November 30, 2012
Picking Up The Slack For Six Million Dollars On Sacramento
Built on bedrock in 1891, the Slack Mansion at 2224 Sacramento Street survived the great quake of 1906. Commissioned by Judge Charles Slack, and having once served as a bed and breakfast, the eight thousand square foot home (not including a ground floor apartment), was purchased for $4,290,000 in 2005 and extensively remodeled since:
With five bedrooms, six baths and parking for eight (yes, eight), the 2224 Sacramento has just returned to the market listed for $6,250,000. Is it time to pick up the Slack?
∙ Listing: 2224 Sacramento Street (5/6) 7,893 sqft - $6,250,000 [2224sacramento.com]
Latest SF Skyscraper Scoop: 181 Fremont Redesigned And Rendered
Back in 2007, the proposed skyscraper to rise at 181 Fremont street which was designed by HellerManus reached 900 feet and would have yielded around 500,000 square feet of office space below 140 residential condominiums.
Having been waylaid by the market, the project is now making its way back through planning, but the proposed steel framed tower has been downsized to 52 stories reaching 700 feet with a decorative screen reaching to 745 feet and a spire to the 802-foot mark.
As now proposed, the tower would contain 404,000 square feet of office space on floors 3 to 35, 74 condos on floors 38 to 52, and 7,000 square feet of residential amenities and a two-story open air terrace wrapping around the building on level 36 for residents:
A bridge to the elevated City Park atop the future Transit Center extends from floor 5.
And underneath it all, a five-level subterranean garage would provide parking for 200 cars
The Economic Value Of Being Labeled Green In California
From San Francisco’s Assessor-Recorder’s office with respect to their new Green Labels for properties in San Francisco: "While no re-assessments will be triggered by earning an environmental distinction for your home, there is evidence that a Green Label enhances the re-sale value."
The aforementioned evidence was in the form of an academic study, The Value of Green Labels in the California Housing Market, financed by the San Francisco Department of the Environment and StopWaste.Org. The key finding from the report:
This study, conducted by economists at the University of California, Berkeley and University of California, Los Angeles, finds that California homes labeled by Energy Star, LEED for Homes and GreenPoint Rated sell for 9 percent more (±4%) than comparable, non-labeled homes.
Because real estate prices depend on a variety of factors, the study controlled for key variables that influence home prices including location, size, vintage, and the presence of major amenities such as swimming pools, views and air conditioning.
Considering that the average sales price of a non-labeled home in California is $400,000, the price premium for a certified green home translates into some $34,800 more than the value of a comparable home nearby.
∙ Green Labels Migrate From Marketing Materials To Property Records [SocketSite]
∙ The Value of Green Labels in the California Housing Market [builditgreen.org]
Green Labels Migrate From Marketing Materials To Property Records
San Francisco's Assessor-Recorder’s office has started recording and tracking "Green Labels" for individual properties as part of the official land records maintained by the City and County of San Francisco.
The labels which are currently being recorded include the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED), Build It Green’s Green Point Rated, Home Energy Rating System II (HERS II), Home Energy Score (US Dept of Energy) and ENERGYSTAR.
So far, the Assessor-Recorder’s Office has entered Green Label information on 1,057 properties, including 647 condominiums and 105 multi-family buildings. The Department of Environment estimates that over 3,000 residential units have either earned a Green Label, or are in a building that has achieved one of the distinctions, in San Francisco.
On the commercial side, almost 200 buildings with nearly 55 million square feet of space have officially been recorded as Green.
∙ San Francisco Set To Start Recording Green Labels [SocketSite]
Great Pacific Heights "Appreciation" And Yet A Rather Poor ROI
As we first wrote about the Pacific Heights home at 2209 Pacific last year:
Purchased as a 4,960 square foot four-bedroom home for $5,150,000 in late 2005, and since remodeled to become a 5,900 square foot home with three bedrooms and seven baths, 2209 Pacific Avenue has returned to the market listed for $9,500,000 in 2011.
According to permits filed for the project and from which fees would have been billed, it was an estimated "$150,000" remodeling job, a budget that probably wouldn’t have covered the cost of the new kitchen, and perhaps not even the new theater below.
While the estimated remodeling costs per permits were "$150,000," according to the now live property website "close to $4 million dollars" in improvements have been made to the property. It's funny how that happens.
Having been reduced to $7,950,000 and then withdrawn from the MLS after eleven months on the market, 2209 Pacific Avenue was relisted as new this past July with "over $4 million" in improvements since 2005.
