South Beach


Two weeks ago I attended the South Beach Mission Bay Neighborhood Association. Alan Mark of The Mark Company was the speaker for the evening, and if you do not know who he is, just think of sales and marketing for The Infinity, The Brannan, The St. Regis, 200 Brannan, The Arterra, The Montgomery, 733 Front, and the soon to be released One Hawthorne.

Alan Mark and his company represented the sales of all of the above buildings in the South Beach and SOMA areas of San Francisco and many more since his company was founded 11 years ago. So I was dying to hear his perspective on the sales activity in the South Beach area that night.

What did he say? He said that within 2 years he sees us with a shortage of inventory in South Beach. Why? New construction loans are extremely tough to get these days. But let’s say an entity was fortunate enough to get a loan. Getting the entitlements to the land is another time-consuming hurdle that could take years. Then there’s the time it takes to build.

What is available today in new construction? As of February 2010:

  • Only 14 units are left at The Infinity
  • One Hawthorne is going to open soon with just 119 units
  • The Montgomery is sold out, and
  • The Arterra is also close to being sold out

If an entity gets that new construction loan and the entitlements to build, it could be up to 10 years before the building would be complete and ready for sale.

Realtors get accused of being overly optimistic. So I’m not going to make any recommendations; I’m just reporting this is what Alan Mark sees on the horizon. He’s pretty credible in my book. Like I said, think The Infinity, St. Regis, The Brannan, 200 Brannan, One Hawthorne….

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South Beach Hot Spots

I have a new challenge for 2010: keeping up with the new hot spots that keep opening up in San Francisco’s South Beach.

In 2009, and in just the past few weeks, I have seen these South Beach establishments open for business:

Coming down the pike is the long-awaited Prospect restaurant (a spinoff from Nancy Oakes’ Boulevard Restaurant) that will be located on the ground floor of the Infinity building at 300 Spear @ Folsom.

These new establishments continue to enhance the walkability of the South Beach neighborhood. That is great for the real estate values in the area. And there are some great deals in South Beach these days.

Stay tuned. There are more South Beach hot spots to come in 2010!

 A new San Francisco development, One Hawthorne,  will be opening in Downtown San Francisco in early 2010.  The location is at the corner of Hawthorne and Howard.  Compared to other new developments in San Francisco,  The Infinity at 656 units, One Rincon at 709 units and The Millenium at 419 units, One Hawthorne is a boutique building offering just 165 units. One Hawthorne will have condos ranging from junior 1 bedrooms to 3 bedroom penthouses.

Pricing can only be estimated right now as ranging from the $400,000s to $2,000,000. And pricing will be key. The South Beach and SOMA developments that listened and responded to the market in 2009 were rewarded with plenty of buyers. For example: The Infinity has less than 50 units available after selling an average of 40 homes a month (making it one of the top selling development in the country) One Rincon states to be 80 percent sold out . Other nearby developments such as The Montgomery have only a few unit left for sale.

One Hawthorne is positioned well as an alternative to the larger towers in South Beach and SOMA: Located on a quiet(er) historic block in Downtown San Francisco.  A rooftop garden for residents.  A new restaurant Benu (from the former chef de cuisine of French Laundry) is opening right on Hawthorne Lane. 

As the debate continues on whether or not we have hit the bottom of the market and starting a recovery, the sales at One Hawthorne will be an exciting indicator. It is looking to be a gorgeous development with the best of the city’s amenities. One Hawthorne will a welcome beginning to 2010.

A San Francisco property received 42 offers…others went into contract immediately. There are some great properties out there and great loan rates. The Infinity is selling an average of a property a day…what’s going on? Is this the rebound?

http://cbs5.com/video/?id=47401@kpix.dayport.com 

Email me, Jenn Davis,  for more information jdavis@mcguire.com

 Take a look through the latest offerings from the Stimulus Plan. Incentives for first time home buyers as well as buyers of new construction. There is an opportunity here especially with the low interest rates.

Contact me for details jdavis@mcguire.com.

Obama’s Federal Stimulus Plan:

 $8,000 federal tax credit for first-time home buyers (have not owned a
home in the past three years);

Applies to any primary residence (new construction or previously
owned, but not second homes or investment property), purchased between
January 1, 2009, and November 30, 2009;

Up to modified adjusted gross income less than $95,000 for single taxpayers and
$170,000 for married taxpayers;

Still eligible for the credit, even if overall tax liability is
insufficient to cover the amount of the tax credit;

Must live in the residence for a minimum of three years, or the credit
will have to be repaid.

California State Plan:

 $10,000 state tax credit, spread out over three years;

Applies to anyone (first-time or previous home owners) buying a
primary residence (i.e. not second homes or investment property),
between March 1, 2009, and March 1, 2010;

New construction only (i.e. not previously owned or occupied);

No income limit on the credit, but overall tax liability must equal or
exceed the amount of the tax credit;

Must live in the residence for a minimum of two years, or the credit
will have to be repaid;

$100,000,000 has been set aside for this credit, to be allocated to
the first 10,000 eligible home buyers who apply, on a
first-come-first-served basis.

New construction in San Francisco such as the Infinity, One Rincon, Millenium, Blu, The Montgomery…so many choices and a lot of options!

Why wait?

www.jenndavis.com

jdavis@mcguire.com

Millennium Tower

Millennium Tower

The word is that the Millennium Tower  in San Francisco, located at 301 Mission, just inked a sale for 10.6M! This is apparently a 5000 square foot shell with beautiful views.

They recently slashed their prices by 15% and extended it to their existing buyers in response to the slower market. I wonder if this $10.6M Buyer took advantage of this discount?

www.jenndavis.com

jdavis@mcguire.com

Alan P. Mark of the Mark Company will be speaking to the South Beach Rincon Hill Mission Bay Neighborhood Association about how the South Beach Mission Bay neighborhood has changed, how the economy has affected the various developments/projects in the area including the Infinity, and about the launch of the second Infinity Tower.
 
When:  Monday, February 9th 6-7PM. Please email me if you are interested in attending!

jdavis@mcguire.com

www.jenndavis.com