January is typically a slow month in real estate. People are busy working on their resolutions (or breaking them). Once the Superbowl has been played, business starts to pick up with homes hitting the MLS and buyers starting to write offers.
Some new developments have gotten a jump on activity for early 2010 and made some fun and/or interesting changes. Lets take a look...
829 Folsom: You say Goodbye and I say Hello.
Sotheby's New Marketing Group has handed over the sales and marketing reigns to The Polaris Group as of the new year.
Since opening in mid-2009 few of these Folsom Street condominiums have gone into contract, perhaps the new blood (and new pricing) will be just the trick. Pay them a visit and say "Hi" to the new team; maybe they will show you one of the killer Penthouses.
Hang out with some hot models at BLU.
Not those kind of models. Although that wouldn't hurt. Anyway, these 16th floor beauties showcase the stunning finishes and views available at what one wag had dubbed "The Millennium Junior". The A plan is especially sweet with no units adjacent and views on three sides. The Ladies of BLU await you (that would be the lovely sales team).
She's a Brick House: Union unveils the brick and timber building!
They call it Union North. It's the "old" portion of Union's new construction/historic rehab combo and you are now allowed to tour and perhaps buy. One of only two developments currently marketing (Esprit Park being the other) that gives you that elusive and desirable combination of new systems and finishes with the beauty and character of vintage brick and timber. Bonus points for the cool neighborhood already stocked with shops, bars and restaurants.
Do you have colleagues, friends or family searching for a San Francisco condominium? Your referrals have been greatly appreciated and I look forward to exceeding expectations again in 2010.
Showing posts with label BLU. Show all posts
Showing posts with label BLU. Show all posts
Tuesday, January 12, 2010
Monday, November 23, 2009
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.
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.
Thursday, October 22, 2009
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.
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.
Tuesday, June 23, 2009
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.
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.
Tuesday, June 2, 2009
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.
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.
Tuesday, May 12, 2009
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.
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.
Tuesday, April 28, 2009
"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.
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.
Tuesday, April 7, 2009
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.
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:
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.
Tuesday, March 17, 2009
OMG ! EIK, WIC & FTCW ! Real estate acronyms 101, Title 24 & You.
Many people are familiar with the sometimes hilarious acronyms that Realtors use as shorthand to make the most of expensive ad space. EIK, WIC & WBF are more commonly known as eat in kitchens, walk in closets and wood burning fireplaces.
One acronym I have wanted to use but realized no one would understand is FTCW. FTCW or Floor-to-ceiling windows have become one of those encoded signifiers of style and luxury at most of the new and newer Downtown developments. Along with the prerequisite stainless, granite, and hardwood; FTCW have become one of the defining architectural characteristics of new buildings like Millennium, Infinity, & BLU. In Realtor prose, almost always preceded by "Stunning views framed by...", FTCW make even modest square footage feel larger and lighter which also allows developers to charge a premium for these homes even if they are smaller than comparable properties.
What few people realize is that this dramatic feature will most likely become a thing of the past since Title 24 came into law as part of the 2007 California Energy Code. Title 24 was passed in response to increasing energy costs and awareness about our dwindling natural resources back in 2007 when, if you referred to a building as "green", most people assumed you were talking about the exterior color. When you consider heating and cooling these ultra-glazed spaces, it does seem a bit extravagant given our current circumstances.
The new Energy Code increases the efficiency standards for almost all aspects of both commercial and residential new construction. Although most of the changes won't be discernible to the average buyer, a tower sporting a luscious all-glass facade certainly makes a different impression than a window and panel sheathed building. Think Millennium vs The Metropolitan or Heidi Klum vs Barbara Bush. You get the picture.
The current batch of high rises that make use of FTCW-- or glass curtain wall construction-- were designed and approved before the adoption of the 2007 code leaving One Hawthorne perhaps the last high rise under construction in San Francisco to utilize this design feature. Will the current vogue for endless sight lines diminish in a more frugal and less ostentatious age? Or will the glass towers become more desirable in the future compared against their more conservative, hemmed-in and energy efficient neighbors ?
OTWT,TTFN (Only time will tell, ta ta for now).
