February 26, 2010
A One Time Fire Sale To Address An Ongoing Budgetary Problem
From Guardians of The City with respect to old Engine Company No. 16 at 909 Tennessee:
City Architect John Reid Jr. designed this two-story brick structure to replace the original 1887 home of 16 Engine that was a block away at 1009 Tennessee Street. A two-story brick firehouse with a cornice brightened with small colored tiles, terra cotta keystones accent the arched dormitory windows and plaques above the doors.
Off of Third Street, near the Pier 70 complex, in what is called the "Dogpatch" section of the Potrero District, Engine Company 16 was considered a waterfront company. From the 1880's through World War II the Potrero Point Pier 70 area was a very active shipbuilding and steel manufacturing district. It became the largest civilian shipyard on the west coast.
This firehouse is located on a bigger plot of land owned the City. To the rear of the firehouse on the corner of 3rd and 19th Streets are the former Potrero Police Station and the neighbor Public Health Emergency room.
Engine Company No.16 was disbanded on July 1, 1970, due to ordered City budget cuts to the Fire Department. From 1970 to 1976 the firehouse was used by Toy Program. From 1976 to 1992 the house was used as a Museum annex apparatus workshop and collection storage area. Since 1992 the firehouse is being used by the Department for storage.
According to a plugged-in tipster the San Francisco Fire Department will be selling 909 Tennessee in order to help balance its budget.
And our tipster’s (paraphrased) question: Does it make sense to address an ongoing budgetary problem with a one time sale of an asset in a down market?
UPDATE: The asking price is expected to be around $735,000.
∙ Engine Company No. 16 (909 Tennessee Street) [guardiansofthecity.org]
18 Percent Over Asking In Bernal! (And Just 1% Under 2004)
The tidbit that might not be touted so loudly, the reported sale price of $825,000 ($575 per square foot) is 1% under its purchase price of $834,000 in October 2004.
Eight Hundred Per Square Foot For Nine Hundred Clayton
While we typically cringe when “period details” are painted over, in this case we like the overall effect (not to mention curb appeal). Asking $2,395,000 when listed in September 2008, they’re asking $2,239,000 ($800 per square) for 900 Clayton today.
∙ Listing: 900 Clayton (4/3) - $2,239,000 [MLS]
Twelve Months Later A Spruced Up Twenty-One Farnum Returns
It’s not apples to apples as the kitchen has been spruced up (after above, before below), the impact of which we’d probably overlook in and of itself in terms of apples, but the bathrooms have also been remodeled (and paint applied outside and throughout).
Flipping A Few Lembi Properties Through Foreclosure
A plugged-in tipster reports:
Coastal Capital of Sausalito, which bought a portfolio of loans secured by Lembi properties, foreclosed on the properties [yesterday]. Coastal reportedly paid $24.1 million (64% of face value) for the package of loans originated by Tamalpais Bank, and today's sales at the steps totaled $29,049,100. Pretty nice annualized return! It should be noted that a Coastal affiliate did some of the buying.
Among the foreclosed upon properties sold: 1235 Bay, 2285 Bay, 1125 Broadway, 479 Buena Vista East, 6242 Geary, 315 Hyde, 1651 Larkin, 725 O'farrel, 1701 Turk, and 2350 Van Ness.
Into Contract After
Four One Month On The Market For 169 Yukon?
Listed for $649,000 last October, the listing for 169 Yukon was withdrawn in December and then relisted anew at $625,000 at the end of January.
And while the listing is currently active on the MLS, according to a plugged-in tipster an offer of $575,000 has reportedly been accepted.
Industry statistics currently reflect an "official" 36 days on the market for the property.
∙ Listing: 169 Yukon (1/1) - $625,000 [MLS]
U.S. Previously Owned Home Sales Sucking A Little More Wind
Once again, our headline for November’s existing U.S. home sales gain of 7.4 percent: A Sprinter's Or Marathoner's Pace?
In December the pace of U.S. existing home sales fell 17 percent. And in January the pace fell 7.2 percent, "the second-largest decline ever, to an annual pace of 5.05 million, the National Association of Realtors said today in Washington."
