888 7th Street, 85% sold and looking for your $399,000

According to more Realtor Spam (it’s really getting out of control, but some of it is useful):

888 7th Street

Just a reminder, we are about 85% sold at our new building at 888 7th Street in the Showplace Square/lower Potrero area. We have a limited number of junior one bedrooms homes available starting at $399,000. We have a limited number of one bedroom homes available starting at $499,000. These are great prices and great deals for first time home buyers.

-Website

-More on 888 7th Street [theFrontSteps]

Investor Alley

by Greg Angilly

In every market there are properties that can be obtained for below market value – many that have a strong upside. Here are two we’ve been watching for a few weeks. Our sense is these are available at or below asking and are both strong investment opportunities.

3479 Sacramento St – List Price – $1,075,000

gregsac.jpg

2 bed / 1.25 bath + bonus room down. Parking and outdoor space and on the market for 90 days. Good location – slightly busier than the typical Presidio Heights location – but surrounded by boutique shops and cafés. Well under the average price per sqft in Presidio Ht’s. I imagine there is a willingness to negotiate the price if other terms of the offer are strong. The unit doesn’t show well at all. It’s dark and could use some upgrades. That said, nothing needs to be done so you can owner occupy while you renovate. New kitchen and bath / upgrade lighting / repaint the façade / research the inclusion of bonus room via interior stairs. With basic upgrades this unit should sell for $1.15+ – if you can include the downstairs rooms you are looking at $1.35+.

2080 3rd St # 8 – List Price – $649,000

greg3.jpg

Property has seen several price reductions from original price of $689,000.  Top floor unit with walk out deck with expansive views in smaller building. If purchased for 635K the loft becomes a great investment. Can serve as a nice rental / income property – approximate rental rate is $2500/ month. There are several new projects going in on 3rd St which will bring additional owners and businesses. The Mission Bay campus continues to grow and several new businesses have recently opened along the 3rd St corridor. This area will continue to mature and a deeded top floor deck with views will be a commodity people are willing to pay money to obtain.

I will be tracking these properties for our readers, and I am open for any discussions regarding the two, and/or my opinion on their investment value.

-2080 3rd St # 8 – List Price – $649,000 [mls]

-3479 Sacramento St – List Price – $1,075,000 [mls]

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]

Ask an Expert (Mary Laughlin Fenton), Investment Property in Mission Bay?

“Can I ask what your opinion is about buying an investment property
down at the mission bay area now? You know, the ones like on King or
Berry street. Do you think those prices are coming down and do you
think they will come down? I saw on your last “sold” list, they were
all under asking. I would think of an investment property for 5-10
years down the line.”
D.C.-San Francisco
_________________

As answered by Mary Fenton, of Sotheby’s International Realty www.marylaughlinfenton.com

If you want to buy and hold, I think that is a great area as it is going
to be the hub of great scientific activity. The area attracts young and
older buyers who are downsizing and moving into the city, and commuters
who want to be close to the freeways. Mission Bay should be a great
thriving area within the next 5-10 years.

Mary

Ask an Expert (Sally Rosenman), Investment Property in Mission Bay?

“Can I ask what your opinion is about buying an investment property
down at the mission bay area now? You know, the ones like on King or
Berry street. Do you think those prices are coming down and do you
think they will come down? I saw on your last “sold” list, they were
all under asking. I would think of an investment property for 5-10
years down the line.”
D.C.-San Francisco
_____________________
As answered by Sally Rosenman of Hill & Co. Real Estate, www.sallyrosenman.com
While the market there has slowed, properties priced right in certain buildings are still (seemingly) selling well. There is going to be a whole lot of growth there with the UC campus still being built and office buildings going up (or finally up) nearby. I strongly believe that the market will get better and people who have purchased now will be reaping the benefits in a few years.
There are some “deals” around in that some developers are offering rebates of some sort like credits for 1 or 2 years worth of HOA dues. I would suggest trying to bargain on prices as well.
Cheers,
Sally

Ask an Expert (Alexander Clark), Investment Property in Mission Bay?

“Can I ask what your opinion is about buying an investment property
down at the mission bay area now? You know, the ones like on King or
Berry street. Do you think those prices are coming down and do you
think they will come down? I saw on your last “sold” list, they were
all under asking. I would think of an investment property for 5-10
years down the line.”
D.C.-San Francisco

_____________________

As answered by Alexander Clark, sfnewsletter
Are you asking specifically about the ones on King or Berry, or that area in general? If you’re buying 5-10 year holds, I’d buy. Prices have dipped and may do so a bit more with all the inventory available down there, but I still think for the time frame you are talking it is a very solid investment. One building I checked out and really like is 170 Off third (not necessarily Mission Bay). There are studio and 1br units under $500k there, that are a Giants lovers dream “pied a terre”. That place has the location nailed as well as the amenities. Wasn’t excited about the granite counters, but those can be switched out.
Thanks for writing in,
alex clark

What’s going down (or up) in Mission Bay

Information provided by: Amanda Jones of Vanguard Properties, and a member of sfnewsletter ™.
missionbay
San Francisco’s new Mission Bay development covers 303 acres of land between the San Francisco Bay and Interstate-280.

• 6,000 housing units,
• 6 million sq. ft. of office/life science/technology commercial space,
• A new UCSF research campus
• 500,000 sq. ft. of city and neighborhood-serving retail space,
• A 500-room hotel with up to 50,000 sq. ft. of retail entertainment uses,
• 41 acres of public open space, including parks along Mission Creek and along the bay, plus 8 acres of open space within the UCSF campus,
• A new 500-student public school, a new public library and new fire and police stations.

Mission Bay will be served by transit by Muni’s new 3rd Street Light Rail system as well as two bus lines. This new neighborhood will include a new public branch library, childcare centers, a senior service complex, and other community facilities.

Mission Bay is expected to create over 31,000 new permanent jobs, in addition to hundreds of ongoing construction jobs.

More information: San Francisco Redevelopment Agency website