2022</a>, only two occurred in the last half of the year.&nbsp;

The main cause? The same worsening economic conditions that pummeled San Francisco’s markets, causing sweeping rounds of layoffs and emptying office buildings in the city’s Downtown corridor. According to Zillow estimates, these conditions are expected to deflate the overall market, <a href="https://sfstandard.com/business/san-francisco-home-prices-could-fall-further-than-any-u-s-metro-in-2023/">lowering the average SF home price by roughly 3.6%</a> by October 2023.&nbsp;

The main cause? The same worsening economic conditions that pummeled San Francisco’s markets, causing sweeping rounds of layoffs and emptying office buildings in the city’s Downtown corridor. According to Zillow estimates, these conditions are expected to deflate the overall market, <a href="https://sfstandard.com/business/san-francisco-home-prices-could-fall-further-than-any-u-s-metro-in-2023/">lowering the average SF home price by roughly 3.6%</a> by October 2023.&nbsp;

“Since mid-year, large changes in macroeconomic conditions—exemplified by soaring inflation and interest rates, and declining stock markets—started to let the air out of overpressurized markets,” said Patrick Carlisle, chief market analyst at Compass Real Estate. “That&#8217;s what has been going on in the second half of 2022: not a crash on the highway at high speed, nothing like the 2008 meltdown, but a significant slowing nonetheless.”&nbsp;

“Since mid-year, large changes in macroeconomic conditions—exemplified by soaring inflation and interest rates, and declining stock markets—started to let the air out of overpressurized markets,” said Patrick Carlisle, chief market analyst at Compass Real Estate. “That's what has been going on in the second half of 2022: not a crash on the highway at high speed, nothing like the 2008 meltdown, but a significant slowing nonetheless.”&nbsp;

“Since mid-year, large changes in macroeconomic conditions—exemplified by soaring inflation and interest rates, and declining stock markets—started to let the air out of overpressurized markets,” said Patrick Carlisle, chief market analyst at Compass Real Estate. “That&#8217;s what has been going on in the second half of 2022: not a crash on the highway at high speed, nothing like the 2008 meltdown, but a significant slowing nonetheless.”&nbsp;

Growing economic anxieties contributed to four straight months of declining luxe home sales. And real estate agents say that dwindling luxury home sales represents a significant market correction that comes after a dramatic, long-term upward cycle in the Bay Area luxury real estate market.

Growing economic anxieties contributed to four straight months of declining luxe home sales. And real estate agents say that dwindling luxury home sales represents a significant market correction that comes after a dramatic, long-term upward cycle in the Bay Area luxury real estate market.

“The 10-year upcycle was caused by a number of general macroeconomic factors, but supercharged [in San Francisco] first by our spectacular high-tech boom, with its huge increase in employment and astounding growth in wealth,” Carlisle said. “And then the strange dynamics of the pandemic boom, which was initially spearheaded in the Bay Area by affluent homebuyers.”&nbsp;

“The 10-year upcycle was caused by a number of general macroeconomic factors, but supercharged [in San Francisco] first by our spectacular high-tech boom, with its huge increase in employment and astounding growth in wealth,” Carlisle said. “And then the strange dynamics of the pandemic boom, which was initially spearheaded in the Bay Area by affluent homebuyers.”&nbsp;

Paralleling the tech industry’s rhythm—a rapid <a href="https://sfstandard.com/business/tech-scaled-too-quickly-and-now-the-bay-area-is-paying-the-price/">scaling-up during the pandemic</a>, followed by layoffs—Carlisle says that the Bay Area luxury housing market peaked due to the same kind of “irrational exuberance” by sellers and buyers.&nbsp;

Paralleling the tech industry’s rhythm—a rapid <a href="https://sfstandard.com/business/tech-scaled-too-quickly-and-now-the-bay-area-is-paying-the-price/">scaling-up during the pandemic</a>, followed by layoffs—Carlisle says that the Bay Area luxury housing market peaked due to the same kind of “irrational exuberance” by sellers and buyers.&nbsp;

It’s not just&nbsp;San Francisco; communities <a href="https://www.wsj.com/articles/the-luxury-home-market-posts-its-biggest-decline-in-a-decade-its-like-crickets-11663795015">across the Bay Area</a> are all seeing a significant decline in luxury home sales. This downward trend is prevalent even in cities like Palo Alto, which borders Silicon Valley and Stanford University, and generally boasts one of the most expensive housing markets in the area.&nbsp;

It’s not just&nbsp;San Francisco; communities <a href="https://www.wsj.com/articles/the-luxury-home-market-posts-its-biggest-decline-in-a-decade-its-like-crickets-11663795015">across the Bay Area</a> are all seeing a significant decline in luxury home sales. This downward trend is prevalent even in cities like Palo Alto, which borders Silicon Valley and Stanford University, and generally boasts one of the most expensive housing markets in the area.&nbsp;

The luxury apartment building at 33 Tehama in Downtown San Francisco is pictured on September 16, 2022. The building flooded twice over the summer, forcing residents to temporarily relocate multiple times. | Kori Suzuki for The Standard

