May 31, 2011
S&P/Case-Shiller: San Francisco Top Tier And Condos Tick Up In March
According to the March 2011 S&P/Case-Shiller Home Price Index, single-family home prices in the San Francisco MSA fell a nominal 0.1% from February ’11 to March '11, down 40.6% from a peak in May 2006 and down 5.1% on a year-over-year (YOY) basis, a steady slide from the 18.3% gain reported last May and the fourth consecutive month of year-over-year declines.
For the broader 10-City composite (CSXR), home values fell 0.7% from February to March, down 33.0% from a June 2006 peak as values fell 2.9% year-over-year.
“This month’s report is marked by the confirmation of a double-dip in home prices across much of the nation. The National Index, the 20-City Composite and 12 MSAs all hit new lows with data reported through March 2011. The National Index fell 4.2% over the first quarter alone, and is down 5.1% compared to its year-ago level. Home prices continue on their downward spiral with no relief in sight.” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “Since December 2010, we have found an increasing number of markets posting new lows. In March 2011, 12 cities - Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Portland (OR) and Tampa - fell to their lowest levels as measured by the current housing cycle. Washington D.C. was the only MSA displaying positive trends with an annual growth rate of +4.3% and a 1.1% increase from its February level.
“The rebound in prices seen in 2009 and 2010 was largely due to the first-time home buyers tax credit. Excluding the results of that policy, there has been no recovery or even stabilization in home prices during or after the recent recession. Further, while last year saw signs of an economic recovery, the most recent data do not point to renewed gains.
While prices continued to fall across the bottom two price tiers, prices for the top third of San Francisco MSA single-family homes increased 0.7 percent on a month-over-month basis in March, the first gain in ten months. That being said, on a year-over-year basis, values fell across all three price tiers for the fourth time in four months.
The bottom third (under $312,546 at the time of acquisition) fell 0.9% from February to March (down 5.5% YOY); the middle third fell 1.5% from February to March (down 7.5% YOY); and the top third (over $573,577 at the time of acquisition) ticked up 0.7% from February to March, down 3.0% on a year-over-year basis.
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA have fallen back to May 2000 levels having fallen 59% from a peak in August 2006, the middle third has fallen to below March 2002 levels having fallen 41% from a peak in May 2006, and the top third has returned to December 2003 levels having fallen 27% from a peak in August 2007.
Condo values in the San Francisco MSA increased 2.6% from February ’11 to March '11, down 1.9% year-over-year, but the first month-over-month uptick in seven months. Condo values remain down 33.0% from a December 2005 peak but have reversed a two month "double dip" and 34.7% drop from peak recorded in February.
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).
∙ S&P/Case-Shiller: National Home Prices Hit New Low in 2011 [Standard & Poor's]
∙ S&P/Case-Shiller: San Francisco Value Decline Accelerated In Feb [SocketSite]
∙ May Case-Shiller: San Francisco Tiers Up But Gains Moderating Atop [SocketSite]
∙ San Francisco’s Condo "Double Dip" Is (Or Was) Here [SocketSite]
May 27, 2011
1844 Market Street: Let’s Get Ready To
As we wrote this past October:
As we first reported a week ago, builder Joe Cassidy’s 113-unit mixed-use project at 1844 Market Street was headed for a foreclosure sale on the courthouse steps next week with an estimated $12,329,428.48 owed.
And while a plugged-in reader noted that a lawsuit over a reneged loan agreement was to blame and forecast the property would not be lost to the bank, it’s a plugged-in tipster that reports that Cassidy has just filed a Chapter 11 bankruptcy petition for the entity which owns the 1844 Market Street property ("Upper Market Place, LLC").
The filing claims eight creditors, the largest of which is East West Bank with $12,330,254 owed. Cassidy's own Granite Construction & Demolition company is also listed as a creditor with $112,500 owed.
The non-performing note has been bought by MacFarlane Partners who has taken title. And according to the San Francisco Business Times, they're shooting for a quick re-start
and summer 2013 opening.
