Listing summary: 300 Beale St

Prompted by a client who is looking for a condo in a low - to mid-rise building around the new Transbay development, I toured two listings at the Embarcadero Lofts during Tuesday Brokers Tour. A historic building conversion designed by noted architect Frederick H. Meyer, done with style and an attention to detail, both units are on the 6th floor penthouse level with large patios.

Unit #611, 2 bedroom/2.5 bath on two levels, approx. 1,800 sq. ft.



Listing courtesy: Jaime Vigil, Alain Pinel Realtors

Unit #609,, also 2 bedroom/2.5 bath on two levels, approx 1,800 sq. ft.



Listing courtesy: Barbara Callan, McGuire Real Estate

In general, it is a well done conversion with character and class. A good alternative to those who love the convenience of the location (two short blocks to the Embarcadero and the new high-speed rail which will take you from your front door to L.A. in under 3 hours), yet prefer a smaller, more intimate building. Will most likely be surrounded by spectacular new high rise buildings in the next 5 years.

Note: There is a third unit on the market as well, on the 4th floor, for the same price (all three listed at $1,395,000). It wasn't open on Tuesday Tour so I have no feedback to report this week. Stay tuned...

Dow closes with best month in 6 years

Tepid signs of recovery or dead cat bounce?

For the first time in 17 months, the bulls have credible ammunition for stocks: There are tentative signs of stabilization in the U.S. economy and banking system. The bulls face their own stress test in April, however, as results of the Treasury Department's banking review or corporate first- quarter profit reports could wipe out recent gains.

The Dow was recently up 84 points, or 1.1%, at 7606. The Dow is up about 8% for the month to date, its best gain since October 2002, which turned out to be the bottom of the last bear market.

Helping the Dow, which was down 254 points Monday, was a gain for all of the blue-chip measure's financial companies. Also, shares of Microsoft were up 5.4% to $18.43 after an analyst upgrade citing improving personal computer demand in the U.S. and China. Shares of PC maker Hewlett-Packard Co., another Dow component, rose 0.5% to $32.28.

ARTICLE: MARKETWATCH

New plans (again) for proposed high rise at Golden Gateway Tennis and Swim Club

The design and compromise process continues, with the latest being

...a new design from Skidmore Owings & Merrill, the property’s latest developer, San Francisco Waterfront Partners, is betting that a combination of 28,000 square feet of public green space and much needed public parking will prevail over the opposition from 1,600 passionate club members and some residents.

The latest proposal combines the club and the port-owned Seawall Lot 351, giving SFWP room to build between 140 and 170 housing units as well as a fairly large park with a restaurant and café. Tennis would be scaled back from nine to four courts and the swimming pools would be moved on top of a building occupied by both the restaurant and club facility.

ARTICLE: BIZ JOURNAL

Statistics on investment and second homes

For those of you looking for a pied-a-terre in San Francisco's real estate market, here's some information on the state of the sector, nationwide:

The number of people buying vacation and investment homes fell 30 percent last year, according to the National Association of Realtors.

But, those who are buying are doing so with cash – with more than four out of 10 investment buyers and more than three in 10 vacation home buyers coming to the table with money up front. ...

The market share of homes purchased for investment was 21 percent last year, unchanged from 2007, while an additional 9 percent were vacation homes, down from a 12 percent market share in 2007, according to NAR.

ARTICLE: BIZ JOURNAL

Construction progress at One Hawthorne

One of the only new developments under construction at this time, One Hawthorne is rising from the ground and has poured just under 50% of the floor plates.

Today:


Proposed:


COURTESY: SOCKETSITE

78% of first time homebuyers say now is a good time to buy

According to a survey commissioned by Century 21:

The survey found that more than three-quarters (78%) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy. Out of the 1,000 prospective U.S. first-time home buyers ... 68% think now is a better time to buy than six months ago.

Prices are the driving motivation for potential first-time home buyers with more than eight out of ten first-time home buyers (85%) saying they consider current home prices affordable and 73% citing that taking advantage of current prices is a major factor in their decision to buy.

