The Parc Esprit (www.SocketSite.com)
With a leasing office that’s only been open for two weeks, a third (20+) of the sixty-seven (67) units formerly known as Esprit Park North (now “The Parc Esprit”) have been leased.
Rents for the remaining one-bedrooms range from $2,475 to $2,950 while the two-bedrooms range from $3,050 to $4,000. Esprit Park originally hit the market in 2007 with one-bedrooms in the South Court priced from the “Upper $600,000’s” and two-bedrooms from the “Mid $900,000’s” (from $549,000 seven months later).
Leases currently run eleven months (think Esprit Park CC&R’s) with expectations that the units will return to the for sale market in three to five years. And while the leases aren’t being written with an option to buy, leaseholders do get a first right of refusal.
In related Esprit Park news, all but six (6) of the seventy-five (75) condos in the South Court (900 Minnesota) are either closed or in contract (up from 38 closed or in contract a year ago).
Full Disclosure: The sales office for Esprit Park currently advertises on SocketSite but did not provide any compensation for – nor had any prior knowledge of – this post.
Homes On Esprit Park (900 Minnesota): 26% Closed Or In Contract [SocketSite]
Sales Office For Esprit Park (888 Minnesota) Opens Tomorrow (10/5) [SocketSite]
Reader’s Reports: Homes On Esprit Park Now Starting From $549,000 [SocketSite]

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Comments from “Plugged-In” Readers

  1. Posted by SFRE

    I can envision this thread now…
    “Who would pay $3,000+/mo to live in the dogpatch?, My bigger rent controlled place only costs me $1,200/mo”
    The reality is these are the going rates for places that are not rent controlled, which is why many people are looking to buy.
    Any idea on if these include some sort of parking?

  2. Posted by minoulala

    I went and checked out their 1BR/1.5BA’s which are on the small side. They were asking $2495 and that’s not including parking, which is extra. I’ve decided to pass not because it is in Dogpatch but because money doesn’t grow on trees.

  3. Posted by tipster

    “which is why many people are looking to buy.”
    Funny, I could have sworn they already tried to sell these, but failed to sell them. I guess all those “many” buyers must have missed this place.

  4. Posted by SFRE

    @tipster: When I said “many people are looking to buy” I was referring to properties in a better location at more reasonable prices. The prices that were being asked for those places were ridiculous.
    As for proof of “many people looking to buy” I refer you to the recent threads about home sale activity on SS.

  5. Posted by joh

    I sooo wanted to buy a place at Esprit Park last year. The South Court had a lot of interesting 1BR units, some of which had too much kitchen in relation to the overall unit size. The finishes are nice, and the way they merged the rehab with the new construction was quite interesting. I especially liked the fact that many of the units had windows on both the front and back (although the “front” faced the courtyard, which in and of itself is quite large and open).
    They were still quite expensive after their price reductions, given the neighborhood. I actually happen to like the Dogpatch, but didn’t think a 850sqft 1/1.5 was worth their asking price (~$550K at the time).
    I patiently waited 10 months or so for them to release the North Court phase, since it wasn’t as interesting and I assumed it would sell for significantly less. But they kept postponing it, hoping for a market rebound. In March, they told me that they were considering going the rental route, but I didn’t think they’d actually do it.

  6. Posted by tacotaco

    does someone not as math challenged as me want to tell me what these rent rates imply the purchase price should be (ie if this rental rate was a mortgage payment…)?
    extra credit for comparing that number to what they were listed to sell at…
    thanks mucho.

  7. Posted by joh

    Funny, I could have sworn they already tried to sell these, but failed to sell them.
    The North Court properties were never for sale.

  8. Posted by SFRE

    @tacotaco: Assuming the following:
    a) Parking costs an additional $200/month
    b) That a 1br goes for $2,800/month
    c) If purchased HOAs would be $450/month
    d) Buyer puts 20% down
    I would say they imply a parity price for a 1br at around $450k. With that being said, nothing sells at parity in SF, I’m not sure when anything sold at parity, lets add 10% for “SF buying premium” (for lack of a better term, I guess it could be “SF Overpriced-ness), that would put it around $495k.
    Just my rough calculations…

  9. Posted by tacotaco

    thanks, SFRE. appreciate it.

  10. Posted by lol

    Without the government financing 96.5% of the mortgage market, these units would sell at whatever cash you have in your sock drawer.

  11. Posted by Embarcadero

    I call BS on the suggestion that $2900 + 200 for parking is “going rent” for a 1/1.5 apartment at 850 SF in Dogpatch. Remember, these are 11 month leases.
    I’ll be very surprised if they get these rents, as better deals are available elsewhere. Up the street from me, in North Beach, a 2 BR rent controlled apartment (which is either a feature or a bug, depending) is available for $2800, no parking. It looks to be larger than the EP units, and has a partial view of the Bay.
    Maybe Dogpatch is much better than I remember.

  12. Posted by ex SF-er

    I admit that I am surprised that the rents are this high.
    my only question: the quote actually says:
    “Rents for the remaining one-bedrooms range from $2,475 to $2,950 while the two-bedrooms range from $3,050 to $4,000″
    so did the already-rented units have this same pricing level, or were they cheaper and thus rented out leaving these unrented?
    I’d love to know what the other units actually rented for.

