Ocean Beach Safeway Redevelopment Will Add 526 New Homes

November 18, 2025

Safeway’s Outer Richmond store at 850 La Playa will temporarily close so owner Safeway and developer Align Real Estate can replace the parking-lot supermarket with two eight-story buildings containing 526 rental homes and a larger grocery store, using by-right state density bonus rules rather than waiting on San Francisco’s new Family Zoning plan.

Ocean Beach Safeway Redevelopment Will Add 526 New Homes

The Facts

Safeway’s Outer Richmond store at 850 La Playa Street is slated for a temporary closure while Safeway and developer Align Real Estate pursue a major redevelopment to turn the one‑story store and surface parking lot into two eight‑story buildings containing 526 rental homes, a larger Safeway, and new parking for residents and shoppers. Of those homes, 68 would be reserved for low‑ and very‑low‑income households. Safeway says all current employees will keep their jobs and that on‑site employment will grow by about one‑third once the new store opens, according to reporting by Laura Waxmann at the Chronicle.

The Context

Under current zoning, the maximum height at 850 La Playa is 40 feet (about four stories). Mayor Daniel Lurie’s proposed Family Zoning plan would rezone the site to 65 feet as part of a citywide push to allow more homes in high‑opportunity west‑side neighborhoods. But Align is relying on state density‑bonus laws to go to about 85 feet and secure ministerial, by‑right approval in exchange for on‑site subsidized units, effectively bypassing much of local discretionary control even as Supervisor Connie Chan tries to carve 850 La Playa and other Outer Richmond parcels out of the Family Zoning map and layer on extra review.

The GrowSF Take

If you've never lived directly above a grocery store, you might not realize how incredibly convenient it is. Having a full-service supermarket just an elevator ride away makes daily life so much easier, especially for families with kids.

This is a no-nonsense redevelopment and we're all for it. Take note that this project bypasses local restrictions in exchange for more height and more low-income units. A great trade, we think!

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