Interestingly, potential first-time buyers are still split between “being willing to consider an offer now” (42%) and “waiting for prices to go down before they seriously consider making a purchase” (48%).

ARTICLE: RISMEDIA.COM

Commentary: More public input for 1st and Folsom project, says King

John King, of the San Francisco Chronicle, weighs in this week on the behind-the-scenes planning surrounding the proposed development project at 1st and Folsom Streets.

Now there's another competition just two blocks away, the grand prize a site with room for a 60-story tower at a major entrance to the Financial District. But only three teams bothered to respond - and the way the rules are currently written, the public won't be allowed to glimpse any of the proposals until the city selects a winner.

What's different this time is that the sale of public land doesn't include a scenario where the public can glimpse the competing visions.

Instead, a staff report this month shrugs that "the details of the proposals, including the concept designs ... will remain confidential until a recommendation of a development team is forwarded to the (redevelopment) Commission for exclusive negotiations."

ARTICLE: SAN FRANCISCO CHRONICLE

San Francisco ranks #6 globally for real estate investment

According to a survery conducted by the Association of Foreign Investors in Real Estate, San Francisco ranks sixth worldwide for investment opportunities:

"For the U.S. and U.K., part of it is flying back to safety," says François Ortalo-Magne, a real estate professor at the Wisconsin School of Business. " For China and India, there's a sense that we went there and tried it, but it wasn't producing."

That makes 2009 the year of playing it safe and not chasing exotic opportunities in far-flung locations. It's even injected a sense of humility into the investing world...

For their part, the optimists think 2009 might be the year that sideline money starts to come back into the marketplace -- and, especially for the cities on this list, it will come back in a flood, not a trickle.

"There's a lot of money that needs to be invested," says François Ortalo-Magne. "The instant people feel an inkling of a turnaround, money is going to flow in."

ARTICLE: FORBES VIA CANADA.COM

30 yr fixed rates at record lows

Rates on long term mortgages continue to fall:

Interest rates on 30-year mortgages dropped to the lowest level on record this week, adding another incentive for home buyers to leap back into the market.

Mortgage giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages fell to 4.85 percent, down from 4.98 percent last week. That's the lowest in the 38-year history of the company's survey. It's also nearly 2 percentage points off last year's peak of 6.63 percent, amounting to consumer savings of about $225 per month on a $200,000 loan.

Rates have marched steadily downward, in lockstep behind bond yields, since the Federal Reserve announced last week it would pump more than $1 trillion into the economy by buying up long-term Treasury notes and mortgage-backed securities.

ARTICLE: SF CHRON

Renters becoming owners in down real estate market

You go, Kate!

After six years of renting in San Francisco, Kate Wilusz jumped at the chance to swap her tiny apartment for a roomy four-bedroom Victorian home. But she is paying a mortgage instead of rent -- and coming out even.

In some U.S. markets, prices appear to have fallen enough to make buying cheaper than renting. Mix that with mortgage rates that are near record lows and renters who want to become buyers are rejoicing.

"The U.S. government is helping bail out those who bought at the top, but I got my own personal stimulus package through falling home prices and low interest rates on mortgages," said Wilusz, who works at Ameriprise Financial.

Now tell us where we can find a 4-bedroom Victorian SFR and have a mortgage less than your rent (were you moving from Pac Heights to Hunters Point?!)...

ARTICLE: REUTERS

Commercial real estate to fall additional 30%, according to Soros

Not good news for developers:

Billionaire investor George Soros said U.S. commercial real estate will probably drop at least 30 percent in value, causing further strains on banks.

“Commercial real estate has not yet fallen in value,” Soros, speaking at a forum in Washington, said. “It is inevitable, it is written, everybody knows it, there are already some transactions which reflect and anticipate it, so we know, they will drop at least 30 percent.”

