Mill Creek Residential has submitted an application to transform a Safeway location in downtown San Rafael into a residential development. The proposal, filed with the Marin Independent Journal, outlines plans to demolish the existing grocery store at 700 B Street and construct an eight-story apartment building. The structure would encompass approximately 377,000 square feet and contain 331 units, with 28 designated as affordable housing.
The developer submitted the application under the provisions of Senate Bill 330, a state law designed to expedite housing approvals and restrict mechanisms that could delay construction. This project marks the seventh known redevelopment effort involving a Safeway-owned or leased property in the Bay Area. If all such projects proceed as planned, they would collectively deliver 4,623 housing units across the region.
Unlike some other grocery-to-housing conversions in the area, the San Rafael proposal does not include plans for a replacement grocery store. Align Real Estate is pursuing similar developments in the region, including a Trader Joe’s in Oakland and multiple Safeway locations in San Francisco and San Mateo. Align’s San Francisco efforts include a 790-unit tower in the Marina District. None of Align’s current plans include replacement grocery stores either.
Local officials and residents have noted that the San Rafael Safeway has faced operational challenges and theft issues in recent years. However, community leaders emphasize its continued importance to the neighborhood. Amy Likover, president of the Federation of San Rafael Neighborhoods, stated that residents rely on the store and want to ensure that new housing projects include adequate shopping options for both new and existing residents.
Downtown San Rafael is experiencing a surge in residential development. Approximately 2,000 units have been approved in the city, with 360 currently under construction. Mill Creek is also building a 210-unit project at 930 Irwin Street in the same area. The city is required to meet a state-mandated goal of 3,220 new housing units by 2031.
