Developer Proposed 45-Story Tower in San Francisco
A new 528-unit apartment project at 1601 Mission Street aims to address rising local rental demand.
Updated on Oct. 12, 2026 in Commercial
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Developer Manna Capital has filed a proposal to construct a 45-story residential tower at 1601 Mission Street in San Francisco. The development would replace an existing car wash on the property, which was purchased by IPE 18 LLC for $12 million in October 2024.
Why it matters
The proposal seeks to expand the city's housing supply in response to surging rental costs driven by an artificial intelligence-led economic boom and limited inventory. By leveraging state density bonus laws, the project aims to add significant density to a high-demand area.
The proposed 633,600-square-foot project includes 528 apartments, with 80 units designated as affordable. Developers estimate construction costs for the tower will reach $312 million.
The players
Manna Capital
A real estate developer responsible for proposing high-density residential projects across California.
IPE 18 LLC
A property investment firm that acquired the site at 1601 Mission Street for $12 million in late 2024.
The details
Manna Capital submitted plans to replace the Tower Car Wash at 1601 Mission Street with a skyscraper featuring 190 parking spaces and 900 square feet of retail space. The project utilizes California's density bonus law, which allows for larger developments in exchange for including affordable housing units within the tower. This development follows a similar proposal by the same developer for a 40-story tower at 38 8th Street submitted in August 2026.
Timeline
A prior development proposal for the site was submitted in 2014.
IPE 18 LLC purchased the 1601 Mission St. property in October 2024.
Manna Capital proposed a tower at 38 8th St. in August 2026.
The 1601 Mission St. skyscraper proposal was filed on October 7, 2026.
Money Landscape
This proposal reflects a growing trend of high-density vertical construction in San Francisco's urban core. It follows a pattern established by the California state density bonus law, which encourages developers to build more units than traditional zoning might otherwise permit.
Residents should monitor how large-scale developments impact local rental inventory and housing market competition in the Mission District. Prospective renters should consult with a financial professional when assessing the long-term affordability and supply shifts in their specific neighborhood.
The takeaway
Large-scale urban development projects can significantly alter local housing supply, potentially influencing rental competition over time. Residents should track city planning department meetings for upcoming public comment periods regarding the 1601 Mission Street proposal.
Further reading
For more information on market trends, visit our Commercial section.
Source note: This article includes information reported by San Francisco Chronicle.
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