Archive for June, 2011

San Francisco’s Multi-Unit Property Market is ‘HOT’!

Wednesday, June 29th, 2011

San Francisco’s multi-unit investment property market is benefiting from a ‘perfect’ recovery scenario. National conditions are keeping interest rates low yet our indefatigable ‘future-is-now’ economy based on high tech, bio-tech, corporate headquarters, green technology, and general innovative culture is pushing rents up at a fairly quick pace. Multi-unit buildings are being snapped up as quickly as they hit the market. Countywide there is now a 3 month supply but in hot neighborhoods like Pacific Heights and the Marina there is a ‘zero’ month supply!

5-15 Unit Inventory Level for San Francisco County

In the other ‘hot’ neighborhoods of Noe Valley, the Castro, Mission Dolores and Duboce Park the supply is showing 1.7 months supply as of the end of May. My guess is in this environment it is going down quickly. Big residential investors are snapping up everything they can get their hands on. One of the largest investors – as reported by The San Francisco Business Times - picked up two cherry properties by purchasing the delinquent notes from UBS out of the failed Lembi family portfolio. One was the Park Laneat 11oo Sacramento Street on Nob Hill which is described as the finest pre-war full service residential apartment building on the West Coast.

Our listing at 1901 Pacific Avenue went into contract within the first 4 days with an all cash offer from international buyers. Even the local players were stunned as to how quickly it went as they’ve been calling and circling in the last 3 days as they’ve realized they moved too slowly. One of the dynamics holding back some local players is the current lending restrictions in the US on these types of properties. International buyers have more leverage as they get a bump on the exchange rate and can often times use loans with easier terms from their own countries to purchase here.

I believe we’re seeing predictions come true in front of our eyes on several levels: 1. San Francisco’s real estate market has bounced back quicker and probably stronger than most of the best forecasts; 2. Our tech driven economy is where the jobs of the future (the future is ‘now’) are as the tech companies are hiring and sitting on mountains of cash (witness all the new social media companies moving into San Francisco, Apple building a completely new corporate campus as well as SalesForce.com, etc.); 3. interest rates are low and will stay that way due to national trends and money moving from other world centers into US bonds due to the faltering economies of Europe; 4. after several years of San Francisco property prices falling up to 20% along with our exchange rate we look like a bargain for an international city center on the Pacific Rim. Next up, watch for San Francisco to move into a higher international profile as a destination for international purchases. This will be a dual edged sword for those of us who live here.

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Glen Park

Tuesday, June 21st, 2011

The Glen Park neighborhood is located south of Diamond Heights / Noe Valley, west of Bernal Heights and east of Glen Canyon Park. The Glen Park BART Station makes commuting to the Financial District, East Bay or Peninsula stress free. I-280 is located on the southern end of the neighborhood and it’s also served by Muni bus lines 23,35,36 and 44 and the J Church metro line.

Glen Park is often described as a village within a city. Mom and pop stores, restaurants, neighborhood bars all combine to make this an ideal location if you’re looking for a neighborhood or small town feeling with the convenience of living in a big city.
For more information call us today!

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From the Trenches-San Francisco Real Estate Update

Thursday, June 16th, 2011
Working day-to-day selling real estate throughout San Francisco, I feel the pulse of the market. It’s ebbs and flows and hiccups too. Our market is transitioning from a buyers to a sellers. The only thing is, buyers haven’t totally gotten it yet because they’re following national press on the rest of the country’s doldrums. Buyers are still in a mindset that they need to push for everything they can get. The trouble is the numbers are showing the tide turning against them.
 
Citywide single family home sales inventory dropped over 9% in May. We’re seeing drops in inventory across the board in all property types. Drilling down into the more popular neighborhoods the picture for buyers is getting even worse. In the central neighborhoods of San Francisco popular with the high tech and medical professionals inventory dropped 16.9% while sales volume was up 18.5% and pendings were up 18.5%.
 
Condos show nearly the same picture. The central neighborhood inventory drop was 25%! Sales volume up 3%. Citywide it is somewhat less but still shows the same picture.
 
 
 San Francisco Condo Sales at All Price Levels Thru May 2011
 

 

 
My open houses are consistently busy with people asking all the right questions. And, obviously buyers are making the ‘buy’ decision. I’m not seeing anything on the horizon that suggests that inventory is headed up anytime soon. It was predicted San Francisco would be one of the first to recover and the strong technology, medical and financial sectors are driving our economy.
 
This is putting the spotlight on San Francisco perhaps more internationally than nationally. It was just reported this week that The Millenium Tower- one of the newest luxury towers – is in contract to sell its last of 9 penthouses with an asking price of $9.5million. The sale of this unit will extinguish all of the developers debt on the project with 40% of the units still remaining to be sold = pure profit. 15% of the sales have been all cash international Far East buyers. And, we’re told that San Francisco is the #1 real estate market in the sights of international and big investors. Several previously shelved towers are reportedly now back on-line.
 
