Archive for the ‘New Developments’ Category

3rd Annual San Francisco Building Boom

 

Friday, September 18th I had the pleasure of attending the 3rd Annual San Francisco Building Boom presented by the San Francisco Association of REALTORSⓇ, a panel discussion of the new residential building projects transforming our city. Please listen to the discussion here and enjoy!

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Meredith Martin is a Broker Associate at Paragon Real Estate Group and can be reached at Meredith@OpeningDoors.me

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Updated: New Condo Developments in San Francisco

 

 

 

 

For more information on any of the new condominium developments now selling or under construction, please contact me.

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Meredith Martin is a Broker Associate at Paragon Real Estate Group and can be reached at Meredith@OpeningDoors.me

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New Condo Developments in San Francisco

 

Yesterday evening I had the pleasure to attending “Cranes of SoMa” — a panel discussion of new residential developments in San Francisco’s South of Market neighborhood. No other area of the city is seeing as much construction as is happening here–Approximately 60% of the city’s new construction is happening in District 6 which includes the Tenderloin, South of Market, Mid-Market/Civic Center, South Beach, Mission Bay and Rincon Hill.

Fact: Never has there been so much construction at one time in the history of San Francisco (at least since 1906).

With consideration to new condominium developments of 60+ units:

  • 8 new developments accounting for a total 1,425 units are now selling
  • 941 units are currently under construction, pre-sale

 

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Perhaps the most anticipated of the upcoming new developments is 181 Fremont Street, otherwise known as Park 181. Starting on the 53rd floor and rising 17 stories, the luxury high-rise condominiums here will offer residents the opportunity to live higher in the sky than anywhere west of Chicago. The unit count here includes a full 53rd floor of studio and one-bedroom residences available for purchase only be owners of larger units. At the 70th floor, a full-floor 7,000+/- square foot penthouse will be one of the San Francisco’s most valuable properties (the Tower B penthouse at nearby LUMINA is on the market right now for $49 million). Floors 54 thru 69 will offer a mix of two- and three-bedroom condominiums (no more than four per floor) and four half-floor penthouses. Recent sales have seen the cost of new condominiums rise above $2,200 per square foot, and residences at Park 181 are expected to start around $3,000 per square foot.

For more information on any of the new condominium developments now selling or under construction, please contact me.

 

Meredith Martin is a Broker Associate at Paragon Real Estate Group and can be reached at Meredith@OpeningDoors.me

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Million Dollar Affordable Housing. Only in San Francisco.

 

No San Francisco neighborhood has so squarely positioned itself at the epicenter of opposition to rising housing costs than the Mission District. Of course, housing un-affordability is but one of many rapid changes in the neighborhood, and seeking legislative action is but one response (sidebar: remember when protestors were blocking tech shuttles?) — and median home prices have soared 76% citywide since 2011! For now, let’s take a focused look at some of the real estate sales dynamics in the Mission.

August 2007, at the peak pre-recession height of local real estate, a TIC at 901 Guerrero Street (below) sold for $955,000. The 3-bed and 1.5-bath Edwardian was purchased for 12.5% more that its list price and in 26 days on the market.

 

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Earlier this year, in February 2015, I represented the buyer of 901 Guerrero Street sold for $1,650,000. This time, the property returned favorable to the market with a fresh coat of paint, a successful condo-conversion on the record, and convenient proximity to “every tech bus.” The winning bid (of course there were competing offers!) after only eight days on the market came in at 18% over asking. The San Francisco Chronicle even wrote about it.

 

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Given that 901 Guerrero did have a significant value-adding improvement between 2007 and 2015, consider still that its 2015 price is nearly 75% higher than at the previous peak. It’s not uncommon for properties to be improved from one sale to the next, and it makes sense that those properties will sell for higher prices, all else equal. Couple that with record-low inventory and cash investors, and now not even techies (let alone teachers) can compete as homebuyers. Since 901 Guerrero Street sold, I’ve seen comparable properties in the neighborhood sell for even higher. What’s a city like San Francisco with its economy supercharged by the high-tech boom to do?

There appears to be a “try everything” approach in the works for the Mission.

