Milestones
The Arterra sales center put their last unit into contract about two weeks ago, rendering the Mission Bay development sold out once the remaining ten or so units currently in escrow close. This represents a four year sell out for developer Intracorp's 269 unit property. Construction costs ran just south of $90M USD. Close on their heels, The Infinity is down to nine units in Tower II with list prices starting at $2.7M. Across town in the Mission, 555 Bartlett announced that half of their 58 homes are now in contract after just two weeks of sales. Ladies and Gentlemen, Spring has sprung.
Greed is Good
Crank up the Oingo Boingo and make liberal use of the styling mousse because 80's glamour is now for sale. 611 Washington Street is a mixed use tower built in 1984 with 33 residential units sitting atop class A commercial office space.
Unit 2402 is listed at $3.595M and boasts 2624 square feet and iconic Downtown views. Unfortunately for the 80's purists among you, the kitchens and baths were updated a few years ago and there isn't a hint of glass block or brass to be seen. HOA dues and parking for two DeLorean's runs $2,518 per month.
Voted "Most Flirtatious" Class of 2010
The developer at One Hawthorne is a tease. The first ten units were supposed to have been released already, but developer Jackson Pacific has decided to play it coy. Buyers will have to wait until construction is complete on all 165 units before being able to write a check. ETA is June and methinks there is a wee bit of strategy afoot with both new and resale inventory Downtown shrinking rapidly. Worth the wait? I can take you on a tour to see. Can beggars also be choosers? We'll have to wait until June to find out.
Showing posts with label Arterra. Show all posts
Showing posts with label Arterra. Show all posts
Monday, March 15, 2010
Tuesday, February 23, 2010
Downtown Inventory Sampler: Ladies & Gentlemen, Start Your Engines!
It was November 10th when we last looked at the sampler. With the holidays behind us and the late winter/early spring bump in inventory and sales, there are some interesting changes to the Downtown sales landscape. Arterra is rumored to be sold out within the week and The Infinity has but 15 units remaining. The impending sellout at the Main and Spear Street complex has motivated some owners to list their homes; and at aggressive prices. Time will tell what the market will bear, but the fact remains that overall inventory is low and buyer interest is high. Off to the races...
The Beacon
Six 1-bedrooms, two 2-bedrooms. Available units: 8. Total units: 595.
The Metropolitan
One 1-bedroom, two 2-bedrooms. Available units: 3. Total units: 342.
Watermark
No resale activity. Total units: 136.
200 Brannan
One 2-bedroom. Available units: 1. Total units: 191.
The Brannan
Four 1-bedrooms, Five 2-bedrooms. Available units: 9. Total units: 339.
The Potrero
One 1-bedroom. Available units: 1. Total units: 155
The Hayes
No resale inventory. Total units: 128
Arterra *
No resale inventory. Total units: 269
The Infinity *
Four 2-bedrooms. Available units: 4. Total units: 650
One Rincon Hill *
Three 1-bedrooms and Six 2-bedrooms. Available units: 9. Total units overall: 376.
* New inventory still available from the developer.
The Beacon
Six 1-bedrooms, two 2-bedrooms. Available units: 8. Total units: 595.
The Metropolitan
One 1-bedroom, two 2-bedrooms. Available units: 3. Total units: 342.
Watermark
No resale activity. Total units: 136.
200 Brannan
One 2-bedroom. Available units: 1. Total units: 191.
The Brannan
Four 1-bedrooms, Five 2-bedrooms. Available units: 9. Total units: 339.
The Potrero
One 1-bedroom. Available units: 1. Total units: 155
The Hayes
No resale inventory. Total units: 128
Arterra *
No resale inventory. Total units: 269
The Infinity *
Four 2-bedrooms. Available units: 4. Total units: 650
One Rincon Hill *
Three 1-bedrooms and Six 2-bedrooms. Available units: 9. Total units overall: 376.
* New inventory still available from the developer.
Monday, February 15, 2010
Earthquake Insurance: Expensive? Yes. Necessary...?