One acronym I have wanted to use but realized no one would understand is FTCW. FTCW or Floor-to-ceiling windows have become one of those encoded signifiers of style and luxury at most of the new and newer Downtown developments. Along with the prerequisite stainless, granite, and hardwood; FTCW have become one of the defining architectural characteristics of new buildings like Millennium, Infinity, & BLU. In Realtor prose, almost always preceded by "Stunning views framed by...", FTCW make even modest square footage feel larger and lighter which also allows developers to charge a premium for these homes even if they are smaller than comparable properties.
What few people realize is that this dramatic feature will most likely become a thing of the past since Title 24 came into law as part of the 2007 California Energy Code. Title 24 was passed in response to increasing energy costs and awareness about our dwindling natural resources back in 2007 when, if you referred to a building as "green", most people assumed you were talking about the exterior color. When you consider heating and cooling these ultra-glazed spaces, it does seem a bit extravagant given our current circumstances.
The new Energy Code increases the efficiency standards for almost all aspects of both commercial and residential new construction. Although most of the changes won't be discernible to the average buyer, a tower sporting a luscious all-glass facade certainly makes a different impression than a window and panel sheathed building. Think Millennium vs The Metropolitan or Heidi Klum vs Barbara Bush. You get the picture.
The current batch of high rises that make use of FTCW-- or glass curtain wall construction-- were designed and approved before the adoption of the 2007 code leaving One Hawthorne perhaps the last high rise under construction in San Francisco to utilize this design feature. Will the current vogue for endless sight lines diminish in a more frugal and less ostentatious age? Or will the glass towers become more desirable in the future compared against their more conservative, hemmed-in and energy efficient neighbors ?
OTWT,TTFN (Only time will tell, ta ta for now).
Monday, February 16, 2009
Making lemonade from lemons: A window of opportunity opens for new construction buyers as developers say "Sell!"
Trendy is as trendy does. When granite kitchen counter tops were introduced at The Brannan back in 2000, almost every new development that followed made it a standard feature. How about stainless steel appliances? Does anybody remember what we had before those? And don't get me started on Studio Becker cabinets! I love them; don't get me wrong. They are a beautiful, high quality product that I have in my own home, but they are everywhere.
It's safe to say that once a San Francisco developer discovers an attribute or amenity that sells units, he sticks with it--perhaps to the point where it gets a little banal.
There is one trend that I'm happy to report has spread to just about every new development in the City. I'm referring to slashed prices. With Radiance, BLU and Arterra announcing dramatic price cuts last week, it's safe to say that all new construction sales offices have awakened and smelled the coffee. It's a particularly strong brew this morning and it shows that developers now understand what it takes to move inventory in this market.
There is a method to the madness; it's not only about moving units. Over at The Infinity, developer Tishman Speyer wants to make certain they have at least 25% of Tower II in escrow before they start closings in April. That first closing triggers the start of operations for the Tower's HOA and the assessments for all the unsold homes must be paid for by the owner (Tishman). It's understandable that they would want decent sales velocity before committing to paying the dues for 300+ units at an average of $700 per month. Once they hit their target, will prices go up? It's anybody's guess where the market will be in spring.
The team at BLU has a similar strategy. Announcing aggressive new prices last week (2-bedrooms from $599K), their goal is to fulfill a presale requirement that, if missed, will delay closings until the magic number is reached. Their pain may be your gain when they achieve their goal and decide that demand is sufficient enough to begin ratcheting prices up.
It's important to remember that for a city the size of San Francisco, there isn't that much condominium inventory. With a population of almost 800,000 people there are approximately 600 new construction condominiums available Downtown. We don't have a sea of empty high-rises like in Miami or Las Vegas and with developers slashing prices and new construction at a standstill, this could be a golden moment to enjoy a tall, cool glass of lemonade.
Remember: The sales office works for the developer; I work for you. My knowledge and expertise will get you the best home at the best price, period.
It's safe to say that once a San Francisco developer discovers an attribute or amenity that sells units, he sticks with it--perhaps to the point where it gets a little banal.