First, a ballot initiative calling for an 18-month moratorium on new market-rate residential developments in the Mission has been approved for the November 2015 ballot. If passed, the effect of the moratorium on neighborhood home prices can be debated. Because the overwhelming majority of housing in the Mission is market-rate which is favored by homebuyers, constraining supply could drive prices of existing homes higher. Alternately, negative attitudes toward an influx of affordable housing could lead residents to leave for other neighborhoods and influence homebuyers to buy elsewhere, ultimately hurting market-rate resale values.

Second, the city is feeling pressure to build more affordable housing units right now. Such developments, like 490 South Van Ness at 16th Street, are permanently reserved for low-income, median-income and moderate-income residents. Below Market Rate housing is purchased for a fraction of market value– not a single unit has sold in the Mission since March 2014 (and a 2-bedroom BMR condo in the Inner Mission is listed right now for just under $450,000). Plus, projects like these can take a year or more to construct once ground is broken, meanwhile the price of affordable housing continues to rise with $15 minimum wage.

Lastly, flood the market with new housing units of all kinds to help meet demand and stabilize prices as quickly as possible. There are 26 residential developments planned for the Mission and a few have begun construction (see the entire pipeline of residential projects in San Francisco here). Still, the pace of new units coming to the market pales in comparison to the city’s growth of employed residents (yes, people can afford to relocate to San Francisco even with housing costs as they are). Some sites available in the Mission could be bought by the city for affordable housing, and the proposed moratorium would give it enough time to organize and fund the investment.

 

A 2015 Yale School of Management survey of recent home buyers found that a quarter of San Francisco respondents has the extravagant expectation for annual home price increases of 10% or more annually for the next 10 years. Although more likely be closer to 5%, it could happen. In 20+ years working locally in real estate, I’ve learned to never underestimate the voracity of the San Francisco market. I’m of the opinion San Francisco median price trends are headed the direction of Tokyo, Sydney and London toward $3,000 per square foot. Before we get there, though, we may find ourselves asking sooner rather than later: When does an affordable housing unit cost a million dollars?

 

Meredith Martin is a Broker Associate at Paragon Real Estate Group and can be reached at Meredith@OpeningDoors.me

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Pacific Heights New Construction

Pacific Heights may not be the first San Francisco neighborhood that comes to mind when you think of new condominium developments. Of the 8,028 new housing units filed with the city’s Planning Department in 2014, only a small fraction are slated for the tony enclave of grand mansions and architectural masterpieces. So when new inventory hits the market here, you can bet it’s going to sell quick!

Since the release of its first phase of luxury residences just two months ago, the brand new Rockwell in Pacific Heights at the intersection of Pine and Franklin streets has sold more than 100 of its combined 260 condominiums in two adjacent towers. Currently, Rockwell’s West Tower is about 75% sold, prompting sales to begin in the East Tower ahead of schedule. While the simple principle of supply and demand undoubtedly plays a large part in this impressive sales record, the appeal of the development’s amenities to today’s homebuyer isn’t to be discounted. From the Grand Solarium lobby to the Owner’s Club entertaining space to the screening room to the fitness center to the indoor-outdoor Sky Lounge and Terrace, Rockwell is proof that Pacific Heights can be just as modern and sexy as South of Market, South Beach and Mission Bay.

San Francisco Business Times

In recent months, the price of new construction in San Francisco’s southern neighborhoods has pushed as high as $2,000 per square foot, making that at Rockwell appear a relative bargain. With one-bedroom residences starting in the mid-$700,000s and two-bedrooms (which all include on-site parking) from around $1,200,000, the place is commanding approximately $1,200 per square foot — right on par with current resale values of similar condominiums in the neighborhood:

Before the first move-ins take place at Rockwell, another new condominium development will begin selling. 2121 Webster, also known at The Pacific, is planned to include a mix of 76 one- to four-bedroom residences, penthouses and townhouses plus world-class amenities. Please contact me for more information and stay tuned for the latest buzz.

Meredith Martin is a Broker Associate at Paragon Real Estate Group and can be reached at Meredith@OpeningDoors.me

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