When I'm working with buyers that are new to condominiums, one of the most common questions asked is "What do the HOA dues cover and why are they so expensive ?" Typically dues will pay for water, garbage service, common amenities and fire and hazard insurance. In some buildings, an earthquake insurance premium is also part of the dues. Its easy to guess if earthquake coverage is included without knowing for sure since the monthly assessment for a unit in a building with it can be double the equivalent unit would be without.
For developments that have a large percentage of commercial or retail space as part of the same structure, earthquake coverage is usually mandatory. Like The Beacon with its Safeway, Borders and commercial condominiums or The Four Seasons and St Regis with their hotels on the lower floors under the residential units.
Buildings like Arterra or The Infinity have a choice in the matter. Do you raise dues to cover earthquake insurance, protecting your investment while potentially lowering values by making the units less affordable? Or do you carry on as-is and hope that The Big One won't be so big.
Living in a seismically active area like San Francisco requires the ability to reconcile knowing that the ground beneath us can start to shake at anytime with potential major results. Gauging the value and benefits of earthquake insurance is a very personal decision that involves the instinct to manage risk with the need to preserve value and desirability.
Do you have a question about Downtown real estate? All you need to do is ask.
For developments that have a large percentage of commercial or retail space as part of the same structure, earthquake coverage is usually mandatory. Like The Beacon with its Safeway, Borders and commercial condominiums or The Four Seasons and St Regis with their hotels on the lower floors under the residential units.
Buildings like Arterra or The Infinity have a choice in the matter. Do you raise dues to cover earthquake insurance, protecting your investment while potentially lowering values by making the units less affordable? Or do you carry on as-is and hope that The Big One won't be so big.
Living in a seismically active area like San Francisco requires the ability to reconcile knowing that the ground beneath us can start to shake at anytime with potential major results. Gauging the value and benefits of earthquake insurance is a very personal decision that involves the instinct to manage risk with the need to preserve value and desirability.
Do you have a question about Downtown real estate? All you need to do is ask.
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.
Tuesday, November 10, 2009
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 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.
Tuesday, August 25, 2009
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.
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.
Monday, July 27, 2009
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 !
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 !
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, 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 3, 2009
More Postcards from the Edge: A brief snapshot of current resale activity at 10 Downtown developments.
One month ago (February 2nd) we took a look at some cold, hard numbers. I chose ten new or newer condominium developments and pulled statistics from the MLS that communicate some very basic data on each building: How many resale units are for sale, what type of home it is (studio, one, two or three bedroom) and how many units are in the building overall? More than a few readers told me that they appreciated this not very scientific survey so I thought it might be interesting to see what difference (if any) one month has made. As I did last time, I kept any pricing analysis out of it because I believe that the aforementioned criteria tell their own story. An asterisk after the building name denotes that new inventory is still available through the sales office.
In a nutshell: small increases in inventory at roughly half the communities surveyed. No discernible trends thus far although it will be interesting to see what the spring resale market looks like. Keep in mind that the first batch of Infinity Tower I closings have also hit the one-year resale prohibition expiration.
If you have any questions about these numbers or would like more detailed information about current inventory and pricing do not hesitate to contact me. Without further ado, The Numbers:
The Beacon
Three studios, eight 1-bedrooms, four 2-bedrooms
Total units available: 15. Total units overall: 595.
The Metropolitan
Six 1-bedrooms and five 2-bedrooms.
Total units available: 11. Total units overall: 342.
Watermark
Four 2-bedrooms and one 3-bedroom.
Total units available: 5. Total overall: 136.
200 Brannan
Three 1-bedrooms, three 2-bedrooms and one 3-bedroom. Total units available: 7. Total units overall: 191.
The Brannan
Two 1-bedrooms, six 2-bedrooms and two 3-bedrooms.
Total units available: 10. Total units overall: 339.
The Potrero
No resale units. Total units overall: 155.
The Hayes *
No resale units. Total units overall: 128.
Arterra *
No resale units. Total units overall: 269.
