October 31, 2012
Trinity Place Phase Two: Timing And Reality Check
As originally designed, approved, and rendered, the 22-story second phase of Trinity Place rising at 1190 Mission Street was to feature a glass and aluminum curtain wall wrapping around its base on the corner of 8th Street with a precast concrete exterior above.
As a number of plugged-in readers have noticed, however, the design was quietly revised and the glass and aluminum curtain wall that was to grace the corner of 8th Street and the first few floors of the building appears to have been "value engineered" away.
The revised rendering for Phase Two of Trinity Place that we uncovered but hasn't been published by either Arquitectonica or the developer:
While the revised corner finish might seem like a minor detail, it calls into question whether or not the two "holes" along 8th Street have been value engineered away as well.
The construction along 8th doesn't appear to support Arquitectonica's holey design.
Regardless, the 418 residential units in Phase Two of Trinity Place, mostly one-bedrooms, are currently scheduled to be completed and ready for occupany in the summer of 2013.
As always, we'll keep you posted and plugged-in.
October 30, 2012
Actual Versus "The Index" For A Contemporary Corona Heights Home
Purchased for $2,275,000 in 2002 and unsuccessfully listed for $2,995,000 in 2007 and $2,295,000 in 2010, the contemporary Corona Heights home at 438 Roosevelt sold last week with a reported contract price of $2,300,000 having been listed for $2,499,000.
Call it an actual apples-to-apples gain of 1.1 percent for the "dramatic and sexy home" since 2002 versus the 0.96 percent gain in the Case-Shiller Index for San Francisco over the same time period, or the 12.9 percent gain in the Index for the top third of homes in the San Francisco MSA or the 22.2 percent gain in the San Francisco Prestige Index.
∙ 438 Roosevelt Returns Listed For 24,490 Benjamins [SocketSite]
∙ More Monday Morning Modern (Or Is It Contemporary?) [SocketSite]
∙ The Green Is Gone At 438 Roosevelt [SocketSite]
∙ San Francisco Home Values Tick Up, Condos Up 11.1 Percent YOY [SocketSite]
∙ San Francisco Prestige Index Up 2.9% In Q2 2012, Up 6.6% YOY [SocketSite]
It's Time To Acquire A New Garage Up In Pacific Heights
Once again, previous owners of the Pacific Heights home at 1945 Franklin Street have included Nicholas Cage and Patricia Arquette. And as plugged-in people know, the infamous Excalibur with "ACQUIRE" license plates currently resides in the garage.
As we reported when 1945 Franklin was scheduled to be un-acquired on the courthouse steps last year:
Purchased in June of 2005 for $3,000,000 by way of a $2,350,000 first mortgage and a $790,000 construction loan second (yes, that's over 100% financed), the property was refinanced in September 2006 to the tune of $5,000,000 to which a $500,000 home equity line of credit was added three months later.
Scheduled to hit the courthouse steps [in 2009] with $5,684,086 owed as of [that August], the balance due on the $5,000,000 first was up to $6,157,795 as of [January 2011]. And no, we don’t believe any payments have been made since.
Having received a last minute reprieve two weeks ago, and with over $6,594,973 then owed on that $5,000,000 first alone, the title to 1945 Franklin was taken back by the bank yesterday with no bidders at $3,235,600 in cash on the courthouse steps.
No word from the now ex-owner who runs a boutique investment bank advising clients in ways to borrow money and appears to have walked away with well over $2,000,000 that had been borrowed against the house along with a few years (and counting) of payment free living in Pacific Heights.
∙ On The Verge Of Being Un-Acquired. Again. [SocketSite]
∙ How To Acquire "Free" Money: Borrow, Then Don’t Pay It Back... [SocketSite]
∙ 1945 Franklin On The Verge Of Being Un-Acquired [SocketSite]
San Francisco Home Values Tick Up, Condos Up 11.1 Percent YOY
According to the August 2012 S&P/Case-Shiller Home Price Index, single-family home values in the San Francisco MSA gained 0.5% from July 2012 to August 2012 and are up 5.3% year-over-year but remain down 34.8% from a May 2006 peak.