∙ Cassidy’s 1844 Market Street Holding Company Files For Chapter 11 [SocketSite]
∙ Cassidy's 1844 Market Street Project Facing Foreclosure [SocketSite]
∙ 1844 Market Watch: Movement On 113 "Fabulous" Units And Retail [SocketSite]
∙ The Inside Scoop With Respect To 1844 Market’s Foreclosure Filing [SocketSite]
∙ It’s Back To
Building Digging At 1844 Market (Not So Much At 2200) [SocketSite]
∙ MacFarlane makes $55M bet on Upper Market [SocketSite]
May 26, 2011
Three Floors Below For Two Million Less At 2288 Broadway
As far as we know 2288 Broadway #5 never found a buyer having been listed for $7,995,000 last year. A year later and three floors below, 2288 Broadway #2 is on the market and asking $5,995,000 for the floor.
While not noted in the listing for number two, the full floor number five had been listed at 4,000 square feet. And while the building isn’t likely to win any awards for curb appeal, the same wouldn’t ever be said about its views.
UPDATE: While the brochure for 2288 Broadway #2 features a slightly different floor plan, which we had originally posted, we believe the one above is now correct.
Five Stories At 899 Valencia Poised For Approval This Afternoon
As we first wrote about the proposed building at 899 Valencia last year:
It’s another underutilized infill site that’s been caught up in the Eastern Neighborhoods Area Plan development log jam which is finally starting to free.
On northeast corner of Valencia and 20th Streets an old one-story service station and surface area parking lot reside. As proposed, a 50,000-square foot, five-story mixed-use building with 18 dwelling units over 7,100 square feet of ground-floor retail space and a below-grade 18-car parking garage would rise.
Despite an appeal of the project's Environmental Impact, or determined lack thereof, the plans for 899 Valencia are poised to be approved by San Francisco’s Planning Commission this afternoon.
∙ The Vision For 899 Valencia On The Northeast Corner Of 20th [SocketSite]
∙ Eastern Neighborhoods Plan, It's Not Just For Policy Wonks Anymore [SocketSite]
∙ San Francisco Planning Commission Agenda: May 26, 2011 [SocketSite]
The First Sign Of Snøhetta’s Design For SFMOMA Expansion
Snøhetta's design for the $250 million expansion of San Francisco Museum of Modern Art (SFMOMA) has been revealed. From the Business Times with respect to the designs for the 195-foot building on a site zoned for 320 feet of potential hight:
On its east side, the building will feature a sweeping façade and an entrance in an alleyway that is currently hidden from public view and largely unused. This will be achieved through the creation of a mid-block, open-air, 18-foot-wide pedestrian promenade running from Howard Street through to Natoma Street that will open a new route of public circulation through the neighborhood and bring Natoma Street, currently a dead end, to life.
The public promenade will feature a series of stairs and landings terracing up to an entry court that extends from the new east entrance, providing additional public spaces.
The building also introduces a façade on Howard Street that will feature a large, street-level gallery enclosed in glass on three sides, providing views of both the art in the galleries and the new public spaces. At this time, the museum is also exploring the creation of a number of outdoor terraces, including one on top of its current building.
On Howard Street, the glass-enclosed gallery and pedestrian promenade will be located on a site currently occupied by Fire House 1 and its neighbor at 670 Howard Street.
As the site currently appears from Howard Street:
And from above:
∙ Let It Snø! (Snøhetta Snags SFMOMA Expansion Project) [SocketSite]
∙ SFMOMA Expansion, Fire Station Relocation And…Housing Project [SocketSite]
∙ SFMOMA expansion design revealed [Business Times]
∙ SFMOMA Expansion: Four Firms (Including A Foster) In The Running [SocketSite]
May 25, 2011
Another Big Billionaire's Row Home Coming Soon: 2840 Broadway
As a plugged-in tipster notes, Arthur McLaughlin's red trucks have been coming and going from the late Dodie Rosenkrans’ Pacific Heights mansion at 2840 Broadway, a Willis Polk designed home adjacent to Ellison’s modern manse on San Francisco’s Billionaire's Row.
While Sotheby’s is handing the sale of the bulk of the estate’s rather impressive art, jewelry and antiquities collection, let us be the first to tell you it’s Malin who will soon be bringing the Pacific Heights mansion of 17,286 square feet (per tax records) to market.
With 2808 Broadway still on the market for $25,000,000, 2701 Broadway for $32,000,000, 2905 Broadway for $33,900,000, 2901 Broadway for $45,000,000, and 2845 Broadway for $47,000,000, it’s safe to assume the list price for 2840 Broadway will be a bit more than the current tax assessed value of $2,666,615 (purchased for $1.6 million in 1979).
