Mission Bay Block 1 is a huge building project in Mission Bay that will have hundreds of residential units, a hotel, a parking garage, and 50,000 sq ft of retail space. All of this is on 2.73 acres at the corner of 3rd and Channel St.
In May 2012 the land was bought by Strada Investment Group and Blackrock, Inc. According to the official project page, the site was "originally entitled to build a 500-key hotel, 50,000 square feet of retail and a 191-stall parking garage. In July 2013, Strada successfully re-entitled Block 1 for 350 residential units, 250 hotel rooms and 50,000 square feet of retail, making Strada the first developer to amend the Mission Bay Redevelopment Plan.
In December 2013, Strada sold the hotel parcel to SOMA Hotel, an affiliate of Stanford Hotels Group. Strada is managing all aspects of the residential development process." Apparently the change was made because Strada determined that a 500-room hotel wouldn't work financially [source]. The hotel will be 15 stories tall and it may begin construction in late 2014.
The residential part will be designed by Arquitectonica.
There will also be provisions for affordable housing. From an article about the project in the SF Business Times: "The [Mission Bay Redevelopment Plan] amendment calls for 15 percent affordable units in the rental portion of the project. If Strada builds condos, the developer has agreed to pay a fee to the Mayors Office On Housing, equal to 20 percent of project cost.
The idea that the Mission Bay plan could be amended was risky, but the city’s interest in having a hotel in Mission Bay and generating money for affordable housing made a compelling case, Cohen said. The vote from the Board of Supervisors was unanimous.
“On the face of it the idea that we were going to amend the Mission Bay redevelopment plan was somewhat audacious,” said Cohen. “But we believed there were such compelling public policy reasons to support the amendment that we felt it was a risk worth taking.”"