The Infinity *
One 2-bedroom. Total units available: 1. Total units overall 364 (excluding Tower II).
One Rincon Hill *
Four 1-bedrooms and five 2-bedrooms.
Total resale units available: 9. Total units overall: 376.
In a nutshell: small increases in inventory at roughly half the communities surveyed. No discernible trends thus far although it will be interesting to see what the spring resale market looks like. Keep in mind that the first batch of Infinity Tower I closings have also hit the one-year resale prohibition expiration.
If you have any questions about these numbers or would like more detailed information about current inventory and pricing do not hesitate to contact me. Without further ado, The Numbers:
The Beacon
Three studios, eight 1-bedrooms, four 2-bedrooms
Total units available: 15. Total units overall: 595.
The Metropolitan
Six 1-bedrooms and five 2-bedrooms.
Total units available: 11. Total units overall: 342.
Watermark
Four 2-bedrooms and one 3-bedroom.
Total units available: 5. Total overall: 136.
200 Brannan
Three 1-bedrooms, three 2-bedrooms and one 3-bedroom. Total units available: 7. Total units overall: 191.
The Brannan
Two 1-bedrooms, six 2-bedrooms and two 3-bedrooms.
Total units available: 10. Total units overall: 339.
The Potrero
No resale units. Total units overall: 155.
The Hayes *
No resale units. Total units overall: 128.
Arterra *
No resale units. Total units overall: 269.
The Infinity *
One 2-bedroom. Total units available: 1. Total units overall 364 (excluding Tower II).
One Rincon Hill *
Four 1-bedrooms and five 2-bedrooms.
Total resale units available: 9. Total units overall: 376.
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.
Monday, February 2, 2009
Postcards from the edge: A brief snapshot of current resale activity at ten Downtown developments.
We are taking a brief hiatus from the witty commentary and opinion you usually find here and are going to look at some cold, hard numbers. I chose ten new or newer condominium developments and pulled statistics from the MLS that communicate some very basic data on each building: How many resale units are for sale, what type of home it is (studio, one, two or three bedroom) and how many units are in the building overall? It's not a terribly scientific survey and I kept any pricing analysis out of it because I believe that the aforementioned criteria tell their own story. An asterisk after the building name denotes that new inventory is still available through the sales office.
If you have any questions about these numbers or would like more detailed information about current inventory and pricing please do not hesitate to contact me. Without further ado, The Numbers:
The Beacon
Two studios, five 1-bedrooms, four 2-bedrooms and one 3-bedroom.
Total units available: 12. Total units overall: 595.
The Metropolitan
Five 1-bedrooms and two 2-bedrooms.
Total units available: 7. Total units overall: 342.
Watermark
Five 2-bedrooms and one 3-bedroom.
Total units available: 6. Total overall: 136.
200 Brannan
One 2-bedroom. Total units available: 1. Total units overall: 191.
The Brannan
Two 1-bedrooms, six 2-bedrooms and two 3-bedrooms.
Total units available: 10. Total units overall: 339.
The Potrero
One 2-bedroom. Total units available: 1. Total units overall: 155.
The Hayes*
No resale units. Total units overall: 128.
Arterra*
No resale units. Total units overall: 269.
The Infinity*
One 2-bedroom. Total units available: 1. Total units overall 364 (excluding Tower II).
One Rincon Hill*
One 1-bedroom and three 2-bedrooms.
Total resale units available: 4. Total units overall: 376.
If you have any questions about these numbers or would like more detailed information about current inventory and pricing please do not hesitate to contact me. Without further ado, The Numbers:
The Beacon
Two studios, five 1-bedrooms, four 2-bedrooms and one 3-bedroom.
Total units available: 12. Total units overall: 595.
The Metropolitan
Five 1-bedrooms and two 2-bedrooms.
Total units available: 7. Total units overall: 342.
Watermark
Five 2-bedrooms and one 3-bedroom.
Total units available: 6. Total overall: 136.
200 Brannan
One 2-bedroom. Total units available: 1. Total units overall: 191.
