A Toast...

To my colleagues, clients and friends:

Thank you for indulging me each week when I pick up my virtual pen. I hope you find it entertaining, informative, sometimes zen.

I am grateful for life's blessings and my ability to share and send. In a small way, we learn, we laugh, we mend.

2009 is almost gone, the first decade of the new century at end. Now the wiser, lets welcome 2010!

Cheers!

SOLD! Online Storage Auction Rakes It In; Provides Storage For Rakes.

The Infinity held the second and final round of deeded storage space auctions last Thursday. Round one of the auction took place November 18th with all units selling. Thursday night represented the last opportunity for Infinity homeowners to bid in the online auction and score a deal on some much needed room to stash bicycles, buggies and boards, both ski and surf.

I have a client who participated unsuccessfully in the first round and would be traveling during the second, so I happily stepped in to be his bidder-by-proxy. Being a very bright and analytical gentlemen, he provided me with a detailed bid strategy which yielded success and what I think to be a respectable value based on the 'comps' as we say in real estate.

That brings me to the most fascinating thing about the auction for me: seeing value assigned to property in real time. It was a small-scale case study of a consumer market in action. Before your eyes you saw demand rise and fall, then rise and fall again. Prices did a similar dance, leveling off for periods, dropping and then shooting up suddenly. I found it terribly interesting to review the post auction data and determine patterns and how well the group did individually and as a whole.

The big question on most peoples minds: Does having storage add value to my home? My answer: Absolutely, but there is no way to determine how much. Try this scenario: Two almost identical Infinity units hit the market at the same time at the same price. One has storage and the other does not, which sells first?

In a challenging market, anything a seller can do to make their home stand out will add value. Whether or not that value translates to more money, a quicker sale or both is up to the market.

Asked and Answered: Does Downtown San Francisco Really Need Another Mall?

According to the Urban Realty Company, the developer for the proposed CityPlace Mall on Market Street between 5th and 6th, the answer is "Yes". The project has been in the design and review phase for a few years now. If approved in the current iteration, CityPlace will add approximately 250,000 square feet of 'value' based' retail along a dreary stretch of Market Street that most people wouldn't consider strolling down at any time of day or night, retail or not.

In general, I'm a pro-development type of guy but I'm not confident this mall will succeed. With potential tenants being 'value based' (think Ross Stores and the like) and the retail sector suffering, I don't see what value this adds to the neighborhood. Target will open The Metreon soon and additional retail square footage seems superfluous. Maybe I'm short sighted.

Neighborhood residents have the most to gain. Anything that can be done to change the scene along Market Street there can and should move forward. In lieu of a Ross, how about a grocery store that could serve the areas new residents in buildings like SOMAGrand and Argenta ? The typical Safeway occupies about 45,000 square feet so there would still be plenty of room
for designer outlet stores.

In the mean time, I'll see you at The Westfield Center. An excellent example of historic rehabilitation, adaptive and mixed-use development that is home to Spanish designer knock-off value retailer Zara. So there.

Holy Healthcare Batman! $2.6 Billion in Hospital Construction Under Way in SF

As the national debate on health care rages on, San Francisco's medical institutions have other fish to fry. In order to be in compliance with state seismic safety laws, UCSF Hospitals and San Francisco General Hospital have embarked on ambitious building campaigns. They are building earthquake-safe facilities and providing the City and region with new physical infrastructure that will be perfectly situated to take advantage of the pharmaceutical and bio-tech investment and research happening here.

A quick glance at the action:

UCSF Osher Center for Integrative Medicine. Scheduled for completion in late 2010. The 48,000 square foot facility is located at the corner of Post and Divisadero Streets and its substantial steel frame is already in place. The Osher Center will house research, education and clinical programs and is estimated to an approximately $400 million price tag.

UCSF Mission Bay Children's Hospital. The first phase of a three hospital project, Children's will house 183 beds and is budgeted at $1.6 billion. Site work is under way on the corner of Third and 17th Streets and a complete facility will arrive by 2014. This hospital will allow UCSF to continue being one of the top ranked children's hospitals in the country (currently ranked 7th). Hospitals specializing in cancer and women's care will follow on the same site.

San Francisco General Hospital. After San Francisco voters passed a bond initiative to the tune of $887 million, plans for the new hospital on the current Potrero Avenue campus moved forward. The new and improved 450,000 square foot, 284 bed hospital should be ready for staff and patients in 2015 and will be a welcome improvement over the current hodge-podge of buildings. Many of my doctor friends have told me that if you suffer a traumatic injury and are still conscious, tell the EMT's to take you to General.

With General's construction financed by bonds, UCSF is relying on donations, bequests and grants to fund its construction costs.

Now all we need is a seismically sound Veterinary Hospital for Cat Woman and The Penguin.

Five Things To Be Thankful For This Thanksgiving 2009

Chances are that if you are reading this you likely have your basic needs as a human being covered. Food, shelter and enough money to have some control of your life and take care of your loved ones. Something to be thankful for, indeed. My list of five things to be thankful for this Thanksgiving could be interpreted as shallow. But lets face it: I'm a real estate agent and I write about real estate, and we are fortunate here in San Francisco as far as that topic is concerned. Don't believe me ? Read on...

1.) Extended and expanded federal home buyer tax credits for 2010.

Its estimated that 40% of new home buyers in 2009 moved forward with their transactions because of the state and federal tax credits that were offered. I don't know what the percentage of buyers in San Francisco is that would make that claim, but increased transaction volume bodes well for the market and boosts confidence on a national, state and local level.

2.) Inventory is down and there's not much in the pipeline.

I've said it before, but it bears repeating: Only one high rise development will open for sales Downtown in 2010. One Hawthorne will add 165 units to Downtown inventory amidst a market that will have absorbed almost all other units.
The Infinity, Arterra, BLU, and One Rincon are all starting to scrape the barrel with approximately 140 units available amongst the four.

3.) Mortgage money is still cheap.

The process of getting a mortgage may be more onerous than it once was, and it certainly takes longer for transactions to close due to a finicky and seemingly arbitrary underwriting process, but interest rates are still REALLY low. All the folks buying in 2009 know that and I'm confident we will have good rates available in the near future.

4.) Low inventory + demand = a more balanced market.

Buyers had it made in '09. If you had good credit and a reasonable down payment the world was your oyster in terms of purchasing a condominium Downtown. Sellers of both new and resale properties got realistic and starting making deals happen that established a new 'normal' for value based on the pros and con's of the property itself and not the dream of quick and easy equity. With inventory drying up, I predict a more balanced market between sellers and buyers than was possible in '09.

5.) You. Are. Here.

I don't want to put down other cities because that would be rude. But let's be real. Whether you own or rent, want to buy or sell, you probably live in San Francisco. It can be a maddening, annoying, frustrating place. Yet at the end of the day we live in a city that people from all over the world come to visit for just a few days and then go back to their dreary 'burgs, 'hams and 'villes. Remember that when you dig into that turkey, tofurkey or whatever else you'll be feasting on this Thursday.

Ye Olde San Francisco: Adaptive Reuse at 25 Hotaling

The nine units at 25 Hotaling represent a completely different take on how to live Downtown then you will typically see me writing about. Located in Jackson Square, this former warehouse built sometime in the 1850's has been thoughtfully updated into duplex and flat style condominiums. With no on-site parking available and fairly modest square footage, these units are ideal pied a terres for financial district types who want to walk to the office and don't require a full service environment.

My favorite part of the development is the setting: The scale of the neighborhood is true to the mid nineteenth century, human sized streets and wonderful old buildings with heavy Italianate moldings and trims. Without trying to be cliche, it feels like an old European quarter with stylish bars and restaurants nestled among art and design shops.

If you haven't strolled though Jackson Square, I highly recommend it. Its a lot cleaner and fancier than it was in the 1850's and its probably the best place in San Francisco to get a sense of what the city was like when it was still called Yerba Buena.