U.S. commercial real estate values have fallen 30 percent from the 2007 peak as cheap financing disappeared and the recession reduced occupancies, RREFF, the real estate investment unit of Deutsche Bank AG, said yesterday in its 2009 forecast. Total returns in a commercial property index used by pension funds may decline as much as 11 percent this year, the group said.

Bad news for developers could mean good news for buyers. More desperation in the executive suites may lead to better deals in the sales offices.

ARTICLE: BLOOMBERG

FDIC: Focus of PPIP to be residential, commercial real estate

Real estate loans to be main focus of Public-Private Investment Program:

The PPIP, introduced by the U.S. Treasury Department Monday, is designed to help banks to rid themselves of loans that hurt their operations and capital. The program will give guarantees and some leverage to private investors to buy such loans.

Real estate is where the biggest problem lies, the FDIC said during a conference call, and therefore the program will focus on those areas first, but could later include other consumer and commercial loans.

ARTICLE: WSJ

Housing news: Home sales up 83% in California

California leading the housing rebound:

The number of homes sold in California rose 83 percent in February compared with last year, as the median existing home price dropped 41 percent, according to the California Association of Realtors.

In the Bay Area as a whole, prices were down 43.5 percent while sales were up 30.3 percent.

“Home sales in California continue to be considerably stronger than the nationwide sales figures,” said association president James Liptak, in a news release Wednesday. “The market will continue to register large, but diminishing year-to-year percentage gains in the coming months, as current sales are compared against the extremely low numbers that prevailed during the early months of the credit crunch.”


ARTICLE: BIZ JOURNAL

Housing news: February resale and new construction housing numbers up

Continuing a week of good economic news:

...the Commerce Department said sales of newly built U.S. homes rose 4.7 percent to a 337,000 annual pace, the fastest increase since last April, from 322,000 in January.

"This completes a trifecta of positive housing reports for February. A sustained increase in housing demand would be the best tonic for the credit crisis and a major sign that the worst of the recession is behind us," said Sal Guatieri, an economist at BMO Capital Markets in Toronto.

Sales of previously owned homes rose 5.1 percent in February, while housing starts soared 22.2 percent that month.

ARTICLE: REUTERS

Economic news: Banks shares soar on toxic asset, home sales news

Nascent signs of recovery continue for third week in a row:

Shares of the country's largest banks, which have been pounded in recent weeks over concerns about their ability to weather the crisis, soared on Monday. Citigroup jumped 19.5 percent, and Bank of America added 26 percent. Even banks seen as being on better footing posted big advances. J.P. Morgan Chase rose 25 percent, while Wells Fargo rose 24 percent.

Investors were also encouraged by the rise in existing home sales as first-time buyers pounced on deep discounts of foreclosures and other distressed properties.

ARTICLE: WASHINGTON POST

Economic news: Existing home sales increase more than expected

When was the last time we saw a forecast that over-delivers?

The pace of sales of existing home in the U.S. rose 5.1 percent in February to a 4.72 million-unit annual rate, rebounding from the previous month's drop, while home prices fell again, the National Association of Realtors said on Monday.

Economists polled by Reuters were expecting home resales to slip to a 4.45 million-unit pace, from the 4.49 million rate initially reported for January, which was unrevised. February's sales increase was the largest since July 2003.

ARTICLE: CNBC

Jumbo loans poised for a come back

Lenders appear to be ready to re-enter the jumbo loan market, after almost 6 months of being AWOL. And with rates rumored to start in the high 5's, they will be priced much more competitively now.

Article from San Francisco Chronicle

Good news if you're interested in one of my High Falutin' properties!

One Rincon Hill finally gets it...

After lagging behind the competition for months, One Rincon Hill finally saw the light and lowered their prices. "Over 20% discount on many new homes", according to Socketsite.

After almost 3 years on the market and significant price increases in that period, new buyers should not be paying more than stated on the original price list back from Summer 2006. Especially considering prices are down 15-20% across San Francisco, to 2005 prices.

