A rundown of six condos at The Hayes (55 Page) that have closed escrow over the past couple of months suggests an average discount of around 13% from already reduced list prices at the beginning of the year. And discounts of up to 23% from peak:
∙ #426 (2/2) 993 sqft – listed for $799,000 on 5/13/08, sold for $612,000 (-23%)
∙ #513 (2/2) 1,037 sqft – listed for $719,000 on 12/4/08, sold for $630,500 (-12%)
∙ #312 (2/2) 1,008 sqft – listed for $775,000 on 12/4/08, sold for $670,000 (-14%)
∙ #824 (2/2) 1,023 sqft – listed for $799,000 on 1/6/09, sold for $685,000 (-14%)
∙ #811 (1/1) 646 sqft – listed for $585,000 on 1/6/09, sold for $525,000 (-10%)
∙ #311 (1/1) 646 sqft – listed for $525,000 on 2/13/09, sold for $510,000 (-3%)
That’s an average contract price of $640 per square foot for these two-bedrooms (versus $762 asking) and $801 per square for the one’s ($860 asking).
And as has been previously noted, the sales office is currenlty advertising “only 2 homes remaining” which includes #329 at $799,000 ($280,000/26% under its peak list).
∙ Listing: 55 Page #329 (2/2) 1,143 sqft – $799,000 [MLS]
I can’t believe this place only has 2 units left. Yes the location is ok but the interior units are lacking. I’ve toured this place twice. Once when they opened and later after the reductions and with the discounts, I thought you can get better deals in the City.
Really Shocking, only 2 units but it’s great for the entire development to have a building full of residents. Maybe SF will be immune from the 40% cuts if buildings like these are almost sold out?
I’ll give it to the Hayes developers and sales people. I believe this was one of the first developments to offer a “steep” discount from over-inflated list pricing. Other developments were slow to react and thus do not have a full house. Goodjob on this one Hayes management.
Must be all those 92.7 commercials.
Still amazing in this “recession” , even at $799K that is pretty expensive for what I guess is a 3rd floor unit and that size.
I’m pretty sure the reason why these went so fast was because people were trying to take advantage of the extra 10k state tax credit for buying new.
I am certain you can find better deals in the city, but I can see why first time home buyers or investors wouldn’t mind getting an extra 10k for buying here.
Don’t believe everything they tell you. I’ve seen a penthouse, it was nothing to write home about. These prices, even at 23% off, make ORH #2307 even more a spectacular deal.
FKA jj, now that jj is hijacked by someone else.
I think all the other new developments in town should take a lesson. Not many can say “only two units left” wonder what makes the Hayes so special…?
I think Ryan said it right, What makes the Hayes so special?
The posted prices above aren’t too far below realistic pre 10/2008 pricing. I was under the assumption that units here, Soma Grand, Arterra etc could be had for below $500k sub $450k, after reading all the post/bears on this on this site. $525k for a 650SF unit is nothing to sneeze at.
“525k for a 650SF unit is nothing to sneeze at.”
Exactly – at over 800 a square foot, you could easily get a D7 1 bedroom.
I e-mailed them last week to try to link the remaining units, identified by unit #, with the on-line floor plans, identified by letter designations.
They responded with 3 units remaining, I assume one has since sold:
#423 = Floor Plan A3 2/2 $699,00 947SF
#222 = Floor Plan V 2/2 $665,00 1124SF
#329 = Floor Plan P 2/2 $799,00 1143SF
Note that V and P are interior units, with all of your windows opening onto your enclosed patio or the east side of the building with development probable on the adjacent lot.
I go by on the way to work everyday and I like this building from the exterior, but as others have said, the interiors un-sell the place for me.
As previously stated, I had a deposit on an interior unit on the 5th floor (1 bdr/1 ba + den + parking) for $599,999 with a frig, etc. and 2 yrs-paid HOA. This was pre-construction pricing. After having the deposit for almost a year, I backed out due to their delays in construction and to a possibly company lay-off. This was all pre-bubble burst. I thought prices would have fallen a bit more at this development. I am still glad that I got out, b/c you can now get a 2/2 for $612,000 and probably could get it for $600,000.
Congrats to the Hayes for holding onto some fairly good pricing. I think many of the owners are going to have to hold on for quite a few years to retain their value, esp since the Octavia/Hayes project will more than likely be delayed due to the state of the economy.
Congrats to the Hayes, a development, which definitely understood econ 101.
I also immediately thought of the 92.7 commercials. Imagine the results if Greg the incredibly irritating- and- ashamed- to- be- Texan- gay sportscaster shamelessly promoted ORH over the months. The Hayes wins the PR race on this one.
I am absolutley shocked that people bought these units at these prices. really really shocked. You can buy a 2bd 2ba in much nicer areas for <700K.
All 6 of these people are now underwater. and sinking fast..
My husband and I weren’t impressed with the interiors either, but, to play devil’s advocate, we did like the low HOAs – no paying for luxuries like a clubhouse or outdoor hot tub we don’t want and wouldn’t use – and we like the location – hayes valley has alot more stores and restaurants within a block or 2 of the building compared to many of the new buildings in SOMA and it’s still easy to get downtown.
I live at 55 Page. redseca2 has correctly identified the remaining homes. Rather than try to address all the negative comments (they grow like trees on this site) I will answer the more thoughtful question “What makes The Hayes so special.” Obviously taste is subjective, but I wanted new construction in the middle of the city, on the Market corridor with easy access to 101 and the arts venues. That narrowed it down pretty fast.