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/01/33TehamaClosure09162022_065-2500x1667.jpg" alt="" class="wp-image-110456"/><figcaption class="wp-element-caption">The luxury apartment building at 33 Tehama in Downtown San Francisco | Kori Suzuki for The Standard</figcaption></figure>

So What Comes Next?&nbsp;

<h2 class="wp-block-heading" id="h-so-what-comes-next">So What Comes Next?&nbsp;</h2>

<h2 id="h-so-what-comes-next">So What Comes Next?&nbsp;</h2>

Experts caution that the health of SF’s real estate market moving forward will largely depend on both money and mindset.&nbsp;

Experts caution that the health of SF’s real estate market moving forward will largely depend on both money and mindset.&nbsp;

First, the city needs to see a resurgence in general macroeconomic conditions, such as declining interest rates and a leveling out of home prices. But also important will be a growing sense of financial confidence among luxury home buyers, who might be hesitant to drop millions in an unstable market and in a city heading toward a tech-driven recession.&nbsp;&nbsp;

First, the city needs to see a resurgence in general macroeconomic conditions, such as declining interest rates and a leveling out of home prices. But also important will be a growing sense of financial confidence among luxury home buyers, who might be hesitant to drop millions in an unstable market and in a city heading toward a tech-driven recession.&nbsp;&nbsp;

But real estate and financial markets operate in cycles, and SF’s current economic troubles may actually create the prime conditions for buyers hoping to score a good home deal. And it helps that there is a tremendous amount of household wealth floating around the SF Bay Area—so much so that the city still <a href="https://sfar.stats.10kresearch.com/infoserv/s-v1/LVjI-q9b">secured 412 sales of luxury homes</a> worth well over $5 million in 2022.&nbsp;

But real estate and financial markets operate in cycles, and SF’s current economic troubles may actually create the prime conditions for buyers hoping to score a good home deal. And it helps that there is a tremendous amount of household wealth floating around the SF Bay Area—so much so that the city still <a href="https://sfar.stats.10kresearch.com/infoserv/s-v1/LVjI-q9b">secured 412 sales of luxury homes</a> worth well over $5 million in 2022.&nbsp;

“It is an excellent time for buyers to aggressively negotiate home purchases at prices well below those of recent years,” Carlisle said. “This is probably especially true of the luxury and ultra-luxury condo markets located in the city&#8217;s Downtown/high-tech district, full of world-class buildings and spectacular units, but hit harder than any place in the city and the Bay Area by the factors mentioned earlier.”&nbsp;

“It is an excellent time for buyers to aggressively negotiate home purchases at prices well below those of recent years,” Carlisle said. “This is probably especially true of the luxury and ultra-luxury condo markets located in the city's Downtown/high-tech district, full of world-class buildings and spectacular units, but hit harder than any place in the city and the Bay Area by the factors mentioned earlier.”&nbsp;

“It is an excellent time for buyers to aggressively negotiate home purchases at prices well below those of recent years,” Carlisle said. “This is probably especially true of the luxury and ultra-luxury condo markets located in the city&#8217;s Downtown/high-tech district, full of world-class buildings and spectacular units, but hit harder than any place in the city and the Bay Area by the factors mentioned earlier.”&nbsp;

Just know that you <a href="https://sfstandard.com/housing-development/steph-curry-says-no-to-living-in-luxury-downtown-sf-building/">might not be living next to Steph Curry</a> any time soon—the Warriors’ point guard recently said no to a luxury Downtown apartment in SF.&nbsp;

Just know that you <a href="https://sfstandard.com/housing-development/steph-curry-says-no-to-living-in-luxury-downtown-sf-building/">might not be living next to Steph Curry</a> any time soon—the Warriors’ point guard recently said no to a luxury Downtown apartment in SF.&nbsp;

Luxury home sales across the Bay Area are declining—fast

Kevin V. Nguyen

The three-bedroom, five-bathroom townhouse at 115 Telegraph Hill Blvd. sits at the foot of the last set of stairs that rise to meet Coit Tower’s colossal art deco facade.&nbsp;

The three-bedroom, five-bathroom townhouse at 115 Telegraph Hill Blvd. sits at the foot of the last set of stairs that rise to meet Coit Tower’s colossal art deco facade.&nbsp;

A downtown lot was supposed to be luxury homes. Instead, it’s a fenced-off encampment

This San Francisco diner has sat empty for 8 years, despite luxury homes plan. Here’s why

Luxury home sales across the Bay Area are declining—fast

San Francisco’s ultra-rich are renting more than ever, but buying is coming back en vogue

San Francisco Sea Cliff’s ‘very boxy’ mansion plans leave locals unimpressed

Search Results for: luxury homes

A downtown lot was supposed to be luxury homes. Instead, it’s a fenced-off encampment

This San Francisco diner has sat empty for 8 years, despite luxury homes plan. Here’s why

Luxury home sales across the Bay Area are declining—fast

San Francisco’s ultra-rich are renting more than ever, but buying is coming back en vogue

San Francisco Sea Cliff’s ‘very boxy’ mansion plans leave locals unimpressed