According to the sales office over at BLŪ, the “starting price” cuts of 17 to 22% as reported by SF New Developments are in direct response to a fast approaching 25% pre-sale requirement (currently 10% of 108 units in contract), and aren’t expected to last past their first round of closings in 60 or so days. As always, time, the market and SocketSite will tell.
The pre-sale starting price adjustments according to SFND:
“A” Plans: Originally from $925,000, currently from $743,000 (down 20%)
“B” Plans: Originally from $809,000, currently from $631,000 (down 22%)
“C” Plans: Originally from $799,000, currently from $622,000 (down 22%)
“D” Plans: Originally from $930,000, currently from $743,000 (down 20%)
“E” Plans: Originally from $739,000, currently from $575,000 (down 22%)
“F” Plans: Originally from $809,000, currently from $673,000 (down 17%)
And it’s a plugged-in tipster that points out some specific unit price cuts of up to 26%:
631 Folsom #3B: Originally $749,000, now $630,000 (down 16%)
631 Folsom #6A: Originally $985,000, now $799,000 (down 19%)
631 Folsom #PHE: Originally $2,527,358, now $1,862,358 (down 26%)
UPDATE: The 25% pre-sale requirement insight was added for additional color (and accuracy). And yes, it’s officially turned into one of those days.
Full Disclosure: BLU currently advertises on SocketSite but provided no compensation for (nor had any prior knowledge of) this post. They did, however, inform our update.
Huh. Interesting. What does the BLU have w/ respect to other SOMA developments?
=) Thanks!
I love the BLU Penthouses. They are truly the meaning of the word.
Dude, three words: no deeded parking.
In other words … no way. If being green (or any attempt to) means giving up my car, then forget. Just call me selfish. Have you ever tried to carry a big load of groceries even three blocks or carried them on publics transportation? No thanks.
It just doesn’t make sense to me why ANY developer/builder would design a project in which there are HOA dues AND expect buyers/owners to also shell out money to lease parking. And in today’s time, good luck trying to find a job that’s convenient to public transit.
Yeah, I guess I’m just selfish, but I’m really OK with that.
[Editor’s Note: While parking isn’t technically “deeded” at BLU, reserved spaces are assigned to each unit on a one-to-one basis and transferable, they’re not leased for an additional fee.]
Is parking really that big of a deal in SOMA?
I live in the Financial District and I’m renting my parking spot to my developer for 600/month. It’s a big deal here, but I’m not real sure of Soma/south beach
OK, I’ll try to keep the gushing down to a minimum here. As someone who has seen every new Soma development (and most of the older ones), I have to say BLU is near the top of my list. Great building, great location. It’s like a boutiquey Infinity – no amenities, but generally better layouts and finishes (personal opinion only, of course). But views are limited to only 3 floorplans, and only above the 10th/11th floors.
I only have 2 real gripes:
1) HOAs are obscenely high for what you get – north of $600 across the board, if I recall correctly, although the entire building is 2-bedroom units only. However, there’s no gym or pool, just a doorman. HOAs should be in the 4s based on similar buildings in Soma. No idea why they’re so high.
2) Some of the units have a kitchen island which is a single-level slab of stone. It’s huge and dominates the space – like some kind of giant Egyptian sacrificial altar. The bi-level islands are much more balanced.
Lastly, I’d be remiss not to commend the sales office here: they’re straightforward and easy to deal with. Realtors take a lot of bashing on this site, most of it well-deserved. But the folks here are open and honest from my experience. Welcome change from, say, the Infinity, whose condescension makes you feel like they’re doing you a favor showing you their overpriced building.
Regarding the comment above, I was under the impression you could get deeded parking for an extra cost…is this not the case?
Anyway, I’m not an owner here (as I’m sure someone will ask), but definitely could be after a few more of these reductions. Great project.
^ If there is parking, and you want it, you lease it. If you don’t, you don’t, and pocket the savings. What’s the romance with deeded parking? As long as the market accurately reflects the difference (i.e. as a buyer, you buy at a discount that reflects the value of deeded parking) there should be no difference other than giving property owners greater flexibility in choosing what they need.