For the broader 10-City composite (CSXR), home values gained 0.8% from July to August, up 1.4% year-over-year but remain down 29.9% from a June 2006 peak.
Nineteen of the 20 cities and both Composites showed monthly gains in August. Seventeen cities and both Composites posted positive annual returns in August 2012. In 18 cities and both Composites annual rates improved in August versus July. Dallas’ rate remained unchanged at +3.6% and Chicago worsened slightly from a -1.0% annual rate in July to a -1.6% annual rate in August.
Phoenix continues to lead the home price recovery. It recorded its fourth consecutive month of double-digit positive annual returns with a +18.8% rate for August. Atlanta posted a -6.1% annual rate, however this is significantly better than the nine consecutive months of double-digit declines it posted from October 2011 through June 2012. Las Vegas’ annual rate finally moved to positive territory with a +0.9% annual rate of change in August 2012, its first since January 2007.
On a month-over-month basis, values rose across all three San Francisco price tiers.
The bottom third (under $357,663 at the time of acquisition) gained 2.6% from July to August (up 7.5% YOY); the middle third gained 0.9% from July to August (up 7.3% YOY); and the top third (over $653,509 at the time of acquisition) gained 0.4% from July to August, up 4.7% year-over-year.
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA have returned to just below October 2000 levels (down 56% from a peak in August 2006), the middle third has returned to June 2002 levels (down 36% from a peak in May 2006), and the top third has returned to just below May 2004 levels (down 21% from a peak in August 2007).
Condo values in the San Francisco MSA gained 2.5% from July to August and are up 11.1% year-over-year but remain 25.6% below their December 2005 peak.
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: Home Prices Continued to Rise in August 2012 [Standard & Poor's]
∙ San Francisco Home Prices Gain In July, Condos Up 8.1 Percent YOY [SocketSite]
October 29, 2012
Back In The Day And "Over" On Day For A Million Dollars More
As we wrote about the gutted home at 324 Day Street back in 2009:
Purchased for $1,053,000 in 2007, the single-family [home at] 324 Day was subsequently gutted, foreclosed upon and returned to the market mid-renovation last month over in Noe.
Asking $760,000 ("Seller/lender anxious to sell, very motivated. Bring your best offer, don't worry about the listing price."), the sale of 324 Day closed escrow on 7/17/09 with a reported contract price of $675,000.
Yes, the price of "fixers" is falling.
Having subsequently been "fixed" and listed for $1,799,000 this past May, the fully rebuilt Noe Valley home was withdrawn from the MLS this past July only to be relisted anew for $1,495,000 in September at $677 per square foot, well below the going rate in the 'hood.
Last week, the sale of 324 Day Street closed escrow with a reported contract price of $1,650,000 ($747 per square foot). The sale will be recorded as $155,000 "over asking" versus $149,000 under its original list price according to industry stats and reports.
And yes, the now 2,209 square foot property just sold for a million dollars more than in 2009! Never mind that back in 2009 it was a gutted 1,345 square foot shell.
∙ Calling All Contractors That Still Have Cash... [SocketSite]
∙ The Best Offer: 36 Percent Under Its 2007 Un-Gutted Purchase Price [SocketSite]
There’s Room To Grow, And Plans To Do So, Out On Clement
While the neighbors and neighborhood groups haven't yet been notified, the owner of the single-story building at 3038 Clement Street is quietly working on plans to raze the "European Food" market and build a four-story, 40-foot tall building with six three-bedroom condos over ground floor retail and parking for six cars on the site between 31st and 32nd Avenues, from which San Francisco's first Fresh & Easy is a fifty-foot walk.
∙ Fresh & Easy & Opening Today At Ten In San Francisco [SocketSite]
∙ San Francisco's Housing Pipeline: 4,200 New Units On The Way [SocketSite]
Transbay Tower Slated For 2014 Groundbreaking, Occupancy In 2017
With the 1,070 foot tall Tansbay Tower having been approved to rise at 101 First Street, and Hines having partnered with Boston Properties to purchase the site and finance the tower’s construction, the likely groundbreaking for the project has been pushed back from late 2013 to sometime in 2014 with occupancy in 2017.
