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 !
Tuesday, October 13, 2009
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