Median Home Values in San Francisco Hit $1M Mark in April as Single-Family Housing Heats Up

By Alex Girda, Associate Editor

There is good news for the area’s housing market, as a recent report from the San Francisco Association of REALTORS indicates that prices have escalated and are now reaching new heights. The SFAR has revealed that according to sales data from April, San Francisco’s median home prices have now surpassed the $1 million mark—a staggering increase from 2012 and a return to pre-downturn levels.

The San Francisco Association of Realtors has announced that, when compared to the same timeframe in 2012, April 2013 has seen home prices rise by 31.6 percent. The supply of available single-family homes was down by 40 percent compared to last year. There is currently 1.1 months’ supply of homes for San Francisco, with normal values being somewhere around the five or seven-month mark.

A home only stayed on the market for an average of 28 days last month—a massive 43.5 percent less than the 49 days homes had to stay on the market before trading in April 2012. Condo unit prices also went up in April, as they reached their highest point of the last two years. The average price paid for a condominium in San Francisco in April reached $850,000.

According to SFAR President Christine Dwiggins, the high sales prices were due to “shrinking inventory combined with low interest rates and motivated buyers.” She also stressed the importance of potential buyers working with a qualified professional “more than ever if they hope to reach their dream of home ownership in the Bay Area.”

Image courtesy of user SanjibLemar via Wikimedia Commons

Joint Venture Holds Feng Shui Groundbreaking Ceremony for Sunset District Development

By Alex Girda, Associate Editor

A new residential community is set to debut later this year in San Francisco after a joint venture recently held a groundbreaking for a new development in the Lake Merced area. The joint venture, consisting of Maracor Development and Comstock Homes, is building a suburban-style residential project known as Summit 800 in a submarket that has not seen new housing for quite some time. The development will cater to homebuyers interested in new projects in the San Francisco Bay Area.

Located in the city’s Sunset District, Summit 800 is unique due to its suburban sensibilities, and should it prove a success upon opening in the fourth quarter of this year, this type of endeavor could be replicated in other areas of the country that are in need of new housing stock.

The 182 homes will be built on a site owned by equity partner Real Capital Solutions. The 7.7-acre lot was acquired by the company earlier this year. According to the San Francisco Business Times, U.S. Bank is providing financing for the project, while marketing duties will be handled by Polaris Pacific.

The groundbreaking ceremony was held in the presence of feng shui consultant Deborah Gee, who conducted a traditional feng shui blessing of the site. The ceremony is set to bring success to both the community and its residents. The ancient Chinese tradition of feng shui deals with restoring energy and encouraging positivity, prosperity and synergy.

The team of developers was obviously set to hammer home the idea of positive energy for the project, as special attention was also given to trees at the site. Set to be removed during the construction process, the trees were also blessed in the traditional feng shui manner in order to ensure that the area’s energy will not be disrupted. The ceremony strengthens the sense of care that the developers are displaying in relation to their newest and most intriguing venture.

For more market data from the San Francisco Bay Area, click here.

CIM Group Acquires Creative Office Building in Strong SoMa Submarket

By Alex Girda, Associate Editor

CIM Group, a company dealing with real estate and infrastructure investment, has recently announced the expansion of its commercial portfolio following the acquisition of a creative office building in San Francisco. The entity has moved on the market for a low-vacancy property located in one of the city’s hottest submarkets—the SoMa District. CIM acquired the 330 Townsend property for an undisclosed sum, as it increases the number of assets it owns in the blossoming district.

330 Townsend is a creative office property with an occupancy rate of 98 percent, in keeping with the area’s high average rates. The building is also located in close proximity to the CalTrain San Francisco Station, as well as the currently under-construction Central Corridor transit line.

Besides having zoning in place for additional development, in conformity with the West SoMa Community Plan, the newly acquired property is also within the city’s Central Corridor planning district, an area which is currently seeking new development guidelines. This could mean that current land uses and building heights may be adjusted in the near future, as well as an overall plan to turn the area into a more pedestrian-friendly one.