If you're considering purchasing at One Rincon Hill, contact me to make sure you're getting the best deal possible. After years in management with the same sale and marketing firm, my insider connections will assure you're taken care of.

Fed to buy $1.25 Trillion in mortgages

The Fed announced that they will be purchasing $1.25 Trillion worth of mortgages from Fannie Mae and Freddie Mac, in an effort to further lower interest rates and take additional loans off the books.

Add this on top of a record low 4.89% for a 30 year fixed set last week (conforming loans, presumably) and yet another piece of the real estate recovery is now in place.

Eminent death of the curtain wall?

One of my colleagues, Sean Sullivan, and I were talking last week about curtain walls used in most new construction high rise buildings. For those unfamiliar with a curtain wall, it is the term used to describe the floor-to-ceiling windows making up the walls of these buildings, which do not carry any load aside from their own weight.

The conversation turned when Sean, an architect major in college, mentioned that these curtain walls will not be allowed under new green building codes in California. Apparently they are not energy efficient enough to meet the new standards, referred to as Title 24.

What does this mean for buyers and sellers of properties using this technology, such as the Millennium, Infinity, and One Rincon Hill? Well, the inherent value of these buildings will be increased since much of their appeal and value is in the unobstructed views all these floor-to-ceiling windows allow.

So unless engineers and architects come up with a energy efficient solution, we may be looking at the end of this post-millennial architectural design feature in California (and smaller windows).

Buy a new condo, get $8,000.00

Thank you President Obama.

As part of the Obama Administration's housing stimulus package, purchasers of homes which have never been occupied (new construction buildings included) will receive a $8,000 tax credit. As such, this credit equates to an $8,000 across the board deduction of taxes owed.

Click this link to learn more about the credit, provided by the National Association of Home Builders.

Add this on top of deals being offered by developers that haven't been seen in decades (HOA dues, upgrade allowances, and price reductions), and it's looking more and more like a great time to buy your new home.

Call or email me to discuss the best deals in new construction. As the only real estate broker in San Francisco accredited by the National Association of Home Builders as a Certified New Home Sales Professional and Certified New Home Marketing Professional, I have the knowledge and experience you need to navigate the world of new construction.

Remember: the sales office works for the developer...I work for you.

Image courtesy Inside SF Real Estate

Economic news: Housing starts jump 22.2% in February

According to the Commerce Department, new housing starts surged 22.2% in February, the first increase since April 2008. It was also the largest increase since January 1990 (the last time we had a major housing downturn).

Certainly welcome news for the housing industry.

REUTERS LINK

Video of KPIX report 3.11.09

Are we finally at the bottom? Will we start climbing again from here?

We'll probably look back on February as the turning point.

Is it too late to get the best deals? Maybe, but don't delay. Time is of the essence. Call me now to kick your search into high gear.

KPIX Link

"High Falutin": $3,000,000+ Club

Today's "High Falutin" search shows 16 listings over $3,000,000 in the downtown area (from Pacific Heights, through Russian Hill and Nob Hill, to Market Street and SoMa).

Here are the statistics:

Average bedroom/bathroom count: 3/3.13
Average size: 2,684 square feet
Average list price: $5,064,063
Average Days on Market: 69

The average list price is being skewed upwards by a listing at 2006 Washington Street #4


Excluding this trophy property, the average price drops to $4,568,333.

Some of my favorites are as follows:

1940 Vallejo St #8


611 Washington St #2402


1750 Taylor Street #1701

One thing they all have in common: views galore!

Call me to schedule an exclusive, private viewing of these High Falutant properties.

Great loft available - 346 1st St

Toured a great loft listing today at 346 1st St #301 , presented by Sean Sullivan and Bernie Katzmann, star agents at Herth.

With just over 1,500 square feet, this 2 bed/2 bath loft features a HUGE terrace with partial downtown views.



Super convenient freeway access (on and off the bridge in 1 minute) makes this the perfect place for someone working in the East Bay, at a price way less than some newer buildings, for more space.

