Former San Francisco Nordstrom Rack to become apartments

SAN FRANCISCO - San Francisco is accelerating its efforts to create more housing through both commercial-to-residential conversions and private investment.

Nordstrom Rack to apartments

What we know:

Mayor Daniel Lurie announced Monday that the former Nordstrom Rack building at 901 Market St. will be converted into 136 apartments, including a mix of studios, one-bedroom and two-bedroom units. 

Apartments will occupy the building's second through sixth floors, while the historic facades along Market, Fifth and Stevenson streets will be preserved. 

Existing retail space on the ground and lower levels will remain, and the building's indoor atrium will be transformed into an open-air courtyard, according to the city. 

Broader effort

Big picture view:

The project is part of the city's broader effort to make it easier to convert underused commercial buildings into housing.

City officials say they are working to streamline the approval process for commercial-to-housing conversion projects. Similar plans are underway for former office buildings at 150 Hayes Street in Hayes Valley, 575 Sutter Street in Union Square, and 2300 Stockton Street near Pier 39.

What will it cost? 

What they're saying:

Residents welcomed the announcement but questioned whether the new homes would be affordable.

"I think that the city definitely needs more housing. That's for sure, and especially more housing that can accommodate people who are more in the middle," said Andy Kang.

Kang said he was recently priced out of his Hayes Valley apartment after his rent increased substantially. He found a new unit in the Mid-Market area. 

"We certainly have housing in San Francisco if you have the money to buy it, and I know more recently a record number of houses have sold for a million dollars over asking. It's quite concerning. I think the makeup of San Francisco has changed significantly, and I want to see a more diverse city," said Youseef Elias of San Francisco. 

Lurie also said the city is pursuing additional housing through his Family Zoning Plan. City leaders have not yet announced affordability details for the Nordstrom Rack conversion.

"My concern is just low-income housing for low-income people like myself, low-income families. You know, sometimes we get forgot about, and to have more options for low-income people and families just gives us inspiration to want to do better," said Akeem Raheem, who lives in the Bayview.

Private investment adds momentum

The city's housing efforts also received a boost from the private sector.

At an event at Chase Center on Monday, JPMorgan Chase announced a $200-million investment to help expand San Francisco's housing supply, including financing for 342 new homes at the Potrero Power Station development in Dogpatch, which is under construction.

The company has also provided financing for more than 100 affordable apartments for middle-income residents at the nearby Sophie Maxwell building.

JPMorgan Chase CEO Jamie Dimon praised the city's direction, saying Mayor Daniel Lurie is taking the right steps to make San Francisco more attractive for investment.

He credited the mayor for improvements in public safety and efforts to expand housing, saying those changes are helping restore confidence in the city's future. 

San Francisco