One Rincon Hill: Tower One on 10/21/07
The groundbreaking for One Rincon Hill tower two is officially scheduled (and has now been publicly announced) for late January 2008. And sales of the 319 condos in tower two will likely commence around May/June.
With regard to tower one (which is sporting its new water tower and partial crown above), a couple of high floor units have in fact returned to the market including #5902 (perhaps the one to which a plugged-in reader alluded) and #5503 which will more or less offer the panoramic view of San Francisco and beyond below (asking $2,650,000):
One Rincon Hill: View north from the 55th Floor
And yes, as we reported in August, the first wave of closings and move-ins for tower one (floors 8-27) are expected to commence in January (or possibly early February), with floors 28-60 and the townhomes following later in the year (likely around August/September).
Oh, and those 30-year Rincon Hill bonds? We’ve been told they’re actually being offered by the developers of Rincon Towers (and not One Rincon Hill).
One Rincon Hill: Now Accepting Online Registrations For Tower Two [SocketSite]
One Rincon Hill: An Unofficial Update On The Timing Of The Two Towers [SocketSite]
Rincon Towers: From Apartments, To Condos, To Apartments [SocketSite]

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Comments from “Plugged-In” Readers

  1. Posted by SFhighrise

    Looks like all of the Rincon Hill naysayers are going to be eating their own words. In addition, check out this job posting by Turnberry: http://www.jobsininglewood.com/jobs….N7Q88B0A9N2W9D
    Looks like 45 Lansing is about to start construction as well.
    It should only be a matter of time before the Californian is sold and another developer begins the construction on that site as well.

  2. Posted by anon

    45 Lansing has looked that way for many months. I’ll believe it is going forward once construction actually starts!

  3. Posted by rincon

    I’m glad they finally put out some “official” dates. Future residents of Rincon Hill are going to have several interesting and excellent choices by the time next summer rolls around. Rincon 2, Infinity 2, Millennium, and Turnberry could all be selling at the same time. Can San Francisco/Rincon Hill absorb the inventory of luxury product that will finally hit the market?

  4. Posted by tom

    I wonder when the Infinity will make it’s anouncement re dates that will likely include a delay as to move in for tower one. I only say that because there is no way Tower 1 can be on schedule.
    I walked by yesterday and Tower 2 is at 17 floors. At 1 floor every 5 days that is about 150 days to be topped out and then they still need to finish the curtainwall and take down the crane; something that took well over two months on Tower 1. So, I figure first move in for Tower 1 will not be for at least 210 days or until after April.
    [Editor's Note: The Infinity: The “Official” Dates And Update (8/24/07)]

  5. Posted by Amen Corner

    “Looks like all of the Rincon Hill naysayers are going to be eating their own words.”
    Wouldn’t [the] naysayers who are bubble-believers want these projects to go ahead in order to add inventory?

  6. Posted by SFhighrise

    “Wouldn’t be naysayers who are bubble-believers want these projects to go ahead in order to add inventory?”
    Yes, but in this city, provincialism often trumps logic.

  7. Posted by Mike

    Looks like all of the Rincon Hill naysayers are going to be eating their own words.
    I think most of the naysayers (myself included) think it’s an ugly building in a terrible location. Not sure how that changes if tower 2 goes up.

  8. Posted by anony

    “‘Looks like all of the Rincon Hill naysayers are going to be eating their own words.”
    Back in June 2006, the sales office quoted that sales and construction for the 2nd tower will commence in winter/spring 07. Why the one year delay? Could it be that they don’t see the demand? Or is the developer’s much rumored financial difficulty true? Or BOTH?
    I’ll believe in the 2nd tower when it gets built. For now they’re probably gauging the market and reserves the right to postponed and/or cancel..

  9. Posted by sanfranvalues

    OMG!!! The city is doomed !!! The Rincon Hill Neighborhood is in limbo! The SF market is going into a depression! Run for your lives everyone !!!

