As Quoted in Curbed SF: 1100 Sacramento in Nob Hill is San Francisco’s First $100M TIC – Game Changer – Curbed SF
San Francisco’s real estate boundaries are about to be shattered by the Park Lane building at 1100 Sacramento Street. The 33 units in the Nob Hill luxury tower are being converted from rentals into a tenancy-in-common project, and the projected sell out is a whopping $100M. The size of this building is nearly double that of the current largest TIC in The City: the Marina’s Francisco Palms, which has 17 units. What does a TIC of this size and prestige mean for San Francisco’s real estate market?
…“Owners need to have incentive to offer a better product to tenants, but locked-in rents tamp that incentive down,” Ho explains. “Imagine if we had market-hindering policies like rent control laws while San Francisco was being built in the 1800 and 1900s, most places probably would still have split bathrooms that use 6 gallons a flush with gas lamps for lights.”
You can always learn something new in real estate (or you can just judge my design skills). Either way check the latest version of my infamous Buyer Guide here (via Dropbox)
What’s Up with the Beacon?
You’ll see a fair number of open houses over at 250 to 260 King Street across the ballpark otherwise known as the Beacon. The building has been the subject of litigation for several years now concerning its climate systems and other related defects-based litigation. So, can you buy there if you’re financing?
Yes but one lender will want at least 30% down (no points). While another has a 30 yr loan fixed at 3.875%
20% down for owner-occupiers with 1.5 points of the loan amount.
Remember, the reason why lenders don’t like lending on buildings with litigation, is because they don’t want someone else in front of them in a creditor line if it ever came to that.
From this week’s Sunday NYTimes:
Many of the safety issues of yesterday’s kitchens are gone. No one in my family is likely to tumble into an open hearth. But new kitchens pose a more subtle danger to our health by doubling as a comfortable social, entertainment and eating hub. Retail marketers have long known that when tempting food is within close range of our eyes or nose, we tend to eat more of it. In our new kitchens, it’s just too darn easy to get to addictive snacks and calorie-rich drinks.
See more at the NYTimes Sunday Review
From Curbed SF: Remember when we were in a recession and no development projects were seeing the light of day? Yeah, well, apparently the clouds have lifted, because the citys been cranking out Environmental Reviews over at the Planning Department. We thought wed take a minute to check on some of the projects that are cookin in the oven. Some of these have been approved and some havent, but all are in the early stages of development and havent broken ground yet that we know of – tipsters, correct us if were wrong. All of which means we wont actually see them complete for years to come, of course. SOMA and Market-Octavia seem to be the hottest spots for upcoming new projects
Fresh from our broker office meetings, here’s the latest word on the street about what’s been happening in SF real estate this week.
It’s a fast market with continuing price pressure due to the an undersupply of homes right now. We’re starting to see some relief though with more homes trickling out on the market. Now, more than over, it seems sales are going by word-of-mouth and off-MLS for better or worse. So, it makes more sense to see what I’ve learned from, well, word of mouth.
53 Clifford Terrace, which is as single-family craft-style home with 3 bedrooms, 1.5 baths (with a sunroom that can be converted into a master suite relatively easily), 2 car parking with garage, that’s listed at a $1.7M, pre-MLS. But a house just down the block with the same square footage also listed at $1.7M got 6 offers and sold for a little over $1.8M. The agent (whose house this is) said if he doesn’t sell off-market in the next 2 weeks he’ll paint and stage and we know what that could mean on the open market
73 Beaver Street, the small, narrow condo in the heart of the Castro received 19 offers. Who knows where it’ll close at.
352 Castro Street, a 2 bed, 2 bath top-level Victorian/Edwardian condo located near Castro and Market listed at $1.150 million was on the MLS for a mere 22 hours before receiving an offer the sellers apparently couldn’t refuse as it was in contract before its first Saturday public open house.
The TIC at 629 Dolores – the top floor stunner across the street from Dolores Park — that was listed at $1.35 million, two-car tandem parking, respect with city views, high-end finishes, received three offers at least and is rumored to be a contract around $1.8 million. Another, lower-level TIC 2 bed, 2 bath unit (no parking) is expected to be on the market soon
Over at 6th and Harrison one of my colleagues brokered a deal whereby 36 units could be developed for more than $5M.