In 2009 5.16 million previously owned homes sold, 4.91 million in 2008.
∙ A Sprinter's Or Marathoner's Pace? [SocketSite]
∙ Will Our Sprinter Get A Second Wind? [SocketSite]
∙ Sales of Previously Owned Homes Fell 7.2% in January [Bloomberg]
February 25, 2010
Strike Up The Band, 610 Rhode Island ("Kronos House") Returns
On the market in 2007 asking $2,300,000, the Daniel Solomon designed 610 Rhode Island (a.k.a. Kronos House) garnered four offers and sold for $2,551,000 that August.
Quietly on the market for the past few months asking $2,500,000, the list price is being lowered to $2,400,000 and the house should officially hit the MLS next week.
As we wrote in 2007:
So here’s the inside scoop on 610 Rhode Island. Designed by Daniel Solomon, the home was built in 1989 for Kronos Quartet cellist Joan Jeanrenaud (one of the bedrooms was originally her rehearsal studio) and her husband, recording artist and producer Pat Gleeson (one of the bedrooms was originally his recording studio). The [then] current owners/sellers (no, not Joan and Pat) have moved next door.
Acoustical perfection (credit John Storyk) and natural light are central themes of the house with perforated galvanized steel (backed by wood) on the walls which absorbs sound (think big party with little din) and bounces light throughout the great room and loft. And while the zinc-clad kitchen and bathroom complement the design, we’d probably budget for replacing it with something a bit more user friendly.
It won’t be a perfectly apples to apples sale, however, as a few bedroom built-ins have been added, but it will be pretty close (assuming a few pieces of art are included as well).
And sorry, but it’s expected to be by appointment only (i.e., no Sunday open houses).
[Full Disclosure: The listing agent for 610 Rhode Island currently advertises on SocketSite but provided no consideration for this post. And yes, we would have featured it regardless.]
∙ Listing: 610 Rhode Island (3/1) - $2,400,000 (soon) [610rhodeisland.com]
∙ 610 Rhode Island From The Inside (Literally And Figuratively) [SocketSite]
∙ Not For Sale (But Some Mighty Tasty Modern Gawking) [SocketSite]
Lenders (And The Market) About To Be HAMPstrung?
"The Obama administration may expand efforts to ease the housing crisis by banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program."
∙ Obama May Prohibit Home-Loan Foreclosures Without HAMP Review [Bloomberg]
∙ Insight Into The Inevitable Once Again? [SocketSite]
Into Our Apple Cart (And Back To 2005) 79 Woodland Goes
The apples to apples sale of 79 Woodland closed escrow yesterday with a reported contact price of $1,335,000 ($6,000 over asking). Purchased for $1,300,000 in June of 2005, call it average annual appreciation of 0.6% over the past five years for the remodeled single-family Parnassus Heights home.
But we wouldn't call it a "push" in terms of whether or not it’s fallen from "peak" having appreciated (and then depreciated) since 2005.
We’ll also call the effective pre-tax benefited cost of ownership around $8,000 per month over the past 56 months and let you run your own numbers in terms of rent versus buy from an economic (versus emotional) standpoint.
∙ Parnassus Heights Apples To Apples (And Neighborhood Economics) [SocketSite]
∙ Another Market Metric And Food For Thought At The End Of The Year [SocketSite]
∙ To Rent Or To Buy, That Is The Question (That Only You Can Answer) [SocketSite]
"Government stimulus programs including the homebuyer tax credit [which is set to expire at the end of April] and a Federal Reserve program to buy mortgage-backed bonds lifted the real estate market in the closing months of 2009.
A sustained recovery in housing faces hurdles that include mounting foreclosures and a weak labor market, said Thomas Lawler, a former economist with Fannie Mae who now is an independent housing consultant in Leesburg, Virginia."
