1BR Prices Soar in SoMa


It’s not news that the South of Market, South Beach and Mission Bay markets have improved dramatically over the past year. The fury with which buyers are snapping up 1BR condos is whipping through these neighborhoods. This is somewhat atypical, in that 1BR units tend to have a narrower buyer pool. But for first-time home buyers looking for proximity to downtown and hip neighborhoods, 1BR condos are a great bet.

Even buildings hard hit by foreclosure and short sale activity in recent years are on the upswing. Take The Palms, for example, at 555 4th Street. You couldn’t give away a unit there at one time, and prices for units plummeted. But welcome to 2013: You’ll be competing with 15 other buyers for that 1BR listed in the high $500,000s. And you can expect to see a few cash buyers in the mix, too.

One buyer recently made a nice play for a brick and timber warehouse conversion unit at 310 Townsend (above). Technically located in SoMa, the building is on the border of Mission Bay and South Beach. So it’s central, has great style, and unit #202 was a 945-square foot 1BR/1BA listed for $799,000. The buyer came in with all cash and paid the transfer tax (approx $5562), and the unit was sold this week for $818,000.

No, this wasn’t way over the asking price. But $800,000+ in cash for a SoMa condo (with transfer tax thrown in) is getting up there where values are concerned. The average price for a 1BR unit in these neighborhoods in 2013 thus far is about $674,022; five 1BRs in buildings such as Madrone, 340 Ritch, 75 Folsom, and 650 Delancey sold in the $839,000-$998,000 range.

The bottom line? If you’re looking for a 1BR condo in a premium building in these neighborhoods, expect to pay in this range—whether you have cash or not.

Which Neighborhoods Have the Best Weather?

If you’re new to San Francisco, then it’s important to be aware that our city has a variety of microclimates. One minute you can be driving around with the top down, sweating, and the next you’re turning on the seat warmers. If you’re considering purchasing a home here and are particularly weather sensitive, it’s important to know which neighborhoods tend to have the most favorable climates.

Of course, San Francisco has citywide fog and wind no matter where you go. But some areas have longer periods of time during a given day when the sun shines and the wind is at a minimum. So here’s a quick rundown:

Bernal Heights. Make a good garden space a priority in Bernal, because you’ll be able to spend a lot of time enjoying it. And the Cortland retail strip is usually pretty hoppin’ because you can wander in and out of the shops and restaurants and not have to keep zipping and unzipping your jacket.

The Mission. Bernal’s neighbor is the Mission, which also shares in the weather fun. The nice part about the Mission is that the dining scene has exploded, so there are tons of restaurant options, as well as unique shops along Valencia and throughout the neighborhood. If your commute involves walking to BART at either 16th/24th and Mission, your morning and evening strolls won’t force you to confront driving winds.

Noe Valley. I live in the part of Noe that’s defined as “Upper Noe”—the area bordered by Guerrero, Cesar Chavez, 30th Street, and up as far as Diamond. For the most part, you can avoid the high winds in Noe, but it does depend on how into the “valley” part you are. Most days when I walk my dogs in the late afternoon, I’m wearing sunglasses and have a light jacket on. However, up there in Diamond Heights, the fog hangs thick. And when I drive down, say, Clipper, from Portola in the Twin Peaks area, I typically experience a transition from no sun and heavy fog to sun. There’s a notable difference every time.

South Beach. Located right off The Bay, South Beach is blessed with lots of sun most of the time. This is conducive to a very desirable, urban lifestyle that involves walks to the Ferry Building, runs along the Embarcadero, and Giants games.

South of Market. The blocks are long in SoMa, but that’s okay because if you’re running, biking or walking, you’re not being blown into traffic. The neighborhood is always developing, and it’s definitely the most urban area in this list. But having good weather is key to enjoying those shared rooftop decks that pervade SoMa living.

Mission Bay. Constantly in development, Mission Bay has amenities like Mission Creek Park, the ballpark, and outdoor dining. Developers have taken advantage of the on-the-Bay setting by incorporating as many deeded outdoor spaces as they can in condo complexes.

Potrero Hill/Dogpatch. Potrero is a well-established neighborhood offering a mix of residential and industrial properties, and Dogpatch (a.k.a. the Central Waterfront) has truly been transformed over the past decade into a hub for local businesses, restaurants, wine bars and the like. The T Muni line connects Dogpatch to downtown, and the freeways are extremely convenient to access.

