FivePoint Advances Candlestick Master Plan as Infrastructure Work Begins

• FivePoint Holdings is preparing to break ground on the 270-acre Candlestick master-planned community in San Francisco, California, with an initial $150 million investment in infrastructure.
• The first phase includes 675 homes and 1 million square feet of office and research and development space, with land expected to be sold to third-party developers after site preparation.
• Once fully built, the community is planned to include 7,200 homes, nearly 3 million square feet of office and R&D space, retail, parks, and affordable housing.

What the Candlestick Development Includes

Construction is set to begin next month on the long-awaited Candlestick master-planned community, located on a 270-acre site at Candlestick Point in southeastern San Francisco, California. Developed by FivePoint Holdings, the project represents one of the largest mixed-use developments currently planned in the city. At full build-out, Candlestick will feature 7,200 residential units, nearly 3 million square feet of office and research and development space, neighborhood retail, parks, and other public amenities. The first construction phase will deliver infrastructure supporting 675 homes and approximately 1 million square feet of commercial space, creating the foundation for future residential and mixed-use development.

What the Investment Strategy Looks Like

Rather than bringing in an equity partner, FivePoint Holdings plans to fund the initial infrastructure work using $130 million of its own capital, supplemented by a $20 million grant from the Federal Highway Administration. The investment will focus on building roads, utility systems, and other essential infrastructure before individual development parcels are marketed to residential and commercial builders. According to Thor Kaslofsky, Executive Director of San Francisco's Office of Community Investment and Infrastructure (OCII), this approach aligns with FivePoint's long-term strategy.

"We have a deal for them to prepare the land and then create the development. They've talked mostly about selling."

Once the land is development-ready, FivePoint is expected to sell parcels to third-party developers that will construct the homes and commercial buildings.

What Is Driving the Project Forward

The renewed momentum comes as San Francisco's residential market continues to strengthen, driven in part by growing demand from artificial intelligence companies and renewed office leasing activity. The city has also helped advance the project by transferring approximately 2 million square feet of development entitlements from the Hunter's Point Shipyard project to Candlestick. In addition, amendments to the development agreement divided the original three large construction phases into seven smaller phases, reducing the upfront capital required for each stage.

Kaslofsky described the phased approach as a way to create sustained development momentum.

"You're able to kind of create a flywheel by throwing some starter logs in there."

What This Means for San Francisco

Candlestick represents one of San Francisco's most ambitious long-term redevelopment efforts and is expected to play a significant role in addressing the city's ongoing housing shortage. Beyond new market-rate housing, the project will include affordable housing opportunities. The Office of Community Investment and Infrastructure recently issued a request for proposals for a separate affordable housing development of up to 100 units within the community. Although FivePoint has not disclosed its long-term financing plans, the company described the infrastructure investment as a major commitment to the city's future.

Suheil Totah, Senior Vice President at FivePoint Holdings, called the upcoming work a:

"Significant investment into San Francisco's future."