Located directly across the street from the Metropolitan, this is a great alternative for someone looking for the charm of a loft.

Call me to schedule a private viewing.

Newsworthy: Watch KPIX Wednesday, March 11, 6pm

Hank Plante, newsman extraordinaire, will present a segment tomorrow, Wednesday March 11, at 6pm, on the positive side of the real estate market in San Francisco.

Specifically, Hank will be highlighting an Herth listing which just closed escrow. The listing was 523 Mangels Ave. Listed at $660,000, the home closed escrow at $705,000, with 12(!!) offers presented.



Tune in!

Baseball season starts by COE!

The 2009 baseball season is right around the corner, so I thought we'd visit 88 King St and see what's on the market. In case you aren't familiar, 88 King St is right across the street from AT&T Park, home of the San Francisco Giants.

As of 3.9.09, there are 5 active listings. They are as follows:


88 King St. #412 2/2 $748,000


88 King St #1304 2/2 $1,275,000


88 King St #1319 2/2 $1,345,000


88 King St #1305 3/2 $1,495,000 - New listing as of 3.4.09

88 King St #809 2/2 $998,000
(no interior photos available; after 43 days on market, and still no photos, me thinks this one will be around for awhile)

Call me to schedule a private viewing of any and all these 88 King St listings

Beautifully redone TIC's on Nob Hill

Remodeled TIC units on Clay St at Hyde now available. Tastefully designed with nice finishes.

And like the previous Nob Hill listing, the prices have also been reduced. Now starting at $499,000, up to $589,000 for the top unit with views and the right to construct a roof-top deck.

Courtesy: Paragon Real Estate Group - Tim Johnson

Contact me for a private viewing, at your convenience.

Big price reduction: 630 Mason St #301 at Bush St

Stylish two bedroom / two bathroom co-op, approx 1490 sq ft., now a great price at $729,000 (down $60,000 in 30 days).

A perfect example of Beaux-Arts living on Nob Hill. 

Call me for a private viewing.

Courtesy: MLS Listing #352212

Today's "Highly Perceptive": The Californian on Rincon Hill, now Echelon on Rincon Hill??

Our "Highly Perceptive" eyes came across an interesting twist in the fate of The Californian, Fifield's proposed development on Rincon Hill. 

According to the residential section of their home page , the project is now called Echelon on Rincon Hill. Outdated information still states "Construction and sales will begin in 2008", but project text now says "ultra luxury apartment tower". Slip of the tongue? Misunderstanding of semantics?  Your comments welcome, as usual. 

In addition, the previous link to The Californian is now dead

Our San Francisco real estate market...ever evolving. 

Image courtesy Socketsite

Today's "Highly Connected" Insider Tip

Today's "Highly Connected" Insider Tip comes from our source at the Infinity, one of San Francisco's premier new addresses, designed by Arquitectonica (from Miami) and developed by Tishman Speyers.

According to our source, "30 units sold in 30 days". 

Wishful thinking? Buyers taking advantage of seller deals and incentives? Pent-up demand for Tower 2? Post your thoughts in the comments.

With views like those above, my guess is it's a little bit of the last two choices.

Another one bites the dust...

Image courtesy SF Curbed

This time, it's the Argenta (One Polk St). We already knew Anka Development was looking to sell the property (to Archstone-Smith, last time we heard), but now comes word they will keep the building in their portfolio and hire a management company to handle rentals. The for-sale housing stock, it just keeps shrinking.

Ah, crikey...

Sorry mates! First San Diego, now SF...can't an Aussie catch a break??

State of new construction sales in San Francisco real estate

Informative article in this weeks San Francisco Business Times regarding new construction real estate sales in the city. Specifically, it talks about new commercial lender guidelines causing developers to offer units at "below market", according to Lynn Bell of Lennar Urban. 

STORY

Email or call me to discuss what this means for you, the prospective buyer of new construction condos in San Francisco. Great deals are available across the city.