  10. Posted by tipster

    Of course the project will get built: the developer already owns the land, which is now a sunk cost. If his build costs are $450 psf, as long as he can sell for more than $450 psf, minus the carrying costs of the land, the developer is better off building than not building.
    The only issue is whether the developer really dumps this many units on the market, or rents them out. And what the effects on the market will be. I am of course rooting for ALL projects to get built. Lack of demand has NEVER stopped a developer from building, once they owned the land. Look at all the auctions going on across America, and stories of people who bought in an initial phase, only to be undercut, in some cases, severely, by the builder in another phase.
    400 Beale Street 1501, with bay views, though not panoramic, and two blocks from the Infinity, and two blocks from 1RH is still on the market for under $800 psf. So that gives me an indication of how strong the demand for something similar is. Yet Infinity and 1RH continue to build because they own the land. They know they can undercut $800 psf easily.

  11. Posted by phatty

    “I wonder when the Infinity will make it’s anouncement re dates that will likely include a delay as to move in for tower one. I only say that because there is no way Tower 1 can be on schedule.”
    ? Building looks pretty done to me – what’s your reasoning behind this prediction?

  12. Posted by Anna

    If anybody should be eating their words it’s “grrr” and “anon”. What happened to “tony” and his girlfriend being liars about their friend walking away from a penthouse?

  13. Posted by ex SF-er

    tipster:
    one small change in your reasoning:
    ORH tower 2 will get built so long as the company can get financing for operational costs (either from within or from a bank)
    anyone see BofA and Well’s results this month, not to mention Citi?
    Many banks are themselves in trouble… hence the M-LEC, or the so called “super SIV”. lenders are thus reluctant to lend on many condo towers…
    I have no idea about ORH and their funding… they may be secure… anyone know?

  14. Posted by missionbayres

    “a couple of high floor units have in fact returned to the market including #5902 (perhaps the one to which a plugged-in reader alluded) and #5503 which will more or less offer the panoramic view of San Francisco and beyond below (asking $2,650,000)”
    Are these buyers looking to assign their contracts? Or do these units belong to the developer?
    With all the negative publicity coming out regarding Rincon Hill and the market in general I wonder if there’s any demand for a 2nd tower. Especially if we start seeing more and more Tower I buyers backing out…
    Regarding Infinity, first move-ins for Building C (treetops) is around March (pushed back from Feb).
    The tower will start closing in April, possibly May. Sales for it’s 2nd tower will start sometime in spring. They is already a substantial waiting list for the premium view units.

  15. Posted by RinconHill_Res

    “Are these buyers looking to assign their contracts? Or do these units belong to the developer?
    With all the negative publicity coming out regarding Rincon Hill and the market in general I wonder if there’s any demand for a 2nd tower. Especially if we start seeing more and more Tower I buyers backing out…
    Regarding Infinity, first move-ins for Building C (treetops) is around March (pushed back from Feb).
    The tower will start closing in April, possibly May. Sales for it’s 2nd tower will start sometime in spring. They is already a substantial waiting list for the premium view units.”
    The subtle objectivity of missionbayres is refreshing.

  16. Posted by james

    the fact that only a few folks are backing out of tower 1 is a real testament to the strength of our market. i’m impressed!

  17. Posted by tipster

    Really MissionBayRes? There is already a substantial waiting list for the view units?
    That’s shocking (sarcasm), given that the cost of being on the waitlist is zero and the risk of loss to people on the waitlist is also zero. What did your economics class tell you would happen if you price something at zero. When the price goes up to something north of 900 psf, and you have to risk 3%, we’ll see how much of the waitlist sticks around.

  18. Posted by Dude

    I’ve never understood this “building rivalry,” or why ORH is so widely maligned here on SocketSite. I think it’s a great-looking building and would definitely consider buying here at the right price (obviously not on the freeway side, though). Fingers crossed that they break ground on #2 soon.

  19. Posted by Larry

    They’ve had those units up for sale for quite some time on the reserve list. Nobody has touched them.

