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 The Infinity. Show all posts
Showing posts with label The Infinity. 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.
Tuesday, January 19, 2010
One Hawthorne Sales Center Now Open!
I'll admit that I may be jumping the gun a bit, but its exciting for a real estate geek like myself to lay hands on the 24 different floor plans available at the newly opened One Hawthorne sales center. That's pretty much all you can do at this point, anyway. The building won't be ready for hard hat tours for another three weeks and brochures, virtual reality tours and all the usual sales center accessories have yet to arrive.
What you will find are a delightful sales team, some of whom you will recognize from The Infinity a few blocks east. Since walking through a home is the best way to judge its merits, we will have to make do with what the team is sharing right now about the 165 condominiums. The 24 different layouts range from junior 1-bedrooms through 3-bedroom penthouses and I was pleasantly surprised by the large-ish, well-designed units offering plenty of closets and windows.
Pricing has not been established so we can't judge the relative value, but a few things to keep in mind are that parking is available with about 75% of the homes and that it is valet only. The first phase to hit the market in February will be on the 2nd though 8th floors only of the 25 story tower. A strategy surely meant to determine value on the upper floors but more likely to stymie buyers that want views and light.
This will be the last new tower Downtown for quite some time, so the One Hawthorne team is pretty much guaranteed a lot of traffic to the sales center. Whether or not that traffic results in raining deposit checks remains to be seen but it looks promising.
For expert guidance on this and all other Downtown developments you know who to call.
What you will find are a delightful sales team, some of whom you will recognize from The Infinity a few blocks east. Since walking through a home is the best way to judge its merits, we will have to make do with what the team is sharing right now about the 165 condominiums. The 24 different layouts range from junior 1-bedrooms through 3-bedroom penthouses and I was pleasantly surprised by the large-ish, well-designed units offering plenty of closets and windows.
Pricing has not been established so we can't judge the relative value, but a few things to keep in mind are that parking is available with about 75% of the homes and that it is valet only. The first phase to hit the market in February will be on the 2nd though 8th floors only of the 25 story tower. A strategy surely meant to determine value on the upper floors but more likely to stymie buyers that want views and light.
This will be the last new tower Downtown for quite some time, so the One Hawthorne team is pretty much guaranteed a lot of traffic to the sales center. Whether or not that traffic results in raining deposit checks remains to be seen but it looks promising.
For expert guidance on this and all other Downtown developments you know who to call.
Tuesday, December 15, 2009
SOLD! Online Storage Auction Rakes It In; Provides Storage For Rakes.
The Infinity held the second and final round of deeded storage space auctions last Thursday. Round one of the auction took place November 18th with all units selling. Thursday night represented the last opportunity for Infinity homeowners to bid in the online auction and score a deal on some much needed room to stash bicycles, buggies and boards, both ski and surf.
I have a client who participated unsuccessfully in the first round and would be traveling during the second, so I happily stepped in to be his bidder-by-proxy. Being a very bright and analytical gentlemen, he provided me with a detailed bid strategy which yielded success and what I think to be a respectable value based on the 'comps' as we say in real estate.
That brings me to the most fascinating thing about the auction for me: seeing value assigned to property in real time. It was a small-scale case study of a consumer market in action. Before your eyes you saw demand rise and fall, then rise and fall again. Prices did a similar dance, leveling off for periods, dropping and then shooting up suddenly. I found it terribly interesting to review the post auction data and determine patterns and how well the group did individually and as a whole.
The big question on most peoples minds: Does having storage add value to my home? My answer: Absolutely, but there is no way to determine how much. Try this scenario: Two almost identical Infinity units hit the market at the same time at the same price. One has storage and the other does not, which sells first?
In a challenging market, anything a seller can do to make their home stand out will add value. Whether or not that value translates to more money, a quicker sale or both is up to the market.
I have a client who participated unsuccessfully in the first round and would be traveling during the second, so I happily stepped in to be his bidder-by-proxy. Being a very bright and analytical gentlemen, he provided me with a detailed bid strategy which yielded success and what I think to be a respectable value based on the 'comps' as we say in real estate.
