San Francisco’s long-delayed Candlestick Point project finally breaks ground; $130 million first phase will fund roads, utilities and infrastructure for 7,200 homes across 270 acres

San Francisco’s long-delayed Candlestick Point redevelopment is finally moving forward, with a $130 million first phase funding roads, utilities and infrastructure. (Photo: Daniel Lurie/ZUMAPRESS.com)

After years of stalled plans, changing economic conditions and an abandoned shopping mall proposal, construction has officially begun at San Francisco’s Candlestick Point.Mayor Daniel Lurie announced Wednesday that the first phase of the massive redevelopment project at the former Candlestick Park site is now underway.“For years, San Franciscans have heard about what would someday rise at Candlestick,” Lurie said. “The Bayview and Candlestick Point have waited long enough.”The announcement marks a major turning point for one of San Francisco’s most ambitious redevelopment projects. Candlestick Park, once home to the San Francisco 49ers and San Francisco Giants, was demolished in 2015, leaving much of the surrounding property undeveloped.

$130 million infrastructure investment begins

The first phase will focus on the less visible but essential groundwork required before the new neighborhood can be built.Developer FivePoint is investing approximately $130 million in roads, utilities and other infrastructure across the site.While the construction may not immediately produce the towers, homes and commercial buildings envisioned for Candlestick Point, the infrastructure work represents a crucial step toward turning the long-vacant land into a functioning neighborhood.The redevelopment covers approximately 270 acres and is expected to eventually feature as many as 7,200 homes, as well as shops, offices, parks and other community amenities.

7,200 homes could help San Francisco’s housing crisis

The $130 million first phase marks a major step toward transforming San Francisco’s former Candlestick Park site into a 7,200-home mixed-use neighborhood. (Photo: Daniel Lurie)

The planned housing is particularly significant as San Francisco continues to face a major housing shortage.The San Francisco metropolitan area was estimated to have a deficit of approximately 130,000 homes in 2024, according to Zillow. At the same time, rents have continued to rise and apartment vacancy rates have fallen below 4%.That makes the prospect of thousands of additional homes at Candlestick Point especially important.However, the development still faces a lengthy construction timeline and significant financial challenges before the entire neighborhood becomes a reality.

Candlestick Point’s plans have changed dramatically

The current redevelopment is far removed from the original vision for the site.About a decade ago, FivePoint planned to build a major shopping mall at Candlestick Point. That proposal eventually collapsed as the rise of e-commerce fundamentally changed the retail industry.Despite the delays, FivePoint maintained that it remained committed to the property.“We have not slowed down,” FivePoint CEO Emile Haddad said in 2019. “We have not stopped. Anything we can do right now, we are doing it.”The project then encountered another major setback as the COVID-19 pandemic disrupted construction, investment and the wider real estate market.Now, FivePoint believes San Francisco’s economic recovery could provide the momentum needed to move the project forward.

AI boom could help revive San Francisco development

Nearly a decade after Candlestick Park was demolished, construction has begun on the massive 270-acre Candlestick Point redevelopment. (Photo: Daniel Lurie)

The developer is also counting on renewed economic activity in San Francisco, including the city’s growing artificial intelligence sector and signs of improvement in the office market.“It has been a long time, but I think this is Candlestick’s moment,” FivePoint Senior Vice President Suheil Totah told The Wall Street Journal.Still, turning the vision into reality will require billions of dollars in investment and sustained demand for housing, retail and commercial space.Former San Francisco Planning Director John Rahaim pointed to the enormous upfront costs involved in developing such a large site before developers can begin seeing returns.

Location remains a challenge

Candlestick Point’s location could also shape the project’s future.The development sits approximately five miles south of San Francisco’s traditional downtown business district. Developers will therefore need to persuade residents and businesses that the emerging neighborhood offers enough amenities, connectivity and economic opportunities to attract them.The city’s condominium market has also been slower to recover compared with apartments, with home prices remaining below their pandemic-era peaks.These factors could influence what ultimately gets built and how quickly the development progresses.

San Francisco’s ‘Stick’ could finally return

For longtime San Franciscans, the project carries an added emotional significance.Candlestick Park was a landmark venue that hosted generations of 49ers and Giants fans before its demolition. The largely empty site that followed became a symbol of San Francisco’s struggle to turn major development proposals into reality.That perception may finally be changing.Social media users welcomed the start of construction, with some celebrating that the property was no longer sitting vacant and others calling for affordable housing to be included in the development.For now, the transformation is still in its infancy. But with infrastructure construction underway, San Francisco’s long-promised Candlestick Point redevelopment has finally moved from plans on paper to work on the ground.Nearly 10 years after Candlestick Park was demolished, the future of the historic site is once again taking shape.