888 Seventh Street: an update

888seventh.jpg

Back on November 17, 2006, 888 Seventh accepted applicants for their 170 BMR (Below Market Rate) units of a total 224 Units. They received around 3800 of them! Pricing for the studios was around $199,000, 1 bedrooms around $230,000, 2 bedrooms around $250,000, and 3 bedrooms $299,000-350,000. The building itself is quite nice, location is improving, but the story here is the amount of applicants for the BMR units, and the amount of income (one person $63,850, two persons $72,950, three persons $82,100, four persons $91,200) necessary to qualify for BMR.

For more information on BMR you can find a good bit on 888 Seventh’s website by clicking “About”, then “BMR Q&A”, or visiting the Mayor’s Office of Housing website.

The Market Rate units (28 studios, 18- 1 bedrooms) are expected to go up for sale in July-August, parking costs an additional $35,000 (BMR and Market Rate Price) construction has topped off the 6th floor (last), and they expect the closings to happen in January.  We’re guessing (the sales office wouldn’t tell) pricing for the studios and 1 bedrooms around $500,000. 

Things are moving along smoothly, and briskly in yet another Mission Bay Development.

-Mayor’s Office of Housing [website]

-What’s going down (or up) in Mission Bay [sfn BLOG]

-888 Seventh [website]

[pic taken from property website]

5 thoughts on “888 Seventh Street: an update

  1. i’ve been reading a lot lately about stories of how developers have cut corners on bmr units and pocketing the extra cash earned. do you think this will be the case with this development.

    also, do you think charging and additional $35,000 for parking is silly–just another way for them to make the bmr limit set by the city?

  2. Jake,

    Without seeing the actual units, cost to build vs. cost to sell, and actually talking to the builders, there is no way on earth for me to accurately answer the first part of your question regarding builders cutting corners and pocketing the extra cash. However, I don’t live in a bubble and know that those types of things do happen, especially when builders are forced to do things they don’t want to do, and it cuts into their bottom line.
    As for charging $35,000 for parking, I don’t think that is silly. Parking is a premium. The new development at 733 Front is charging $75,000 per space (we’ll post on that building later), so $35k seems cheap. You can always give up your space and get that money off the purchase price…then go buy a nice full carbon Italian racing Bicycle to get you where you need to go, save a ton of gas money, and be the “greenest” guy in your building. ;-)
    Thanks for the comment. Maybe some other readers can shed some light.

    alex

  3. Thanks Alex,
    I’m actually shopping around for a unit in mission bay–however, i don’t qualify for a bmr. I have a few friends who could possibly qualify for bmr’s and i’m doing some research for them.
    I was considering 888 7th when they come out with thier market rate units. How marketable do you think these units will be considering the following points:
    1. the majority of the building are bmr units
    2. it’s located next to a garbage disposal, gravel company, CalTrians.
    Will the market rate units be built with more amenities — hardwood floors, stainless appliances, granite counters?
    As far as bmr programs, the units normally come from developments meant for market rate units (The Brannan, Portrero, 250 King, etc). 888 7th is a reverse situation…so I’m interested to see how this all will go.
    Does anyone have any insight. Also, does anyone who has bought a BMR unit have comments?
    Thanks :)
    [Editor's note: Jake, give me a day or two and I'll try to get the answers for you. It requires more thought and research. But it'd be great if a reader could step in and run the bases for me.]

  4. Jake,

    I emailed my contacts at the sales office and this was their reply, “The market rate units will be finished with the same finishes as the BMR
    homes. All buyers will have the option to upgrade certain finishes in each home but the BMR buyers will not be able to finance any of those upgrades.

    We have a total of 170 BMR units in the building a number of these units are off site BMR units from another project in San Francisco.

    In general our buyers are happy to get the opportunity to purchase the property.”

    I have no idea how the marketability will be affected in regards to the BMRs in the building vs. the Market rates. It’s really an unknown that we have yet to experience. That’s a tough one to answer.
    I’m waiting for clarification on the “off site” BMR units they’re referring to.
    In regard to the Garbage, CalTrains, my answer to that is the whole area down there is getting better and better, so that could play to your advantage in the future. Buy where it’s a little less desireable now, and watch it grow. Think Hayes Valley about 4 years ago vs. now.

    alex

  5. Hello,

    Thanks for putting up these Q&A’s! They’re very helpful, as the liveat888.com website is pretty sparse. My sister was actually selected from the lotto (we both entered), and we’re excited about the opportunity to purchase a condo (fingers crossed-we’re meeting with the banker today about qualifying). My question is, if we get the condo, and want to sell it, let’s say 30 years from now, would there be a restriction on the selling price? We aren’t looking to use this as an investment property, but if we decide to sell it later we don’t want to get totally ripped on the price.

    Thank you!

    ~Sophia

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