So, be selfish as you want to be. Just be reasonable.
I’m going with my realtor friend to check these out on Monday, I hear the finishes are incredible. Anyone can verify?
Parking is not a big deal to me, but I do think it should be priced accordingly.
Thanks!
As now noted above, while parking isn’t technically “deeded” at BLU, reserved spaces are assigned to each unit and transferable, they’re not leased for an additional fee.
you get a parking space it is just by a different mechanism. san francisco zoning has been changed so that parking has to be “unbundled” from the resi unit itself.
this is a global zoning change that will affect some pipeline and ALL future develpments , and is coming from “green” , transit first generated concerns, etc.
The public art displayed at the front entrance of the building is also superior to other such recent works adorning new condo buildings. Hopefully it will be defended from taggers to the extent possible and restored as necessary. Maybe the location will protect it. This rather rarified spot is almost as much intersection of South Beach and Rincon Hill as it is South of Market, at least in terms of character and distance to the Financial District.
@Dude
So which three floorplans have views? I’ve only walked by the building a handful of times…It doesn’t look like any of them clear the surrounding buildings.
In response to the comment above:
The finishes at BLU are amazing! Standard finishes include; Viking appliances, hardwood floors, granite countertops, marble countertops in master bathroom and a seamless shower, just to name a few. The best part, they are all included. No extra add ons tacked on to the sales price.
Unbundled parking is the way to go. I wish I could cash out the parking that I don’t use, yet I still have to pay for out of my paycheck (the lease that my employer services includes “free” parking, leaving less for payroll) and out of the tab for the restuarants and stores that I patronize without a car, but also provide “free” parking which affects their bottom line and is passed on to the customer.
As for the problem of carrying home a big load of groceries, have you considered that the problem isn’t the lack of a car but rather that your grocery loads are too large ? Buy less more frequently and you will eat fresher too. For the big stuff, consider a bike with rack and bags. You can easily carry a case of beer on the back of a bike. If you can’t, then buy a sixer at time.
Blu and other developments providing unbundled parking don’t require that you give up driving. Don’t worry if walking or biking are not your thing. No-one is forcing anyone to give up driving. Rather the real costs are being transferred to those who receive the benefits.
Seems much more fair, doesn’t it ?
I’ve been to the BLU and I think You get the Klaus parklift spot included in the price of condo. So why are people saying no parking ?
Is the reason for high HOA’s because there are only 108 units in the building ?
Does anybody think the prices will drop again ?
The building is 80% on bedrock thats good isn’t it ?
There are no below market value units in this building trust me I’m not a snob but isn’t this also a reason why one would expect higher prices ?
@rincon hill-billy:
Been a while since I was in there, but I recall floorplan A is the one facing out the front of the building, and generally has the best open views. You clear the surrounding buildings on floor 10/11 or above. But you get city lights only, not water or bridges. I prefer city lights, but obviously it’s subjective.
Meanwhile, floorplan E is the worst – it’s in the southeast corner of the building and directly faces that metal AT&T obelisk on the corner. No views from any floor, except of the parking lot behind the building and in front of 77 Dore. Plus the EM waves from AT&T’s servers will probably give you brain cancer.
The other floorplans are in the middle of the spectrum, with partial views south or northeast/northwest. But again, you need to be on floor 11 or higher to clear the surrounding buildings, and the views are mostly city lights, although high southern-facing units see the ballpark and some water.
The islands and peninsulas are rather large but they do have alot of storage space ie. cubards on both sides and they hold the microwave at a lower than usual level.
Never been to Infinity so can’t comment on sales staff but very freindly at BLU.
I just want to know will these be the bottom prices or is there more of a drop ahead in the future ?
What is ment by 25% pre-sale requirement ? Does that mean they have to sell 25% before they can move people in and sign contracts final step or is it required that a person has 25% down payment to get the loan ?? hope thats not a stupid question !!!
