Supervisor Preston says 555 Fulton Street is under contract; committee pauses hearing on proposed Trader Joe’s

Supervisor Dean Preston announced at the Government Audit and Oversight Committee meeting on April 6 that the owner of 555 Fulton Street, Z and L Properties, is in contract to sell the site to a buyer who is "eager" to prepare the space for Trader Joe’s, and he moved to continue the scheduled hearing to the call of the chair.

The brief announcement recalled the site’s long history: the Board of Supervisors adopted a Fulton Street grocery special-use district on April 22, 2008, enabling a large-scale neighborhood-serving grocery at the Ground Floor of the building. The Planning Commission conditionally authorized Trader Joe’s to operate in the retail space in July 2021, but neighbors and officials said the store’s opening stalled amid owner inaction on tenant improvements. Preston said his office had met with representatives of Z and L Properties and Trader Joe’s and that the owner provided a public statement confirming the property is in contract with a buyer who intends to pursue the grocery commitment.

Preston said the potential buyer requested confidentiality until the sale closes; his office said it had independently confirmed the owner’s statement. He thanked the planning department and the Hayes Valley Neighborhood Association for their long-term advocacy and said the committee should keep the file open in case of future delays. After Preston’s remarks, the chair opened the floor for public comment. A long-term Hayes Valley resident said the neighborhood supported the continuance and urged resolution of the issues that allow entitled commercial space to remain vacant for years.

On a motion by Chair Preston to continue the item to the call of the chair, Vice Chair Catherine Stephanie and Supervisor Connie Chan voted "aye," as did Preston; the motion passed 3–0 and the committee paused the formal presentations so parties could complete due diligence and next steps before returning the item to the committee if needed.

The continuance keeps the planning and permitting record open so that, should the sale or subsequent tenant-improvement work encounter delays, the committee can recall the matter. The committee did not take any substantive testimony from the planning department or Trader Joe’s at this meeting because of the announced sale contract.

The committee moved on to other items on the agenda.