There is a dream a lot of new construction buyers have. It first takes shape in the flawless presentation of the model home with its professionally selected decor and costly upgrades. It continues to thrive with the idea of 'new' being something that is perfect and flawless, fresh off the assembly line like a car or a flat screen TV. The draw of the 'new' is sometimes culturally based and other times just seems like the 'smart' choice. Who wouldn't assume that everything will work effortlessly when there is no wear and tear?
Luckily, new construction condominiums have one year 'fit and finish' warranties that cover the inevitable settlement cracks, shrinkage gaps and the like. But what of the common areas? The parking garage? The building staff?
Just like any collaborative effort, a new development takes time to hit its stride. When you have a new building, new staff and hundreds of new residents all under the same roof things can go south quickly unless homeowners and management are on top of things. Patience is a prerequisite no matter how swanky the development. Even the architect doesn't know exactly how the building and its systems are going to perform until they are subject to daily use and the environment. Window systems sometimes fail, balcony railings 'whistle' in the wind and garage gates close on your trunk because the timer hasn't been adjusted. Frustrating? Yes. Curable? Absolutely.
The dream of a low-maintenance lifestyle is attainable with condominium living. You just have to give the building, its staff and your neighbors time to get with the program. You all had the same dream in that model home after all, didn't you?
Tuesday, March 9, 2010
Tuesday, March 2, 2010
Where The Heck Is 555 Bartlett?
Seven Hills Properties had several choices when deciding on a name for their new 60 unit development at the corner of Mission and Cesar Chavez Streets. The address for the previous building on the lot (a pretty cool Art Moderne paint store) was 3400 Cesar Chavez. Somewhat of a mouth full which doesn't flow off the tongue that well. How about a Mission Street address? Could work, but touting a Mission Street location when the neighborhood itself is still somewhat "gritty" may put potential buyers off. They could have gone with a 'named' development. Perhaps "The Crossroads" in reference to the bustling intersection it sits at. Or maybe "Revolution", a subtle homage to Cesar Chavez himself?
In the end, Seven Hills went with 555 Bartlett, which is the alley-like street that borders the rear of the parcel. It has a nice ring to it I suppose, and at least its not some banal attempt at branding the building to evoke something its not.
I toured the development a few weeks ago and was not expecting a lot given that there is a 24 hour Walgreens in the commercial space below the units, and the transit and traffic heavy locale. Color me surprised by the spacious, well thought out floor plans, upscale finishes and pleasant views of Bernal Hill to the south. With prices starting in the low 400's for 1-bedrooms and BART and 101 blocks away, this development offers great bang for the buck in a neighborhood that is stocked with bars and restaurants.
Sales start this weekend for these surprisingly appealing Mission condominiums. Just be prepared to tell people coming to visit you that although located at the corner of Mission and Cesar Chavez, the address is 555 Bartlett.
"Revolution" would have been so much easier : )
In the end, Seven Hills went with 555 Bartlett, which is the alley-like street that borders the rear of the parcel. It has a nice ring to it I suppose, and at least its not some banal attempt at branding the building to evoke something its not.
I toured the development a few weeks ago and was not expecting a lot given that there is a 24 hour Walgreens in the commercial space below the units, and the transit and traffic heavy locale. Color me surprised by the spacious, well thought out floor plans, upscale finishes and pleasant views of Bernal Hill to the south. With prices starting in the low 400's for 1-bedrooms and BART and 101 blocks away, this development offers great bang for the buck in a neighborhood that is stocked with bars and restaurants.
Sales start this weekend for these surprisingly appealing Mission condominiums. Just be prepared to tell people coming to visit you that although located at the corner of Mission and Cesar Chavez, the address is 555 Bartlett.
"Revolution" would have been so much easier : )
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, February 8, 2010
Must See TV: Blueprint America
There is a new PBS series airing and its timing couldn't be better. Blueprint America takes an in-depth look at our countries crumbling transit and infrastructure and what's being done to drag our fossil fuel gorging culture into the 21st century. Far from your typical didactic PBS fare, this series explores our checkered transit history (tearing out urban streetcar systems in favor of cars and highways) and current efforts to jump start high-speed rail projects around the country. We hear so much about "transit orientated development" but it doesn't have much resonance unless your a city planner or property developer. This show will change that and show how efficiency and prosperity can go hand in hand.
If you live Downtown, your already transit orientated by nature of being in a city. What's exciting in San Francisco is that construction on our high-speed rail line will begin soon with the impending demolition of the TransBay Terminal. Once clear, the site will be excavated for construction of the "train box" that will sit below the eventual TransBay Tower.
While I'm geeking out on planning things, I should also tell you about an organization called America 2050. From their website:
"A national initiative to meet the infrastructure, economic development and environmental challenges of the nation as we prepare to add about 130 million additional Americans by the year 2050."