The beautiful, newly-built LEED-certitifed modern condo at 1456 Chestnut will set records for the Marina. The top floor unit listed at $2.095 million received various offers and is a contract well over its asking price. The middle unit is in negotiations and the lower unit is still available.
The TIC pair otherwise known as the Chinese Laundry over at Duboce and Church That didn’t sell last year just went to contract this year having been on the market for about for five weeks. The front unit $895,000 in the rear unit $1.175 million were built in 2011 and designed by noted architect Owen Kennerly is working on a few new homes at 16th St. and Albion Street with one of them being a stand-alone 5,000 sqft house in addition to condos. Funny enough each of the pair on Duboce each went to lawyers joining another who bought my listing there last summer. Rumor has it that the contract prices are the same or close to the asking price.
A multiunit building at 834 Broderick St. – four units — listed for $2 million received 11 offers and is an contract for more than $2.6 million. The buyers will redevelop these into 4 TIC units demonstrating the strength of the Divisadero/NoPa area.
A rare single-family house and cottage at 154 Julian Ave. near 16th St. received three offers and bested its $1.345 million asking price by quite a bit with an all-cash offer.
346 Hermann Street The top floor Debusse triangle/Hayes Valley two bedroom one bath condo with tandem parking listed at $875,000 received 10 offers and is in contract at nearly 13% over its asking price.
Over at One Rincon Hill for one bedroom on the 38th floor listed at $839,000 went over its asking price
Over on 27th St., only one of the TIC units remain. Another one, number nine, the large back corner home, listed at $519,000, received all-cash offer with a very short close from an investor owner who plans to rent the home out
And further proof that wealth is spreading throughout the Bay Area, a townhome in Hayward received 8 offers going into contract a significant amount over it $329,000 price tag.
The single-family fixer on Carmel Street
in Ashbury Heights listed at $1.295M went into contract for $1.855M; this was after another agent offered (and would have had it accepted) a preemptive offer for $1.5M but for a client being too indecisive.
979 Guerrero, middle-floor, Victorian condo, no parking at 22nd Street was on the market for 3 weeks but received 3 offers in the end losing over its $900,000 asking price.
501 Beale, #8B, the Waternark building, is a 1200 sqft condo that would have sold for $750K last year as the building was undergoing litigation then. But with all that resolved this year it received a $1M+ all-cash offer (among several), which put it well over its $899K list price.
Exclusive listings and advances
901 De Haro St. at Southern Heights Ave. This beautiful newly redone four-level high-end, chic finish home with four bedrooms, three bathrooms and a fantastic roof deck overlooking the City the highest point of Potrero is on the market for $3.25 million
Three new construction homes at Broderick and Grove Streets, two and three bedrooms, parking, high level of finishes, elevators, custom barrel sinks and smart layouts will be on the market starting from $1.285 million through $1.4 million.
1648 Fell Steet at Masonic – two level, top unit of a two- unit condo Victorian building, with tandem parking, four bedrooms, 2 1/2 baths, beautiful finishes, huge kitchen in an open layout floorplan, quiet, shared backyard, exclusive back deck, which won’t last very long, 2500 ft.²+ listed at $1.495 million.
224 Hermann, top-floor condo, completely redone with high-end finishes and smart design, 2 bed, 2 bath, tandem parking, right near Duboce Park/Lower Haight/Mission/Castro/Hayes Valley and everything else the area has to offer. Expected in 2 weeks, expected price $1.2 million.
These are in addition to other potential properties such as a single-family 2500+ sqft home in the Richmond with City and Ocean views ($1.3M+) ; a 2-unit income property in Russian Hill with 2 flats and parking with strong rents ($1.4M+) ; a Duboce Triangle top-floor 2 bed/1 bath, 1200 sqft condo (approx $1M) among others.
If you want to learn more, contact me right away.
Kevin K. Ho, Esq.
Broker Associate | Vanguard Properties | Attorney
DRE 01875957 | SBN 233408 | kevinho.co
Office: 415.875.7408 | Cell: 415.297.7462 | Your Trusted Real Estate Professional