In fact, last year’s tax bill of $30,990 for 2840 Broadway will likely be closer to the monthly tax bill for the property once it changes hands.
UPDATE: Another perspective on the property (dead center below) which looks deceptively "little" from the façade, at least relative to its 17,000 square feet.
∙ The Collection of Dodie Rosenkrans [sothebys.com]
∙ Friday Fun: Name This House [SocketSite]
∙ 2808 Broadway Becomes Official Gold Coast Inventory At $25M [SocketSite]
∙ 2701 Broadway: Despite The SFPD A Plugged-In Reader Reports [SocketSite]
∙ Belli Would Be Fired Up As 2950 Broadway Is Reduced By $5,600,000 [SocketSite]
∙ A $3,000,000 Reduction (That Might Not Seem Like So Much To Some) [SocketSite]
∙ 2845 Broadway Is Withdrawn In 2010 After 1400 DOM At $65,000,000 [SocketSite]
∙ Save A Collective $21,700,000 On Hyde And Upper Broadway [SocketSite]
Which Is Worse, Unpermitted Work Or The Hells Angels?
A plugged-in reader’s story and perspective on unpermitted work:
Well, I'm neither a buyer, seller, planner, architect, nor nimby, and have never filed a [Discretionary Review]. I've lived in my home for 30 years and have always followed the rule that my neighbor's home is his business. But, that was not prudent as I discovered over the past several years with regards to my next door neighbor.
The first two owners, for the last 20 plus years lived in the home. The last, rented it out, but not before putting in an illegal unit downstairs. We later found out that his permit only covered "new windows." But, instead, he put in a kitchen, bedroom, and bathroom in the former basement of a single family home with the new unit having 6 foot ceilings, a couple of windows, and no vents for the illegal heater, stove, etc.
How did I know about that? Well, the last group of tenants in the main upstairs home, subleased that space to a couple of Hells Angels who ran a repair shop for stolen motorcycles in part of the garage space. They were arrested when an alert cop saw one of the stolen bikes in the driveway. Then, an alert permit officer at the local police station and some concerned neighbors, called the city planning department which sent an inspector and made the owner pay fines and pull out all the dangerous and illegal plumbing and electrical.
Now, the R-1 home is truly R-1, and the owner, has only been able to sporadically rent the property to other tenants over the past several years. As one contractor told me, after I pointed out that kids were living in the unsafe illegal unit, "I'm surprised no one died in this place".
Now, not all work without permits is dangerous but all is illegal. I'm sorry that it's a hassle to obey the law. Yeah, I like doing 90 on I-5 to L.A. too. But, if I get ticket, I don't tell the cop that it's inconvenient and a hassle to do 70.
And one more note, what happens if there was a fire and someone was hurt or killed? Do you think the homeowner's insurance company, looking for anyway to diminish or eliminate its liability, would cite the lack of permits as a mitigating factor?
As always, food for thought and room for discussion and debate. Permitted room, of course...
∙ More Than Meets The
Eye Permits At 674 15th Avenue [SocketSite]
∙ An Architect’s Nightmare And Discretionary Review Irony [SocketSite]
2655 Scott Street Is Quickly Picked
As we wrote about 2655 Scott Street just last month:
Classic Deco curb appeal, a modern interior with easy access to the outdoors from the marble countered kitchen, and a 2009 era apple, they’re a few of our favorite things.
Purchased for $3,100,000 in August 2009, the single-family Pacific Heights home at 2655 Scott Street is back on the market and listed for $3,300,000 touting "approved" plans for a vertical addition and new master suite to boot.
The sale of 2655 Scott Street closed yesterday with a reported contract price of $3,244,769. That's 2 percent under asking but 5 percent ($144,769) over 2009.
∙ A Few Of Our Favorite Things [SocketSite]
Parkmerced Redevelopment Plan Passed In 6-5 Vote
In an emotional meeting, the redevelopment plan for Parkmerced was approved by San Francisco’s Board of Supervisors last night in a 6-5 vote with supervisors Avalos, Campos, Mar, Mirkarimi and Kim opposing.