If you would like to schedule a tour at 25 Hotaling, drop me line. One olde timey whiskey, included.

Downtown Inventory Sampler: What's That Sucking Sound ???

It was August 25th when we last visited our ten pet developments. Summer was winding down and resale inventory was low, due to a busy summer buying season this year. Properties that did not sell were taken off the market and sellers who had waited to list were preparing to put their properties up for sale for the beginning of the fourth quarter. Typically, the last active time of year for sales before the holidays and winter rain.

The Fall inventory bump materialized as expected and resale absorption was very respectable. The numbers indicate that sellers got more realistic about price and buyers found the confidence to move forward. The difference between then and now ? 200 Brannan had seven active listings on August 25th, today they have one. The Metropolitan had eleven, now six. That sucking sound I referred to above ? That's new and resale inventory being Hoovered away...

The Beacon

One studio, five 1-bedroom, two 2-bedrooms. Available units: 8. Total units: 595.

The Metropolitan

Three 1-bedrooms, two 2-bedrooms and one 3-bedroom. Available units: 6. Total units: 342.

Watermark

No resale activity. Total units: 136.

200 Brannan

One 2-bedroom. Available units: 1. Total units: 191.

The Brannan

One 1-bedroom, Four 2-bedrooms. Available units: 5. Total units: 339.

The Potrero

One studio, One 1-bedroom. Available units: 2. Total units: 155

The Hayes

No resale inventory. Total units: 128

Arterra *

One 2-bedroom. Available units: 1. Total units: 269.

The Infinity *

One 1-bedroom, one 2-bedroom. Available units: 2. Total units: 650.

One Rincon Hill *

Two 1-bedrooms and Two 2-bedrooms. Available units: 4. Total units overall: 376.

* New inventory still available from the developer.

The Bay Bridge is Back In Business, Whether You Like it or Not.

It was like one of those dreams where you recognize the setting, but something isn't normal. I slowly realized that what was missing was the dull roar of the Bay Bridge. Its a unique sound that is a combination of wind noise, tire thuds reverberating off the lower deck pavement to the bottom of the upper deck, and the structural creaks and groans of the 72 year old bridge itself.

The structure went quiet last week after being closed due pieces falling off and striking cars on the upper deck. Luckily, no one was hurt and the bridge reopened yesterday after inspections and repairs. It had not been closed that long since the 1989 earthquake, when it was out of commission for almost a month.

San Francisco has changed a lot since then, and seeing the effects of the closing was fascinating. Downtown parking lots were almost empty and street parking plentiful. Walking along The Embarcadero, one felt like they were in an alternate universe version of San Francisco without the constant aural reminder of thousands of vehicles moving overhead. The neighborhood felt oddly serene for an urban center.

The visual impact was stunning as well. No steady stream of headlights careening westward and no red tail lights retreating east. For those with views of the bridge it was a unique experience to have what is normally the site of constant activity rendered little more than an elaborate water sculpture.

That's all over now and Downtown parking lot owners can breathe a sigh of relief. Albeit one with a little more particulate matter in it.

Looking for a home with Bay Bridge views ? Let the span of my experience help.

53rd Floor Designer Show Homes at One Rincon Hill: Fancy, Frivolous, For Sale!

If you want to see how a bland builder box can be transformed into a comfortable custom condominium, you should pay a visit to One Rincon Hill and drop 20 clams on a ticket to the "Design Above All" show homes. The designers started with the standard floor plans and finishes in the four units on the 53rd floor and created bespoke interiors for each; tailored to four imaginary clients with different tastes and priorities.

Some designers tweaked the floor plans slightly to improve flow or change the use of a room, while others took it further and painted the kitchen and bath cabinetry and replaced the the standard granite counter tops with a more neutral selection. Like most show homes, these were a bit too crammed with furniture and accessories (with the exception of the Google Guy's 01 stack pad) but did present how one can create a warm and unique environment that feels like a home 600 feet above Rincon Hill.

Although most Downtown dwelling San Franciscans are not going to spend $100,000 on furnishings and custom work, these events are brilliant for picking up decorating ideas and inspiration. My favorite ? The sofa upholstered with cork.

Not to be upstaged, Millennium Tower is hosting "Icons of Design" for the next four weekends, showcasing the work of 25 Bay Area designers on their 52nd floor.

It looks like this high rise living concept is catching on in San Francisco...

Just 60 out of 650 Still Available at The Infinity; Last of The Best Downtown Homes For At Least a Decade.

The Infinity team held a broker appreciation event in the spectacular unit 41B last night. As we sipped Champagne and nibbled canapes, Carl Shannon of developer Tishman Speyer congratulated the crowd on their astounding success in coming close to selling out one of San Francisco's best developments in the most challenging market in memory.

Mr. Shannon reminded us of something that will sound familiar to my regular readers: In the next 12 months there will be only 165 new units added to downtown inventory. After that there are no condominium developments set to break ground, period. This means that if a buyer wants a new high rise condominium, they have the best pricing and selection for years to come right now.

BLU, One Rincon and The Infinity are steadily moving their remaining homes. Discounts from list are the norm and my knowledge and expertise will afford you an incredible value. After One Hawthorn launches in early summer with 165 units you can quote Bugs Bunny by saying, "That's All, Folks."

If you or someone you know has contemplated a purchase Downtown, I highly recommend contacting me. Once this inventory is absorbed, selection will be limited to resales and prices, dare I say, may be higher for what will then be a very limited supply.

The Yoga Room is Nice, But Do They Have a Medical Concierge ?

I was at the hospital in the waiting room. My partner had been in surgery for a few hours and I was anxiously awaiting word on how he was doing. Having already finished my Vanity Fair, Car & Driver and Elle Decor magazines, I found myself eavesdropping on the conversation taking place next to me. The older woman said, "We got up at 3:30AM to make sure we'd be on time this morning. Took I-5 to 80 but traffic started to get bad once we got into Livermore, I was afraid we'd miss his appointment." The younger woman then asked, "What are you going to do tonite ?" The other responded ruefully, "Drive back and hope we can take him home tomorrow, otherwise we'll have to make the trip all over again the next day."

In the past year, four people very dear to me have had diagnoses that required them to have surgery and extensive follow-up care.
Thankfully, they all had great outcomes and can count themselves among the lucky that have insurance and access to world-class doctors and hospitals. These are things you don't think about until you need them.

It's not just about having health care, but easy access to it. I can't imagine having a sick loved one and then managing the logistics of being several hours away from quality care. The fact that the hospital is just 15 minutes from our home was comforting during a time when I needed all the comfort I could get.

A prediction: proximity to health care will be a significant driver for real estate values in the future, even more so than now. As the population ages, more and more people of means will demand quick and easy access to the best care.

San Francisco is already an expensive city and many of us justify the sacrifices we make to live here by reminding ourselves of the beauty and quality of life we enjoy. Part of that quality is being close to the services you want and need; be they The Ferry Building, Bloomingdale's, or in this case UCSF Mount Zion Hospital.

Catching Up With... 829 Folsom & 77 Van Ness

It was four months ago (see 6/2/09 entry) that I reviewed the freshly launched developments at 829 Folsom & 77 Van Ness. After all this time on the market, you may be wondering how they've done ? Lets take a look.

No Nobel Prize in Economics for 829 Folsom.

I thought the initial pricing here was aggressive and now there is proof. The sales team just announced new prices for the studio and 1-bedroom homes here. Now starting at 365K and 499K respectively, the sales team may just get enough traffic from these reductions to write some deals. They should anticipate throwing in some HOA dues and credits as well since they are still listed about 10% higher than the competition.

Rumor has it that 10 out of the 69 units have gone into contract since June. Closings will commence once the occupancy permit is issued within the next few weeks. We'll see about that, and I'll see you at the Grand Opening Party which the sales team informed me is imminent.

How It's Done: 77 Van Ness Hits It Out of The Park.