  13. Posted by SFRE

    @Embarcadero: Having recently been looking for a rental, I can say that rates can be that high, rent-controlled excluded.
    Having lived at 2 of the properties on Berry Street, the going rent that someone would pay for a 1/1 is around $2,300/month, with parking at an additional ~$250/month. The places at EP, though in a sub-optimal location, probably could command those rates given the fact that its new construction (you can tell the places on Berry street were meant for rentals, where these may be nicer).
    For your rent-controlled scenario, it was probably a 2/1, parking is likely a couple of blocks away at $300/month, and is likely not as nice as this place (rent-controlled usually are not). So I can see how the pricing could be somewhat comparable.

  14. Posted by curmudgeon

    I too am surprised by the rents. I am currently in the rental market, and although it is not as inexpensive as I had hoped, good 1 br’s are available in desirable parts of town for considerably less than this. I guess there is a “newness” premium.

  15. Posted by SFRE

    @curmudgeon: Being that you are looking in the rental market, what do you see as the pricing for good sized 1br with parking and nice finishes (and in what parts of town)?

  16. Posted by curmudgeon

    http://sfbay.craigslist.org/sfc/apa/1725831836.html
    http://sfbay.craigslist.org/sfc/apa/1726085741.html
    just a couple of listings I pulled quickly. Not saying these are necessarily ideal, but there’s quite a lot out there in the 2000-2500 range for 1 BR’s. And a lot in the 3000 range for 2 BR’s. My neighborhoods of interest are Mission/Castro/Hayes Valley which is comparable to Dogpatch (lots of subjective distinctions of course, depending on lifestyle). I still think there is a “new” premium, but it’s one that I don’t quite understand.

  17. Posted by SocketSite

    so did the already-rented units have this same pricing level, or were they cheaper and thus rented out leaving these unrented?
    The asking rents for those units which have been rented were right in line with the rents of those remaining. As to whether or not any discounts or incentives were provided, we can’t say.

  18. Posted by joh

    The premium you pay at Esprit Park is for the nice finishes, such as Viking range, Liebherr fridge, Bosch dishwasher, radiant floor heating, etc. Rental units typically have cheaper appliances (e.g. non-stainless Whirlpool or Kenmore), even in many brand new buildings that were built for the rental market. But this is especially true in older, rent-controlled units.
    Unlike Esprit Park, that Hayes Valley craigslist rental linked above doesn’t include an in-unit washer/dryer, which is true of many older buildings (common in Pac Heights, North Beach,…). And the Florida St loft doesn’t allow pets, a deal killer for many.
    And where does it say that parking is $200/mo at Parc Esprit? I would have assumed that a space is included in the rental price, since they were included in the units for sale. Regardless, if one doesn’t mind parking outside, street parking is abundant.

  19. Posted by Embarcadero

    SFRE, I think you might do well to shop around a bit.
    I just placed two new employees (one in Dec, on in March) in that same hood where you are looking. Both have 1/1s, both w/terraces, decent views, and parking. Rent does not come close to what you’re seeing now. If I recall, the aparatments were under $2k, but parking brought things up to around 2100.
    The rent-controlled place in North Beach is in fact a 2/1, but it is much nicer than anything you’ll find at Parc Esprit. I just walked past there this morning, it’s been rented… 
    If I were looking in this market, I’d look a lot further than these (IMHO) overpriced units in Dogpatch.

  20. Posted by Po Hill Jeff

    This seems like a good financial move for the developers. $130M cost for the complex, and a $93.4M loan – servicing that can’t be cheap.
    I wonder what’s happened to their financing over time. If anyone with more knowledge about construction than me can interpret this that would be great:
    http://www.kearnycapital.com/tombstones/esprit.html
    “30 months with two 6-month extension options”, and a close in Q4 2006 adds up to June of this year at the latest. Does that mean they have to pay it back soon?

  21. Posted by Samantha

    We moved into a 2br unit at Parc Esprit recently. After a several-month-long rental search, I can tell you that these condos are leasing for at least a couple hundred less than comparable units. Rent is $3050 for an enormous 2br with 2 balconies, dishwasher, w/d, and radiant heat (amazing!).
    Does that mean that a person can’t find a 2br in SF for less than 3 grand. Of course not. But COMPARABLE units (i.e., units that have never been lived in with state-of-the-art appliances and a lot of space) are renting for several hundred more than these per month. If you cherish a beautiful home and can afford it, snatch one of these babies up asap.
    And the Dogpatch rocks! These units are a block away fromt he T-line and Caltrain and a 7-8 minute walk to all the cafes, shops, etc. on 18th. Tons of dogs and children – its like a less yuppified version of Noe valley.
    Oh, and parking is $150 per month for those who choose to rent a space. There is a ton of street parking.

  22. Posted by Lexy

    These are quality Condo’s for lease. Great urban vibe, Mom & Pop restaurants,it is off the beaten path enough to enjoy a sense of community. I have spent 10 years in Property Management/Real Estate and specialized in South Beach private condo rentals. I am familiar with many San Francisco buildings. I think the prices are in line with the comps if not below. With parking at $150, that is 1/2 of what the competition charges. For all the pet owners, having Esprit Park next door is the icing on the cake. All of us have our own personal styles and preferences, so don’t limit yourself to price shopping as you get what you pay for. The environment is not only up and coming but it’s strong sense of community makes for a friendly, inviting place to call home. To date 45 homes have been leased out of 67 and considering that The Parc Esprit just opened at the end of April. I’d say they must be priced to Lease! I highly recommend it!

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