CFAH

From 35 to sell in early December to only 6 today according to the sales office at Arterra (300 Berry). That’s 263 condos either closed or in contract we’ll assume.
Arterra (300 Berry) Update: Roughly 85 Percent Closed Or In Contract [SocketSite]

Comments from Plugged-In Readers

  1. Posted by SFRE

    And nothing sells in this market…
    These units sold at price points many on SS thought were way too high (including myself).

  2. Posted by Eddy

    Exactly. SS is loaded with nay-sayers that have and will miss the bottom. The VERY bottom was around July. We’re now about 1%-3% above the bottom. oh well…

  3. Posted by J

    I actually just happened to look at their 9th floor 660 sq ft 1BR the other day. They want about $800/sq ft. If they get that, good for them. I won’t pay anything near that.

  4. Posted by tipster

    The “naysayers” have been predicting a bit of a bounce from all of the government intervention. We’ve noted repeatedly that it WAS going to have some effect. I thought it would be much more than a 1-3% bounce, but there was going to be one and we all knew it.
    It won’t last. It keeps unemployment higher than its natural equilibrium. With 10-20% of the people unemployed, the nation grows poorer overall every day. So the downward pressure will build until it is greater than it would have been without all of these programs, and so you’ll start to see it trend down again. In some cities, the second downward trend has already started (see name link) and in others the increases are slowing. Just as the “naysayers” predicted.

  5. Posted by Karl

    J – you recently looked at Arterra? Where they offering concessions or upgrade credits? I was there 4-5 months ago and the sales agent didn’t seem willing to give concessions or upgrade credits, etc. I am wondering if that has changed now.

  6. Posted by Greg

    I don’t always understand the $/SF metric used on here for valuation. It seems to me the relationship between price and SF isn’t linear, this is most notable at the lower end.

  7. Posted by J

    I only looked at one 9th floor 1BR. They didn’t say anything about upgrade credits
    The sales lady told me that the 2008 price was $600k+ and now she thinks an offer of $530k would get it done.
    Then… I asked if they had rejecting any offers over $450k, and she said yes. She said someone offered $500k, and they countered with $510k, but were turned down. So I walked away knowing not to offer more than $510k… But I found even that to be no deal in my eyes.

  8. Posted by J

    Greg,
    “It seems to me the relationship between price and SF isn’t linear”
    The relationship does not have to be a linear function to be useful. In the case of Arterra, they are asking $800/sq ft, when other 1BRs in the area are going for $500 to $600/sq ft. So the question is if you want to pay 33% ($132k) more for a 660 sq ft 1BR just because it happens to be in Arterra.
    If I had to chose between living in a 660 sq ft 1BR in Arterra and having a POS car vs. living in the Palms, or the Beacon and having a brand new Porsche 911 GT3 for example, I’d take the later every time.

  9. Posted by IOU

    is there anything particularly special about arterra? i looked at a 2/1 (950sq ft) last year and they were asking in the high 600k. was unimpressed with the quality and finishes. what makes them sell?

  10. Posted by Greg

    So if you are saying a comp is $500-600 per SF then this unit should be priced at $330-396K. That doesn’t seem to jive with the market rate for 1BR condos in the area.

  11. Posted by J

    That’s because you are going by $/BR instead of $/sq ft. 660 sq ft is pretty small. But yeah, I think $400k is high for a 660 sq ft, although a view and some amenities can mitigate that, a little.

  12. Posted by anon

    The amazing thing is that very soon, One Hawthorne will be the last remaining big building in Soma/Rincon/SoBe/Misssion Bay selling new units. And something like 100 of the 160 units are inexpensive 1br and junior 1br (therefore not competing with more lux buildings).
    No other big developments will be ready to move in until something like 2013 or 2014. With new unit supply going to basically zero from somewhere around a couple thousand, prices are going to firm up substantially over the next few years.

  13. Posted by J

    Yeah, cuz hardly anyone considers buying a used house…

  14. Posted by Moon

    Speaking of One Hawthorne, what are people’s opinions on this development? I’ve heard prices for the 1 bd and 2bd vary over time and the sales people aren’t even sure about final pricing yet.
    While the floorplans look nice and spacious, the HOAs are averaging $590 which does not include parking – that’s an extra $250-300 on top. Is that worth it?