That brings me to the most fascinating thing about the auction for me: seeing value assigned to property in real time. It was a small-scale case study of a consumer market in action. Before your eyes you saw demand rise and fall, then rise and fall again. Prices did a similar dance, leveling off for periods, dropping and then shooting up suddenly. I found it terribly interesting to review the post auction data and determine patterns and how well the group did individually and as a whole.
The big question on most peoples minds: Does having storage add value to my home? My answer: Absolutely, but there is no way to determine how much. Try this scenario: Two almost identical Infinity units hit the market at the same time at the same price. One has storage and the other does not, which sells first?
In a challenging market, anything a seller can do to make their home stand out will add value. Whether or not that value translates to more money, a quicker sale or both is up to the market.
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.
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, September 1, 2009
If Good News Is Boring, Prepare to be Bored.
Welcome to the fourth quarter of 2009. It was just one year ago that the sky started to fall as most investment banks and the stock market sank like snitches wearing cement footwear in the bay. It was a scary time. The first few quarters of 2009 didn't make people feel any better with job losses mounting, foreclosures rising and no end in sight to the federal bailout-palooza.
That was the bad news. The good news ? Here we are, one year later and... things seem to have stabilized. Although employment numbers in the Bay Area could be better, we haven't seen the massive job losses other regions have endured.
Why ? San Francisco and the Bay Area have a diverse employment base. Tourism, finance, software, technology, government, and bio-tech have all helped the region weather the storm. People continue to move to San Francisco for jobs. Evidence ? The new rental complex Strata in Mission Bay is fully leased after three months of marketing. Most tenants are transferees.
But what about real estate ? San Francisco has seen some values slide a bit. The first six months of the year, buyers and sellers were trying to get a grip on where the floor was for prices in all city districts. As Spring turned to summer, Downtown buyers found comfort in where pricing had landed and came out in droves. With the lending climate thawing, it was a perfect storm and developments like The Infinity and The Hayes booked record numbers. As I mentioned in this space before, we did not see that high a rate of absorption even at the height of the boom.
Another sign of stability: Multiple offers. If the price is right and value is obvious, properties are garnering multiples. This isn't true for all property types, but does prove that there are plenty of buyers out there that are qualified and ready to purchase. Example: A single family home in Eureka Valley was priced aggressively two weeks ago when it went on the market as a short sale with a lender approved list price. It went into contract over asking with 14 offers.
Cheers to a peaceful September and have a great Labor Day.
Questions about the current value of your property or what your dollar will buy you Downtown ? Let me help.
That was the bad news. The good news ? Here we are, one year later and... things seem to have stabilized. Although employment numbers in the Bay Area could be better, we haven't seen the massive job losses other regions have endured.
Why ? San Francisco and the Bay Area have a diverse employment base. Tourism, finance, software, technology, government, and bio-tech have all helped the region weather the storm. People continue to move to San Francisco for jobs. Evidence ? The new rental complex Strata in Mission Bay is fully leased after three months of marketing. Most tenants are transferees.
But what about real estate ? San Francisco has seen some values slide a bit. The first six months of the year, buyers and sellers were trying to get a grip on where the floor was for prices in all city districts. As Spring turned to summer, Downtown buyers found comfort in where pricing had landed and came out in droves. With the lending climate thawing, it was a perfect storm and developments like The Infinity and The Hayes booked record numbers. As I mentioned in this space before, we did not see that high a rate of absorption even at the height of the boom.
Another sign of stability: Multiple offers. If the price is right and value is obvious, properties are garnering multiples. This isn't true for all property types, but does prove that there are plenty of buyers out there that are qualified and ready to purchase. Example: A single family home in Eureka Valley was priced aggressively two weeks ago when it went on the market as a short sale with a lender approved list price. It went into contract over asking with 14 offers.
Cheers to a peaceful September and have a great Labor Day.
Questions about the current value of your property or what your dollar will buy you Downtown ? Let me help.
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.