With studios starting at 360K and 1-bedroom's at 443K, I predicted that 77 Van Ness would have no trouble kicking off sales with terrific momentum. Four months later, there are approximately eight out of the original 50 units still available.

These are stunning numbers for post-recession San Francisco, so what gives ? In addition to being a well conceived product in terms of quality, floor plans and finishes; 77 Van Ness was value priced. This developer did not want to sit on a building and tell potential buyers to go elsewhere by pricing themselves above the market. They let the market tell them where it was, and it seems to have worked out for both sides.

Although they probably didn't make the dump truck full of cash they had hoped to; the 77 Van Ness team sold this building at an enviable rate in a crummy market. Congratulations to them and the new homeowners.

For more detailed information on these two developments don't be shy, call or write me !

A Global Perspective on the Downtown San Francisco Condominium Market

One of the great perks of travel is seeing other parts of the world and comparing them to yours. Maybe I have a bit of one ups-manship in my blood; heck, I wouldn't be in sales if I didn't. I love comparing and contrasting different products and markets and dicing and slicing what creates desirability and value. Having just returned yesterday from almost three weeks in New Zealand, Australia and The Solomon Islands, I had the opportunity to check out some new residential development in all three. You may consult your atlas for The Solomon Islands... now.

Just as I did a few months ago after my visit to San Diego (see the 7/21/09 edition), lets take a look at some Pacific Rim metropolises and see how their real estate markets are faring in the global economy after the event the rest of the world refers to as The GFC (Global Financial Crisis).

Auckland, New Zealand

Downtown Auckland is similar is age, size and scale to San Francisco's. It's also a port city with a deep affection for sailing that did not wane with the advent of suspension bridges and automobiles. During the boom market, Kiwis took advantage of cheap money just like Americans and they snapped up high rise flats and renovated historic lofts with equal gusto. With the ensuing run-up in prices and the GFC's unfortunate visit last fall, values and sales volume took a tumble. Things are starting to look up, but the New Zealand economy has been slow to recover. With an enviable lifestyle including water views and a wonderful food and wine culture, don't cry too hard for Aucklanders.

Brisbane, Australia

Long derided as the country bumpkin cousin of Australia's better known and more glamorous Sydney and Melbourne; Brisbane is literally on the rise. This river city boasts a thriving arts district, a pedestrianized Downtown and a skyline transformed in the last ten years by both residential and commercial development. Australia's economy thrived in the 2000's, but had the benefit of more thorough regulation than the US and other markets. The result ? A better safety net and less job losses after the GFC and a housing market that has lost little value since last year.

Honiara, Solomon Islands

Downtown Honiara has a ways to go. Lacking sidewalks, consistent pavement and traffic signals, it's the capital of cinder block chic.
I admit that one doesn't go to The Solomon Islands looking for urban sophistication. It's more of a beach and diving destination better known as the setting for some pivotal naval battles in the Pacific theater during World War II. High end housing Honiara style is a walled compound in the hills above town. Although it's not much right now, foreign investment has come to town and it hasn't been deterred by the crisis, primarily because it's so cheap in the first place. Give Downtown Honiara another fifty years.

It's great to be home in the best City in the world.

I Can Finally Say I Like Millennium Tower

Millennium Tower and I have had a tumultuous relationship since we were introduced a few years back.

At first, the renderings and floor plans seduced me into a brave new world of 5 star luxury without the hotel component attached, like St Regis and Four Seasons.

But as the building rose toward the sky and plans for the new Transbay Tower adjacent were finalized, I became disenchanted. Live next to a construction site for the next 15 years ? $1200 per month HOA dues ? No terrace ?

I reluctantly put Millennium Tower on the back burner and started seeing other developments.

After the building was finished I went for a tour. The Tower looked great. Finishes, amenities, views; everything was there. But the same misgivings I'd had before came up again. Still, it was great to see the finished product, even if it felt a little desolate.

Flash forward to last Sunday and the realization that sometimes, you need to look at property through someone else's eyes to see it's true appeal.

My clients and I have been searching for a new construction high rise pied-a-terre and have seen all contenders. Must-haves include views, two or three bedroom's and an environment that's conducive to enjoying The City with as little fuss as possible. Especially with two young children and a lifestyle that includes a primary residence a few hours drive away and frequent travel.

Pulling into the driveway, the valet took our cars and we were greeted by the Doorman, and then it hit me. This is how they do it in Manhattan. It would be daunting to drive up to your building on a busy city street and manage cars, children, luggage, et al without assistance.

Millennium Tower units are also larger than average. The typical 2-bedroom plus den is about 1600 square feet compared to 1400 square feet or less elsewhere. A four person family wants to be able to spread out a little, even in town.

Pricing has been adjusted by 15% for many months. That, and being open to lease-to-own agreements has led them to be 30% sold. A lease-to-own agreement may sound odd for a building of this caliber, but a buyer willing to part with almost $2 Million these days appreciates the opportunity for a test drive.

After we completed our tour my client summed it up: "I thought it was going to be old-school and uptight, but it's exactly the way we pictured living Downtown without knowing what it could look like."

I'm happy that Millennium Tower and I are seeing each other again and that I introduced it to my clients. It may be a perfect match.

For pricing, availability and details on the lease-to-own program at Millennium Tower, make certain to contact me.

Grey Gardens, San Francisco Edition: A Tour of The Bourn Mansion at 2550 Webster

When was the last time you were able to tour a crumbling Pacific Heights mansion ? For many Realtors, architecture enthusiasts, neighbors and looky-loos, Tuesday was the day. 2550 Webster Street at Broadway (aka The Bourn Mansion) was designed by renowned San Francisco architect Willis Polk in 1896 and is an unusual Jacobean/Georgian Revival style hybrid.

Now in foreclosure, the manse was built for the man that founded what would later become PG&E, but that's not what makes it so compelling. The current owner is the infamous Arden Van Upp. A Bay Area eccentric that purchased the house in the 1970's and subsequently became an erstwhile counter-culture doyenne. In the swinging 70's, Van Upp hosted huge, days long parties whose guests included rock stars, celebrities, hippies, society swells, druggies, politicians; you get the picture.

During the 1990s, there was a marked reversal of fortune and the parties stopped. The once "shabby but genteel" mansion started an inexorable slide into oblivion even though it is a registered San Francisco landmark. Given this back story, who could resist a peek inside ?

The mansion is foreboding and seems to swallow you up as you enter the large, dark central hall that rises four stories. The elaborate woodwork throughout is spectacular, the layout is original 1890's with nary an update in sight. Some rooms were chock full of furniture. clothes and personal effects, others vacant. As you entered the original kitchen the extent of neglect became obvious, The back of the house had literally fallen off and was exposed to the elements. This is not what you expect to see in Pacific Heights circa 2009.

The most amazing part of my tour ? A black clad Arden Van Upp herself sat in a broken chair parked next to a jumble of personal effects in her crumbling Drawing Room. The sense of despair was palpable as she watched the crowd mill through her home.

I wanted to say something to her, but couldn't bring myself to. My much bolder friend complemented her on her home and asked, "What are you going to do with everything in the house, sell it ?" referring to the detritus of 40 years stacked all around. Lightning suddenly flashed behind her previously forlorn eyes, "NOTHING is for sale here!" she exclaimed.

Every house has a story, some more compelling than others. I'm glad I had a chance to see the end of this epic chapter in 2550 Webster's history before a brave buyer begins the next. I hope it's a happy ending.

If Good News Is Boring, Prepare to be Bored.

Welcome to the fourth quarter of 2009. It was just one year ago that the sky started to fall as most investment banks and the stock market sank like snitches wearing cement footwear in the bay. It was a scary time. The first few quarters of 2009 didn't make people feel any better with job losses mounting, foreclosures rising and no end in sight to the federal bailout-palooza.

