House & Condo Prices Rise, TIC Market Picks Up

Yes, it’s true. Single-family home and condo sales are up 11% in the past six months, with days on market decreasing to 11.5% and 22%, respectively. Good news for those property owners who are thinking of putting their homes on the market in the Fall.

This week’s MarketTracker Report takes a look at these stats, as well as the slow and steady rise of the TIC market. We also highlight three cool TICs and turn the spotlight on NoPa so you can get a sense for what this North Panhandle neighborhood offers.

Plus, the most recent citywide sales and more! It’s all here in the Zephyr MarketTracker.

Plenty of Inventory at NoPa’s Petrini Place

The 134-unit Village at Petrini Place complex at 2001 McAllister and Central experienced a burst of inventory last week, when four condos went on the market almost simultaneously. Those units joined the three that were already on the market. So if you’re a qualified buyer, the sellers at Petrini Place would love you to stop by.

The complex was constructed in 2002, with a grocery store located just around the block and close proximity to Golden Gate Park, restaurants and the Divisadero corridor. The Walk Score for the property is 89 (Very Walkable) and the transit score is 83 (Excellent). Petrini Place suffered a bit over the past couple of years with HOA litigation, but that was settled last year. Throughout most of 2010, most of the six sales had to be completed with cash, as lenders won’t approve of properties with litigation involved.

Seven condos have sold in the building since January 2010, one of which was a short sale and one that was a foreclosure. The building has been submitted for FHA approval, so if all goes well, Petrini Place will be able to expand its reach to FHA buyers.

Here’s the complete lineup of available inventory:
#135 1BR/1BA $490,000
South-facing corner unit, one-car parking

#238 1BR/1BA  681 sq ft   $515,000
Top floor, one-car parking

#237 1BR/1BA 681 sq ft $515,000
Top floor, nice upgrades, tenant occupied, one-car parking

#D150  2BR/2BA   $649,000
South-facing unit, private patio, two-car parking

#126 2BR/2BA 1018 sq ft $649,000
Inner courtyard location, two-car parking

#312 2BR/2BA 1040 sq ft $715,000
Top floor, south facing, two-car parking

#C142 2BR/2.5BA 1373 sq ft $749,000
One of four townhomes in building; corner unit with good light; two-car parking

There’s currently only one other unit in contract, a two-bedroom property that was on the market for 347 days and was last listed at $549,000 (it’s a short sale). A quick check on foreclosure activity in the building yielded no results, which is a good sign. HOA dues for the above units range from $534-$562, and cover water, trash, building/grounds maintenance, insurance and property management.

How’s the Market In: NoPa

“NoPa” and “NoPa market” have been popping up quite frequently lately in my blog stat search terms. That means many of you are looking for info on the subject, so it’s time to let you all know what’s going on in the North Panhandle neck of the woods.

A total of three single-family homes has sold in NoPa since the beginning of the second quarter, ranging in price from $1,012,500 to $1,353,000. They all sold for less than their original asking prices. On the condo front, 19 such properties sold for an average of $786,184 in the same time period. And nine of those homes sold for less than asking. The rest were predominantly above asking—dramatic case in point was at 2247 Turk, a 3BR/2.5BA condo with parking originally listed in January at $899,000, and which sold in May for $789,000. TICs are a big part of the real estate market in NoPa, but only three TIC interests sold in NoPa in the same time period, ranging in price from $529,000-$612,000.

There are currently two single-family homes, 15 condos and three TIC interests on the market. Days on market (DOM) for houses has been 69, and about 60 for condos and TICs. My favorite new NoPa listing at at 284 Shrader at Hayes, a top floor, 2BR/2BA condo with parking being offered at $699,000.

Prices for NoPa houses and condos have been pretty steady over the past three months.

Buyers looking in NoPa are typically in search of a spacious flat or house with proximity to parks and public transportation—not to mention hip cafes and restaurants. I listed the neighborhood as one of the best for dog owners in San Francisco, and most homes generally have high Walk Scores (for example, the aforementioned Shrader property has a 95 Walk Score). The vibe in NoPa is laid back, and I can attest to that because the sale processes in the homes I’ve sold there have usually put me in touch with very nice, down-to-earth people. There is a bit of negative street activity surrounding the Panhandle itself, but that’s probably more of an issue at night and in the early mornings.

NoPa Renovation = Two Luxury Condos

The low-key, pale blue 2BR/1BA single-family home above on Broderick between Hayes and Grove was sold in 2005 for $910,000 (listed at $799,000 at the time). It’s now resurfacing as two luxury condos with a far different exterior:

Welcome to the new incarnation of 526-528 Broderick. We now have 526 Broderick’s 1776-square foot, 4BR/3.5BA, two-level lower unit listed at $1,150,000. And upstairs is 528 Broderick, which is a 3BR/2.5BA, 1383-square foot unit all on one level.