Yesterday, the sale of 2209 Pacific Avenue closed escrow with a reported contract price of $7,400,000, not bad "appreciation" from the $5,150,000 purchase price according to industry stats, which don't account for improvements, but not such a great return considering a total investment of over nine million.
November 29, 2012
Trader Joe's At California And Hyde Has Opened Its Doors
While the ribbon cutting ceremony isn’t until next week, the new Trader Joe's at 1401 California and Hyde has opened its doors. A CVS Pharmacy will join the redevelopment of the former Cala Foods in early 2013. And there’s currently no queue for parking. Yet.
The Next Big Housing Thing To Define The New Mission
Plugged-in people have long known about the plans to renovate the New Mission Theater and develop the adjacent lot at 2558 Mission Street, upon which the Giant Value building currently stands. And now, the latest scoop for the modern Kwan Henmi designed eight-story building that’s proposed to rise on the project site, clad in metal, glass, and plaster with multi-colored panels and alternating inward and outward-angled windows:
As proposed, the 2558 Mission Street building will be approximately 85 feet tall (measured from Mission Street with a 15 foot setback for the eight floor) with 114 residential units above 14,750 square feet of ground-floor commercial space and 89 parking spaces in a below-grade garage with its entrance on Bartlett.
The ground floor would contain retail or restaurant uses, a mail area, a management office, building utilities, and two residential lobbies. The main lobby would be at the Bartlett Street entrance and a secondary lobby would be at the Mission Street entrance. The retail/restaurant space could house one large or up to three smaller tenants.
The residential units were designed to range in size from 520 square feet for the junior one-bedrooms to 1,400 square feet for the two-bedrooms. All 114 units (18 junior one-bedrooms, 45 one-bedrooms and 51 two-bedrooms) are planned to be offered for sale at market-rates. The city’s inclusionary housing requirement would be fulfilled by building below market rate (BMR) units on a separate parcel at 1296 Shotwell Street.
Of the eighty-nine parking spaces, eighty-six would be for the 114 residential units, a ratio of 0.75 spaces per unit. One parking space would be a car-share space and two parking spaces would be for the retail component. All parking spaces except for the car-share and handicapped-accessible spaces would be provided in two-level mechanical lifts. Parking for 41 bicycles would also be provided in separate, secure room in the garage.
Currently working its way through planning, once approved, the construction of the 2558 Mission Street building would take approximately 18 to 20 months versus 10 to 12 months for the renovation of the New Mission Theater.
Keep in mind that the Mission Anti-Displacement Coalition and a few others have long opposed the development of any market rate housing in the area.
As always, we’ll keep you posted and plugged-in.
∙ New Mission Theater Plans Moving Forward, Targeting 2013 Opening [SocketSite]
∙ Giant Value Housing Or Headache To Come In The Mission? [SocketSite]
November 28, 2012
A Precedent Setting Decision And Objection For Development(s)
Fourteen years ago, the owner of the parcel at 70 Crestline Drive, upon which a 14-unit building and 6,300 square feet of undeveloped Vista Francisco land currently sits, proposed to subdivide the lot and build upon the undeveloped parcel.
Hitting a wall of neighborhood opposition and facing a Zoning Administrator that intended to deny the variance application necessary for the proposed building to rise, the request for the variance and project approval were withdrawn.
With 16 neighbors opposing, including nine in the building on the parcel, a proposal to build upon the undeveloped land is back. This time, however, the plan which was designed "to fit with the existing neighborhood, does not require any variance, and is in full compliance with all applicable zoning regulations, design guidelines and building codes."
That being said, the Planning Department opposes the proposed four-unit building with two one-bedroom units with one parking space for each, one three-bedroom unit with two parking spaces, and one four-bedroom unit with one space (or any building at all):
From the Planning Department which recommends the Planning Commission uphold the opposing neighbors’ request for Discretionary Review and deny the new development:
The Vista Francisco Development contains a significant number of dense, residential buildings. A unique neighborhood character involves a number of lots that were developed with a residential building occupying a portion of the lot and the remainder of the lot maintained as open space.
For instance, a number of units in the Subject Building, occupying only a portion of the lot, were designed with north facing windows overlooking the open space, the remainder of the lot. Proposing a five-story building to entirely occupy this open space and be within close proximity to those north facing windows will substantially obstruct air and light to these units. It would also eliminate a significant design amenity of the original Vista Francisco Development.
During a site visit by staff, it was identified that five other lots on the subject block and a number of lots on the adjacent blocks were developed in a way similar to the subject lot as described above. The open space on each lot functions as a density buffer between two multi-unit buildings and allows adequate air, light and privacy protection to some existing units in the residential building. It is not meant for the purpose of future in-fill housing.