People, get educated before you blast your mouth off. Parking is REQUIRED by the planning department to be unbundled for ALL new buildings in SF. In fact in the South of Market Area, the parking ratio limit is 1 parking space per every 4 units. However, there is an exception that the builder used to get a 1:1 ratio if and only if a car stacking system is used. If it wasn’t for the stackers, all new buildings will only get 1 parking spot for every 4 units.
I spoke with a salesperson and the parking is a license process. When you buy a unit you have the exclusive right to use a space via the license agreement, which is transferable to a future buyer. Who cares if it’s licensed or deeded. Either way it is transferred on ownership change and you have the exclusive right to use.
Nice development. But having lived in that ‘hood for a few years, I much prefer south beach. SB is generally quieter, sunnier & closer to the water (more view units available). Downside of SB is that it is bit longer hike to union square and more expensive (but worth every penny).
wouldn’t it be tempting for the 10% in contract to pull out now with these 20% price slashes !! Or will BLU do a Millennium Tower on it and give it to those already in escrow as well ?
@ future first time buyer:
When I was in there (3 months ago), they told me their lenders required that the project be 25% in contract by 3/31/09 to meet covenants. At that time, they said they were at 12-13% estimated. If only 10% are currently in contract per SS, then “fast approaching” is a stretch. Seems they’re basically flat to November.
And no, we haven’t seen the bottom in prices yet. Patience.
[Editor’s Note: “Fast approaching” with respect to the requirement (not the percentage sold).]
Blu reminds me of 301 Bryant, which is not a bad thing.
Wish Blu was closer to the water, and I do like 301 Bryant’s location (South Beach) a lot more.
@ Dude:
Thanks for info and advice on patience. Laughed at your comment on island sacrificial altar, but I couldn’t decide if I liked the bi-level counters or not, i guess different strokes for different folks.
The HOA’s are high that was my thinking also, but then 74 New Montgomery is very high also High 600’s to mid 700’s, but I guess that building is in a different class.
The E plan is 1000sq/ft I think, so that makes it 575sq/ft how many more months of reductions can a building like this take ?
All of the floorplans here are pretty similar size, around 1,100 square feet, with the exception of the southwestern floorplan that has a den and is bigger (not counting the penthouses, of course). The E plan is seriously a cave. As I posted previously, it’s suitable for agoraphobics but not many others, so no surprise on the discounts there. You literally stare at a solid steel wall like 10′ away.
Regarding price, I’m targeting $450 – $500 psf, +/- $50, in a year or so for Soma. But I’m not married to any one building, and could just as easily buy in several other, older buildings and be happy. I don’t need new. And I’m happy renting until the economics of a purchase make sense.
Off topic, but I would warn you against 74 New Montgomery. Personal opinion, but it’s a highly overpriced, squat building in a busy location. I’ve heard street noise is a serious issue there, and that most buyers aren’t even locals. All anecdotal – just relaying what I’ve heard.
Whoopie! They dropped prices.
I have a friend who might have @ this building and now the price might be right. Cave or no cave, the E floorplan is priced to sell.
Only problem is say 10 years when its not the new thing, how will it compare to buildings like Infinty, ORH, Brannan and Watermark? Will it fail like the Beacon and Palms or stay in between like the units on Berry?
Blu is my dream building. If only I had sold my current place 6 months ago and had cash in the bank now!
Thanks for clearing up the parking issue. A lot of people get hung up on that. Also, @IWantDEEDEDparking, if you live at Blu, you have money, and that means you probably shop at Whole Foods, which is 2 blocks away! And if you can’t walk that, then…
How can sales be this slow? I mean they have been advertising on this site for years(it seems)
Is Infinity the last new highrise with 1// Deeded parking in San Francisco?
Blu has stackers along with One South Park. All the other somewhat new buildings have leased parking, ORH, Palms, Beacon, Hayes, The Montgomery etc. I also think Soma Grand is leased and not sure about Arterra.
If so, what’s the exrtra vale for all the older buildings with true deeded parking? Shouldn’t places like Watermark , 200 Brannan comand more in the future?
are these high rise eartyquake safe??
the only truly earthquake safe dwelling is a yurt. After that it’s a question of how big an earthquake and how good your engineers were in designing and how good your contractors were in faithfully executing the design.
longer term, i am really positive on SOMA. I think it is going to be a much better neighborhood than today, it is alreay much better than 10 ys ago when I was working there with Fritz on Folsom.