Tuesday, July 21, 2009
A Fresh Take on a Much Maligned Market: Welcome to San Diego !
I've lived in San Francisco for 12 years and seen my fair share of California. But up until last Thursday, I had never been to San Diego. Along with world famous weather, I wanted to see one of the first residential markets to experience a major downturn when the 'bubble' started to burst back in 2006. The hardest hit part of the San Diego market was Downtown residential condominium towers which you all know hold a special place in my heart.
So, it was off to Sapphire Tower. Touted as the finest residential high rise Downtown, I was anxious to take a look at what constitutes "luxury" in San Diego. To be honest, my expectations were low.
Divided into three "Series" not unlike Millennium Tower; Sapphire tops out at 33 stories with density decreasing from six to four to two units per floor as you reach the Sapphire Series penthouses.
Featuring 10.5 foot ceilings, floor-to-ceiling glass for all windows, unusually large square footage and spectacular water and city views, this development team has done almost everything right. The finishes are truly luxurious and make some San Francisco development kitchens and baths look positively spartan. My only quibble: The lobby and common hallways do not match the unit interiors in terms of quality and style.
Since the grand opening last January, the Sapphire team has sold 32 out of 97 units with prices per square foot ranging from $373 to $2000. Their best Penthouse sold for $6.16M a few months ago-- just about what "G" paid for his Infinity penthouse back in '06.
Not all San Diego developments are doing as well as Sapphire Tower. Their success does prove that the right product at the right time at the right price will almost always sell, even in San Diego during a recession.
I had a wonderful visit but plan on staying put in my favorite city in the world, San Francisco.
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 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 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.
Monday, April 20, 2009
Hot Enough for Ya ? Downtown Sales Activity, Temperatures, on Upswing.
Today was a linen shirt type of day. Hot and dry. There was a slight breeze but it was still too warm and stagnant for comfort. Those in the know headed for cooler climates be they the shade of a tree or an air conditioned hide-away.
You could say that the Downtown real estate market has been like a linen shirt to a lot of buyers the past few months. After being stored in a closet since last September it now looks a lot more appealing and appropriate given current circumstances.
We seem to have entered a phase of moderate stability in the markets (yesterday's Dow notwithstanding). Both resale and new construction sellers have adjusted their prices and expectations while at the same time rates are historically low and lenders have loosened the purse strings. 50 sales at The Infinity since the beginning of 2009 does mean something and it's not due to them having air conditioning (lucky!) although that helps.
Bull market ? Not so much. Bottom of the market ? Consult your crystal ball.
If you are a buyer or seller in San Francisco, one thing to remember about real estate markets is that like politics, they are local. What's happening in Manhattan, Los Angeles and Miami may have some relevance to the national market on a macro-level but a good real estate agent will be able to separate the headlines and cocktail chatter from reality.
Who would be more plugged in to what's happening Downtown than someone that lives and breathes it ? That's me.
I'm always happy to answer your questions and accept your referrals !
Stay cool, my friends.
You could say that the Downtown real estate market has been like a linen shirt to a lot of buyers the past few months. After being stored in a closet since last September it now looks a lot more appealing and appropriate given current circumstances.
We seem to have entered a phase of moderate stability in the markets (yesterday's Dow notwithstanding). Both resale and new construction sellers have adjusted their prices and expectations while at the same time rates are historically low and lenders have loosened the purse strings. 50 sales at The Infinity since the beginning of 2009 does mean something and it's not due to them having air conditioning (lucky!) although that helps.
Bull market ? Not so much. Bottom of the market ? Consult your crystal ball.
If you are a buyer or seller in San Francisco, one thing to remember about real estate markets is that like politics, they are local. What's happening in Manhattan, Los Angeles and Miami may have some relevance to the national market on a macro-level but a good real estate agent will be able to separate the headlines and cocktail chatter from reality.
Who would be more plugged in to what's happening Downtown than someone that lives and breathes it ? That's me.
I'm always happy to answer your questions and accept your referrals !
Stay cool, my friends.
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).
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.
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