The circumstances surrounding the subject property and in this neighborhood do not appear to have changed since a similar proposal was submitted in 1998 and subsequently relinquished by the same subject property owner. The project, if approved, will result in an inappropriate precedent or expectation for a similar in-fill project elsewhere in the Vista Francisco Development.
Also noted by San Francisco's Planning Department:
Furthermore, the open space on the subject lot in conjunction with its adjacent Vista Lane offers a public view corridor to the City and Bay. The massing of the proposed five-story building, occupying the entire open space, will significantly minimize the public view corridor and impair public views.
Beyond the Commission’s decision on the development along Crestline, it will be interesting to see if any "impact on public views" objections will be equally applied to the development of Piers 30-32 as well.
As always, we’ll keep you posted and plugged-in.
Calling All Warriors Willing To Bet On The Watermark And An Arena
While a number of penthouses atop the Watermark at 501 Beale Street have gone back to the bank and sold for substantial discounts over the past couple of years, the 2,055 square foot Penthouse #1C on the 22nd floor at 501 Beale has just hit the market listed for $3,200,000 having been purchased as new for $2,300,000 in January of 2007.
Assuming, of course, that they are built below.
∙ Listing: 501 Beale Street #PH1C (3/2.5) 2,055 sqft - $3,200,000 [watermarkph1c.com]
∙ Another Watermark Penthouse Returns To The Market Bank-Owned [SocketSite]
∙ The Design For The Warriors San Francisco Arena On Piers 30-32 [SocketSite]
∙ The Conceptual Details And Design Discussion For Seawall 330 [SocketSite]
San Francisco Prestige Index Up 2.4% Last Quarter, Up 8.1% YOY
The First Republic Prestige Home Index for "San Francisco" homes valued at more than $1 million, and currently averaging $2.74 million, gained 2.4 percent from the second to third quarter of 2012, up 8.1 percent year-over-year.
The index remains down 11.3 percent from a third quarter 2007 peak but is back to first quarter 2005 levels, up 9.8 percent from the current cycle bottom which occurred in the first quarter of 2011 at which point the index was down 19.2 percent from its peak.
Over the past year, a little less than 25 percent of all home sales in San Francisco proper have been above the million dollar mark.
And as always, keep in mind that First Republic's "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 2.9% In Q2 2012, Up 6.6% YOY [SocketSite]
Pace Of New Home Sales Slips In October, Remains Below Average
The seasonally adjusted annual pace of new single-family home sales in the U.S. slipped to 368,000 in October, down a nominal 0.3 percent from a revised rate of 369,000 in September but remains 17.2 percent above the 314,000 pace recorded in October 2011, the second slowest October on record since 1963.
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 October were estimated to be 29,000, unchanged from September. October sales peaked in 2005 with 105,000 new homes sold.
In the West, the pace of new home sales ticked up 8.8 percent from September to October, up 33.7 percent on a year-over-year basis.
∙ New Residential Sales: September 2012 [census.gov]
∙ New U.S. Home Sales Up From August And An All-Time Low Last Year [SocketSite]
∙ New Residential Sales Since 1963 [census.gov]
November 27, 2012
160 Macro-Micro-Units Ready To Rise On Mission Next Year
Measuring an average of 291 square feet, the 120 studios proposed to rise at 1312 Mission Street might have been considered to be "micro-units" by some a week ago, but they're now 30 percent larger than the soon to be legal minimum of 220 square feet.
And at 646 square feet, the building's 40 proposed suites, which will be two or three bedrooms, are almost three times the new minimum for occupancy by two.
In addition to the 160 residential units, the proposed 11-story building includes 3,359 square feet of ground floor commercial space, 2,185 square feet of basement space for parking up to 240 bicycles, and a 696 square foot garage for one car share car.
Proposed as Student Housing, which requires the building to be controlled by an accredited post-secondary Educational Institution in the form of a master lease or contractual agreement with at least a five-year term, no below market rate (BMR) units would be required. And as Student Housing, even if the units were to be shrunken to the new legal micro-unit minimum, they wouldn’t count toward the initial micro-unit cap.
Up for approval by San Francisco's Planning Commission this week, the construction of 1321 Mission Street is tentatively scheduled to begin early 2013 with occupancy planned for fall 2014, replacing the existing one-story commercial building on the corner of 9th Street which was once the Guitar Center and most recently occupied by a furniture store:
∙ Micro-Units Approved For San Francisco, But Capped For Some [SocketSite]
∙ A Big Vote For Micro-Units In San Francisco [SocketSite]
San Francisco Home And Condos Values Continue To Climb
According to the September 2012 S&P/Case-Shiller Home Price Index, single-family home prices in the San Francisco MSA rose 0.5% from August to September and are up 7.5% year-over-year but remain down 34.4% from a May 2006 peak.