By 2035, two million of those Americans will be living in the Bay Area. The Downtown skyline may fill in faster than we thought.
If you live Downtown, your already transit orientated by nature of being in a city. What's exciting in San Francisco is that construction on our high-speed rail line will begin soon with the impending demolition of the TransBay Terminal. Once clear, the site will be excavated for construction of the "train box" that will sit below the eventual TransBay Tower.
While I'm geeking out on planning things, I should also tell you about an organization called America 2050. From their website:
"A national initiative to meet the infrastructure, economic development and environmental challenges of the nation as we prepare to add about 130 million additional Americans by the year 2050."
By 2035, two million of those Americans will be living in the Bay Area. The Downtown skyline may fill in faster than we thought.
Monday, February 1, 2010
Inventory & Anticipation Rise as the Market Starts to Come Alive in 2010
I wrote a few week ago about how the real estate market is typically slow up until the Superbowl and then it takes off. Bearing this out is an almost 30% rise in listings since the beginning of the year. A lot of factors will have an impact on the health of the market and its impossible to estimate what that is until we start to see some measurable sales volume.
Some of these factors include the extended and expanded home buyer tax credits, low interest rates, low overall inventory and potential short sales and foreclosures. The most important factor in my opinion? Confidence. How do you feel about your job security? How about the government ? Are things in general getting better, worse or staying the same? The answers to these questions can help people determine if the time is right for them to buy or sell.
There are also those times when none of them can. Someone once told me that the easiest way to make God laugh was to make plans. Sometimes life makes the most carefully laid plans obsolete and this can be positive, negative, or a bit of both. Not just for mere mortals like us, but for the real estate market, too.
I'm confident there won't be too much laughter from above this year.
Some of these factors include the extended and expanded home buyer tax credits, low interest rates, low overall inventory and potential short sales and foreclosures. The most important factor in my opinion? Confidence. How do you feel about your job security? How about the government ? Are things in general getting better, worse or staying the same? The answers to these questions can help people determine if the time is right for them to buy or sell.
There are also those times when none of them can. Someone once told me that the easiest way to make God laugh was to make plans. Sometimes life makes the most carefully laid plans obsolete and this can be positive, negative, or a bit of both. Not just for mere mortals like us, but for the real estate market, too.
I'm confident there won't be too much laughter from above this year.
Monday, January 25, 2010
San Francisco Can Learn Something From Los Angeles.
This past weekend I went to LA to celebrate my college roommates 40th birthday. He works in the entertainment industry and has quite the outsize personality. The entire weekend consisted of glamorous brunches, shows and dinners at classic Los Angeles locales like The Polo Lounge and newer hot spots like L.A. Live and Voyeur (don't ask).
I had heard about L.A. Live a few years ago when a former colleague was selling condominiums at The Ritz Carlton Residences there, but had never seen it in person. Our Leopard Limo (another LA invention) hurtled toward Downtown and as we pulled up to the main entrance on Olympic Boulevard I was completely floored. Adjacent to Staples Center, L.A. Live is a combination of crass commercialism and performing arts spaces rendered in Blade Runner style. It's the southern California version of Times Square with all the giant neon and LED lighting that one would expect.
It was mobbed, too. Old and young, Angeleno and tourist, black tie and open fly. This was the place to be.
One wonders what it would be like to have a fantastic new 21st century entertainment complex like that here in San Francisco. The truth is that it can't be done. With most vacant land Downtown already spoken for and a stunningly complex and developer unfriendly planning process, we will have to settle for... The Metreon.
Thankfully, we have the views, the bridges, the hills and the bay to console us. I had a great time down south and when I drove over The Bay Bridge back into my favorite city in the world a smile crept over my face. I was home.
I had heard about L.A. Live a few years ago when a former colleague was selling condominiums at The Ritz Carlton Residences there, but had never seen it in person. Our Leopard Limo (another LA invention) hurtled toward Downtown and as we pulled up to the main entrance on Olympic Boulevard I was completely floored. Adjacent to Staples Center, L.A. Live is a combination of crass commercialism and performing arts spaces rendered in Blade Runner style. It's the southern California version of Times Square with all the giant neon and LED lighting that one would expect.
It was mobbed, too. Old and young, Angeleno and tourist, black tie and open fly. This was the place to be.
One wonders what it would be like to have a fantastic new 21st century entertainment complex like that here in San Francisco. The truth is that it can't be done. With most vacant land Downtown already spoken for and a stunningly complex and developer unfriendly planning process, we will have to settle for... The Metreon.
Thankfully, we have the views, the bridges, the hills and the bay to console us. I had a great time down south and when I drove over The Bay Bridge back into my favorite city in the world a smile crept over my face. I was home.
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