Condominiums at the Palms popular with first-time buyers

From today's San Francisco Business Times,

Rising interest rates may be dragging down the residential real estate market, but so far they do not seem to be affecting deluxe housing popping up in San Francisco.

By now, the sizzling sales at the St. Regis, the Beacon and the Ritz residential conversion at 690 Market St. have been widely reported. Now the 300-unit Palms at 555 Fourth St. is logging similarly dazzling numbers.

Mitch Laufer, communications director for Vanguard Properties, said they have sold out the first batch of 80 condos, the third and fourth floors along with part of the fifth. Half of the second installment of condos -- the rest of the fifth floor as well as the sixth, seventh, and eighth -- are also under contract. Laufer said he expects the building to sell out by June.

He said about 25 percent of buyers are empty-nesters and 50 percent are first-time home-buyers. The remaining 25 percent of buyers will use the units as pied-à-terres.