CIM Group also owns 260 Townsend and 211 Main Street, both of which are also located in the SoMa District. The two properties are Class A office buildings that currently boast 100 percent occupancy.

San Francisco’s office vacancy rates dropped in the fourth quarter of 2012, according to commercial real estate data provider Marcus & Millichap Real Estate Investment Services. The city’s office sector has outperformed the national rates over the past four years, and as the overall market seems to bounce back, San Francisco is expected to continue its positive evolution as well.

Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com

New Wood Partners Transit-Oriented Community Breaks Ground in San Mateo

By Alex Girda, Associate Editor

The Bay Area is set to see even more apartments hit the market in the near future as developer Wood Partners recently broke ground on a new community in San Mateo. The company is reportedly investing a total of $43.7 million in its new apartment project, one that will be focused on improving the current transit-oriented residential stock for the area between San Jose and San Francisco.

With the number of jobs in the tech sector being in constant growth, demand for housing in the San Francisco Bay Area is also rising, and Wood Partners is looking to seize the opportunity.   

Set to take shape on a 2.4-acre site at 2090 S. Delaware St., the 111-unit apartment community has begun construction with a spring 2014 deadline in sight. The complex will be located in the immediate proximity of the Caltrain Rail Line, thus providing potential renters with easy access to large job centers to the north and south. Post-completion, the project will generate five management jobs and approximately $395,000 in annual tax revenue.

The project will consist of two three-story residential buildings and will offer residents an amenity package that will include a fitness center with yoga, common lounge and club room, as well as expansive amenity decks. Units will feature floorplans of one-, two- and three-bedrooms and will have an average size of 970 square feet. In-unit features include hardwood floors, stainless steel appliances and solid surface countertops.

Located in San Mateo, the community will be in the vicinity of major companies that employ large numbers of people in the area such as Oracle, Visa, Sony, Franklin Templeton Investments, Salesforce and Gilead Sciences. Shopping spots in the area are easily accessible in downtown San Mateo and the Hillsdale Shopping Center.

Image courtesy of Google Maps

For more market data from the San Francisco Bay Area, click here.

115 Sansome Street Building Acquired by Harvest Properties, Set for Conversion to Creative Space

By Alex Girda, Associate Editor

115 Sansome Street, a prominent corner office building located in the city’s budding North Financial District, was recently acquired by a commercial real estate company. The new owner is Emeryville-based Harvest Properties, a firm specializing in investment and development. The trade was arranged by Tony Crossley and Tim Maas from Colliers International, the brokerage in charge of the listing. The value of the transaction was not disclosed by the buyer, who will also be taking over as property manager for 115 Sansome.

Designed at the end of the 19^th century and completed in 1912, the century-old structure still bears many of its original architectural features, including copper trimmed operable windows. Its ornate jewel box lobby, high ceilings, vintage design elements and generous frontage on Sansome Street, Bush Street and Treasury Place complete the 15-story office building’s unique charm. The building offers a total of 128,838 square feet of office space, as well as one penthouse unit.

Harvest Properties will now carry out extensive renovations that will strip the building of its existing, more traditional tenant improvements. The company will then work with architecture firm Hooks ASD and contractor RN Field to highlight the building’s strong suites through new creative office space. The new owner is betting that such a property in a location like San Francisco’s North Financial District would be a welcome alternative to Class A office space or commodity space.

Harvest Properties’ founder and Managing Partner John Winther also mentioned that “the building’s 9,000-square-foot floor plates subdivide well for small- to mid-sized tenants—perhaps appealing to the start-up, high-tech or younger companies interested in an open workspace environment with a retro feel and a great address.”

With its activity now spanning more than a decade, Harvest Properties deals with acquiring, developing, managing and financing commercial property, primarily through joint-venture investments in northern California, making its acquisition of 115 Sansome Street and its future plans for the property a perfect fit for the company’s business model.

Image courtesy of user 115 Sansome Street via Facebook