But i can’t get above 5 floors, i will get dizzy. Otherwise, i would be a buyer here.
Do not talk bad about one of Socketsite’s advertisers! You will be censored and blacklisted. This is a cheerleader only allowed web site, folks! (let’s see how long this lasts)
[Editor’s Note: We’re not quite sure how a rant about hummer limousines and killing people with big cars qualifies as “talking bad about an advertiser,” but we pretty sure it had little to do with the topic at hand…]
High-rises are the safest buildings in earthquakes. They have the biggest columns and walls because these carry more weight and have to resist stronger winds than shorter buildings.
My question is what is the penalty for Blu if they don’t meet the 25% in-contract figure by March 31? Does financing dry up? Are buyers not allowed to take residency? Is the developer sent to bed without supper?
In other words, how motivated will they be on March 30 to sign a contract if that contract puts them over the 25% figure?
Yes I would also like to know what happens if they don’t meet the 25% units sold mark by March 30th.
Do peolpe here think that the prices will go back up after this point if they meet the 25% by that time ?
Will infinity now drop their prices also ?? I know it has more amenities but BLU is a good building and has some advantages too over infinity.
I get the feeling that infinity will leave prices a bit higher in tower two until they almost seel out on twoer one
any news on whats happening with 170offthird these days ???
HOAs are obscenely high for what you get – north of $600 across the board, if I recall correctly, although the entire building is 2-bedroom units only. However, there’s no gym or pool, just a doorman. HOAs should be in the 4s based on similar buildings in Soma. No idea why they’re so high.
Not sure what buildings in SOMA you’re talking about. If you only have 100 units, the economics of these buildings is hard. The security guard alone probably costs each unit over $100/month. Add in maintenance, reserves, inspections, etc, and $600/month is probably a pretty bare bones budget.
@anon at 11:13AM: I’m comparing this building to 246 2nd St. That building has 94 units, no amenities, and HOAs on #1003 are $520/month for a unit of roughly 1,100 square feet. Not apples to apples since 246 2nd doesn’t have a doorman, but it’s also an older building that likely requires more maintenance.
Or look at 199 New Montgomery, just down the street. HOAs for 2-bedrooms there were in the high 4s/low 5s last time I checked. That’s a larger building, but it has a doorman.
BLU’s HOAs are only $100/month below the Met, which has a pool, gym, and theater. Just seems high to me. For the cost of just some of these HOAs, you could probably rent an in-law in the Sunset.
Right, take 246’s HOAs and add $100-$150 a month for security and you get Blu’s HOAs. The Met (and 199 for that matter) have more units. That’s why I personally wouldn’t buy in a building with less that 200 or so units. The basics costs spread over so few units are a killer.
Disappointed when I heard that BLU will have no outdoor furniture on the shared patio area or around the BBQ. How will people use the space, there is one small built in bench and thats it !!!
Maybe thats something that will change.
I’m just thinking that these HOA’s are decided on by an outside agency, surely the builders would if they could put prices for HOA’s as low as possible if they could and sell and then let the owners worry about it when all contracts are signed and reserve repairs etc are needed.
Less units has its advantages like 6 condos per floor , this will mean less choice for potential buyers if and when the market picks up and if BLU is a building that people will want to live in.
@ dude I like the Met and indoor pool is a great thing for the city, and like You I don’t need new but what prices do You see 2bd/2bt going for in the near future at the Met ?
@ future first time buyer: I haven’t really tracked resales at the Met, to be honest with you. Great building, but the location isn’t ideal for me. Plus all of the Met units I’ve been in felt a little cramped in terms of layout. In other words, I don’t know the building well enough to venture an educated guess. But to stick my finger in the wind, I’d look at any recent sales after October of ’08, and deduct 10% at least.
the intent of design codes is only to save the lives of the occupants in the event of an earthquake, and not to preserve the building. if the engineer is so inclined, he could design the building to bend and twist so that it’d be deformed beyond habitability in the event of the design earthquake, as long as the structure stands and allows occupants to exit.