That was the bad news. The good news ? Here we are, one year later and... things seem to have stabilized. Although employment numbers in the Bay Area could be better, we haven't seen the massive job losses other regions have endured.
Why ? San Francisco and the Bay Area have a diverse employment base. Tourism, finance, software, technology, government, and bio-tech have all helped the region weather the storm. People continue to move to San Francisco for jobs. Evidence ? The new rental complex Strata in Mission Bay is fully leased after three months of marketing. Most tenants are transferees.

But what about real estate ? San Francisco has seen some values slide a bit. The first six months of the year, buyers and sellers were trying to get a grip on where the floor was for prices in all city districts. As Spring turned to summer, Downtown buyers found comfort in where pricing had landed and came out in droves. With the lending climate thawing, it was a perfect storm and developments like The Infinity and The Hayes booked record numbers. As I mentioned in this space before, we did not see that high a rate of absorption even at the height of the boom.

Another sign of stability: Multiple offers. If the price is right and value is obvious, properties are garnering multiples. This isn't true for all property types, but does prove that there are plenty of buyers out there that are qualified and ready to purchase. Example: A single family home in Eureka Valley was priced aggressively two weeks ago when it went on the market as a short sale with a lender approved list price. It went into contract over asking with 14 offers.

Cheers to a peaceful September and have a great Labor Day.

Questions about the current value of your property or what your dollar will buy you Downtown ? Let me help.

Downtown Inventory Sampler: Back-To-School Special

It was July 7th when we last visited our ten pet developments. Summer was just kicking off and now, sadly the season is almost over. But this isn't Nantasket nor Nantucket. Any San Franciscan worth their salt knows that September and October are the warmest and sunniest months of the entire year. The best is yet to come.

Inventory in San Francisco is typically low in August with summer buyers completing transactions and vacations taking priority for others. The numbers below seem to bear that out with the anticipated September inventory bump right around the corner.

The Beacon

Three studios, five 1-bedroom, two 2-bedroom. Available units: 10. Total units: 595.

The Metropolitan

Six 1-bedroom, four 2-bedroom and one 3-bedroom. Available units: 11. Total units: 342.

Watermark

One 2-bedroom and one 3-bedroom. Available units: 2. Total units: 136.

200 Brannan

One 1-bedroom, Five 2-bedroom and one 3-bedroom. Available units: 7. Total units: 191.

The Brannan

Two 2-bedrooms. Available units: 2. Total units: 339.

The Potrero

No resale inventory. Total units: 155

The Hayes

No resale inventory. Total units: 128

Arterra *

No resale inventory. Total units: 269.

The Infinity *

One 1-bedroom, one 2-bedroom. Available units: 2. Total units: 364 (excluding Tower II).

One Rincon Hill *

Two 1-bedroom and One 2-bedroom. Available units: 2. Total units overall: 376.

* New inventory still available from the developer.

Expect these numbers to swell like the crowds at Dolores Park as the fall selling season kicks off after Labor Day.

For more detail and guidance on the Downtown market whether you are a buyer or a seller, contact me.

201 Folsom (Infinity Junior) Would Like A Three Year Delay Granted, Pretty Please ???

I just parked my VW on Main Street and was feeding the meter when I spied one of those Planning Department Public Notices which are always interesting. Sometimes the property owner or renter wants a license to serve alcohol. Others announce the desired intention to either demolish a building or get a project approved. This one however, I had never seen before:

"An application for an extension in the performance period for another 3 years from the original expiration date of Case No. 2000.1073C, Motion No. 16647, for the approval of a mixed use project consisting of an 80-foot podium, with up 725 dwelling units, 750 off-street parking spaces, 38,000 square feet of commercial space and 272 replacement off-street parking spaces for the adjacent USPS facility. No changes are proposed for the existing project as originally approved."

This was posted last Monday and the hearing occurred last Thursday at 1:30PM. Although I was unable to attend, I'd be surprised if The Planning Department didn't rubber stamp it and move on to someones illegal in-law unit in the Sunset.

With any luck, the plans for Infinity Junior (sorry) 201 Folsom will remain shelved; awaiting a more favorable lending environment for large-scale developments. One catch, though. A Tishman Speyer insider told me that the as-approved project would need to achieve prices of $1400 per square foot in order to break even. As optimistic as I am about Downtown condominiums, I don't see prices doubling five years from now. That would be the time these units hit the market if construction begins three years hence.

One never knows what the future will bring, but I'll bet you lunch at Prospect (which Nancy Oakes officially purchased in The Infinity's restaurant space two weeks ago ) that the current design will need some tweaking in order to pencil out in the near-term. That, and parking on Main Street is going to be a lot more difficult.

For the latest availability and pricing at Downtown condominiums, drop me line.

Would You Like Pre-Paid HOA Dues With That Condo ? Banks May Say, "Not So Fast..."

My clients and I were expecting our loan documents to be at title and ready to sign Friday afternoon. Friday came and went, no docs. We were told to expect them Monday for sure. As I write this, they have not appeared at title.

"What's going on ?" I asked the broker, who normally gets things done when promised and is quick with responses. The reason was twofold, and could have a big impact on the way we have been structuring new construction sales contracts for almost three years.

When the market started to soften in San Francisco toward the fourth quarter of 2006, developers had to get creative. I remember brainstorming ideas on how to create an incentive for new buyers while not alienating those that were already in contract by reducing prices. The answer was credits !

Credits to the buyer in the form of pre-paid HOA dues,design center credits, interest rate buy-downs and/or closing costs became all the rage.They allowed the sales offices to keep their prices high while offering value-adds to skittish buyers that were spooked by what they were seeing in the Las Vegas, Miami and Arizona markets.

Even when sellers finally bit the bullet and lowered prices late last year,credits were still the icing on the cake for most deals. It seems this is about to change.

I'm not clear yet on whether it's lenders, appraisers or both; but banks are starting to take the dollar value of those incentives and reduce the appraised value by that figure. This throws a huge wrench into the gears that have been making deals happen in new construction and could spell out a new reality for buyers and developer sellers.

No matter how you feel about these credits, it does make one wonder why banks and appraisers should be allowed to dictate how deals are structured when incentives have nothing to do with an appraisers job of justifying value.

Even if this does come to pass and credits are somehow eliminated from these transactions, I'm not overly concerned. Where there is a will, there is a way and a developer that needs to sell units can be very willful indeed.

Bored Buyers Bemoan Banal Buildings; Brace for Beacons of Bravado.

I've been working with a fabulous client, lets call her Gigi. Gigi has lived all over the world and has a healthy budget (1Million give or take) and a desire to live Downtown. We've seen everything from One Rincon Hill to The Ritz Carlton and back again and her feedback has been consistent: Nice buildings, great locations, but is there anything "new" ? What she means by new is New; fresh to the market, still rising, a dream unfulfilled but reaching for the heavens. I get where she's coming from.

Three years ago when the real estate market was zooming ever higher and multiple developments were rising Downtown and more planned, there was a sense of optimism and excitement. The City was changing, empty lots were filling in and a whole new way of living in Downtown San Francisco was quickly becoming the way to live in San Francisco. We all know what happened shortly thereafter; cancelled projects, delayed second phases and a skyline left in limbo.

Like a rainbow after a thunderstorm, I have good news. There is a new tower rising at Howard and Hawthorne that will add some much needed new blood. One Hawthorne has topped off at 24 stories and its facade is almost complete. Its a fine looking edifice, offering not only the promise of a fresh option Downtown but a return to a sense of progress and change. You might compare it to shopping at your favorite clothing store: You visit week after week, searching for a new look and ending up seeing the same old stuff. Well Downtown condo shoppers, that is about to change.

It can't come too soon for Gigi. Her insatiable thirst for high-rise living has caused her to rent a beautiful new condominium Downtown until One Hawthorne is ready for occupancy. Cheers, Gigi !

If you would like to be put on the priority interest list for One Hawthorne make certain to let me know.

LEED, SCHMEED. Just turn the lights off when you leave the room!