For the broader 10-City composite (CSXR), home values rose 0.2% from August to September and are up 2.1% year-over-year, down 29.8% from a June 2006 peak.
We are entering the seasonally weak part of the year. The headline figures, which are not seasonally adjusted, showed five cities with lower prices in September versus only one in August; in the seasonally adjusted data the pattern was reversed: one city fell in September versus two in August. Despite the seasons, housing continues to improve.
Phoenix continues to lead the recovery with a +20.4% annual growth rate. Atlanta has finally reversed 26 months of annual declines with a +0.1% annual rate as observed in September’s housing data. At the other end of the spectrum, Chicago and New York were the only two cities to post annual declines of 1.5% and 2.3% respectively and were also down 0.6% and 0.1% month-over-month.
Thirteen of the 20 cities recorded positive monthly returns; Boston, Charlotte, Chicago, Cleveland and New York saw modest drops in home prices in September as compared to August; Tampa and Washington D.C. were flat. With six months of consistently rising home prices, it is safe to say that we are now in the midst of a recovery in the housing market.
On a month-over-month basis, prices rose across the bottom two San Francisco price tiers with a nominal drop at the top.
The bottom third (under $366,247 at the time of acquisition) rose 2.0% from August to September, up 12.2% year-over-year; the middle third rose 1.7% from August to September, up 10.4% YOY; and the top third (over $666,869 at the time of acquisition) slipped 0.1% from August to September, up 5.6% YOY versus 4.7% in August.
According to the Index, single-family home values for the bottom third of the market in the San Francisco MSA have returned to November 2000 levels (55% below an August 2006 peak), the middle third has returned to February 2003 levels (35% below a May 2006 peak), and the top third remains at May 2004 levels (21% below an August 2007 peak).
Condo values in the San Francisco MSA gained 0.9% from August to September and are up 13.5% year-over-year but remain 25.0% 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 Rise for the Sixth Straight Month [Standard & Poor's]
∙ San Francisco Home Values Tick Up, Condos Up 11.1 Percent YOY [SocketSite]
November 26, 2012
Six Months And A Modern Makeover Later, A Noe Home Returns
Purchased as a two-bedroom "Art Deco gem" for $955,000 this past May, the Noe Valley home at 655 27th Street has been redesigned, remodeled and returned to the market as a "Mid Century Modern Envisoned" three-bedroom listed for $1,729,000.
Inside, skylights now bathe the main floor and central staircase, a hot-rolled steel fireplace warms the living room, and the kitchen is finished with Viola Park walnut cabinets:
Two bedrooms open to a steel and Ipe deck which shelters the ground floor master suite.
And of course, as the (not so) great room looked before:
∙ Listing: 655 27th Street (3/2.5) - $1,729,000 [27thstreetmodern.com]
The Revised Design(s) And Timing For A Tower At 41 Tehama
As we first reported a few weeks ago, the original plans for a 550-foot tower designed by SOM to rise at 41 Tehama have been shelved and Fritzi Realty is moving forward with new plans for a 342 foot tower designed by Arquitectonica to rise on the site.
The proposed tower would be set back approximately 59 feet at ground level from the western property line, the vacant space created by the setback would be occupied by a 4,460-square-foot common open space plaza:
As plugged-in people should know, the site is adjacent to Oscar Park (click to enlarge):
Up for approval by San Francisco's Planning Commission this week, the construction of 41 Tehama will take approximately 24 months and yield 325 units (20 studios, 205 one-bedrooms, 100 two-bedrooms), 49 of which would be Below Market Rate (BMR). The number of proposed parking spaces is down to 241 with parking for 104 bicycles as well.
∙ Reaching Out For A 32-Story Residential Tower To Rise At 41 Tehama [SocketSite]
∙ 41 Tehama: Fritzi Sees The City's 350 Feet And Raises It Another 200 [SocketSite]
∙ Oscar The Park: Designs For An Acre Of Outdoor Space Downtown [SocketSite]
A Scaled-Down Cathedral Hill Campus And Expanded St. Luke's
With the paperwork having been filed to demolish the existing Cathedral Hill Hotel earlier this year, the pre-construction teams for CPMC's proposed Cathedral Hill campus were sent packing a few months ago as the City and Sutter Health wrangled over the rewritten terms for the new campus which was approved by Planning, but has been appealed, to rise.