Beyond that, the finished product is simply outstanding. Super insulation and soundproofing. I have a marble kitchen counter, Fino cabinets, a terrace to sun on, a gym on 2, and really nice roof deck, plus free HOA for two years. I have overall met nothing but nice, engaging, friendly people living here. I am really happy the development has done so well, and I’m not concerned about short term valuations. I plan to live here for the next 15-20 years, so let’s check back then.
At 5% interest, a 1/1 for 585K pays 2500 in interest, and about $600 in property tax, $200 HOA, and $200 insurance, so in the 33% tax bracket, you are looking at a payment of $2400. It’s probably higher than rentals but not by much. So I could see people paying that for a condo right now.
But more likely, based on the comments, and the fact that others aren’t selling, the developer set up a company to buy them from himself and rent them out. There is a listing on craigs list that has curious language for a rental: “All kitchens include …” That could imply more than one unit (or they could have just copied a sales brochure).
A developer who isn’t selling lots of units would be stupid to leave 100 of them idle while one a month sells. So you just buy them from yourself and rent them out. At the end of each year, you see who moves out and sell those off. If you think you can sell more than the number of lease terminations, you raise the rents a bit and get a few more to leave, while everyone else pays more. It wouldn’t be the first time that’s happened.
Don’t know if that’s happened here:
http://sfbay.craigslist.org/sfc/apa/1159982093.html
“$2900 / 1br – Motivated, MUST RENT – GREAT NEW PRICE, BEST VALUE IN HAYES VALLEY (hayes valley)”
All kitchens include: large stainless steel sink with Hansgrohe Interaktiv retractable sprayer faucet, stainless steel appliances from Whirlpool, and sleek bamboo flooring All baths include: Titan silver bathroom cabinets with granite countertops and bold designer sink and toilet by Philippe Starck for Duravit
Hardwood Floors, Designer Paint, Great Closet Space, Great Lighting, FURNISHED OR UNFURNISHED, Terms Negotiable, Private balconies and terraces available , Landscaped roof deck , Huge bay windows , State-of-the-art private fitness center , Private garage parking , High speed elevators , On-site shopping , Elegant, two-story, stone and wood lobby by Lorenz Interior Design, Lobby attendant
Climb Real Estate Group
As for the $10,000 CA credit for purchasing a new home, that’s turning out to be for people who are bad at math. It’s a $3333 credit for 3 years, and if, because of the mortgage deduction, you don’t owe more than that much in taxes per year, you don’t get the full amount of the credit: you just get to reduce your taxes to zero. You can’t carry unused portions forward or back. The state is finding that the average person who applies for it is only going to realize under $5000 in savings on their taxes.
Wonder why the HOAs here are under 500 and the HOAs at BLU are over 700? Anyone know?
Congrats on your new home ebayj! If I were in the market all the points that you mention would matter to me. I think its a great location and its not too big….
Not sure why HOA’s are that much higher at BLU, They have a 24hr doorman I think the Hayes has 12hr. Maybe BLU is planning to have a bigger reserve and or Hayes will go up in a year or so !! Not sure would love to know also why BLU is sooooo expensive HOA’s.
I think part of the reason the Hayes sold out is because it’s one of the few options for legitimately new units in this neighborhood. SOMA is full of places like this but if you want to live in Hayes Valley, Mission, Castro, Lower Haight etc. and have a place that’s brand new and this size, you’re probably out of luck… it’s mostly Vics and conversions. That’s really what makes it a bit different, it’s location and proximity to stuff compared to similar developments.
Yes, Jason, good point. Probably the same reason why the only similar Mission development, with similar pricepoints, has done pretty well.
“$2900 / 1br – Motivated, MUST RENT – GREAT NEW PRICE, BEST VALUE IN HAYES VALLEY (hayes valley)”
This 1/1 will not rent at $2900, I guarantee. There are tons more at better locations w/ better views, and Argenta is renting 2br at $2480 only a stone’s throw away.
I saw a Hayes penthouse unit about 2 mo ago asking $3900/mo. It was overpriced at that given the location/view/quality. The owner said she paid $1.5m for it before the price cut.
When I was looking at these units back in 2006 and 2007, I specifically remember unit #426 being one of the cheaper 2bd units at 825k, and #513 being priced in the mid 800k. So the real price cuts are more like 25+%.
“Wonder why the HOAs here are under 500 and the HOAs at BLU are over 700? Anyone know?”
I’m a new owner at Blu. The B, C, and E stack HOAs are less expensive–either $623 or $651. I read through the twenty pound binder outlining the 20-year HOA budget that I received upon entering into contract and can tell you that the difference in HOA dues is largely the cost of the 24 doorman. A huge HOA reserve is also budgeted. HOAs are not expected to go up for a while, unlike most new condo developments that lure buyers in with low HOAs only to jack them up a year later.
Thanx Blu Owner.
Is a 24hr doorman worth the 200-300k or so a year, which translates to 200-300/mo on HOAs for a 100 unit bldg ? Anyone? I dont live in a condo so I have no idea.
^ it should be one frickin’ impressive doorman for all that extra scratch.
^^^It’s more than one person – unless people work 12 hour seven day shifts.
^^^^ Takes at least 4 people, maybe more, to man a door 23hrs a day.
Does anyone have similar info (list price vs final contract price) for recently closed Arterra units? I’m planning to take one final look next weekend and, if all goes well, make an offer. My broker is helpful but as a first-time buyer, I’d like a more objective perspective before starting the bidding process. Thanks!
I’ve seen the daytime BLU doorman. He IS very cute.
Any new word on the Hayes, it seems like they’ve had 2 homes remaining for the last month or so, it definitely seems like tipster’s theory may be pretty accurate here… anybody if those two remaining are still the same unit number as before?
The Hayes now shows “Sold Out” – Congrats !!!
is that on the building? The website still shows 2 homes remaining…