No word on whether Sue Hestor's Save Our Parks Sunlight Coalition or San Franciscans for Reasonable Growth plan to appeal Planning's approval of the project, or will otherwise attempt to delay the development, but we would be surprised if not.
∙ Financial Partner Secured To Build San Francisco’s Transbay Tower [SocketSite]
∙ Proposed 1,070-Foot Transbay Tower Approved To Rise [SocketSite]
∙ Sue Hestor Seeks To Stop Transit Center Tower Development Short [SocketSite]
October 26, 2012
San Francisco's Housing Pipeline: 4,200 New Units On The Way
As we first reported earlier this year, with 372,831 total housing units in San Francisco, a third of which are single-family homes and only a quarter of which are in buildings with over 20 units, total new housing production in 2011 totaled 418 units, the lowest production since 1993 and versus an average of 1,890 units per year from 2000-2010. In addition, 149 units were lost through demolition, merger or the removal of illegal units in 2011 for a net gain of only 269, less than a hundred of which were market rate.
Today, there are over 4,200 net new housing units under construction in San Francisco with building permits for another 1,450 units having been approved and permits for another 2,610 having been requested, units which should hit the market over the next three years.
Another 28,060 housing units have been approved to be built by Planning, but that includes 10,500 units by Candlestick, 7,800 units on Treasure Island and 5,680 units in Park-Merced, projects which have timelines measured in decades, not years.
For context, a total of 10,438 housing units have been constructed in San Francisco since 2007, a total of 24,519 net new units since 2000.
With respect to the pipeline of commercial development in San Francisco: 830,000 square feet are under construction; building permits for 964,000 square feet have been issued; building permits for another 2,423,000 square feet have been requested; and another 5,822,000 square feet of commercial development has been approved.
The detailed San Francisco Pipeline Report which includes a breakdown by neighborhood:
∙ San Francisco’s Total Housing Inventory And Pipeline Report [SocketSite]
∙ Is A Lack Of Density Cooking San Francisco's Golden Tech Goose? [SocketSite]
∙ Hunters Point Redevelopment Plan For 10,500 New Units Approved! [SocketSite]
∙ Treasure Island Redevelopment Plans Approved! (Appeal Rejected) [SocketSite]
∙ The Parkmerced Thirty Year Plan: Public Scoping Meeting Tonight [SocketSite]
Square's Mid-Market To Mid-Market Move
Plans to add a "chef's kitchen and other amenities" for employees of Square are underway at 1455 Market Street, with the company's six block move from its current Mid-Market headquarters at Fifth and Mission to its future "Mid-Market" headquarters on Market between Tenth and Eleventh Streets expected to be executed by mid-2013.
1455 Market Street is directly adjacent to Crescent Heights' 749-unit development at 1401 Market Street which is rising right across Tenth Street from "Market Square," no relation.
∙ More Mid-Market Development And Definition [SocketSite]
∙ A Huge (Potential) Development For The Mid-Market/SoMa 'Hood [SocketSite]
∙ 1401 Market Street: Redesigned And Cleared For Construction [SocketSite]
∙ 1355 Market Square Scoop: Three New Restaurants And A Grocery [SocketSite]
∙ Square signs lease for new mid-Market headquarters [squareup.com]
Contemporary Penthouse Under Cover Of Victorian Façade Take Two
As we wrote about 1770 Fell Street #5 in July of 2010:
You should know we’re suckers for natural light and indoor/outdoor living (especially when off the kitchen). Radiant heat, three car parking, and proximity to the park never hurts.
And the saunas (both dry and steam) atop 1770 Fell are simply a bonus.
Listed for $1,600,000 at the time, the penthouse condo was withdrawn from the market without a reported sale two years ago and listed for rent at $5,950 per month.
It's now two years later and take two for the nearly two thousand square foot condo which has been listed anew for $1,599,000 with transfer at possession of escrow.
∙ Listing: 1770 Fell #5 (3/2) 1,984 sqft - $1,599,000 [Redfin]
∙ Contemporary Penthouse Under Cover Of A Victorian Façade [SocketSite]
October 25, 2012
350 Mission Street: Permits Issued For 350-Foot Tower To Rise
The permits to demolish the existing four story Heald College building on the site have been approved, and the construction permits for the Skidmore Owings & Merrill designed tower to rise on the coner of Mission and Fremont were issued last month.
