SoMa McDonald's Site Up For Sale, Zoned For 105-Feet In Height
The 13,750-square foot SoMa parcel upon which McDonald's sits on the southeast corner of Third and Townsend is on the market and being shopped. McDonald's lease expires in January of 2017.
Zoned for development up to 105-feet in height, the 701 Third Street site is designated "Mixed Use-Office," which allows for office, housing and retail use, as well as hotel, light industrial and arts activities, but not adult entertainment or heavy industrial.
Mortgage Rates Drop To Six-Week Low
The average rate for a conforming 30-year mortgage ticked down from 4.34 to 4.27 percent over the past week to a six-week low, 31 basis points below the three-year high rate of 4.58 percent recorded this past August.
Having averaged 6.67 percent since 1990, the average rate for a 30-year fixed mortgage was 3.41 percent at this time last year. The all-time low of 3.31 percent was recorded in November of 2012.
The National Association of Realtors Pending Home Sales Index has been dropping since June of 2013, the very month in which the average rate for a fixed 30-year mortgage returned above 4 percent for the first time since 2011.
NAR Pivots To "Welcome Signs For Buyers" As Home Sales Slow
Last month, the National Association of Realtors characterized an uptick in the inventory of homes for sale across the country as a sign of "seller confidence" and "an indication of a strong early beginning to the spring home buying season."
NAR's Pending Home Sales Index subsequently fell to its lowest level since 2011.
With inventory having ticked up another 5.6 percent over the past month and currently running 9.5 percent higher - and moving 23 percent slower - on a year-over-year basis, NAR is now characterizing the upticks as "welcome signs for spring buyers."
April 16, 2014
Bay Area Home Sales Slow, Except In San Francisco
While Bay Area home sales were down 12.9 percent on a year-over-year basis last month, the slowest March in terms of sales volume since 2008, recorded home sales were up 8.2 percent on a year-over-year basis in San Francisco as contracts in a number of new condo buildings started to close (see last paragraph below).
That being said, sales volume in San Francisco has increased an average of 41.1 percent from February to March over the past decade and last month's gain represented a sub-par seasonal increase of 19.3 percent versus the month before.
The median price paid for a property in San Francisco was $937,500 in March, down 0.8 percent from a record $945,000 in February but 14.6 percent higher year-over-year, driven in part by an increase in the mix of higher priced home sales. As always, keep in mind that while movements in the median sale price are a great measure of what's in demand and selling, they're not a great measure of actual appreciation despite what the headlines might say.
Having peaked at $665,000 in July of 2007, the median sale price for a home in the Bay Area increased 7.2 percent to $579,000 in March, up 23.2% year-over-year and the highest median price since December of 2007. The median price had fallen to $290,000 in March of 2009.
With San Francisco the only Bay Area county to have recorded a gain, Napa recorded the second best outcome with respect to sales, dropping 8.5 percent year-over-year. Sales in Solano County were down 28.3 percent in March, the greatest Bay Area decline. The median in Solano was up 30.4 percent to $300,000 in March, the greatest Bay Area percentage gain. The median in San Mateo County was up 13.5 percent to $767,000, the smallest Bay Area gain.
As always, keep in mind that DataQuick reports recorded sales which not only includes activity in new developments, but contracts that were signed ("sold") months prior but are just now closing escrow (or being recorded) and any properties that were sold "off market."
Plans To Raze Market Street "Home" And Build 64 Apartments
Plans to raze the shuttered Home restaurant at the Corner of Market and Church and construct a seven-story building designed by Arquitectonica with 64 apartments, 15 parking spaces, and 4,700 square feet of retail space on the ground floor have been submitted to Planning for review.
Having sat vacant since 2011, Chipotle’s application to renovate and occupy the existing one-story building at 2100 Market Street was rejected by San Francisco’s Planning Commission last year. Brian Spiers Development, the developer behind "Linea" down the street at 1998 Market is leading the charge this time around.
Why SF Rent Board Stats Undercounted Evictions By 42% Last Year
A new analysis prepared for Supervisor Campos has determined that the effective number of eviction proceedings filed in San Francisco last year was 73 percent higher than reported to the City's Rent Board, and that’s a number you’re likely to start hearing bandied about.
The drivers of the difference between the 1,981 eviction notices reported to San Francisco's Rent Board in 2013 and the 3,423 Unlawful Detainer filings reported by the Superior Court, however, are important to understand: Evictions from non-rent controlled units do not need to be reported to the Rent Board, nor do evictions for non-payment of rent.
A's Pitch 10-Year Extension For The Oakland Coliseum
The Oakland A's have proposed a 10-year lease extension for the Oakland Coliseum. The deal which could help keep the team in the East Bay until at least 2024 calls for $10-12 million in stadium improvements.
According to the Chronicle, the "most notable" improvements include a new electronic scoreboard and a ribbon scoreboard between the first and second decks. No word on proposed improvements to the Coliseum's plumbing and sewer system.
April 15, 2014
Two-Year Payout For Evicted Tenants Accelerated And Approved
Originally written to become operative 120 days after enactment, the legislation which will require landlords in San Francisco who evoke the Ellis Act to pay their evicted tenants an upfront sum equal to the difference between their current rent and a market rate unit over the course of two years has been amended to become effective 30 days after enactment and the amended legislation was approved by the Board of Supervisors in its first reading this afternoon by a vote of 9 to 2.
As we first noted last month, any tenant who has not yet vacated their unit by the effective date of the ordinance shall be entitled to the full two-year subsidy, regardless of whether their eviction notice was served prior.
Assuming the legislation is passed in a second vote next week, it will be sent to the Mayor to sign, veto or ignore. The countdown to the effective date will start ticking once the Mayor returns the ordinance, signed or unsigned; a veto is overridden by the Board; or the Mayor ignores the ordinance for ten days.
Positioned as an act "to combat displacement" rather than to discourage use of the Ellis Act which is state law, expect the ordinance to be challenged in the courts after adoption.
UPDATE: We originally reported that the legislation as amended would become operative 60 days after enactment, the amended effective date is actually 30 days after enactment as the entire 90 day operative period has been dropped.
Hayes Valley Development Sold, New Condos Coming In 2015
The approved David Baker-designed development to rise on the northeast corner of Fulton and Gough has just been sold to the newly formed 7X7 Development group which plans to break ground on the Hayes Valley project this summer, adjacent to the new Don Fisher Clubhouse.
The 69 condos within the 388 Fulton Street development should be ready for occupancy in the fall of 2015, as will the 1,800 square foot retail space on the ground floor. And as plugged-in people might recall, this is the development which San Francisco's Planning Department had requested be redesigned in white, a request which was overruled.
Law Would Ban Full-Time Airbnb Rentals, Require Registration
Supervisor David Chiu is slated to introduce new legislation this afternoon which would lift the outright ban on short-term rentals in San Francisco but establish a new set of rules by which airbnb hosts and others would have to adhere.
In multiunit buildings, the legislation would allow short-term rentals only in apartments where someone lives 75 percent of the year, effectively banning a unit from becoming a full-time vacation rental. It would require anyone renting out their place to pay hotel taxes, hold liability insurance and register with the city every two years.
If people fail to play by the rules and are reported to the city, the proposal would force websites to ban those renters. It also requires these "hosting platforms" to tell users of city laws and to collect and remit the city's 14 percent hotel tax.
As proposed, the new law wouldn’t apply to single-family homes and would not supersede the terms of an existing lease (i.e., illegally subletting would still be grounds for eviction).