The top level living area is pretty spacious, and they’ve even included a piano with the staging to emphasize that fact:

Most 3BR+ condos in the neighborhood have sold in the $700,000-$800,000 range. But none quite match the finishes and floorplans of 526-528 Broderick. 1696 McAllister, a 5BR condo with 3,000+ square feet and two-car parking sold last year for $1.4M. If today represents a slightly different market, the Broderick developer may be in luck. My sense is that bringing on these units now vs. Spring will work to their advantage. First open is Sunday from 1:00-4:00. (Working on finding a Web site, as there doesn’t seem to be one online yet.)

3BRs for Under $800k in NoPa, Cole Valley

Two condos I saw this week struck me as being good values for their asking prices:

452017th4520 17th Street is a 1352-square foot 3BR/2BA top-floor unit on two levels. It features two patios, a common fitness area, and low $152 HOA dues. There’s parking and storage, and views from the front patio. Located almost at the top of 17th Street, the property is not far from the Castro and Cole Valley’s retail area. List price: $789,000.

941 Broderick in the North Panhandle is a generously proportioned 3BR/2BA condo with an exclusive patio and yard. The unit is located within a three-unit building, and is in good proximity to the NoPa restaurants and retail areas. List price: $759,000.

There was a time when finding a three-bedroom condo for under $800,000 was rare. Now, the opportunities are out there for buyers.

A Heavenly Kitchen

central I stopped in at 542-546 Central in the North Panhandle during my broker tour this week. This is a three-unit building involving an upper unit priced at $835,000, and a lower flat listed at $760,000. Both units share an interest in a third, ground-floor unit that is being viewed as rental property.

I stumbled upon the lower unit’s whitewashed kitchen, which struck me as the type of room that’d be used in a movie about a dead chef. What you can’t see in the photo above is the other half of the room, which is occupied by a huge, wooden designer picnic table easily accommodating eight or more people. Even the wood floors are painted white throughout this unit. You kind of have to see this room in person.

Condo Prices Hold Steady

Condo sales volumes were minimal in comparison to past first quarters, but again, prices held up. Areas such as Potrero Hill were given a boost by new construction buildings aimed at first-time home buyers. Once again, the mid-market selling range was king. Here’s a look at how some neighborhoods fared that cater to condo buyers:

Inner Richmond
# Sold: 1
Avge Price: $899,000

Inner Sunset
# Sold: 2
Avge Price: $750,000

Noe Valley
# Sold: 14
Avge Price: $794,071

Eureka Valley
# Sold: 7
Avge Price: $747,286

Mission Dolores
# Sold: 7
Avge Price: $787,143

Duboce Triangle
# Sold: 6
Avge Price: $862,333

The Haight
# Sold: 2
Avge Price: $835,000

Cole Valley
# Sold: 1
Avge Price: $760,000

Hayes Valley
# Sold: 1
Avge Price: $840,000

North Panhandle
# Sold: 6
Avge Price: $717,833

Pacific Heights
# Sold: 7
Avge Price: $763,667

Lower Pacific Heights
# Sold: 5
Avge Price: $669,200

Potrero Hill
# Sold: 13
Avge Price: $505,558

*South of Market
# Sold: 14
Avge Price: $693,343

*South Beach
# Sold: 17
Avge Price: $869,781

*Mission Bay
# Sold: 5
Avge Price: $611,700

*Limited to data provided in MLS; does not include data from sales offices in new development properties.

New Twist on TICs in NoPa

215cole Got a three-unit building you want to sell, but don’t want to tread the choppy waters of the multi-unit TIC ocean? Take a tip from the sellers over at 215-217 Cole in the North Panhandle: Create an “airspace” subdivision of a three-unit building. Turn the top unit into Parcel A, and designate it a planned unit development, or PUD. Turn the middle and lower flats into Parcel B, and market them as two TIC interests. Then you can end up selling a two-unit building—much more marketable than three units due to the condo conversion requirements—and a PUD, which can be sold in a very similar manner to that of a condo.

Both parcels can, according to the disclosure documentation, “share the use and enjoyment of the land and certain elements of the building.” There’s one association that is then subject to a declaration which governs the building. Everybody pays monthly association dues as specified in the disclosures.

In the case of 215-217 Cole, the top unit was sold as a PUD in December for $775,000 after being on the market for 208 days. What remain are the two units, priced at $809,000 and $805,000 and first listed in November 2008. The units were in contract recently, but the deal fell through.

A word out there to prospective buyers: Consult with an attorney before you consider an ownership arrangement such as this one. It’s worth paying for a consultation so you know what you’re getting into.