According to the Chronicle, talks between the City and Sutter Health are making headway with the two sides exploring a scaled-down Cathedral Hill Campus while expanding CPMC’s St. Luke's Hospital, the survival of which was the cornerstone of the City’s concerns.
∙ CPMC's Pre-Construction Teams Sent Packing [SocketSite]
∙ Cathedral Hill Hotel Demolition Paperwork Filed, Poised To Fall [SocketSite]
∙ Supervisors Affirm Commitment To St. Luke's, Delay On Cathedral Hill [SocketSite]
∙ Mayor Lee To CPMC: Save St. Luke's Or Cathedral Hill Campus Is DOA [SocketSite]
∙ Scaled-down Van Ness hospital on table [SFGate]
Eureka (Valley): Measuring The Market Apples-To-Apples Style
Built as a three-unit Mid-Century building, 350 Collingwood was legally expanded and converted into a 5,246 square foot single-family home circa 2003. In 2005, the renovated home sold for $3,595,000 with four bedrooms across two levels and a two car garage below, an elevator, and a rather cherry kitchen on the top floor. The adjacent landscaped lot at 342 Collingwood (the "Grounds") fetched another $1,000,000, for a total purchase price of $4,595,000.
Having returned to the market listed for $4,750,000, the sale of 350 Collingwood and the gorunds closed escrow last week with a reported contract price of $4,575,000, just below its 2005 price on an apples-to-apples basis for the Eureka Valley home.
November 21, 2012
Traditional Thanksgiving Thoughts With An Untraditional Floor Plan
With an octagonal floor plan, only one of two in San Francisco, and a totally tubular glass elevator, the only one of which we know, we break tradition and leave you for the holiday weekend with the listing for the landmark Feusier Octogon House at 1067 Green Street, the asking price for which has recently been reduced to $4,500,000.
Here's to hoping your pantry is plentiful and you're surrounded by family and friends. Safe travels if you're traveling. And as always, thank you for plugging in.
∙ San Francisco Landmark #36: Feusier Octagon House (1067 Green Street) [noehill.com]
∙ Listing: 1067 Green Street (4/3.5) 5,267 sqft - $4,500,000 [octagonhousesf.com]
∙ Warm Thoughts Of A Traditional Thanksgiving Dinner (2011 Edition) [SocketSite]
∙ Warm Thoughts Of A Traditional Thanksgiving Dinner (2010 Edition) [SocketSite]
∙ Warm Thoughts Of A Traditional Thanksgiving Dinner (2009 Edition) [SocketSite]
∙ Warm Thoughts Of A Traditional Thanksgiving Dinner (2008 Edition) [SocketSite]
∙ Conjuring Up Warm Thoughts Of A Traditional Thanksgiving Dinner [SocketSite]
The Facebook Effect On Noe
Nine months ago the newly constructed 3,400 square foot modern home at 1507 Noe Street hit the market listed for $2,750,000 and sold for $2,950,000 this past March. The faceless buyer of the Noe home was officially "Hangar Labs LLC," which we'll report was formed by a single Facebook engineer.
Two months after the purchase of 1507 Noe, just before Facebook went public at $38 a share, a two million dollar adjustable rate mortgage was taken on the property.
And yes, this is the house with the shower from which to see and be seen:
∙ Listing: 1507 Noe Street (4/3.5) 3,400 sqft - $3,599,000 [1507noestreet.com]
∙ Say Hello To Your Little Friend (In The Shower) At 1507 Noe [SocketSite]
∙ Facebook On The Home Front [SocketSite]
∙ We've Been Looking Past The Overhyped Facebook Effect, Have You? [SocketSite]
Micro-Units Approved For San Francisco, But Capped For Some
Supervisor Wiener's proposed legislation to reduce the minimum legal living room for a residential unit in San Francisco from 220 to 150 square feet was passed by San Francisco’s Board of Supervisors last night.
Under the ordinance, which only applies to newly built buildings, the total minimum area of a legal residential unit will be 220 square feet including closets and the bathroom.
And while the number of market rate micro-units allowed to be built in San Francisco has been capped at 375, the Planning Department has been tasked with preparing a detailed report on the impact of the first 325 units, after which the cap could be modified.
The numerical cap excludes units built for affordable, group, or student housing.
∙ 32 Percent More Or Less Efficient In San Francisco Part Two [SocketSite]
∙ A Proposed Cap On Smaller Residential Units In San Francisco [SocketSite]