∙ Comments: Parkmerced Poised For Board Vote And 5,700 New Residences [SocketSite]
∙ Parkmerced's Proposed Urban Design, Open Space, And Sustainability [SocketSite]
∙ Parkmerced Development Agreement Close To Board Vote [SocketSite]
Posted by socketadmin at 6:45 AM
May 24, 2011
555YVR Scoop: Half Sold And Now Going Rental With The Rest
On the market since 2009, and with only half of its 87 condos having sold and one in contract, according to a plugged-in tipster, 555YVR (Ygnacio Valley Road) over in Walnut Creek will be going the rental route with its unsold inventory starting June first.
In the words of our tipster: "After going through [two] sales teams and fighting an uphill battle amidst all the foreclosure activity in CoCo County, the developers will rent the homes for now and attempt to resale them in the future."
Currently asking from $349,000 to $449,000 for one-bedrooms which range from 763 to 1,080 square feet, and $499,000 to $675,000 for two-bedrooms ranging from 1,147 to 1,308 square feet, according to our tipster they’re going to be targeting rents from $2,000 a month for the one-bedrooms up to $2,800 for the twos.
Parkmerced Poised For Board Vote And 5,700 New Residences
In a special session this morning, San Francisco’s Land Use and Economic Development Committee is expected to back the Development Agreement and a host of related ordinances for the proposed redevelopment of Parkmerced which will then be presented to San Francisco’s full Board of Supervisors this afternoon for adoption along with a scheduled vote on the certification of the Final Environmental Impact Report for the massive project.
∙ Parkmerced Development Agreement Close To Board Vote [SocketSite]
∙ Parkmerced's Proposed Urban Design, Open Space, And Sustainability [SocketSite]
∙ Two Big Tests For San Francisco's New Board Of Supervisors [SocketSite]
U.S. New Home Sales: Down 23% In April Year-Over-Year
The seasonally adjusted annual pace of new single-family home sales in the U.S. ticked up to 323,000 in April, up 7.3 percent from a revised rate of 301,000 in March but still down 23.1 percent versus the 420,000 pace recorded in April 2010.
Preliminary U.S. new home sales (versus pace) in April were estimated to be 32,000 (give or take 8 percent), the same as in April 2009, the lowest Aprils on record since 1982.
In the West, the pace of new home sales was down 20.8 percent year-over-year to 84,000, up 15.1 percent versus the month before.
"San Francisco" Prestige Index Drops 4.3% In First Quarter
The First Republic Prestige Home Index for "San Francisco" homes valued at more than $1 million dropped 4.3 percent from the fourth quarter of 2010 to the first quarter of 2011, down 1.9 percent on a year-over-year basis, down 19.2 percent from a third quarter 2007 peak, and back to between first and second quarter 2004 levels.
As always, keep in mind that the "San Francisco" index includes "a cross-section of luxury homes in Alamo, Atherton, Belvedere, Danville, Healdsburg, Hillsborough, Lafayette, Los Altos, Los Gatos, Mill Valley, Moraga, Orinda, Palo Alto, Piedmont, Portola Valley, Ross, St. Helena, San Francisco, Saratoga, Sonoma, Tiburon and Woodside."
∙ First Republic Prestige Home Index: San Francisco [firstrepublic.com]
∙ "San Francisco" Prestige Index Up 1.5% In Fourth Quarter [SocketSite]
May 23, 2011
On This Farm He Had A Short Sale (And Foreclosure In The Works)
One of ten Donald MacDonald designed petit townhomes that comprise the Clinton Mews urban infill development off Guerrero, 170 Guerrero Street #F was purchased for $507,000 in November 2003.
Refinanced in June of 2007 with a first for $517,500 and a second for $130,000, as of this past November the first mortgage was $43,976 past due and the home is currently scheduled to hit the courthouse steps in a month.
In the meantime, 170 Guerrero #F has been listed for $568,000 as a short sale.
∙ Listing: 170 Guerrero #F (2/1) 800 sqft – “$568,000” (short sale) [MLS]
Higher Down Payments And Lower Limits For FHA Loans As Proposed
Last month 29.9 percent of Bay Area home purchases were made by way of FHA backed loans, up from 25.4 percent in April 2010.