It's official. San Francisco now has it's first 'green' residential high rise. Arterra in Mission Bay was awarded a LEED (Leadership in Energy & Environmental Design) Silver certification last week which means that the building achieved the required points on the scale that measures environmentally friendly practices and design. From their website:

Green Building Council members, representing every sector of the building industry, developed and continue to refine LEED. The rating system addresses six major areas:

Sustainable sites
Water efficiency
Energy and atmosphere
Materials and resources
Indoor environmental quality

LEED was created to accomplish the following:

Define "green building" by establishing a common standard of measurement
Promote integrated, whole-building design practices
Recognize environmental leadership in the building industry
Stimulate green competition
Raise consumer awareness of green building benefits
Transform the building market

That's a pretty wide-ranging mission they have there. Granted, environmentally sound building practices and materials were around long before LEED came up with their criteria and scorecard.  We do have to start somewhere, though and there are now hundreds of LEED certified buildings across the country. The irony is that almost all of them are in cities. Urban environments are inherently "greener" than the suburbs because they use less space, energy and resources to support higher human density.

When I think about the relative efficiencies that a LEED certified building provides versus a non-LEED building compared to acres and acres of McMansions bleeding the grid dry, I wonder if the LEED emphasis on urban construction is misplaced. 

In future, we will see more efficient building practices become the rule and not the exception and LEED certification is an important and viable first stage in this cycle. Just like hybrid vehicles are not the ultimate solution to our dependence on oil, but an important "bridge technology" that will get the auto industry to the next platform for efficient 4-wheel transport. Regardless, it's important to support new methods and technologies as they develop and LEED certification is one step in the right direction. 

Turning the tap off while you brush your teeth is another !

A Fresh Take on a Much Maligned Market: Welcome to San Diego !

I've lived in San Francisco for 12 years and seen my fair share of California. But up until last Thursday, I had never been to San Diego. Along with world famous weather, I wanted to see one of the first residential markets to experience a major downturn when the 'bubble' started to burst back in 2006. The hardest hit part of the San Diego market was Downtown residential condominium towers which you all know hold a special place in my heart.

So, it was off to Sapphire Tower. Touted as the finest residential high rise Downtown, I was anxious to take a look at what constitutes "luxury" in San Diego. To be honest, my expectations were low.

Divided into three "Series" not unlike Millennium Tower; Sapphire tops out at 33 stories with density decreasing from six to four to two units per floor as you reach the Sapphire Series penthouses.

Featuring 10.5 foot ceilings, floor-to-ceiling glass for all windows, unusually large square footage and spectacular water and city views, this development team has done almost everything right. The finishes are truly luxurious and make some San Francisco development kitchens and baths look positively spartan. My only quibble: The lobby and common hallways do not match the unit interiors in terms of quality and style.

Since the grand opening last January, the Sapphire team has sold 32 out of 97 units with prices per square foot ranging from $373 to $2000. Their best Penthouse sold for $6.16M a few months ago-- just about what "G" paid for his Infinity penthouse back in '06.

Not all San Diego developments are doing as well as Sapphire Tower. Their success does prove that the right product at the right time at the right price will almost always sell, even in San Diego during a recession.

I had a wonderful visit but plan on staying put in my favorite city in the world, San Francisco.

Just like Champagne & Caviar (or Beer & Pizza): Coveted Neighborhoods & Parks Go Together.

London has Regents Park. Paris, The Tuileries. New York has Central Park and even Los Angeles has Griffith Park. What about San Francisco ?

Sure, we have Golden Gate Park, The National Seashore and even The Presidio. But what do you do if you live Downtown and want to go for a run, bathe in the sun or just have some outdoor fun ?

Depending on where you live Downtown, there is a wealth of options for public space. Most of these parks have their own unique flavor and style, making them true San Francisco gems.

Here's a rundown of Downtown San Francisco park options. Don't forget sunblock:

South Park

Bounded by Second and Third Streets and Bryant and Brannan Streets, South Park was laid out in the 1850's and was modeled on the oval shaped urban residential parks that began showing up in England and the US in the mid-1700's. Designed to be the last word in plush residential developments, South Park quickly lost favor with the rich as it's proximity to the working waterfront never made for peaceful coexistence. Fast forward to the 21st century and you see a neighborhood park that retains its original shape and scale but is now surrounded by design firms, tech start-ups, cutting-edge condominiums and a wide array of dining options. The plantings and hardscape could use some freshening but it's still a great space to grab lunch or read under a tree.

Mission Creek Park

The newest park Downtown, Mission Creek Park is located on both sides of the channel or 'creek' and has Berry Street as it's Northern border and Channel Street to the south. Developed in 2000 by ProLogis Corporation, the park is beautifully designed and landscaped. It provides a wealth of recreational options including a fenced-in dog run, basketball courts, tennis courts and a public kayak launch. Mission Creek Park offers residents and visitors alike a pristine respite from the noise and traffic of the city. As the south side of Mission Bay continues to develop, this park will link to other parks forming a network of green spaces that will snake through the neighborhood and along the waterfront. Some may criticize Mission Bay as being generic, but the parks running through it will create the greenest neighborhood in San Francisco.

The Embarcadero

Spanish for 'wharf' or 'pier', The Embarcadero is undoubtedly Downtown's most spectacular public space. Stretching from Pier 37 all the way around to AT&T Park, The Embarcadero is famous for it's views and the sheer scale of it's unbroken waterfront access. Perfect for cyclists, runners and baby strollers alike, one doesn't have to worry about the stop and start of crossing streets but still needs to be aware of tourist groups shuffling along and the occasional sea lion. A thorough upgrade started over ten years ago has been completed featuring public art and street furniture by Stanley Saitowitz and other local notables. The Embarcadero hosts The Ferry Building, a fire boat station, visiting ocean liners and one of the worlds best farmers markets. Given the cinematic scenery, it's no wonder that The Embarcadero appears in TV commercials consistently. Simply stated, it's one of the worlds most spectacular urban parks.

Now that you know where to go, get out there and enjoy! SPF 15 or higher.

Downtown Inventory Sampler

It's been a few months since we took a snap shot of resale inventory at the selected developments below. The most interesting thing to note this time around is that the numbers are almost identical to the last time. To quote Depeche Mode, did the market "Get the balance right" ? Or are we in for a "Black Celebration"? Whatever the case may be, homes priced for the current market are selling, albeit with longer marketing times.

If you have questions about the value of your home or are looking for a "New Life" in a Downtown condominium, let me know.

No more 80's Depeche Mode references (in this article), I promise.

The Beacon

Two studios, eight 1-bedrooms, four 2-bedrooms
Total units available: 14. Total units overall: 595.

The Metropolitan

Three 1-bedrooms and one 2-bedrooms.
Total units available: 4. Total units overall: 342.

Watermark

One 1-bedroom, two 2-bedrooms.
Total units available: 3. Total overall: 136.

200 Brannan

Three 1-bedrooms, FIve 2-bedrooms and one 3-bedroom. Total units available: 9. Total units overall: 191.

The Brannan

One 1-bedrooms, four 2-bedrooms.
Total units available: 5. Total units overall: 339.

The Potrero

Two 1-bedrooms, One 3-bedroom. Total units available: 3. Total units overall: 155.

The Hayes

No resale units. Total units overall: 128.

Arterra *

No resale units. Total units overall: 269.

The Infinity

One 1-bedroom, one 2-bedroom. Total units available: 2. Total units overall 364 (excluding Tower II).

One Rincon Hill *

One 1-bedrooms and One 2-bedroom. Total resale units available: 2. Total units overall: 376.

Taking the Week Off, but...

233 years ago some brave and noble people drafted the preamble to The Declaration of Independence.

It's worth a read if you haven't seen it lately:

"When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness."

Have a wonderful Independence Day !

Infinity Tower II almost 50% sold in 5 months. Hmmmmmm...

Through a combination of pent-up demand, attractive interest rates and significant seller discounts, The Infinity Tower II has approximately 140 out of 285 units currently in contract or closed since sales began in early February.