Live/Work Loft Loans: Talk to Your Lender First

You’ve just hit the open house circuit and found a great loft like the one above at 25 Lucerne #1 in SoMa. You want to write an offer and you’re preapproved—a no brainer, correct? Not necessarily, according to my colleagues at Guarantee Mortgage.

A majority of lenders have recently become concerned about “buyback” issues. For example, a lender makes the loan, sells it to Fannie Mae or Freddie Mac, and then is asked by the latter institutions at a later date to buy back the loan because of the live/work nature of the property. Fannie Mae and Freddie Mac are primarily concerned with such restrictions affecting the future value of the property.

As a result, lenders are avoiding lending on live/work properties.

It’s important to know what you’re dealing with. Only “true” live/work lofts are a problem; you identify these by looking for deed restrictions in preliminary title reports and within CC&Rs (the docs that govern the HOA).

Guarantee Mortgage reports that it has at least four lenders willing to lend on live/work projects with deed restrictions. One lender will do so as long as the building meets certain basic Fannie Mae condo requirements. Another lender featuring adjustable and interest-only loans will consider live/work loans on a case by case basis. Yet another two require 30% or 40% down.

So you can see how important it is to get lender clearance up front before you write your offer.

What You Can Buy in SoMa

South of Market is a popular neighborhood for young professionals looking for proximity to freeways, downtown and nightlife. Here’s a look at three hot properties that just hit the market. I sold condos in two of these buildings in the past, and can vouch for my clients’ satisfaction in both cases:

701 Minna #13
$649,000
2BR/2BA, 1160 sq ft
Built 1999
22 units

The tri-level, top floor corner unit at 701 Minna #13 features great light and a true window on the city. In addition to versatile space that affords privacy (unusual for loft living), you get an in-unit washer/dryer, deeded parking, additional storage and a shared pano roof deck with a bbq. Homeowners association (HOA) dues are $408/month. 701 Minna is smack dab in the middle of the developing mid-Market area where a new tech hub is transpiring, along with lots of plans for future residential units. There’s a Harvest Market at the corner, and plenty of restaurants within walking distance—not to mention extreme proximity to Market Street and all the public transportation you’ll need. Great for downtown or freeway commuters.

655 5th Street #20
$599,000
1BR/2BA, 986 sq ft
Built 1999
20 units

The two-level loft at 655 5th Street #20 is well appointed, with shiny finishes and nice natural light. There’s not much of an outlook, but there are plenty of windows. Unique to this unit is an extra large parking space that could potentially accommodate two small vehicles. Though there was HOA litigation pending due to construction defects, that has been settled and reconstruction is about to begin to resolve building issues. (That means you’ll be able to get a loan now.) HOA dues are $440/month. This location is ideal for downtown and Peninsula commuters, as it’s very close to the Caltrain station at 4th Street and King. There are also a ton of restaurants and cafes within walking distance.

380 10th Street #12
$519,000
1BR/1BA, 789 sq ft
Built 2004
30 units

380 10th Street #12 is situated in the Tenth Street Loft building, a brick and timber property with a lot of style. This unit is in excellent condition, with hardwood floors, a gleaming kitchen, in-unit laundry and nice finishes. There’s also deeded parking and a very cool shared roof deck. HOAs are $352/month. 380 10th Street is right across from Costco and around the block from Bar Agricole. It’s a great location for freeway commuters and for tech workers in one of the many offices scattered throughout SoMa. It’s also not very far from the Mission, which opens a whole other door.

Condo Spotlight: 75 Folsom #1401 in South Beach


One of the more prestigious buildings in South Beach, Hills Plaza at 75 Folsom is in a prime South Beach location right at the waterfront. Originally constructed for the Hills Brothers Coffee Company in 1925 by architect George Kellum, the property was renovated in 1989 into its current state.

I’m liking unit 1401 that just came on the market, listed at $625,000. It’s a 1BR/1BA condo with about 844 square feet and city views. The unit gets great natural light, has high ceilings and recessed lighting. There’s in-unit laundry, one-car parking and storage, an elevator and 24-hour doorperson. Oh, and did I mention the fabulous wraparound, common-area roof terrace?