On Wednesday, a House subcommittee will discuss a draft bill which would raise the minimum down payment for FHA loans from 3.5 percent to 5.0 percent and lower the maximum loan size to 125 percent of the county’s median home price (versus the current maximum of up to $729,750 in high-cost areas).
∙ San Francisco Recorded Sales Activity Down 1.4% In April [SocketSite]
∙ Super Conforming Limits In San Francisco Set To Expire September 30 [SocketSite]
The Lion Of The Left's House Falls Prey To Its Loans
With $1,203,000 in open loans and a few liens (including one to US District Court), it’s a plugged-in tipster that notes the 3,000 square foot Art Deco home at 3300 Kirkham went back to the bank on Friday with no bidders at $828,000 on the courthouse steps.
With respect to the District Court lien, as also noted by our tipster, the home had been owned by former Roman Catholic priest and KGO radio host Bernie Ward who was convicted on child pornography charges in 2008.
The Penthouse Atop 455 Vallejo Sells For "$435,000"...
Our penthouse parade continues with the 3,100 square foot condo atop 455 Vallejo now listed for $2,850,000. While the day old listing notes "First time on the market!" we’ll note it was also listed for $2,995,000 last year (and as still noted on its brochure).
And yes, there's seven car parking below. Oh, and speaking of said parking, and by way of that aforementioned brochure, they're touting some rather unique Realtor math:
"…the 7 car parking alone is worth a million dollars – the breathtaking views are worth another million dollars – which leaves this spacious penthouse at under a million dollars."
The sale of the penthouse atop 455 Vallejo closed escrow today with a reported contract price of $2,435,000, only "$435,000" per the aforementioned math.
Posted by socketadmin at 10:00 AM
Apples-To-Apples And Year-Over-Year At 110 Avila
Last remodeled in 2007 and recently re-roofed, a year ago 110 Avila hit the market in the Marina listed for $2,795,000. It sold for $2,550,000 ($877 per square foot) last June.
Three bedrooms, three and one-half baths, a high-end kitchen and "outdoor spaces galore" with Golden Gate Bridge tower views from its roof deck.
Back on the market and once again listed for $2,795,000 today.
Petco Barks, Will It Come Back To Bite?
The proposed ordinance prohibiting "formula retail pet supply stores" along Geary Boulevard didn’t just catch our attention in March, but the attention of Petco as well, the formula retail at which the ordinance was aimed:
Petco sent a letter to Mar and the City Attorney’s Office calling the proposal illegal. "We believe the proposed ordinance exceeds the city’s police power, infringes on the project sponsor’s equal protection rights and, if enacted, would be invalid under federal and state law," said the letter from Andrew Junius, of the Rueben and Junius law firm, which is representing Petco.
Despite Petco’s legal questions, the bill moved forward in the legislative process with a unanimous vote of support from the Small Business Commission on May 9. "I don’t know if it’s going to get all the way to the Supreme Court ... to find out if it’s legal or not," commission President Luke O’Brien said. "I don’t think that we are going to turn this down because we are afraid that it’s not legal. I think we’ll take our chances on that."
City Attorney spokesman Jack Song said of the proposed legislation that "we are confident that we will reach an outcome that is legally sound and in the best interests of The City."
May 20, 2011
SF Mayor To CPMC: $108 Million To Approve Cathedral Hill Hospital
San Francisco Mayor Ed Lee is asking California Pacific Medical Center to pay to play on its proposed $1.7 billion Cathedral Hill hospital project, and $800 million in other major construction projects in the city that require San Francisco permits and approvals.
The mayor wants California Pacific, the city's largest private hospital, to fund $108 million in affordable housing, transit and other community projects in return for the city's OK on the controversial 555-bed hospital.
"We welcome the mayor's statement and thank him for his leadership on this issue," hospital spokesman Kevin McCormack told the San Francisco Business Times early Friday. That said, "We think this is a rather ambitious request of a non-profit hospital trying to meet its legally required seismic obligations."
No word on whether or not Mayor Lee has recently started frequenting the Buck Tavern.
∙ Hospital approval? That will be $108M, S.F. tells California Pacific [Business Times]
∙ CPMC’s Long Range Development Plan Renderings And Draft EIR [SocketSite]
∙ CPMC: Latest Designs, Renderings, And Architecture Review [SocketSite]