This astounding number of sales is not so surprising when you look at the fundamentals of the Downtown market. Achieving a great price in this environment is still possible, you just need to know the music so you can dance along and always keep your eye on the goal.

1.) Competition ? What competition ?

For those that want new, high rise and downtown, there are four choices: BLU, Millennium, One RIncon and Infinity. All are very nice buildings. Out of these four The Infinity seems to have the combination of amenities, views, location and value that are driving sales numbers that I didn't see in new construction even at the height of the bubble.

2.) V is for Value.

In an uncertain market it takes a compelling argument for buyers to pony-up the dough. That, and a motivated seller. Although buyers and their agents must sign confidentiality agreements regarding the details of their contracts, I can say that the discounts being offered at most sales offices right now are dramatic but not fire sale.

This may sound lame but it bears repeating: This is San Francisco. Buyers need to go through several rounds of offers before striking a deal.

3.) Reality Bites.

Sometimes buyers judgement gets a little cloudy which is no surprise given the emotional nature of purchasing a home. The most important thing to remember during negotiations is to keep your cool and try to put yourself in the seller' shoes. Even though they may be a faceless, corporate behemoth you are still working with a human. One that most likely has to report to another human. That, and this development is his or her baby. When you submit a low-ball offer don't be surprised with a high counter. You've just started to dance so don't get discouraged or angry, hang in there.

If The Infinity can keep it's current weekly absorption numbers going, they will be sold out by the end of the year. I don't think that's their goal, though. At half sold they have achieved an enviable velocity that can be slowed, if they so desire, to try to achieve higher prices on their remaining inventory. That may seem foolish given continuing economic uncertainty but don't believe you know what the seller is thinking.

Ask me and I'll tell you.

The Skinny on Short Sales

Just the mind-splitting hangover some people wake up with after over indulging, some folks these days are coming to a painful realization. After the debt party many of us attended prior to "last call" on Wall Street in September of 2008, it is now clear that there are people with great credit, good income and property that is not worth what they paid or what they currently owe.

This may be due to purchasing at the peak of the market or pulling equity out of the property for other uses. The sad truth is that a lot of people who never thought they would be in this situation are crunching the numbers and realizing that they cannot continue to bleed money keeping up with their mortgage, HOA dues and taxes.
That, or they don't have the ability to keep up with these obligations due to a job loss or other crisis.

So how does one get out from under property that has become a burden ?

Back in the day, you simply stopped paying the mortgage and waited for the bank to foreclose and then sell your house on the courthouse steps. Soon after, the sheriff arrived to evict you and toss you and your stuff on the curb. How Dickensian.

Fortunately, things are a little more civil these days and people do have options. One of the best is to conduct a short sale.

Simply put, a short sale is when the lender agrees that your home is worth less than the debt secured against it. They would rather have the homeowner find a buyer and pay off what they can without the bank having to take possession through foreclosure and then be responsible for taxes, maintenance, and finding a buyer themselves. It sounds simple enough, but the process can be daunting and time consuming and not every person or every property qualifies for a short sale.

The larger banks have set up short sale departments and are implementing processes and standards. It's not a perfect solution, but it is getting easier.

In the coming months I believe that we will see more short sales and these transactions will take place in neighborhoods and developments that were once thought to be immune.

We are fortunate to live in a city that still has terrific fundamentals and a strong and diverse employment base. That coupled with global cachet will ensure that San Francisco will always be a desirable place to live and work which will, in turn, keep real estate values strong.

The real estate boom, like all parties, was sad when it ended. It's good to know that there is a cure for this particular hangover and it does not involve raw eggs, chili pepper or 'hair of the dog'.

If you have questions about the short sale process, would like to know if you qualify or want to purchase one, contact me.

Creative Contractors Customize Condos, Curing Cookie-Cutter Crisis.

If there is one silver lining to the recession, it's that goods and services are generally more available and affordable than they have been in a long time. It's easier to get a seat on that plane to New York, The Barcelona Chair you've been coveting is in stock in your preferred color and contractors from painters to plumbers will actually return your phone call and be eager to set up an appointment to give you an estimate.

Welcome to the flip-side of The Great Recession.

Case in point: I am preparing a listing to go on the market where the tenant moved out June 1st leaving dead trees in the patio planters and carpet that suffered, not only from a St Bernard puppy, but an exploding can of black acrylic paint. In the space of one week I was able to get the dead trees removed and replaced, the offending carpet banished and swapped with pristine broadloom and the unit staged, fluffed and ready for it's close-up. And all for about 20% less than what it would have cost me a year ago.

The take-away ?

Now is a fantastic time to invest in customizing and embellishing your Downtown home. Yes, the developer's finishes are perfectly acceptable but contractors are ready, willing and able give you a bid and make your house your home. Whether or not you wish to add built-in bookshelves, replace the derivative lighting and mirror in the bath or invest in hardwood floors, chances are you will get a competitive bid and someone ready to start work immediately.

The best part ?

If you make informed decisions and choose your upgrades well, your home will become a custom lair tailored to your needs and will feel less like it just came down the assembly line. In future, when you decide to sell, your condominium will stand out against the competition and reflect pride of ownership.

Just try to avoid polka dots, gold leaf and neon accent walls.

New Kids On The Block: 829 Folsom & 77 Van Ness Make Their Debuts

It's been quite a while since we've seen two new developments open for sales within one week of each other in San Francisco.
829 Folsom and 77 Van Ness have joined the new condominium development party and although much smaller in scale and lighter on the amenities than The Infinity or BLU, they are both real contenders for buyers deposit checks.

Lets look at the details:

First up is 829 Folsom. Located between Fourth and Fifth Streets, this building sits between the iconic 855 Folsom (aka Yerba Buena Lofts) and the fairly mundane 821 Folsom (aka Shipley Square). There are 69 units in the nine story structure and there is a standard parking space included in the price for almost every home.

The Folsom, Shipley and interior courtyard facades are clad in an attractive floor-to-ceiling glass system that provides great light and views from the interiors.
The dramatic differences between this buildings facade and it's immediate neighbors creates a unique streetscape that may not be everyone's taste, but will ensure much attention and debate during AIA tours.

Not up for debate are the interior finishes, which are wonderful. Kitchens and baths are nicely outfitted and flooring, trims and doors all have a quality, high-end feel.

The floor plans here are unique and in some cases, idiosyncratic. Some offer long entrance galleries and big closets. Others sport generous terraces and large "plus" rooms or dens.

Studios start $399K, one-bedrooms at $524K and one-bedroom plus dens at $589K. They are not officially marketing the 2-bedrooms but I saw a terrific unit on the fifth floor with an incredible terrace that is being offered at 1.3M. Not sure how realistic that price is but time and 829 Folsom's sales velocity will tell us soon.

Our second "new kid" is 77 Van Ness. I have to be honest that I was not expecting much from this development. Located on super-busy Van Ness Avenue directly across the street from depressing, soviet inspired buildings, I thought I was entering the condominium version of Siberia. I could not have been more wrong.

The eight story building is actually five floors and 50 units of residential sitting above three floors of commercial office and ground floor retail. A subtle and tasteful lobby and elevator bank are shared by both. Parking is provided via Klaus lifts for all units and it is included in the price.

The exterior does a good job blending in with the neighbors (Masonic Hall and a San Francisco School Board building) and there are alleys on both sides giving the building plenty of light and air.
Floor plans, finishes, views and square footage are all exemplary. My only quibble being that the interior doors are a traditional two-panel style which clashes slightly with the otherwise clean and contemporary aesthetic seen everywhere else.

The neighborhood may be considered Civic Center but I predict that the future residents of 77 Van Ness will be spending most of their free time in Hayes Valley; conveniently located two blocks west.

Studios start at $360K, one-bedrooms at $443K and two-bedrooms at $641K. Given the overall quality of this building, I'd say these are some of the best values I've ever seen in San Francisco.

My favorite aspect of both buildings ? They are known by their address only and have eschewed a "name". These kids are very 2009.

