The abandoned Touchless Car Wash site at 400 Divisadero (at Oak Street) seems to be getting a new lease on life with a proposed redevelopment project. After being left dormant by the previous developer in 2022, Irvine-based 4Terra Investments has stepped in with plans for an eight-story, 203-unit apartment building, including 23 affordable units on site. This new project is a step up from the previous plan, with 10% more units and two additional stories.
4Terra Investments has been in talks with property owners Roy and Patricia Shimek since last fall, and they have now submitted their plans to the city. The company specializes in student housing and rental apartments, with previous projects like the 410-unit L Seven apartment building in SoMa.
The new development at 400 Divisadero is taking advantage of the city’s temporarily relaxed affordable housing mandate, which aims to boost the financial feasibility of such projects. This move may draw criticism from affordable housing advocates, who argue that the city is making it too easy for market-rate housing developers. However, developers like 4Terra point to economic conditions, such as a soft rental market and high construction costs, that have stalled residential development across the city.
The Touchless Car Wash site, known for its post-Burning Man specials and gift shop, closed its doors in late 2021. Now, with the potential for a new residential building to take its place, the area could see a revitalization that benefits both residents and the community. As the city continues to grapple with housing affordability issues, developments like the one proposed at 400 Divisadero play a crucial role in providing much-needed housing options for a growing population.