There are 67 residential units in Hills Plaza, as well as a ground floor that includes such tenants as Crunch, Palomino Restaurant, Gordon Biersch, and Starbucks. HOA dues for #1401 are a somewhat steep $1,043/month and include water, garbage, exterior building maintenance, security and property management.

Recent sales at 75 Folsom include a 1,019-square foot 1BR/1BA on the 8th floor that changed hands for $550,000 (no views, but good light), as well as a 1BR/1BA, 1066-square foot unit with Bay Bridge views that sold for $835,000.

Give me a shout if you’d like to check out #1401!

Walk Score Winners: Cow Hollow, Cole Valley, South Beach

These condos in the $1.2M range are great options for anyone looking for a spacious, centrally located property in proximity to restaurants, cafes, shops and services:

2912 Fillmore, Cow Hollow
$1,175,000
95 Walk Score

2912 Fillmore (above) is a top-floor 3BR/2BA, 1367-square foot condo in a six-unit building. It has an updated gourmet kitchen open to the living room, and lovely period detail throughout including high ceilings and moldings. The living room features Golden Gate Bridge and Bay views, and there’s a common roof deck, too. No parking, but you basically fall out your door and are in the midst of all you’ll need. HOA dues are $314/month. 2912 Fillmore was on the market in March and was tenant occupied, but the unit is vacant now.

1416 Shrader, Cole Valley
$1,195,000
91 Walk Score

1416 Shrader (above) is located in the heart of desirable Cole Valley. This top-floor, Edwardian condo has been renovated and offers 3BRs/1.5BAs across 1634 square feet. The living room has a fireplace, and there’s a kitchen open to the dining room which has a wall of windows and built-in bench seating. There’s a 320-square foot bonus room adjacent to the shared garden that’s ripe for future development as an office or guest space. One-car parking is included, and the HOA handles expenses in a pay-as-you-go situation. 1416 Shrader is a short distance from downtown Cole Valley, as well as the Muni line there.

501 Beale #10h, South Beach
$1,174,900
89 Walk Score

The Watermark is one of my favorite South Beach buildings. This corner unit (above) has 2BRs/2BAs with 1161 square feet. There are pano views to the east and south, as well as a large private balcony. Corner unit #10h features maple floors and marble baths. Amenities at The Watermark include 24/7 concierge, fitness center, pool and BBQ. HOAs are $750/month, but that covers the aforementioned amenities, as well as one-car parking. The building is a stone’s throw from the Giants ballpark, Market Street and Embarcadero transportation, and numerous restaurants and cafes.

2BRs You Can Buy for Up to $600,000

It’s admittedly a challenge to find a 2BR condo in a central San Francisco neighborhood for under $600,000. But I like a challenge, so I set out to find three 2BR condos in this price range that aren’t dumps. Here’s what I found:

1305 Scott, Western Addition
$595,000

This top-floor, 1127-square foot condo at 1305 Scott is situated in a four-unit building constructed in the 1920s. The unit has a spacious open living room with multiple windows and dining room with fireplace. French doors open to a covered deck for good entertaining flow. There’s also a sunny kitchen with plenty of counter and storage space. HOA dues are $332/month, and the building has good reserves. One-car parking is included. This is a central location (though I should note that it’s in proximity to public housing projects) just south of Lower Pacific Heights and near the Fillmore district, NOPA, Japantown and Alamo Square Park.

75 Moss #11, South of Market
$589,000

I liked 75 Moss #11 when I saw it on broker tour weeks ago. For some reason, this condo—which gets nice light and has an in-unit washer/dryer and parking—has not sold. It was in contract recently, but came back on the market. The kitchen and bath finishes are slick, and there’s a shared roof deck, too. HOA dues are $403.06. 75 Moss is located on a small street between Folsom/Howard and 6th/7th Streets. So it’s excellent if you’re a South Bay commuter who needs quick 101 access; it’s also about a three-block walk to Market Street, where you can catch public transportation.

660 Hayes, Hayes Valley
$595,000

Though 660 Hayes is on the ground level, the floor plan is very functional. There’s a large master suite with work space that leads to a shared patio. There are tile floors throughout and the unit doesn’t get much light, but you do get central heat, in-unit washer/dryer—and a second bathroom! At 1212 square feet, this condo is the largest of the bunch. No parking, but at Hayes & Laguna, you’re in the heart of the neighborhood and can easily catch Muni or hit the freeway. HOA dues are $220/month for this three-unit association.