∙ 350 Feet At 350 Mission (And San Francisco’s Planning Commission) [SocketSite]
∙ Permits Pulled To Raze And Rebuild At 350 Mission [SocketSite]
∙ 350 Feet At 350 Mission (And San Francisco’s Planning Commission) [SocketSite]
∙ EIR Today, Heald Gone Tomorrow At 350 Mission As Proposed [SocketSite]
∙ More Than Meets The Eye Behind The Opposition To 350 Mission? [SocketSite]
∙ Kilroy Realty buys development site at 350 Mission [San Francisco Business Times]
October 24, 2012
AT&T Will Be Rocking, So Presentation Of Mission Rock Plans Delayed
With the first pitch of the 2012 World Series being thrown tonight, and our Giants stepping up to the plate, the Port's presentation of the latest plans for the development of San Francisco’s Seawall Lot 337 across the cove from AT&T Park has been postponed to 11/3.
Once again, the plan to develop Seawall Lot 337 into "Mission Rock" has been dusted off with the Giants and their surviving development partner setting a goal of breaking ground on the project, currently the site of the San Francisco Giants Parking Lot A, by 2015.
As last proposed, the 27-acre development would yield up to 1,000 housing units, 125,000 square feet of retail, 1.7 million square feet of office space, a garage with 2,690 parking spaces, and over eight acres of public open space. Click the early rendering to enlarge:
The ten year lease for Seawall Lot 337 between the City and County of San Francisco and the China Basin Ballpark Company, a subsidiary of the San Francisco Giants, expired at the end of 2009 and was month-to-month before being extended five years by San Francisco’s Board of Supervisors to 2017.
∙ SocketSite Weekend Special: One Proposal For San Francisco SWL 337 [SocketSite]
∙ Proposed Seawall Lot 337 Development Scrambling For Investors [SocketSite]
∙ Could This Be Curtains For Cirque Du Soleil In The City? [SocketSite]
∙ Five More Years For Giant's Parking Lot A And Big Development Delay [SocketSite]
Financial Partner Secured To Build San Francisco’s Transbay Tower
As we wrote last week with respect to the recently approved 61-story Transbay Tower to rise at 101 First Street:
In terms of the land on which the tower would rise, while the deadline for Hines to complete the $185 million purchase of the site from the Transbay Joint Powers Authority has passed, and Hines has yet to announce a new financial partner, negotiations continue.
The chance that Hines will fail to complete its purchase of the site (click image to enlarge) and that the Pelli Clarke Pelli design would be shelved? We'd put that at well under one percent.
Boston Properties has just been announced as Hines’ new financial partner on the project. The acquisition of the site from the TJPA is expected to close in the first quarter of 2013.
∙ Proposed 1,070-Foot Transbay Tower Approved To Rise [SocketSite]
∙ Transbay Land Cost Cut Another $50 Million For Shrunken Tower [SocketSite]
∙ Transbay Tower's Financial Backer Has Left The Building [SocketSite]
New U.S. Home Sales Up From August And An All-Time Low Last Year
The seasonally adjusted annual pace of new single-family home sales in the U.S. ticked up to 389,000 in September, up 5.7 percent from a revised rate of 368,000 in August and up 27.1 percent versus the 306,000 pace recorded in September 2011, an all-time low.
Annual new home sales in the U.S. have averaged 667,000 since 1963, peaking at 1,283,000 in 2005.
Preliminary U.S. new home sales (versus pace) in September were estimated to be 31,000 (give or take 7 percent), unchanged from August and up from a record September low of 24,000 last year. September sales peaked in 2005 with 99,000 new homes sold.
In the West, the pace of new home sales ticked up 3.9 percent versus August, up 62.1 percent on a year-over-year basis.