To schedule a tour of one or both of these new-to-the-market developments please call or email me.

Taking a Walk on the Mild Side, New York City Begins Bold Planning Experiment in Times & Herald Squares. A Model for Downtown San Francisco ?

Ask anybody who lives in an urban environment if they ever had a close call with a car or truck while attempting to walk across the street and chances are they will have more than one anecdote. Unfortunately, most of us have accepted that being a pedestrian in San Francisco comes with the added thrill of taking your life in your hands once you step off the curb.

Drivers aren't the only culprits. Every week I see people stepping into the street engrossed in their mobile phones without a single glance toward oncoming traffic. It seems they expect the cars, buses and trucks will slow or stop to allow them to cross, unscathed. Never mind that the drivers too, are engrossed in their mobile phones or checking their teeth in the rear-view mirror.

With these scenarios in mind, New York City's Transportation Commissioner completed an ambitious project Sunday that closed two sections of Broadway to vehicles from 47th to 42nd Streets in Times Square and 35th to 33rd Streets in Herald Square. Her goals are twofold: improve traffic flow in these otherwise gridlocked locations by routing traffic to cross streets and the creation of broad pedestrian plazas in two of Manhattans most celebrated and crowded urban gathering places. The plan has its share of critics but it's hard to argue with a scheme that carves public open space out of dense, built- out areas without the loss of public or private property.

Can San Francisco take a cue from The Big Apple by appropriating sections of our streets and giving them back to residents and visitors who will actually use them ? Or is maintaining the full length of Market, Mission, Howard, Folsom, Harrison, Bryant, Brannan and Townsend Streets for SUV's speeding toward the Bay Bridge the best use of these unrecognized resources ?

There have been plans floating around City Hall since the 1960's to close some or all of Market Street (San Francisco's Broadway) to vehicular traffic. Each time a new plan surfaces, it gets shot down by merchant groups claiming that closing the street will hurt their business by impeding the flow of customers and delivery trucks. As one ponders the public transit already in place and the primarily retail and office uses of buildings along Market, it's hard to fathom that this scheme would do anything but draw more people to patronize these businesses.

San Francisco has however, planned for a new and improved Folsom Street Corridor from The Embarcadero to Second Street. The approved plan includes widening sidewalks, planting trees and other traffic calming measures that will take back part of the street for pedestrians. The plan looks good on paper but the reality is that "Folsom Boulevard" as envisioned won't happen for at least another ten years or whenever the new TransBay Terminal, Tower and related construction is complete.

It's not all doom and gloom, though, for those who can envision Downtown transformed into a safer, more human-focused environment. When the various neighborhood farmers' markets and street fairs take place, we get a short taste of what life could be like when parts of our busy streets are closed. Vendors set up shop, people sit, shop, strut, mingle and, for a few hours, a neighborhood becomes a place for it's residents and visitors to savor and experience without noise, fumes and risk.

It sure beats the life-threatening gamble of calculating whether or not that MUNI bus barreling toward you is going to run the red light or not.

Thinking about buying or selling Downtown ? You owe it to yourself to consult an expert. I'm happy to discuss your real estate goals, no obligation.

Thanks for reading; see you next week.

Pools, Theaters, Concierges, Oh My ! Downtown Developments Offer Amenity Packages to Lure Buyers, Secure Bragging Rights.

It used to be that when developers were planning a new condominium tower they would include a fitness center, provide a doorman and maybe throw in a pool and they were done. But when the market heated up in the early 2000's, they chose to offer more and more amenities to draw buyers, bolster the building's brand and differentiate from the competition. The flip side of these lavish extras is that they don't come free. For every additional feature, there is the cost to maintain and eventually replace that item-- and that adds to the monthly assessment for each unit in the building.

So is it better to go light on the amenities and reduce the HOA operating expenses, thus reducing the monthly dues ? Or is including even the most esoteric amenity (Olive Oil Steward, perhaps) the way to ensure prestige and future value ?

In post-boom San Francisco, we have three high profile developments that chose unique strategies when it comes to the dog park-guest suite-pilates studio selection process. Let's ponder their merits, shall we ?

BLU

At 112 units, BLU is the smallest community we will be comparing and its size is probably the primary reason the development team chose to go light on the extras. There is a 24 hour doorman stationed in the stylish lobby, a lovely landscaped terrace in the back with a barbecue and catering kitchen and... that's it. While some may squawk at the paucity of amenities, I think it was a smart move. The dues for these 2-bedroom homes average about $625 per month making them the lowest of the three buildings in our comparison. Less equipment to maintain, less energy consumed, less that can go wrong. BLU is the stylish yet sensible lady at the party whose "less is more" approach allows her to leave the diamonds at home while still offering up enough sizzle to keep the crowd interested.

Infinity

Most of my readers are well versed in The Infinity's amenities package, but here's a recap for the uninitiated: heated indoor lap pool, enormous fitness center, his and hers saunas, pilates studio, doormen in all four lobbies, concierge, screening room, business center, conference room, and club room with caterers kitchen and terrace. This impressive list is but an elevator ride away. That said, it's an awful lot of stuff to maintain, so the dues for a 2-bedroom here average about $760 per month. What makes it work? There are over 700 units in the complex, so it's not an onerous cost per individual unit.

Millennium Tower

Representing the ultimate in condominium amenities, Millennium Tower is as luxe and over-the-top as it gets in Downtown San Francisco. In addition to the gym, pool, business center and everything that Infinity offers, Millennium boasts a private dining room serviced by the on-site restaurant RN74, climate controlled wine storage for every unit and an army of liveried staff to take your shopping bags, valet your car, open the door and push the 'up' button on the elevator. If you want 5 star service 24/7, this is the building for you. The price ? Well, if you have to ask.... I'll tell you. This glamour will run you about $1400 per month for a 2-bedroom.

It seems that there is a building for every taste and budget Downtown. Although paying monthly dues on top of the mortgage and property taxes isn't for everyone, it sure beats cleaning out the gutters and mowing the lawn on weekends.

What to do with your exclusive-use common area. That means your terrace.

When I shopped for my first condominium in San Francisco, one of my "must-haves" was private outdoor space. My terrace measured three by four feet and the door opened out, making most of the floor space unusable. Still, it was wonderful to have a tall clutch of potted bamboo and a perch from which to take in the view, breeze or the 30 minutes of madness after a ball game in Mission Bay.

When my neighbors started storing bicycles, boxes and indoor furniture on their terraces, my lovely new building started to look more like a vertical garbage shelving unit. My favorite item on view for 3 months ? A toilet.

Thankfully, the HOA began enforcing the CC&R's and the terraces were gradually cleaned up. This experience poses the question: What do you do with your small piece of the outdoors in the sky ?

Having successfully created three terrace designs of my own, I'm happy to recommend the following advice:

KISS

Keep it Simple, Silly. Chances are your space is limited. Trying to create an elaborate outdoor room is not in the cards functionally or aesthetically in a small area. Scale your plans accordingly.

The Rule of One

When choosing outdoor furniture and planters, select a single color and style for each. Too much color and variation will make the space appear kitschy when the look you want to achieve is more cohesive and subtle.

Customize

If stock outdoor furniture and planters don't come in sizes suited to the scale of your terrace, have them made.
Commissioning an artisan to design and build custom pieces is not as time consuming or expensive as you may think.
The Bay Area has a large community of talented craftspeople that can create something beautiful, functional and unique--
much better than a milk crate and a beer bottle ashtray.

I Never Promised You a Rose Garden

Lucky as we are to live in San Francisco, it tends to be a bit windy and chilly--not the ideal climate for hot-house orchids or delicately leafed specimens. Select just one or two hardy species such as boxwood or cedar and keep in mind how much sun they will receive. Choosing a plant that is green year-round will create a consistent look that can stand on its own or be enlivened with seasonal color. If your terrace is on a high floor where winds whip, select dense, lower growing plants and don't let them exceed the height of your railing, wind break or parapet wall.