The Brannan
Two 1-bedrooms, six 2-bedrooms and two 3-bedrooms.
Total units available: 10. Total units overall: 339.
The Potrero
One 2-bedroom. Total units available: 1. Total units overall: 155.
The Hayes*
No resale units. Total units overall: 128.
Arterra*
No resale units. Total units overall: 269.
The Infinity*
One 2-bedroom. Total units available: 1. Total units overall 364 (excluding Tower II).
One Rincon Hill*
One 1-bedroom and three 2-bedrooms.
Total resale units available: 4. Total units overall: 376.
Wednesday, November 19, 2008
Elections & Downtown non-erections: Developers bearish on short-term outlook while agents hope post-election relief will get buyers back in the swing
originally published 11/4/08
Some examples: The Hayes has a fifth floor studio with balcony listed in the mid 300's and a tower-level 1-bedroom at Arterra in Mission Bay was re-priced in the low 500's. Over on Van Ness Avenue, Symphony Towers has a 1-bedroom on offer in the mid-400's. These prices represent reductions of at least $100,000 from their previous highs and what's more compelling is they seem to work. Erin over at Symphony told me they sold 6 units last week after the price drop.
Reductions in inventory and markdowns on stock indicate that developers are retooling strategy for what they see as a prolonged slowing of demand and it seems like if the price is right one can still sell a condominium even in these uncertain times.
The return of confidence to the country and San Francisco will go a long way in allowing home buyers to feel good about getting back in the market. With the impending change in leadership and recent condominium price adjustments this may be a historic moment in more ways than one.
Downtown inventory absorbing at a slow yet steady pace. Developers hustle to move product with the outlook uncertain.
Originally published 10/7/08
Monday brought a new client and a new mandate: a 1-bedroom condominium with a view that's also within walking distance of the CalTrans station on 4th. As I put our tour together for the morning I realized that something I didn't anticipate had happened in Mission Bay. Inventory that was piling up until about a month ago was, for the most part, gone. The Beacon had only 14 listings, about 2.5% of the building's units, were active on the MLS. Six months ago, that number was almost double. The Beacon sold out in 2006 as a condominium conversion. After checking in with the sales team at 170 Off Third, I was told that they are sold out of studio and 1-beds and have but a handful of 2-beds left. Jessica at the Potrero had a similar story: Just two 1-bedrooms available out of only 11 left overall.
A little far from the train station but under consideration was The Metropolitan. It is great place to find value and competition among sellers for nicely finished units with views. Bonus points for the building since it still looks fresh and appealing 4 years after completion. There I found only one 1-bedroom; a high floor with a nice view. One 1-bedroom available out of 342 units. Hm. Given the above there was only one place to go for new product that shows well and is reasonably priced: Arterra.
My client and I looked at a handful of 1-bedroom's and the sales team seemed open to writing creative deals. With a reported 40% of the building yet to be sold, we had a wide selection of homes and developer incentives to consider. A perfect storm for today's selective and value-conscious buyer.
It will be interesting to see where these numbers move in light of all the drama we've endured in the past few weeks. There are many challenges in the business of real estate in late 2008 yet there are still people making deals, getting loans and closing escrow in San Francisco.
A little far from the train station but under consideration was The Metropolitan. It is great place to find value and competition among sellers for nicely finished units with views. Bonus points for the building since it still looks fresh and appealing 4 years after completion. There I found only one 1-bedroom; a high floor with a nice view. One 1-bedroom available out of 342 units. Hm. Given the above there was only one place to go for new product that shows well and is reasonably priced: Arterra.
My client and I looked at a handful of 1-bedroom's and the sales team seemed open to writing creative deals. With a reported 40% of the building yet to be sold, we had a wide selection of homes and developer incentives to consider. A perfect storm for today's selective and value-conscious buyer.
It will be interesting to see where these numbers move in light of all the drama we've endured in the past few weeks. There are many challenges in the business of real estate in late 2008 yet there are still people making deals, getting loans and closing escrow in San Francisco.
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