SoMa/South Beach Tour: Condo Trio

There’s often a lot of inventory in the SoMa/South Beach neighborhoods, primarily because all the buildings translate into condos—and lots of ‘em. So to cut through the clutter, I decided to hone in on three condos in the $1M range so you could get a sense for what these properties have to offer.

1160 Mission #2313
SoMa Grand

2BR/2BA Penthouse
1600 sq ft
2-car parking
HOA dues: $851/month

Though its “French chic meets SOMA hip!” mashup may not be for most, this penthouse unit #2313 has killer city views. The 246-unit SoMa Grand is located in the still transitioning mid-Market neighborhood, which means you will want to take advantage of the hotel-style services like concierge, house cleaning, and organized activities—not to mention in-house restaurants—so you don’t have to wander around at night doing your own legwork. But that was the goal behind the SoMa Grand.

229 Brannan #17G
The Brannan

2BR/2BA Penthouse
1517 sq ft
2-car parking
HOA dues: $918/month

South Beach standby The Brannan has been the site of many condo sales across four-building property since 2001. Though many properties have been constructed since then, The Brannan continues to age well. This particular penthouse unit #17G has city, ballpark and Twin Peaks views, and 9.5-foot high ceilings. The Brannan’s location is excellent, and is a great place from which to walk to the Ferry Building, Union Square and more.

1 South Park #408
3BR/3.5BA
1794 sq ft
1-car parking
HOA dues: $575/month

The lone low rise of this trio, 1 South Park has an excellent location near the ballpark, as well. #408 is a top-floor, two-level unit with plenty of natural light. Two of the three bedrooms have their own ensuite baths, and the upper level entertaining rooms feature walls of glass that face both east and west. There’s also an expansive view deck. This unit came on the market last October 2011 at $1,695,000, so the current price reflects a reduction. 1 South Park isn’t an amenity building, so it’s a good fit for buyers who don’t want to factor in paying for a fitness club, media room, concierge or other benefits that are included with the larger properties in the area.

Stagehouse Loft with Killer Deck Flies Off Shelf

The Stagehouse Lofts bank-owned unit with the amazing deck and two-car parking came on the market late last week at $895,000, and I had the opportunity to show it to clients. Featuring phenomenal living/dining/kitchen and adjoining outdoor areas with city views, the 2BR/2BA unit was made for entertaining. Though its two bedrooms were tiny and didn’t really work for most buyers, there were apparently at least a couple sets of buyers willing to overlook that flaw.

The property was in contract with a back-up offer by the end of last weekend. So if you’re in the market for this sort of unit in SoMa, plan to act quickly—especially if it’s the holiday season. Of course, there are other, less expensive options. (The average SoMa loft sale from September to present is $620,056). But if you’re looking for exceptional entertainment/living space and two-car parking, you can expect to pay around $900,000.

What You Can Buy for $500,000

Half a million in San Francisco will typically land you a studio or one-bedroom condo. I thought I’d round up some of my recent picks in three different neighborhoods so you could see what space and amenities you could have in this price range.

First up is 1734 Bay #205 in the Marina:

1734 Bay is located on a fairly busy stretch of road, but it’s wildly central to Chestnut Street, the Marina Green, Safeway and Crissy Field. This 1BR/1BA listed at $499,00 is an end unit that includes deeded parking, deck, elevator and laundry room on the ground floor. So no dragging your dirty pants up to Chestnut Street to have them cleaned. There’s a galley kitchen, wall-to-wall carpeting, and ample closet and storage space. HOA dues are $378/month. Yes, this is a short sale—and the unit is tenant occupied—but at this price point in the Marina, it’s not a bad deal.

We move on to Potrero Hill and check out 1695 18th Street #304:

I showed this 1BR/1.5BA loft a couple months ago when it was initially listed for $539,000. It’s now been relisted for $499,000, which may or may not be enough to convince a buyer to make an offer. The unit is lovely, but a bit small. However, it has city views from the sleeping level, and is located within a very cool artist building with nice common spaces. 1695 18th is also in a prime Potrero location near all the restaurants, shops and cafes that make Potrero one of the more desirable places to live in San Francisco. HOA dues are $225/month, which is pretty low, and they actually cover earthquake insurance, which is rare. (Oh, and I couldn’t find a decent link to a property site, so you’ll have to take my word for it on the details.)