∙ Home Prices Decline 1.2%, Smallest Drop in Two Years [Bloomberg]
∙ Senate Approves First-Time (And Move-Up) Homebuyer Tax Credits [SocketSite]
Soon To Be Sitting Pretty In A Series Of New Plazas And Parklets
The Chronicle reports:
The first pedestrian plaza opened in May at 17th and Market streets in the Castro and has become so popular that four more plazas as well as five "parklets" - two or three successive parking spaces turned into teeny parks - are slated to open by this summer. More are expected to be built this fall and next year.
New plazas open today at Guerrero and San Jose and Eighth and 16th while new plazas at Noe and 24th and Naples and Geneva will open later this year.
Parklets are planned for 22nd between Valencia and Mission, on Divisadero between Grove and Hayes in front of Mojo Cafe, on Clement at Fifth in front of Toy Boat Cafe, and of course a couple along Columbus in front of Caffe Roma and Cafe Greco.
∙ S.F. plazas, 'parklets' spout, squeeze out cars [SFGate]
∙ Make That 441,469 Spaces: Proposed Curbside Cafe Conversions [SocketSite]
February 24, 2010
Will Multiple Offers Magically Materialize On (42) Mars Once Again?
Listed for $1,199,000 last July, 42 Mars closed escrow for $1,240,000 six weeks later. It’s back on the market seven months later and asking $1,239,000.
Will multiple offers magically materialize on Mars once again?
∙ Listing: 42 Mars (3/2) - $1,239,000 [MLS]
Surprise, Surprise Or Not So Much So?
"Sales of new homes in the U.S. unexpectedly fell in January to [an annual pace of 309,000] the lowest level on record, a sign that an extension of a government tax credit may not be enough to rekindle demand....Purchases of new homes have declined from an all-time high of 1.39 million reached in July 2005. They have declined 6.1 percent from January 2009."
∙ U.S. Economy: New-Home Sales Decline to Record Low [Bloomberg]
San Francisco’s Q4 2009 Housing Pipeline Report
According to the San Francisco Planning Department’s Q4 2009 Pipeline Report, San Francisco's current big picture (click to enlarge) housing pipeline is as so:
∙ 128 projects with 1,320 housing units are currently under construction
∙ 190 projects representing 2,070 units have received a building permit
∙ 328 projects representing 4,620 units have applied for a building permit
∙ 119 projects representing 8,220 units have been approved by the Planning Department
∙ 108 projects representing 30,370 units have filed for Planning Department approval
Overall pipeline residential units currently total 46,600, down from 54,790 in the second quarter of 2009, but up from 30,002 in the first quarter of 2007. Of course the share of those under construction (4,978 in 2007) has shifted and applications for proposed new units have plummeted over the past two years.
∙ San Francisco Pipeline Report: Q4 2009 [sf-planning.org]
∙ San Francisco’s Housing Pipeline And 2009 Housing Element Report [SocketSite]
One (Oakland) Stadium To Rule Them All?
"'There is only going to be one stadium in the Bay Area, and it's not going to be in Santa Clara,' said Alameda County Supervisor Scott Haggerty, a member of the Coliseum board who voted with his colleagues last week to spend $125,000 on a study of a new [two-team Oakland football] stadium."
∙ 2-team football stadium in Oakland in works [SFGate]
∙ First And Goal For The
San Francisco Santa Clara 49ers Stadium [SocketSite]
∙ More Sizzle Than Steak For Lennar's San Francisco Stadium Plan? [SocketSite]
People Over Parking As 1415 Mission Gets A Land Use Thumbs Up
San Francisco’s full Board of Supervisors will now need to vote, but the board’s Land Use and Economic Development Committee has given the thumbs up to zoning changes that would clear the way for the development of 1415 Mission.
The building would be 14 stories and 130 feet in height, with a mechanical penthouse rising an additional 16 feet. Approximately 2,453 sq.ft. of common usable open space would be provided at the penthouse (roof) level for the use of residents. Seventy‐six of the 117 dwelling units would have access to private open space in the form of balconies or terraces, totaling approximately 4,200 sq.ft. There also would be a 58‐sq.ft. plaza for the retail use, which would not count toward open space square footages for Code purposes.
If approved, construction of the proposed project would occur over approximately 24 months. The project sponsor is R & K Investments and the project architect is Heller Manus Architects.
