More Condo Towers Selling Out As Deliveries Continue To Diminish
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The number of unsold new condominiums is decreasing in San Francisco as units sell and fewer condos deliver this year. As of July, there are 584 new condos on the market, a 31.9% decrease from the previous year, according to data from Polaris Pacific.
Comparatively, condo deliveries peaked in 2008 with just over 2,000 units delivered. Low supply has helped increase condo prices and price per square foot increased in the low and mid-single digits for low-rise, mid-rise and high-rise buildings in July, according to Polaris Pacific.
Condo deliveries declined during the recession and have not come close to pre-recession levels, especially as developers and lenders switched their focuses toward rentals. Apartment unit deliveries ratcheted up in 2013, when developers began delivering about 2,500 units. In 2017, over 2,700 units were delivered in San Francisco, according to Polaris Pacific.
With fewer condos available, prices have risen since the start of the recovery and condos are spending less time on the market. Condos averaged about 23 days on the market during the second quarter and average condo prices increased 11.8% during the second quarter to $1.2M.
Polaris Pacific estimates about 2.2 months of remaining inventory on the market, a 6.8% decrease from the previous year. In a balanced market, there is usually six months of supply.
More supply is expected with 1,764 new condos under construction, including 120 units from One Steuart Lane, which broke ground in July. Another 118 units are under construction at Related California’s The Avery, which began selling units in July. Grosvenor Americas also broke ground on a 44-unit Nob Hill condo project in July, becoming the last major residential project under construction in the area. Over 7,000 condos are entitled, according to Polaris Pacific.
Check out the latest sales activity from some of the most talked about condo projects:
Trumark Urban’s The Pacific, designed by Handel Architects with interiors by Glenn Rescalvo, sold out in July, two years after it launched sales for the 76 residences. Sales garnered over $300M, including its final grand penthouse, which was listed for about $13.75M. Marketing and sales were led by Polaris Pacific and the developer used virtual reality to showcase residential units and its penthouses. The developer also sold out its 91-unit condo complex in Dogpatch late last year.
The Pacific, which is at 2121 Webster St., was one of the first newly constructed residential developments in Pacific Heights in decades. Amenities include private vehicle valet, full-service concierge, a private observatory and a private guest room.
Jay Paul Co.'s 181 Fremont, which is being marketed by The Mark Co., sold a penthouse for $15M ($4,509/SF) — the most expensive penthouse sale by square foot in San Francisco. The half-floor penthouse has three bedrooms and two-and-a-half baths within 3,326 SF. It opened in May and move-ins are underway.
The mixed-use tower also has a full-floor penthouse priced at $42M on the market. The condos sit on the top floors of the 802-foot tower above 436K SF of office, which was previously leased to Facebook’s Instagram. The current list price for units starts at $3.4M, according to recent data from The Mark Co.
Amenities on the Sky Lounge include an observation terrace, fitness and yoga room, conference room and bar and catering kitchen. Heller Manus designed the building while Hornberger + Worstell designed the residential units with interiors by Orlando Diaz-Azcuy.
Tishman Speyer’s Lumina, designed by Arquitectonica, is close to selling out with about six units available as of August. As of February, the 656-unit condo tower had 28 units left. Current list prices are about $1.5M to $7M, which breaks down to $1,429/SF, according to data from The Mark Co.
Some of the amenities of note are a music room, a 70-foot lap pool, a climbing wall, access to Audi car-sharing, a pet grooming station and a rooftop terrace. Lumina, which is being marketed by Polaris Pacific, is the largest condo tower actively selling units. Its ground-floor retail is anchored by Woodlands Market.
One Mission Bay
CIM Group’s One Mission Bay, which was designed by Arquitectonica with interiors by II By IV Design, has sold 85% of its 350 units as of August, according to the condo’s website. In February, it had sold about 75% of the units. Listing prices are about $900K to over $3M ($1,300/SF), according to The Mark Co.
Amenities include an outdoor heated pool with poolside cabanas, a fitness center designed by celebrity trainer and nutritionist Harley Pasternak, private meeting rooms and library and dining center. Ground-floor retailers include Wine Merchant and LagreeFit 415.
Maximus Real Estate Partners has sold 187 units at The Harrison as of July, selling about seven units per month, according to Polaris Pacific. The starting price is about $825K ($1,031/SF) at the 299-unit condo development with interiors by Ken Fulk. Amenities include a private top-floor lounge, a 2,500 SF fitness center and concierge service. Compass Development is marketing and selling units.