I asked one of the sales people at the Blu sales center about earthquake safety and they told me that Blu’s foundation was cut into solid rock. That was part of the decision to go with the car stackers. The ground could not be dug into to build an underground parking garage. They made a comparison that concrete can stand 5,000 pounds of pressure per square inch, and the rock that was excavated at Blu tested at up to 30,000 pounds per square inch. The rock the building is dug into is actually harder than the concrete used in the building!
They also said that 301 Mission, and the Infinity were constructed in an area that used to be underwater and was a part of the bay. It was filled in a hundred years ago. First street used to be the “First Street” from the bay.
I would rather invest in a home built on rock than bay mud.
I heard that BLU is built on 80% bedrock
There are 19 zipcars within a block of this place. I work right around the corner, and I have never had a problem getting a zipcar when I need it. Their HQ is at Howard and 2nd, so that is probably at least part of the reason why this part of SOMA is particularly well served.
Ok, my honest opinion (I visited today)
1. WAY OVERPRICED, north of 1000 psf for most of the desired units. They are delusional with the penthouse units, which is why they aren’t moving.
2. AMAZING finishes. They are really marketing the finishes in this building. They are fantastic, no detail is spared.
3. Views are “ok”, not great.
I’m curious to know which lender is going to approve at 25%? Who are their lenders? Aren’t all banks requiring at least 70% now?
I went to see the building over the weekend. Overall I was impressed with the project. Location, finishes , outdoor space etc. was top class. My biggest problem (which is common to many developments in the city) is that the living / dining area is tiny in comparison to the size of bedrooms, bathrooms and closets.
Interesting that there was a guy on my “tour group” who wanted to use the living room as his bedroom and rent out the two bedrooms so that he could qualify for a loan. Very classy! I thought those days were gone over a year ago but I guess if people are still thinking this way the bubble still has not fully popped.
sales staff today made a comment that the building is 12% sold. A far cry from the 25% required to meet the covenant. A sign of more price cuts coming?
Good point asiagoSF. Anyone have any updates? I’ll be stopping by mid-April and i’ll fill you in on any changes.
Speaking of SOMA, does anybody know whats going on at SF Blu?
Toured it a couple of weeks ago. I was pretty impressed with the finishes and the Folsom-facing units. My sense is that they are begging for offers. The sales person mentioned about 12% “sold” but also that they needed to reach some sales threshold before the bank will fund any of the units. IOW–they are in deep doo doo.
Nice units, but HOAs too high for what you get and except for the front units, they are too dark.
@RENTER: Blu is indeed a good opportunity right now. They NEED to sell in order to close escrows on the other units already in contract. That makes for a good buying opportunity, if you’re in the market. I know…it’s my specialty.
The finishes are pretty high end for production construction like this, location is good, views are nice on upper floors.
If you’re interested, send me an email to highrisesf [at] gmail. I know the sales and marketing management and staff very well, as well as senior management with the developer.
“Blu is indeed a good opportunity right now. They NEED to sell in order to close escrows on the other units already in contract. That makes for a good buying opportunity, if you’re in the market. I know…it’s my specialty.”
That is such nonsense. I went to BLU and they are still asking 1000-1300 psf on the high units, and the penthouses particularly which have 1) small awkward bedrooms 2) no real views at all and 3) no amenities…
The place boasts incredible finishes. That is simply the only thing about that building that makes it worth buying.
@jessep: I guess we’re all entitled to our opinions, and what constitutes “nonsense”, aren’t we? Not even sure what my comment has to do with your reply directed at the penthouses and “high units”. If you don’t think it’s a good value, then don’t buy. If you like the building but think it’s too expensive, it’s good to have someone working for you who can get that message across to management, and possibly negotiate on those terms.
It’s already past March and they haven’t met the inventory sold quota? What happens to them now if the deadline was March 31? Also, What happens if an extended period of time goes by and they still have not met this quota?