Once again, proposed to include roughly 26 studios, 39 one-bedrooms, and 52 two-bedrooms over street level retail and three levels of underground parking.
∙ 1415 Mission: Existing (Parking) And As Proposed (People) [SocketSite]
Just Cause And Parking Legislation Postponed, And Not Just Because
San Francisco’s Board of Supervisors postponed a first vote on Supervisor Avalos’ amended legislation which would extend "just cause" eviction protections to those in buildings which have been foreclosed upon.
A second and final vote on Supervisor Chiu’s legislation "that would crackdown on the construction of parking garages in residential buildings in three San Francisco neighborhoods: North Beach, Telegraph Hill and Chinatown" was also postponed.
The [parking] vote’s postponement came as Supervisor Bevan Dufty was being called on to change his vote and oppose the legislation to ensure Mayor Gavin Newsom could successfully veto it.
∙ Just-cause eviction vote postponed until next week [San Francisco Examiner]
∙ Just Cause Eviction Rights Extension II: Now Just For Foreclosures [SocketSite]
∙ Vote postponed on parking garage restrictions [San Francisco Examiner]
∙ New Parking Restrictions For District 3 Circles The
Block Board [SocketSite]
February 23, 2010
December Case-Shiller Index: Bottom Tier Up, Nominal Slips At Top
According to the December 2009 S&P/Case-Shiller Home Price Index, single-family home prices in the San Francisco MSA fell 0.2% from November ’09 to December '09, up 4.8% year-over-year for the second year-over-year gain since September 2006 but still down 37.5% from a peak in May 2006.
For the broader 10-City composite (CSXR), home values fell a nominal 0.2% from November to December (the second slide in seven months) and remain down 30.1% from a peak in June 2006 (down 2.5% year-over-year).
Looking at the monthly statistics, 15 of the 20 metro areas showed a decline in December over November, with Chicago posting the sharpest decline, down 1.6%. Las Vegas finally posted its first positive print in more than three years, with +0.2%. The Southwest continues to be a bright spot, with an Diego posting its eighth consecutive monthly increase, and Los Angeles and Phoenix both posting their seventh.
Three of the markets – Charlotte, Seattle and Tampa – posted new low index levels as measured by the past four years. In other words, any gains they might have seen in recent months have been erased and December is now considered their current trough value.
On a month-over-month basis, San Francisco MSA single-family home prices rose across the bottom price tier but slipped nominally at the top.
The bottom third (under $325,729 at the time of acquisition) gained 1.7% from November to December (down 3.6% YOY); the middle third fell 0.1% from November to December (up 1.7% YOY); and the top third (over $601,121 at the time of acquisition) fell 0.3% from November to December (down 3.6% YOY).
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA are back to August 2000 levels having fallen 57% from a peak in August 2006, the middle third is back to June 2002 levels having fallen 36% from a peak in May 2006, and the top third remains at March 2004 levels having fallen 24% from a peak in August 2007.
Condo values in the San Francisco MSA were unchanged from November ’09 to December '09, down 5.6% on a year-over-year basis and down 27.4% from an December 2005 high.
Our standard SocketSite S&P/Case-Shiller footnote: The S&P/Case-Shiller home price indices include San Francisco, San Mateo, Marin, Contra Costa, and Alameda in the "San Francisco" index (i.e., greater MSA) and are imperfect in factoring out changes in property values due to improvements versus appreciation (although they try their best).
Parnassus Heights Apples To Apples (And Neighborhood Economics)
We missed the listing for 79 Woodland prior to its heading into contract, but seeing as how its sale still hasn’t closed we’ll feature this apple to be anyway.
Purchased for $1,300,000 in June 2005, the Parnassus Heights single-family home returned to the market three weeks ago asking $1,329,000 and is currently in escrow with contingencies having been waived.
A plugged-in tipster adds, "we are renting a bigger house on the same block for just under [$4,000 per month]."
∙ Listing: 79 Woodland Avenue (3/2) - $1,329,000 (In Contract) [MLS]