  20. Posted by Miles

    Sorry Tipster, way off. The land cost does not disappear just because it’s already been purchased – they need to make a profit on that line item expense too in order to stay in business. Either that or they could sell it and recoup their cost. So let’s review all the elements that go into a high rise development, shall we: land cost + hard costs + soft costs + selling costs + time value of money over the approval/construction/sellout + developer’s profit. There are a lot more factors that go into these than just the hard costs and land costs.

  21. Posted by tony

    “a couple of high floor units have in fact returned to the market including #5902 (perhaps the one to which a plugged-in reader alluded) and #5503 which will more or less offer the panoramic view of San Francisco and beyond below (asking $2,650,000)”
    Not appropriate for me to provide more detail in this particular situation, but I appreciate the above comment and will refer back to this post the next time I’m accused of lying or “making things up”. ;-)
    In hindsight, I recognize that people who have bought into this (or any) project have a serious financial stake and don’t want some random Joe fueling market uncertainty around their investment (and will thus try to provide more detail/evidence). At the same time, such people should realize that there are straight shooters out there who are “just reporting the news” without agenda or intent.
    Enough said (I hope). Peace all.

  22. Posted by ex SF-er

    “If anybody should be eating their words it’s “grrr” and “anon”. What happened to “tony” and his girlfriend being liars about their friend walking away from a penthouse?”
    ROFL. i was thinking the exact same thing.
    everyone will know the true demand for these towers once people actually move in.
    I have 3 friends moving in there, so far all still plan on moving in. that said, 2 of them are a little worried about financing. they could barely make the payments using the loan they qualified for pre-”credit crunch”
    but it sure will be fun to jawbone each other until that happens, YEARS from now!!!! :)

  23. Posted by steve

    Re: “400 Beale Street 1501, with bay views, though not panoramic, and two blocks from the Infinity, and two blocks from 1RH is still on the market for under $800 psf. So that gives me an indication of how strong the demand for something similar is. Yet Infinity and 1RH continue to build because they own the land. They know they can undercut $800 psf easily.”
    400 Beale (Bridge View) has never been able to command a very high price because I think bridge noise is a major issue. When I was shopping for a unit, I was interested in the Bride View because of the location, the building and the price, but I was really bothered by the noise and potential dust problems from the bridge, so I went elsewhere.

  24. Posted by grrr

    Tony, mission bay res, etc. The idea that the developer is undergoing any “financial difficulty” is the lie (or is it slanderous? isn;t it time for bloggers to be more accountable for statements that would garner a lawsuit outside a blog??) — everyone in the biz knows they are doing quite well (do the math, they pre-sold 98% of an entire building!). More likely, that statement is “projection” from the person (you?) who fell out of contract and lost their deposit. Idiot. From what I hear that penthouse will snapped up real soon — and lookie, they are asking S2.65 — correct me if I’m wrong, but I believe that’s way more than when it first came on the market.

  25. Posted by Jamie

    Here’s my obligatory comment on a Rincon Hill related thread. :)
    Things are looking up with this news.

  26. Posted by anony

    grrr,
    Calling anyone an idiot gives you very little credibility, and in fact, makes you look like an a**hole.
    The is a BLOG, pure entertainment to most people so chill out with the personal attacks.

  27. Posted by anon

    I personally enjoyed Grrr’s comments. Keep ‘em coming! This is entertainment after all. If you don’l like it, change the channel.

  28. Posted by grrr

    anony
    you have spread two blatently false statements in your previous statement — that constitutes a**hole. I got the One Rincon newsletter. I;ve seen their info. They never said winter/spring 2007 for the 2nd tower — at any point. Once I saw Dec. 2007, but who cares….they pushed it a month so they can open their Xmas presents?!! Big whup.
    And the blog should indeed be entertaining — not sensational and defaming. I want to learn about new projects, the inside scoop, fun bits, hear opinions not tainted by hidden agendas, see cool pix of condos that I haven’t seen or have no time to get to visit, etc.. I don’t need to read a sales pitch, or stuff that people know is wrong or is only there to goad. If you wouldn;t dare say it in public because you know it’s BS, then you shouldn;t be sharing it here under “anony.”