Our last stop is 88 Townsend #303 in South Beach:

So 88 Townsend is probably my favorite South Beach building. I helped my client purchase a studio there last year, and fell in love with the building even more. #303 is a junior 1BR with one bath, deeded parking and storage. The building was constructed in 2004 and is one block from the ball park, Tres, and all forms of convenient public transportation. Yes, this unit is tenant occupied, but it’s being represented that the property will be vacant by close of escrow. HOA dues are $402/month. The building has an amazing roof deck, and you’ll also get excellent weather in this particular micro-climate. Last sold for $545,000 in 2007, list price for 2011 is $499,999.

What You Can Buy for $450,000

The options in the $450,000 price range have increased lately, mainly due to the softened condo market. Here’s a trio of condos in reasonable locations that may be a good fit for your lifestyle—and wallet:

55 Page #516   Hayes Valley

This stylish studio at 55 Page #516 in The Hayes will work for someone who can live in a small but well-appointed space. (It’s only 474 square feet). The Hayes was built in 2008 and has amenities such as a fitness room, roof deck, and attended lobby. The location is right off Market, which makes it a great commuting spot. The unit has high ceilings, Twin Peaks views, and a kitchen with Studio Becker cabinets. And don’t forget the washer/dryer in the actual unit, as well as one-car parking. HOA dues are $265/mo, with an additional $100/mo for parking.

1556 Green #F   Pacific Heights

Recently reduced to its $449,000 asking price, 1556 Green #F is a 1BR/1BA condo in a great location. The unit is on the first floor, so it doesn’t get a ton of natural light. But it does have a nicely remodeled kitchen and one-car parking. HOA dues are $208/month, and there are seven units in the building. There’s a common area laundry, as well as a barbeque area and garden.

1097 Howard #103   South of Market

1097 Howard #103 is a first-floor unit in the Historic Light House Lofts. (And by first floor, I mean on sidewalk level, so you have to be okay with that.) With 1017 square feet, it’s larger than most lofts in this price range and includes 1BR/1BA, a large walk-in closet, washer/dryer hookups and a large deeded storage space. There’s a fabulous roof deck with a barbeque grill, too. HOA dues are $364.77/month. This unit was on the market last year for around $500,000, so the price has come down since then.

High-End San Francisco Condo Market Softens

I checked in on some recent condo listing sales last week, and found three that point to a softening luxury condo market. So let’s get to it:

That’s 261 26th Avenue #1 in the Lake neighborhood. The 2600-square foot 4BR/4BA unit had two levels, a deeded yard, one-car parking, and HOA dues of $361/mo. 26th Avenue was last sold in May 2008 for $1.4M. It was listed in March 2010 for $1,385,000 and was on and off the market a couple times (with one contract falling out due to buyer financing issues). The condo sold last week for all cash after 374 days on the market for $1,080,000.

455 Vallejo #PH, Telegraph Hill

455 Vallejo’s penthouse unit was a 2BR/3.5BA property had living room views of the Transamerica Building, city skyline and Bay/Golden Gate bridges. The 3100-square foot condo also had HOA dues of $2600/mo (which included earthquake insurance). It was listed in the Fall of 2010 for $2,995,000 and sold last week for $2,435,000.

229 Brannan #14E, South Beach

229 Brannan #14E was a 3BR/3BA view unit with two terraces, two-car parking and two storage spaces. Listed in the Fall of 2010 for $1,250,000, the condo consisted of two units that had been legally combined. Final selling price last week? $1,625,000.

Word to the wise buyer: If you’re interested in a high-end property and it’s been sitting on the market a while, it may be time to swoop in and get a deal.

Sexy South Park Penthouse Hits Market for $3.3M

Yeah, pretty sweet, huh? That’s the private rooftop deck of One South Park #407, a fabulous top floor, two-level penthouse suite that’s never been occupied. I checked it out on my broker tour this week and was seriously wishing I had an extra $3.3M in my glove compartment. There are three bedroom suites on one floor, and the master overlooks South Park:

One South Park is a residential conversion of a former warehouse and the penthouse unit features huge windows, nine-foot ceiling heights, and glass doors on all three sides that lead to that roof deck. Incidentally, the roof deck has its own kitchen, Jacuzzi and a multi-zone audio system.

