November 20, 2008
The SocketSite Scoop And Rumor Confirmed: Artani Suspending Sales
From a reader's rumor last month, to a plugged-in tipster's confirmation today:
The developer of [The Artani] is temporarily suspending sales and will continue to offer these units as rentals. It will be public information soon enough but I'd appreciate it if you kept my name and email anonymous.
Done. And now who's next?
First Published: November 20, 2008 4:00 PM
Comments from "Plugged In" Readers
Anyone knows the original $/sf they expected? And how much do they want to rent these?
In any case, I hope they price them right and not at "luxury wish prices". There are too many overpriced "failed condo sales/resales gone rental" on Craigslist.
[Editor's Note: Original asking prices: The Artani (818 Van Ness) Opens And A Plugged-In Reader Reports.]
Posted by: San FronziScheme at November 20, 2008 4:21 PM
Did anyone close on one? I assume no if the building is going rental...
Posted by: Ryan at November 20, 2008 4:27 PM
1BR for $2450:
1Br+Den for $2550: http://sfbay.craigslist.org/sfc/apa/927556092.html
2BR with "corner views" for $3k:
And interestingly, they're spamming CL by cross-listing as Downtown/Civic/Van Ness (which seems right) AND Nob Hill AND Hayes Valley AND Financial District AND Pac Heights (!!!).
Posted by: PRFB at November 20, 2008 4:28 PM
Do I win a prize for such insider information ;)
Posted by: Tall Guy at November 20, 2008 4:30 PM
Give them credit where it's due - at least the asking rents seem reasonable and on par with today's market. Unlike the specuvestors at ORH and Infinity, hoping somebody pays $7K for a 2-bedroom.
Posted by: Dude at November 20, 2008 4:44 PM
They may get those rates. Nevertheless, to forgo sales for these (relatively) low rents, they must have been getting absolutely no offers and their market analysis must have shown they could ever only hope to fetch a fraction of their asking price. Just cutting losses and damage control at this point.
Posted by: Trip at November 20, 2008 4:59 PM
PRFB, great job.
These rates are a bit steep for this part of Van Ness. The TL is too close to make this a premium neighborhood.
Posted by: San FronziScheme at November 20, 2008 5:20 PM
These are actually cheaper than Fox Plaza which is asking $2,860 for a 675 sq ft 1 Br. I would assume that the units at the Artani are much nicer while the neighborhood is comparable. I'm guessing they want to get people in before the end of the year (when I think the massive layoffs will begin) and rents start to taper off next year - but that's purely supposition on my part.
Posted by: pica1986 at November 20, 2008 5:29 PM
Keep increasing the rental supply!
Bad news for all those accidental condo landlords who traded up from their "starter" places and kept the old one as a rental "investment".
Posted by: Laughing Millionaire Renter in Marin at November 20, 2008 5:44 PM
The fact is that these buildings are not an enticement to buyer except during the bubble. Without a bubble, they are little more than housing projects at a midwestern mansion price. SF has finally woken up to its dilemma. Who wants to spend a fortune to live in a nest of crack heads and homeless drifters? Its an insult, and the market has responded appropriately.
Posted by: Dave in SF at November 20, 2008 7:01 PM
OPINION OPINION OPINION: I really like this building! (From the outside)
Posted by: sf at November 20, 2008 7:12 PM
The Mercer in downtown Walnut Creek just suspended sales and will be renting units. We'd looked at them while over there a few months ago and had periodically received emails about reductions and other incentives. Got another email this week about the change.
2BD (approx 1200sf): $2560 - 2735/month
2BDw/DEN (approx 1400sf): $2760 - 2955/month
We actually liked the larger units which I believe were selling in the 800's at the time.
They were represented by the Mark Company and the development ream is Prometheus Real Estate Group.
Posted by: andyc at November 20, 2008 8:01 PM
Last month they were offering the 2bd at Artani for $4000. Apparently, they had as much success at that price as they did trying to sell them.
So now even the rentals are 33% off.
Posted by: tipster at November 20, 2008 8:10 PM
Here is another example of where rental rates in San Francisco are now going back closer to what I see in the more high density parts of Los Angeles and Chicago. A 1br + Den for $2500 a month is exactly what the rate is in a newer tower in the Lakeshore East neighborhood of Chicago or an "O.K." part of the Westside of L.A.
Posted by: anoninLincolnPark at November 20, 2008 8:24 PM
sf - But it is not TALL! How can you like it? I like it a lot too.
Posted by: flaneur at November 20, 2008 10:13 PM
Is there anything that prevents the developer from selling a few units and renting the others, or does it have to be all of the same? Or is the problem not with what the developer can do, but what the lenders will allow?
Posted by: SFCondo Guy at November 20, 2008 10:50 PM
There are many buildings in SF that are owner occupied and rented out, there is one on Bush and Taylor right off the top of my head.
Posted by: sf at November 20, 2008 11:49 PM
Last time I commented that I saw a rental for $2500 here SS shot me down and said I was not "factual."
Posted by: sf at November 21, 2008 1:39 AM
I agree with SF in that I had also posted about a condo across from a property I own in the Marina that was a 2bd that rented out for 2,900 a month and was called "not factual", and worse. Of course it was listed on CL for 3,800 a month, (at one point it was listed for $4,200) but I spoke with the owner who had trouble finding a reliable prospective tenant with good credit and no animals and no co-signers. There is a large spread in this city between what rentals are listed for and what they actually end up renting for.
Posted by: anon94123 at November 21, 2008 5:46 AM
Wow. Rents seem like a really good deal, especially for new construction.
Posted by: fountainhead at November 24, 2008 3:59 PM