  29. Posted by diemos

    Ah grrr,
    And you should know better than to claim that collecting a 3% deposit is the same as selling the unit. The unit is sold when it closes, not before. Talk about blatently false statements.

  30. Posted by anon

    “And you should know better than to claim that collecting a 3% deposit is the same as selling the unit. The unit is sold when it closes, not before. Talk about blatently false statements.”
    Sure, you are correct that collecting a 3% deposit on 98% of the units is not the same as selling the units but it is still indicative of the strenght of the project. If you say it does not mean a thing for One Rincon, then it does not mean a thing for any of the other developments including the Infinity that took deposits either.

  31. Posted by anon

    “Makes no sense why they’re doing this so early other than to gauge the interest in a second tower. They haven’t even broken ground yet so it’ll be interesting to see if they build at all…”
    I bet those words tasted good missionbay res!

  32. Posted by diemos

    Yup anon 4:06, every development that took deposits before the credit tightening will be in the same sinking boat once it becomes time to close.

  33. Posted by anon

    “Yup anon 4:06, every development that took deposits before the credit tightening will be in the same sinking boat once it becomes time to close.”
    Yes, it is harder to find financing now, but I just got mine through Bofa. 30 year fixed @ 5.875% which is not so bad. I have also heard from my friends at Wells and Bofa that there aren’t many people falling through on these developments. We’ll surely know in the next two months!

  34. Posted by missionbay res

    “”Makes no sense why they’re doing this so early other than to gauge the interest in a second tower. They haven’t even broken ground yet so it’ll be interesting to see if they build at all…”
    I bet those words tasted good missionbay res!”
    Hehe, I’m not sure if this is sarcasm, a negative comment or positive or what. But a simple newsletter doesn’t mean anything to me. Let’s see them BREAK GROUND. Then we’ll all be happy ;-)
    Now I did talk to sales at Rincon a couple days ago. His name was Matt or Mark (I forget). But he did say they will break ground January or “sometime later”. Not sure why he included “sometime later”. Maybe to protect themselves?

  35. Posted by missionbay res

    “Yes, it is harder to find financing now, but I just got mine through Bofa. 30 year fixed @ 5.875% which is not so bad. I have also heard from my friends at Wells and Bofa that there aren’t many people falling through on these developments. We’ll surely know in the next two months!”
    Jumbo rates have come down the last couple weeks. In Aug/Sept, then were a good 1-2 points higher than conforming loans. Now my broker can get me a 30yr jumbo at 6.25% and a 5/1 under 6%. It’s close to the pre-meltdown days and may go down further in the coming months. So basically, if you have good credit and 10-20% down, money is still easy to get…

  36. Posted by RinconHill_Res

    “Now I did talk to sales at Rincon a couple days ago. His name was Matt or Mark (I forget). But he did say they will break ground January or “sometime later”. Not sure why he included “sometime later”. Maybe to protect themselves?”
    You must have talked to “Matt.” And, of course it was to protect them. Last time I checked, I happened to notice that we live in a somewhat litigious society, and particularly here in CA.
    Kid didn’t get straight A’s? Go ahead and sue……Dry cleaners ruined a pair of $100 pants?….Go ahead and sue, for a $1MM no less.

  37. Posted by anony

    Grrr,
    Did you read my post or just skimmed over it? If you read it carefully you’ll see I started with: “the sales office quoted that…”, and “much rumored…”.
    The salesperson by the way was Matt (I think, or another caucasian salesperson).
    So how is that spreading blatantly false statements? And if you read Socketsite (and I think you do) or any other blogs, people regularly post what they know, feel, and hear, so why does any of it have to be substantiated? And why call anyone (tony, missionbay, etc) Idiots for just making some post and sharing their experience and opinions??

  38. Posted by james

    can someone clarify the developer cashing in process? i was under the impression that until they real close/possession of the property, the developer only gets your deposit. so they have to finance this project until they sell, not contract, every single unit in both towers. is that correct?

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