May 15, 2009
The Straight Scoop: Millennium To Offer Select Rentals
A plugged-in tipster reports The Millennium has started pitching a few rentals, in part to make the building "feel more alive" (our tipster's words, not theirs). The rentals don’t represent an official change in operations, however, but are being rolled out as part of a sales strategy to hook buyers on the building.
Less than 10% of the building is expected to be made available for rent, with target rents ranging from around $3,500 to $15,000 a month and the majority in the $10,000 to $15,000 range. According to our tipster, two-bedrooms will be starting in the sevens.
First Published: May 15, 2009 3:15 PM
Comments from "Plugged In" Readers
Those rents are laughable, even at the Millennium.
Posted by: Ryan at May 15, 2009 3:58 PM
I could see those rents after the Transbay Tower and Terminal are completed, the streets are repaved, the Rincon Hill master plan neighborhood is built out with Folsom Blvd established with new retail, restaurants, and outdoor cafes, High Speed Rail sweeps in across the street, the nearby sidewalks are widened with new landscaping and outdoor plazas, but until then, eeeeeeeeeekkkk.
Posted by: sf at May 15, 2009 4:06 PM
Someone please explain how renters make a place "feel more alive"??
This statement does not align with my experience.
Posted by: SFLooking at May 15, 2009 4:09 PM
Here's a unit on CL asking $4.22 per square foot.
Going rents in this part of Soma, for nice condos, are currently around $3.00 to $3.25 per square foot from my observations. Let's say you're willing to pay a few hundred more per month for ultra-uber-super luxury (hardwood that's harder, stainless steel that's stainlesser, and so forth). At $3.50 per square foot, this unit would rent for $6,500 per month max.
This is a very nice building, for sure. But much like their asking prices, their asking rents continue to be way off market.
[Editor's Note: Keep in mind the Craigslist ad is not for one of the developer's units.]
Posted by: Legacy Dude at May 15, 2009 4:13 PM
^Um, because they're people, instead of empty units. More people does make a building feel more alive.
I'm sure that your concerns about renters won't be too much of a problem when they're paying $10k a month (LOL)
Posted by: anon at May 15, 2009 4:14 PM
It's shocking how out of touch the sales office and individuals who are renting these units are. $10,000 per month for a two bedroom apartment? Underwriting this from using the new criteria results in someone who is making $30,000 monthly gross or $360,000 to $400,000 anually. In this fair City there are a few of those, but not near as many as they seem to think.......
Posted by: Grubber at May 15, 2009 4:41 PM
the millennium currently has 10 units occupied (out of 419)... about 2%...
Posted by: jd at May 15, 2009 4:43 PM
I saw the pics...apperantly....its on lower level...the unit with no view...the finish...I have to say...looks rental...ceiling is lower...wonder if its close to 108" this is definately not something I will pay $7600.00 for...someone is clearly in denial here
Posted by: leo at May 15, 2009 4:52 PM
The target market for rentals like this are clueless HR critters at companies who don't mind wasting their shareholders' money on "valued" execs who are dumb enough to feel special when someone (else) overpays for their housing.
LOL that these guys are looking for rentals already. It should be nice ride down for values there.
Posted by: LMRiM at May 15, 2009 4:57 PM
that unit advertised at $7800 is on the 3rd floor, with little to no views. This is down from $8300 last week!
Posted by: jd at May 15, 2009 5:01 PM
I'll take a high level 1 bedroom with parking for $3500 a month!
Too bad this wont happen.
Posted by: anon at May 15, 2009 5:59 PM
Millennium is a great building and will comman higher rents.
[Removed by Editor]
Posted by: Paul Hwang at May 15, 2009 7:19 PM
There are plenty of places in buildings like The Brannan renting at close to $4/sqft on the higher floors. The prices at the Millennium are similar to that and include a better pool, a nicer gym, a movie room, concierge, doormen and valet (as opposed to just door security) and hugely better public space. If you are in the market for 2,000+ sqft instead of 1,300 then they also offer a great deal more choice.
Posted by: Nick at May 15, 2009 7:21 PM
i was interested in renting here, and my sales agent did say they were renting units to add life to the building because it's so empty.
the prices arent so bad compared to the infinity and the fact that it is brand new and very upscale. if you stay on the 16th floor or lower, the cost would be $3500 or less.
it's a beautiful building, great amenities, exceptional staff of 45 (!!), but the sales agents are idiots; they dont know what they are doing. i withdrew my application because they were so difficult to work with.
Posted by: deka at May 15, 2009 7:31 PM
news! editor this is real time news! do u want real time news? I'm giving you breaking news, and you are posting news (MT is renting) that's about two months old.
[Editor's Note: Real time news is great, but when it's news about the Infinity how about trying an Infinity related thread? For example: QuickLinks: Signs Of Bay Area Economic Life (And Discounts).]
Posted by: Paul Hwang at May 15, 2009 7:35 PM
"... rents ranging from around $3,500 to $15,000 a month and the majority in the $10,000 to $15,000 range." -- um ... yeah. Good luck with that!
Millenium, are you reading this?! LOLOLOLOLOLOL!!!
Posted by: Dream On at May 15, 2009 10:24 PM
Only 2% occupied... The way they light up at night, it looks as if 20% are occupied.