There’s also one-car parking, and HOA dues are $665/mo. There are 29 units in the building, all serviced by an elevator. You’re a couple blocks from the ballpark, restaurants and downtown.

The most expensive sales in the Soma area over the past year have been an Infinity penthouse that sold for $5.2M, as well as a $3.2M unit at 200 Brannan. We’ll see if One South Park can pull it off. I’m betting it will.

Gem of a Loft, Battle of the Hills and More

This issue of MarketTracker is packed with cool info. Check out the deets on 110 Freelon, a $3.1M warehouse loft conversion, and decide how a few Potrero vs. Russian Hill properties measure up. Plus the latest San Francisco sales.

It’s all here in the MarketTracker Report.

The 5 Best Neighborhoods for NY Transplants

I moved to San Francisco from New York thirteen years ago, and frequently work with many New Yorkers who have relocated here. New York is definitely a world of its own, and I must admit that I was a bit worred when I moved to San Francisco; in my mind, I’d have to drive everywhere, and things wouldn’t be as central. After all, San Francisco’s layout is different in that downtown feels like Manhattan, but everywhere else seems like outer borough neighborhoods strung together—at least, at first. It takes some time to realize that many San Francisco areas are little New Yorks unto themselves.

But as time went on, I found myself gravitating toward certain neighborhoods that either had a New York feel to them, or which had the attributes I appreciated about Manhattan life. For all you New Yorkers thinking about moving west, here are my picks for San Francisco neighborhoods that will make your transition easier:

1. South Beach. Home of more recently developed condo buildings, South Beach has a prime waterfront location and an excellent micro climate. AT&T Park and the Giants reside there, so you get your New York-level crowds whenever there’s a home game day. You can easily walk downtown or jump on the freeway to head south, and the BART/Muni stations are not far away at the Embarcadero station at Market. There are great restaurants in South Beach like Marlowe and Tres, and plenty of bars and design stores. For a Gramercy Park-style respite, you can hang in South Park and visit one of the many cafes or restaurants that line that circular refuge.

2. Nob Hill. Perched above downtown, Nob Hill is old San Francisco at its best. It has the most New York feel of all the neighborhoods listed, and has some excellent little restaurants. It’s also in close proximity to Chinatown and North Beach, and Russian Hill. Big bonus are the views, which come naturally due to the elevation. In other words, if you can’t afford a view condo, you can at least see views when you walk around outside.

3. Mission Dolores. With a more hipster feel to it than that of the other neighborhoods, Mission Dolores is a hotbed of cafes and restaurants. You’ll feel right at home waiting on line behind the cordons for BiRite’s ice cream on a weekend afternoon. Muni rail lines and BART whisk Mission Dolores dwellers to any point in the city. Though you might miss Central Park, Mission Dolores Park is not a bad substitute if you’re looking for a place to lay your blanket. And it has excellent city views from some points in the park. Head east past Valencia, and you’re in the heart of the Mission District’s restaurant kingdom. 

4. Noe Valley. I’m a little biased on this pick, as I live in Noe now. Actually, I’m in what’s called Upper Noe, which means I can walk to the Mission/Bernal Heights, as well as the 24th Street retail strip in Noe Valley. We’re ten minutes’ walk from BART, and nearby Church Street hosts the J line that runs downtown. There’s also a nice microclimate, particularly when you’re located in the east portion of the neighborhood. Noe is big on kids and dogs, but having them isn’t a requirement.

5. Lower Pacific Heights. Fillmore Street’s retail strip runs right through Lower Pac Heights, and the housing stock is varied. You can find large buildings with spacious floorplans, or Victorian-era properties that smack of quintessential San Francisco. It takes about 15-20 minutes at the most to drive from the area to any other neighborhood in the city, and there are plenty of bus lines that run in all directions. You can walk to Japantown, Pacific Heights and Alta Plaza Park, and even downtown if you’re so inclined.

Give me a shout if you’re in the process of relocating. I handle sales exclusively, but also know some rockin’ leasing agents that could point you in the right direction of you’re planning to rent.