Water Works

Plants need water. Depending on rainfall, temperature and exposure you will need to bring the watering can outside at least 3 days a week. If you plan on being away more than 5 days have someone come by and water. I figured this out when I left town for a week and there was a freak heat wave leaving my plants a healthy shade of brown upon my return. Live and learn.

When a terrace is done well it lends an inviting, finished look to the whole home. It's not that difficult or time consuming and if you are lucky enough to have your own slice of the outdoors in the city; you owe it to yourself to get out there and enjoy it !

"Thank you for calling Future Downtown Residential High Rises, please hold."

The last two weeks welcomed the first closings at both Millennium Tower and Infinity Tower II with BLU on schedule for May. As these lucky homeowners move in they are probably unaware that they are the first wave of the last batch of new residents we will see Downtown for what could be a decade. These buildings represent the last of the "boom" developments to be completed and open their doors. This however, was not always the case.

It was only a few years ago that developers had been planning three more large-scale condominium towers that would already have broken ground and have sales offices open at this time. All of these projects have been either shelved until further notice, put up for sale or both. The absence of these towers has made an undeniable impact; not only on the skyline but in the downtown residential inventory pipeline.

A brief rundown of the history and status of what could have been:

Turnberry announced last November that they had sold a 50% equity stake in their proposed 40 story tower at First & Harrison. Ground breaking had been scheduled for March of '09. With spring weeds rising on the empty lot instead of concrete and steel the joint ownership is shopping the entitled development to potential buyers.

Across the street at One Rincon Hill; the 50 story Tower Two remains on indefinite hold. The development team announced last week that they are still just 70% sold after nearly three years of marketing. The ghost of Tower Two is still very much part of the logo and marketing collateral for the development. With the first tower standing alone atop Rincon Hill it seems like one half of a broken heart pendant; waiting to be reunited with its lost love.

Traveling one block further east to Harrison and Fremont we encounter more weeds where The Californian should be rising. Developer Fifield's 393 units have been actively shopped for two and a half years with a suitor yet to be found.

One could interpret this as evidence of continued weakness in the San Francisco condominium market, but I disagree. These three developments would have added just over 1,000 units of new construction inventory Downtown. Without the competition and specter of over supply, Downtown developments are doing just fine (albeit with the implementation of significant price adjustments).

Don't cry for the towers that are still just a twinkle in their developers eye. One Hawthorne is proudly representing for them as it rises at the corner of Howard and Hawthorne. The timing for the 24 story165 unit development might be just right.

Hot Enough for Ya ? Downtown Sales Activity, Temperatures, on Upswing.

Today was a linen shirt type of day. Hot and dry. There was a slight breeze but it was still too warm and stagnant for comfort. Those in the know headed for cooler climates be they the shade of a tree or an air conditioned hide-away.

You could say that the Downtown real estate market has been like a linen shirt to a lot of buyers the past few months. After being stored in a closet since last September it now looks a lot more appealing and appropriate given current circumstances.

We seem to have entered a phase of moderate stability in the markets (yesterday's Dow notwithstanding). Both resale and new construction sellers have adjusted their prices and expectations while at the same time rates are historically low and lenders have loosened the purse strings. 50 sales at The Infinity since the beginning of 2009 does mean something and it's not due to them having air conditioning (lucky!) although that helps.

Bull market ? Not so much. Bottom of the market ? Consult your crystal ball.

If you are a buyer or seller in San Francisco, one thing to remember about real estate markets is that like politics, they are local. What's happening in Manhattan, Los Angeles and Miami may have some relevance to the national market on a macro-level but a good real estate agent will be able to separate the headlines and cocktail chatter from reality.

Who would be more plugged in to what's happening Downtown than someone that lives and breathes it ? That's me.

I'm always happy to answer your questions and accept your referrals !

Stay cool, my friends.

Timely Tax Tricks Tease the Tempted to Take Action: Housing Stimulus for 2009.

I was between appointments today at one of my favorite Downtown developments and I started thinking about one of the more tangible pieces of legislation from Washington since the new administration took over. The Housing Stimulus laws for 2009 offer home buyers unprecedented incentives to make purchases this year. One piece of the legislation benefits first time buyers exclusively; the other pertains to all California home buyers.

The First Time Home Buyer Tax Credit offers people who have never owned a home or those who have not done so for 3 years an $8,000 credit. The credit is described as "...a dollar-for-dollar reduction in taxes owed...". In other words, if you owe Federal taxes for 2009 and you bought a primary residence, knock $8,000 off your tax bill. If you don't owe any taxes? Uncle Sam writes you a check for $8,000.

The New Home Tax Credit is the second piece of this tasty, cash-filled pie. California residents who purchase a newly constructed primary residence will receive a $10,000 state income tax credit. This credit applies only to new, never lived-in property. Wow.

To receive a pdf of the entire document provided by The California Association of Realtors, email me and I'll be happy to pass it along.

These combined tax incentives along with the mortgage interest deduction, historically low interest rates and the most affordable prices we have seen in years have done the trick, or so it would seem. So far this Spring sales offices are humming, mortgage applications are rising and people are buying.

Which reminds me, I've got an appointment to catch.

The Curious Case of The Downtown Real Estate Market

Okay people, I've got some numbers for you this week. They don't have anything to do with reverse aging. My apologies about the headline.

I was conducting searches on the MLS (Multiple Listing Service) and thought I'd run a little test since the market has seemed much more active in the past few weeks both for me and my colleagues. I searched Mission Bay, Potrero, SOMA and South Beach only. The following numbers track activity from March 1, 2009 through April 6, 200


Closed Sales: 21

Pending/contingent Sales: 48

Remaining Available Listings: 176


During this 37 day period, 69 property owners found themselves with buyers. Not all of these transactions have consummated but that's still healthy activity. What these numbers don't include are most new construction transactions. I would estimate that would add another 50 sales. Those deals would be spread among The Infinity, One Rincon Hill, BLU, and Arterra.

Given these numbers, reports about the death of the Downtown San Francisco real estate market are exaggerated. Prices are down. People are out there buying condominiums.

Spring fever? Crazy contrarians? Pent-up demand? Have we hit the bottom?

I'm just happy to be getting my clients the best possible terms on Downtown condominiums. Let me help you, your friends and colleagues do the same.

It's Not Perfect, But It Ain't The Bronx. Urban Planning, San Francisco Style.

The New York Times published an interesting article yesterday titled "Reinventing America's Cities: The Time Is Now." by Nicolai Ourous, off. The writer talks about the history of 20th century urban planning, touching on the importance of The Works Progress Administration (WPA) during the depression. The WPA created a huge body of work on a national scale and was the last large, federally-funded public infrastructure project with the exception of the interstate highway system. In San Francisco we have The Rincon Annex Post Office, The Bay Bridge and SFO thanks to FDR's innovative 'make work' program.

With President Obama dedicating billions toward public infrastructure projects, will we see our City change as dramatically as it did in the 1930's?

One project already underway is The Transbay Terminal, although that may be overstating things. The temporary terminal site has been cleared and is being readied for construction that will ultimately lead to the demolition of the old 1937 bus station to make way for the much ballyhooed terminal and tower. Signs of construction may soon materialize on Transbay Block 8. This parcel bordered by First, Folsom, Fremont and Tenny Streets has received three development proposals. These proposals are currently being reviewed but the specifics call for a 550 foot tower with a mid-rise section and retail along Folsom Street. The project will contain 600 rental units and has a 25% affordable component.

This development will be an encouraging sign of life Downtown and will ultimately add to the density and vitality of the neighborhood. At 50+ stories, it should also be a dramatic addition to the skyline.

So raise a glass to Transbay Block 8 and toast to shovels in the dirt. Steel and concrete reaching for the sky--there is no better vote of confidence in the future of Downtown San Francisco! Thanks for reading; see you next Tuesday. Please remind your friends and colleagues that I work for them, not the developer. Do not enter a sales office without my expertise.