San Francisco is the City of the Future! 
 
Lance Fulford, MBA
Broker Associate
 

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1901 Pacific Avenue – SOLD

Thursday, June 16th, 2011

A highly desired rarely found former Pacific Heights mansion converted to multi-unit income with a grand owners’ unit aptly describes 1901 Pacific Avenue. It takes its place in the heart of the City’s history having been planned and built by Rudolph Spreckels through the architectural firm of Newsom and Meyer and once home to an American President, Herbert Hoover.

 The building occupies a corner location and has great street presence with its original architectural integrity largely intact. The grand owners’ unit occupies the second floor and consists of the original living room with windows on three sides, fully intact cornice and period detailing along with a fireplace that is the focal point of the room. This unit also has what was most likely the original den with a fireplace and full period detailing including windows to a front balcony with balustrades. This level also has a kitchen with butlers’ pantry and a bedroom with full bath. There is also a stairway to an upper bedroom with full bath. This unit has the use of the one car garage. This unit and its parking will be delivered vacant.

 The remaining configuration of the building consists of 5 studios and 2 one bedroom units. These units are built-out in what were the original bedrooms, maids’ rooms and a couple of street level spaces. There is a coin operated washer dryer available for the building.

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50 Cresta Dr. #15 – Available

Thursday, June 9th, 2011

A rare find indeed…San Francisco style LOFT in San Rafael. This unbelievably huge loft is on 3 levels and is almost 2400 sq.ft. This small complex of 15 lofts are located just off Smith Ranch Road in the Northern part of San Rafael with easy access to the Golden Gate Bridge, Larkspur Landing & Golden Gate Transit. The loft is only 10 years young and is situated in on the end with no units above or below. The main level is a large open area with kitchen, dining/living area & a huge wrap around private patio. The next level up is loft-style bedroom suite. The 3rd level has another loft-style bedroom and a huge enclosed master suite with walk-in closet, free standing fireplace & a monstrous full bath. This loft also has nearly 40′ floor to ceiling windows as well as windows on 3 sides which allows for tons of natural light. On those hot days in Marin there are two A/C units. The unit also has two side-by-side deeded parking spaces as well as a storage closet. HOA dues are just $465.00.

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Twin Peaks

Monday, June 6th, 2011

Twin Peaks is exactly that. Two peaks with a north / south orientation. Twin Peaks Boulevard runs between them. Twin Peaks also serves as a block for the summer coastal fog that arrives from the Pacific. The west facing slopes receive substantial fog and winds which can be romantic. The east facing slopes usually receive more sunshine and warmth.

The area has a rich history. The native Ohlone people may have used the area as a lookout. When the Spanish settlers in the early 1700’s they named the area “Los Pechos de la Chola” or “Breasts of the Indian Maiden.” The area was devoted to ranching. The area was renamed Twin Peaks when San Francisco came under US control during the 1800’s.

Houses and apartments in the Twin Peaks area from the summit to those nestled on the hillside have amazing views. Though shopping in the area is generally limited to supermarkets there are a number of restaurants that are hidden gems in the area.

To explore, we recommend a hike up to the vista point known as Christmas Tree Point which offers unobstructed views of most of San Francisco and the bay. In fact, we’d recommend the hike even if you’re considering a different neighborhood in San Francisco. Christmas Tree Point will provide a unique view. Most of the summit is undeveloped and is preserved by the San Francisco Recreation and Parks Department. The area is one of the last remaining habitats for the Mission Blue Butterfly which is an endangered species.

Are you looking for comfortable homes offering a spectacular view and close to a nature preserve filled with numerous bird, insect and plant varieties. If so you owe it to yourself to give Twin Peaks a chance.

As always, give us a call! We’d be happy to provide more information and answer questions.

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Hayes Valley

Wednesday, June 1st, 2011

Hayes Valley is bordered on the North by Fulton Street, the south by Market Street, Frankly Street on the east and Fillmore/Webster on the west. Hayes Valley takes its name from Thomas Hayes who owned the tract of land in the late 1800s. The neighborhood has been through its ups and downs, after the 1989 Loma Prieta earthquake a section of freeway that ran through the neighborhood was demolished and the neighborhood is now a thriving district.

Residents of Hayes Valley safeguard the bohemian atmosphere and community ethic. Residents are a mix of old time residents, young professionals and families with young kids. The neighborhood is full of Victorian homes, tree lined streets and quiet areas off the main commercial strip.

Hayes Valley is central to almost everything in San Francisco. The “Valley” is close to Golden Gate Park and its many attractions and Civic Center which hosts a Farmer’s Market. Muni (Van Ness) and BART (Civic Center) are walking distance.

If a friendly neighborhood with a bohemian feel, close to many attractions and easy commuting is your interest, give us a call and let us help you settle in to the right home!

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