@David, I they are going at $575k right now. What do you think is a more realistic price that you can get to reflect their need? Also, what floor and plan would that happen to represent. I’m sorry for being so blunt but how much below asking do you think could get? And I completely understand if you cannot answer that question.
Although Blu might be a great opportunity, the rest of SF certainly is not. I might want to wait awhile for SF prices to align themselves, maybe Blu included. My biggest worry is that I might be the only person to consider Blu a great opportunity. If no one else purchases what would happen to me? Moreover, if the market does go down how much further down would the value of my condo go?
I’m not asking these things to be antagonistic. I actually like Blu. However, I am worried about the repurcussions of buying right now.
i visited today. i looked at plans B, C, and E. i agreed that plan E was too dark. according to the sales personnel (who’s friendly and helpful as mentioned by postings above), people will start moving in on May 7. Occupancy will be in the 17% range. The $575K price point for Plan E is no longer available. Plan E now starts at $611K. I looked at the garage as well and while it will work just find for myself, I am wondering if the location is going to prevent my friends and family from visiting. Where are they going to park? At a lot a few blocks away at $10 to $15 per car? The street meters are only for 20 to 30 mins max on Folsom, incl. Saturdays.
I visited the other day as well. The salesperson was friendly. She also told me that the $575k price was for a lower unit that was purchased already. How flexible do you think they will be with their prices? The 17% occupancy rate is still under the 25% magic number toted above. Did that really mean anything?
there’s only one way to find out…
Does anyone know about financing options at Blu? We feel as though we’ve been getting the run-around about the % down required.
fyi,
i made an informal offer for a B plan on the 6th floor for $585,000 and i got rejected. They countered back with $650K and 3 yrs of HOA paid. Keep in mind im paying cash.
went to blu a couple of days ago, and the sales agent said that the most they will take off of the current asking price is 5%, and that’s already pretty tough. She mentioned that 3% is what she’s seeing that’s acceptable by the developer.
Reasons for not providing add’l discount: Blu has already lowered prices by ~20% in the last few months.
My response: so has everyone else, and they’re STILL offering discounts ranging from 10%-20%+. e.g. Infinity, SOMA lofts/condos, even at the Millenium (so I hear).
Does anyone know how many units in Blu have actually closed? How many in contract?
[Editor’s Note: The last time we checked: BLŪ Update: Just Under 25% In Contract And Closings This Week.]
I was in to look at BLU twice in the last week. The finishes are incredible, but the views are not good until you get higher in the building. The sales staff are great. Apparently they have approx. 33% of the building sold, and have signed at least two contracts in the last week. It looks like the price drops have had their desired effect- Units are going into contract and escrows are closing. There were people moving in both times I was there. No fitness center or pool, but they do have a nice patio with teak tables & chairs and a high end barbecue.
I would pass on this building. My agent told me to stay away because of the perceived thinking that this building has high hoa, no service, limited views and no deeded parking. 80% of all the units face either a wall or into an office building. These will affect future resales in this building. Its better to hold out and watch prices fall farther since they are no way close to the 50% needed for other lenders to lend.
50% got upped to 71% by one of the GSEs, the other one is going to follow in a month.
f*ck! that means more units are going to sit at Blu now.
They told us we could move in in 30 days, but it has been 10 weeks waiting for financing from their preferred lender.
Sorry, what is a GSE? Thanks!
Google is your friend.
BLU is 50 percent sold, so this will open the door to other lenders funding mortgages. It looks like to recent price drops have worked.
I’ve heard that they dropped prices even more since their last cut and offers are coming in at 20% off asking. Blu is discounting now. I expect sales to pick up a little since Infinity sold all their 2 bedrooms that were priced under $1M.
I don’t think lending was the problem with sales at Blu. It was the location, lack of amenities and the parking situation. Plus 80% of the building is hindered by the office space on both sides.
Not sure if this sounds correct, but I heard on another blog that someone got a great deal for the A plan at Blu. Somewhere in the low $700’s
Totally over BLU. Went to their office several times and could not get a straight answer out of them regarding the only unit I would be interested in. Vaya con nachos, Blu!