I toured it, it's one pretentious building, more so than ORH or Infinity. The views from rental units are about the same as BLU, and BLU's got helluva better finish.
If anyone is interested, there is an individually owned 2br unit around the 20th asking for $5000. You should be able to get five times better view for 20% less elsewhere, but you get to tell people you live in Millennium.
Posted by: Fishtarian at May 15, 2009 10:37 PM
I think the issue they may have is holding on to sales closings with a new rental component in the building. even at those lofty rents, if they get em, it might have a bit of a chill on buyers.
Posted by: Louis at May 15, 2009 10:40 PM
Actually it is a great idea which they implemented once before at the Four Seasons - expect a lot of the ball players renting from here (much easier for the rich and transient) - I know at least one of the Giants pitching staff was one of the first to move in. They were asking for $6600 for a large residence in the City Residences - gorgeous Tribeca loft-like homes.
Posted by: mark choey at May 16, 2009 12:40 AM
Maybe it's a ploy to try to fool prospective buyers into thinking that price to rent ratios are more attractive than they actually are.
Posted by: anonm at May 16, 2009 9:07 AM
A sinking ship has to get to harbor. Somehow.
Posted by: jon at May 16, 2009 2:20 PM
nothing about the Millennium reminds me about a tribeca loft.
Posted by: anon at May 16, 2009 6:29 PM
Will most banks still make loans on a building once it decides to go partial rental ? Perhaps if you need to borrow money, you shouldn't be think MT...
[Editor’s Note: It’s typically only a problem when the percentage of rental units goes above 40%.]
Posted by: Outsider at May 17, 2009 1:31 AM
deka, is that $3,500 for a one or two bedroom unit? Thanks.
Posted by: viewlover at May 18, 2009 12:34 PM
1br, 789-833 sq ft, the C and D floor plans
Posted by: deka at May 18, 2009 6:59 PM
Posted by: viewlover at May 19, 2009 9:56 AM
i recently took a tour. the building's ammenities are phenomental. the gym is huge, the restaurant is now packed. the club floor is nicer than any hotel in the city. however, the prices are still too high. they need to rent becuase no one is buying at these prices 15% off of something 75% too high is not enough of a discount). the offer to rent is a step in the right direction. no one wants to live in an empty building. but, the step is one too small. with all the spec condo's now for rent in soma, the millennium has some stiff competition. renting a 2 bedroom in the middle of the stack (30th floor or so) for $10,000 is ludicrous. When that comes down 25%, perhaps they'll get some flow or high end renters as a prelude to the purchase market coming back. of course, that assumes you can get a jumbo mortgage...not a foreglone conclusion in this market for condos!
Posted by: somarenter at May 19, 2009 12:20 PM
I just visited the development the other day. The sales person said that the units for rent have a rent to own option. About 50% goes to rent and 50% goes to the actual property. For about a 700 sqft unit the rent goes for $3200.
Posted by: condobuyer at May 20, 2009 10:40 AM
and why on earth would you ever buy if you can rent here? the resale is going for $1400+ per sq.ft. that is for a middle of the stack with a view on one side that is nice, but on the other side, you stare straight into the office tower next door. no fancy concierge can make up for that kind of price premium. get real, millennium. the ball is in your court - lower the prices or live with an empty building.
Posted by: somarenter at May 21, 2009 4:57 AM
A 1 bed on the 5th floor just rented for $6500.
Posted by: Infoforyou at May 21, 2009 8:33 AM
Don't Robert and ex-SFer believe that only a hundred or so people are willing to pay $6000 or more a month rent in the entire City?
It will be interesting to see how this plays out.
Posted by: NoeValleyJim at May 21, 2009 11:54 AM
Asking $8,300 a month at the beginning of May and then $7,800 a month a few weeks later, the asking rent for the third floor two-bedroom with terrace Millennium condo making the rounds on Craigslist and mentioned above has been reduced to $6,800 a month. Keep in mind this is not an official Sales Office rental.
Posted by: SocketSite at June 10, 2009 8:58 AM
This brand new "luxury" rental boasts 8'10" ceilings. I am not exactly swept off my feet at the prospect.
When will developers understand that volume is also part of the luxury? Buzz words like Studio Becker, Subzero, Emperador or Azul Velverde can impress young professionals but in the end it's a low ceiling box in a giant stack. Going to 10' ceilings would have meant 15% less units. If you'll try and shave off 15% in costs, this is NOT luxury by any means. This is an econobox with gold plated trim.
Give me the 10' ceiling. I'll pay for the subzero myself...
Posted by: San FronziScheme at June 10, 2009 9:48 AM
As a number of plugged-in tipsters have noted, the Millennium's "Lease. Own. Evolve." campaign has officially kicked-off.
Posted by: SocketSite at June 16, 2009 12:18 PM
Now the 2/3 is $6800 --- but if you don't mind something 'used' you can rent a 2/2 at the Ritz for $5K...
Has anyone bitten? Details? Seems strange that they have not become more agressive pricing strategy.
Posted by: PotreroPamela at June 23, 2009 9:02 PM
8' 10" ceiling height seems awfully low, and must agree with San FronziScheme, that type of ceiling height is hardly luxurious. I thought 10' ceilings were the minimum?
Posted by: anonconfused at June 23, 2009 10:03 PM