Plenary Group Lands Demolition Permits for 513-Unit SF Transit Hub Projecto Yard Redevelopment

• Development site: 2500 Mariposa Street, San Francisco, California
• Housing: Up to 465 residential units are entitled, with the current plan preserving approximately 100 affordable homes
• Transit investment: A new four-story Muni bus maintenance and storage facility is under construction as part of the redevelopment

Potrero Yard Redevelopment Moves Forward

Demolition is moving closer at 2500 Mariposa Street, where San Francisco is transforming its century-old Potrero Yard into a modern transit facility with an accompanying housing and commercial component. Construction is already underway, with the overall project expected to run through 2030. For landlords and investors, the project is significant because it combines major public infrastructure investment with new residential development on a 4.4-acre urban site in a centrally located San Francisco neighborhood.

 

 

SFMTA Rebuilds a Century-Old Transit Site

The redevelopment is being led through a partnership with Potrero Neighborhood Collective, which was selected as the project's lead developer in 2022. Webcor is leading construction, while Arcadis is the lead designer. The new transit facility will provide capacity for at least 246 buses, nearly 50% more than the current operation, while supporting Muni's transition toward an all-electric fleet. The facility will also improve maintenance operations and working conditions for SFMTA employees.

“The new Potrero Yard will help us deliver more reliable Muni service.”

 

 

Housing Still Plays a Role

Earlier versions of the project contemplated a substantially larger residential component, but SFMTA reduced the housing program as part of cost-saving measures. The agency says the current plan preserves the opportunity for approximately 100 affordable housing units, subject to financing and market feasibility. The previously entitled housing component allowed for up to 465 units and 776 bedrooms, with income restrictions generally ranging from 30% to 80% of Area Median Income. The proposed housing would be located along Bryant Street, adjacent to the new transit facility. The project also envisions ground-floor retail and commercial space, improved pedestrian and bicycle infrastructure, public art and resident amenities, creating a more active street presence around the rebuilt yard.

 

A Major Public Investment

San Francisco approved the infrastructure project in March 2026. The project agreement with PRG-Potrero Properties LLC carries a not-to-exceed value of approximately $1.396 billion, including authorization for up to $900 million in tax-exempt bonds. That investment underscores the importance of the site to San Francisco's transportation network. Potrero Yard has operated for more than a century, and the redevelopment is intended to improve Muni capacity, reliability, resiliency and preparation for zero-emission buses.

Why Investors Should Watch 2500 Mariposa

For nearby property owners, the redevelopment could have a long-term impact beyond the project footprint. A modern transit facility, new affordable housing, retail space and upgraded pedestrian infrastructure can strengthen connectivity and support additional investment around the surrounding area. SFMTA says site preparation will precede demolition, with demolition expected to begin in early 2027. The new transit facility is targeted to begin operations around 2030, while the affordable housing component is anticipated to follow in a later phase, subject to financing. The takeaway: 2500 Mariposa Street is moving from a decades-old transit facility toward a major infrastructure and housing redevelopment, giving San Francisco another large-scale opportunity to connect transportation investment with residential growth.