There is one trend that I'm happy to report has spread to just about every new development in the City. I'm referring to slashed prices. With Radiance, BLU and Arterra announcing dramatic price cuts last week, it's safe to say that all new construction sales offices have awakened and smelled the coffee. It's a particularly strong brew this morning and it shows that developers now understand what it takes to move inventory in this market.
There is a method to the madness; it's not only about moving units. Over at The Infinity, developer Tishman Speyer wants to make certain they have at least 25% of Tower II in escrow before they start closings in April. That first closing triggers the start of operations for the Tower's HOA and the assessments for all the unsold homes must be paid for by the owner (Tishman). It's understandable that they would want decent sales velocity before committing to paying the dues for 300+ units at an average of $700 per month. Once they hit their target, will prices go up? It's anybody's guess where the market will be in spring.
The team at BLU has a similar strategy. Announcing aggressive new prices last week (2-bedrooms from $599K), their goal is to fulfill a presale requirement that, if missed, will delay closings until the magic number is reached. Their pain may be your gain when they achieve their goal and decide that demand is sufficient enough to begin ratcheting prices up.
It's important to remember that for a city the size of San Francisco, there isn't that much condominium inventory. With a population of almost 800,000 people there are approximately 600 new construction condominiums available Downtown. We don't have a sea of empty high-rises like in Miami or Las Vegas and with developers slashing prices and new construction at a standstill, this could be a golden moment to enjoy a tall, cool glass of lemonade.
Remember: The sales office works for the developer; I work for you. My knowledge and expertise will get you the best home at the best price, period.
Tuesday, January 13, 2009
Infinity Mania continues as BLU gets ready for it's close up
I was surprised at the number of responses I received last week regarding sales at The Infinity's Tower II. It seems that most folks who follow the Downtown real estate market are going to base their opinions on its current health by how well the new release sells. Although I'd say that this is a pretty shaky method, if current traffic in the sales office is any indicator, it should be a bustling February. A, my wonderful friend on the Infinity sales team, barely had time to wolf down a sandwich for lunch today because he's been so busy with tours and following up with potential buyers. "Do you think it's pent up demand for the second tower?" I asked him. He replied that the people mobbing the office generally didn't even know about the new release! Whether or not these people are a gaggle of looky-loos or if they are in fact real buyers remains to be seen. I'll keep you posted and will report back on Infinity Tower II after my tour next week.
Another exciting Downtown unveiling is coming soon--one that may prove to be a formidable alternative to the developments on Harrison and Main Streets. BLU will unveil its public art installation this week as the finishing touches are being put on the slender, 21-story, saw-toothed beauty. The ladies of BLU told me that they should have three models ready to tour in a few weeks; landscaping and street furniture have been installed. One of the most extraordinary things about BLU is the setting. Unlike other parts of The City where there are still empty lots immediately adjacent to large developments, BLU is the last piece of the puzzle along this stretch of Folsom and that gives it an instant sense of place. As a buyer, it's also nice to know that what you see is what you get; the neighborhood and its amenities are already there. It's a great streetscape with three centuries of architecture in a single block.
Whether or not you are a buyer or just curious, I encourage you to visit these two very different--yet equally appealing--places to call home. Buyers in Downtown San Francisco have never had as many diverse and high quality choices as they do now. For your expert tour of these and other Downtown condominiums, please contact me.
Another exciting Downtown unveiling is coming soon--one that may prove to be a formidable alternative to the developments on Harrison and Main Streets. BLU will unveil its public art installation this week as the finishing touches are being put on the slender, 21-story, saw-toothed beauty. The ladies of BLU told me that they should have three models ready to tour in a few weeks; landscaping and street furniture have been installed. One of the most extraordinary things about BLU is the setting. Unlike other parts of The City where there are still empty lots immediately adjacent to large developments, BLU is the last piece of the puzzle along this stretch of Folsom and that gives it an instant sense of place. As a buyer, it's also nice to know that what you see is what you get; the neighborhood and its amenities are already there. It's a great streetscape with three centuries of architecture in a single block.
Whether or not you are a buyer or just curious, I encourage you to visit these two very different--yet equally appealing--places to call home. Buyers in Downtown San Francisco have never had as many diverse and high quality choices as they do now. For your expert tour of these and other Downtown condominiums, please contact me.
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