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.
Tuesday, July 21, 2009
Tuesday, July 14, 2009
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.
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.
Tuesday, July 7, 2009
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.
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.
Tuesday, June 30, 2009
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 !
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 !
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 16, 2009
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.
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.
Monday, June 8, 2009
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.
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.
Subscribe to:
Posts (Atom)
Posts
