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Posted Aug 8, 2008, 4:39 PM
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Only Mostly Dead
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Join Date: Apr 2007
Location: Marin
Posts: 5,234
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An article in today's Chronicle mentions sales rates at Infinity and One Rincon Hill, and contract rates at Millennium:
Quote:
S.F. condominium sales strong in recent months
James Temple, Chronicle Staff Writer
Friday, August 8, 2008
(08-07) 20:12 PDT -- Sales of new condominiums have solidified during the last several months in San Francisco, with many high-profile projects steadily filling up, according to a report released Thursday. Not all developments are faring equally well, however.
On average, sales teams are placing about four units per month into contract, meaning buyers have submitted nonrefundable deposits, according to the Mark Co.'s August San Francisco Market Overview. That's back to the historic average, though only around half the rate during the recent real estate boom, said Alan Mark, president of the San Francisco real estate marketing and research firm.
"There is a steady pace of sales and an increase in traffic across the board," he said. "You definitely see people out there buying."
Another recent report lent weight to his view. Sales of new homes in San Francisco - which almost exclusively means condos since little else is built here - rose 18.7 percent from June 2007 to June 2008, according to research firm DataQuick Information Systems. The median price, however, fell 32.5 percent during that time to $399,000.
That points to another of the Mark Co.'s findings. The developers doing the best in this market tend to be those who are the most realistic about pricing and offer the greatest concessions, Mark said.
In the bragging rights contest between the Infinity and One Rincon Hill, two huge residential projects that both began selling in June 2006 and have come to be seen as barometers of the sector's strength, the former has now pulled ahead in terms of sales.
More than 225 condos have closed escrow in the 365-unit first phase, the cloverleaf-shaped glass tower at Folsom and Spear streets, said Carl Shannon, managing director for developer Tishman Speyer. More than half of the remaining condos are in contract.
"We're blessed to have a good project in a good location, but the thing that's most important is we're in San Francisco," Shannon said. "The foundation of the San Francisco economy, the technology business, is still good and you have good job growth in Northern California."
The sales team is closing about 50 units per month on average, a record in the city, according to Mark, who markets the building.
Buyers at One Rincon Hill, the 64-story building that soars above the western approach to the Bay Bridge, have completed the sale of 192 units in its 376-unit first phase, said Garrett Chan, vice president of sales with Pacific Marketing Associates Inc., which markets that building.
Nearly all the rest are in contract, and they've been closing at a rate of around 40 units per month, project spokesman Spencer Moore said.
The Millennium Tower, another closely watched skyscraper at First and Mission streets, didn't reach the market until more than a year after its South of Market neighbors. The team at the 419-unit building isn't closing sales yet, but since November more than 80 condos have gone into contract, a rate of about nine per month. Activity during the past four weeks has been particularly strong, said Richard Baumert, managing director with Millennium Partners.
"Since the Fourth of July, all those interested and enthusiastic buyers have moved off the sidelines and are moving into the contract process," he said.
Not all residential developments are doing nearly as well. The Mark report found that the slowest-selling projects, at a rate of one unit or less per month, were: Innovative Realty Services' 767 Bryant, Rodan LLC's Sutter Heights at 1521 Sutter St., and Signature Properties' Candlestick Cove at 101 Executive Park Blvd.
Much of the difference has to do with a given project's ZIP code, some of which have been harder hit by the subprime and foreclosures crises, Signature President Mike Ghielmetti said.
"The southern parts of the city, and we are straddling Visitacion Valley and Bayview, have seen more pronounced effects from these issues," he said.
The Heights at Candlestick, a 360-unit development set to include the Third Street corridor's first full-service grocery store, was temporarily on hold as of July, according to the report. Developer James Noteware didn't respond to an inquiry from The Chronicle, but industry sources said the delay was related to a general contractor issue, not market conditions.
At the current rate of sales, 15 of the 35 condo projects now selling in San Francisco would be filled by the end of the year. Five more would be complete by the end of the first quarter, leaving 15 open projects and very little scheduled to come onto the market in 2009.
One indicator of home sales rose in June, a rare bit of good news for the troubled market.
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Note: I posted here instead of the Real Estate tidbits thread because it involves three major new projects we've been following here in the Projects & Construction section.
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