∙ New Residential Sales: September 2012 [census.gov]
∙ New U.S. Home Sales Slip In August But Remain Up 27.7% YOY [SocketSite]
∙ New Residential Sales Since 1963 [census.gov]
October 23, 2012
Pushing The Architecture + Design Envelope Over In Noe
As we wrote and revealed about 264 Clipper Street back in 2009:
The Envelope Architecture + Design remodel of 264 Clipper Street over in Noe Valley lands in The New York Times today.
Purchased for $1,368,000 in August of 2005 according to public records ("$1 million in 2005" according to the Times). Renovated at a cost of "just under $500,000" in 2007.
There's a sweet little studio below with garage door leading to a backyard designed by Flora Grubb. And sorry, it's not on the market...
While it wasn’t on the market then, it is now and has just been listed for $2,250,000.
And yes, this is the one with the Space Invader embedded in the concrete out front:
And another garage door out back.
∙ Listing: 264 Clipper Street (3/2) 2,144 sqft - $2,250,000 [Redfin]
Skate Design Or Die: Pushing The Envelope On 264 Clipper Street [SocketSite]
October 22, 2012
Speaking Of Adding Floors And Altered Views: 680 Folsom Topped Out
Speaking of adding floors and unprotected views, a reader wonders how much higher the soon to be re-skinned building at 680 Folsom Street will rise. Our answer: with two floors having been added atop the original twelve-story building, it goes no higher as the renovation has topped out at fourteen floors, although there will be mechanical above.
The renovated building which should be ready for occupancy by November 2013 will yield 505,000 square feet of office space and a public plaza on the corner of Folsom and Third Streets on which a new 15,000-square-foot retail or cultural building will also rise.
∙ Renovation Of 680/690 Folsom Slated To Get Going This November [SocketSite]
∙ A Re-Skinning Crane Has Risen At 680 Folsom Street [SocketSite]
∙ You've Been Warned: Let There Be Less Light And Fewer Views [SocketSite]
Resurrected Plans For The Corner Of 19th And South Van Ness Ave
The gas station at the corner of 19th Street and South Van Ness Avenue stopped pumping gas at the end of 2004. An application to build five-story mixed use building upon the site was filed in 2005. And in early 2008, the construction of a 50-foot tall building with 29 dwelling units, 29 parking spaces, and 4,600 square feet of ground-floor retail, commercial space or Production, Distribution and Repair space was approved to be built at 793 South Van Ness Avenue (click either of the following renderings to enlarge):
As proposed the project would contain, 13 two-bedroom units, and 16 three-bedroom units. The residential lobby is provided off of 19th Street. The project sponsor intends to satisfy the Inclusionary Housing Requirement by providing the three (3) below-market rate units on-site. An approximately 11-foot wide garage opening would be located on 19th Street to provide ingress and egress to the residential parking.
Per the terms of Planning's approval for the development, "Condition of Approval Number 11 deemed the authorization and rights vested…null and void if within three years…a site permit or building permit for the Project had not been secured by Project Sponsor."
With three years having passed and the site permit which was approved in 2009 cancelled in 2011, the owners of the entitlements have dusted off their plans and are now seeking an extension of their window to start construction at 793 South Van Ness to October 2014.
You've Been Warned: Let There Be Less Light And Fewer Views
As proposed, a story would be added atop the four-story building at 1856 Pacific Avenue and its façade redesigned, resulting in a 55-foot building within an 80-foot height district.
In the words of the owners of 1870 Pacific Avenue, the 7-story building directly adjacent to the west of 1856 Pacific Avenue, and the residents of 1870 Pacific Avenue apartment number 505 whose lot line windows would be blocked by the addition, all of whom are opposing the project in the form of a requested Discretionary Review (DR):
The project does not provide decent light, air, privacy or convenience of access to our adjacent property located at 1870 Pacific Avenue.
This project creates exceptional and extra ordinary circumstances that justify a DR, including, but not limited to infill of 2 (or more) windows on our property, elimination of light, air, views from 4 (or more) windows. Project diminishes the quality of 4 (or more units), which effects 8 (or more) residents. The project [greatly] diminishes privacy for the 2 (or more) units.
Our property is the adjacent building to the west of the subject property. We were not consulted on the proposed plan.
The [Residential Design Team] did not find exceptional or extraordinary circumstances with regard to the DR requestors’ concerns regarding the potential loss of light and air access, loss of privacy and safety, and increased noise.
As property line windows and private views are not protected under Planning and Building Codes, and the project is a residential use, the project is within the minimum standards of the Residential Design Guidelines to be expected when a reasonable building expansion is proposed. The proximity of the project to the adjacent building is also within the reasonable tolerances to be expected when living in a dense urban environment such as San Francisco, and particularly the RM-3 Zoning District which is zoned to allow high-density residential buildings. Furthermore, the project proposes a 55-foot tall building within an 80-foot height district.
The property line windows that will be affected by the project are not the primary windows to the Requestors’ units, as the dwelling units on each floor also contain windows that face onto the street, the rear yard and/or a large existing lightwell; these windows will continue to provide considerable light and air access to the Requestors’ units.
The Planning Department recommends San Francisco's Planning Commission reject the Discretionary Review of 1856 Pacific and approve the project as opposed. We recommend buyers, or renters, of buildings with lot line windows understand the risks involved.
∙ Discretionary Review: 1856 Pacific Avenue [sfplanning.org]
October 19, 2012
It's No Slam Dunk Nor Layup For A Warriors Arena In San Francisco
With San Francisco Mayor Ed Lee deeming it his legacy project, and the project sponsors lining the pockets of nearly every political, development, and public relations consultant in the city, some might consider the Warriors Arena that’s proposed to be built upon Piers 30-32 to be too big or connected to fail. But this is San Francisco, after all.
Birds helped overturn the approved development of 555 Washington. NIMBY neighbors have stalled the approved development of 8 Washington for at least another year. And an early plan to develop the very Piers upon which the Warriors Arena would be built fell apart during negotiations of the financial terms.
The draft development deal with the Warriors would cap the City’s exposure on the billion dollar project to a $120,000,000 reimbursement for Pier rehabilitation and potential public improvements with funding of the reimbursement limited to rent credits (the piers would be leased to the Warriors for $1,970,000 a year), the sale of Seawall 330 for an estimated $30,400,000, and new property tax revenue generated by the Warriors development.
The Fiscal Feasibility and Conceptual Framework for the Piers 30-32 project:
Assuming a term sheet for the deal can be agreed upon, the Bay Conservation and Development Commission approves the use, the Piers are successfully rezoned for development over 40 feet, and any legal challenges are overcome in a timely manner, San Francisco and the Golden State Warriors will have a new Arena by 2017.
Yes, it can be done. But make no mistake, the development of a Warriors Arena upon the Piers in San Francisco is no slam dunk nor layup.
∙ The Plans For A Legacy San Francisco Warriors Arena Upon The Piers [SocketSite]
∙ The Design For The Warriors San Francisco Arena On Piers 30-32 [SocketSite]
∙ 555 Washington's EIR Certification Reversed [SocketSite]
∙ 8 Washington Approval Upheld But Now On Hold Until 2013 Election [SocketSite]
∙ Piers 30-32 Dropped From AC34 Development Plan, Lawsuit Filed [SocketSite]
∙ Plans For Seawall 330 Remain As Murky As The Rendering [SocketSite]
∙ Timeline And Key Milestones For Building The Warriors Arena In SF [SocketSite]
Bernal Flipper Heights
We don’t consider development projects like 455 Prentiss to be flips. The quick resale of 15 Nebraska, however, fits the flipping bill. In the words of a plugged-in tipster with respect to the Bernal property which sold for $660,000 this past July (i.e., three months ago):
Sellers stayed in the home for a month or two after closing. Sellers finally moved out maybe 2 or 3 weeks ago and all the buyer did was repair floors, install some windows, very inexpensively update kitchen and a bath, and paint…
The 1,610 square foot home at 15 Nebraska with an unwarranted cottage out back has just been listed for $799,000 with "offers to be reviewed on 10/30 by 5pm" and no recent permits for any substantive work online.
Welcome back to
Bernal Flipper Heights.
∙ Listing: 15 Nebraska (3/3) 1,610 - $799,000 [Redfin]
∙ Before And After At 455 Prentiss: Contemporary Bernal Heights [SocketSite]