  15. Posted by SFRE

    I think the location is great, and the units will be nice.
    However I think the HOA/Parking situation will be tough, especially since these expensive always increase.
    So if you are starting out around $900 for HOA/Parking, that is too much to swallow – over $10k/year. Between taxes/HOA, you are looking at $1,500/month over your mortgage (excluding utilities, etc.).
    The reason for the parking is that the city has a new rule, whereby all new developments can choose 50% parking, or a greater % with valet.

  16. Posted by Mole Man

    is there anything particularly special about arterra?
    Genuine green development means the impact these units have on the environment is dramatically lower than alternative options. The design was based on the idea that buyers would pay roughly an additional ten percent for truly green living. If all you care about is yourself and the square footage you can afford then this building is not for you. If you think the environment matters and believe in paying more for a fundamentally superior product then the current pricing on these units is an awesome deal.

  17. Posted by POP

    “The reason for the parking is that the city has a new rule, whereby all new developments can choose 50% parking, or a greater % with valet.”
    So future condo projects will have the same parking situation? I would think current units (Infinity, Arterra, etc.) with deeded spaces will hold up value better and be more desirable.

  18. Posted by Willow

    “I think the location is great”
    Really SFRE? The building is directly adjacent to the 280 exit ramp. It’s awful in my opinion. Spend the extra 10% or so and get a unit at the Infinity.

  19. Posted by condoshopper

    i think SFRE was referring to 1 Hawthorne and not Arterra.

  20. Posted by Outsider

    The cost to developer and hence price is greater per sf the smaller the unit. With that in mind, 680sf floor plan H at the Infinity II mostly sold late last year at the $570-630 per sf range ( 390 to 430K ) up to 20+ floor. This includes deeded parking, of course. I like The Arterra but at $750+ per sf, they may indeed be trying to take advantage of the shortage in 1 BR lower price units. Resales may be the better option at this point if one is looking to buy. While I really don’t see prices free falling, I also doubt there is real appreciation. The firmer condo prices merely reflects the reversal of the supply-demand gap seen a year ago. And I question how many people bought at Arterra really did so purely because it is a legitimate green building. It is simply an added bonus to a nice project.

  21. Posted by Willow

    Thanks condoshopper. One Hawthorne is indeed a superior location.

  22. Posted by Ivan T

    Mole Man,
    Granite countertops are not “green”. I think IOU’s question is legitimate. If you buy it because it’s green, you’re paying a premium that doesn’t exist. One of the sales agent during my visit didn’t have a good answer. He just said it was an exception as a few other items. Being a green building seems like a marketing ploy for those environmentally conscious individuals to feel good about closing in on a sale.

  23. Posted by joh

    Between July and October-ish, I’ve heard from two different people about their friends who got lowball offers accepted at the Arterra. Not sure what they meant by lowball, but one of them made it sound like it was a really bold offer.

  24. Posted by k&l

    Another argument for “green” buildings is that LEED certification is becoming more of the norm each and every year. Cities are fast tracking “green” developments and in some cases giving credits and incentives to build green. I am guessing the Arterra developer received some breaks from the city to build a LEED certified residential high rise (the first in the city).
    “Green” buildings may not justify a premium today but I believe in the near future, a building that is not LEED certified is going to be at a considerable disadvantage to those that are. Cities will eventually put laws in place that require all buildings (especially larger developments) to become “green” or pay taxes/penalties for not being “green”.

  25. Posted by sacdomc

    FWIW, the HOA dues at Arterra are very low relative to other places (e.g. Infinity, One Rincon), parking is deeded, and the neighborhood is very walkable with Safeway, plenty of restaurants and several parks nearby.

  26. Posted by OneEyedMan

    @ Mole Man – Spoken like a true believer. Were you involved with the project in some way?
    Arterra surveys indicated about 15% put the green aspects of the project as their #1 reason for buying in the building. A very large percentage listed it among the top three reasons.
    @ Ivan T – The LEED points system is not perfect. If a certain percentage of your materials are locally produced / harvested you get the associated points. There is no restriction on where on the planet you get the rest of your materials. Building a green condo building is a risk for a developer. Unlike many other building uses, the developer does not realize the benefits or paybacks associated with a green building such as lower water and power bills. The developer can only hope to recover his “green” investment in selling the units.
    @ k&l – In SF LEED projects get priority plan review by DOB. No financial incentives. This was a pretty big deal when everybody and their sister was building a building, maybe not so much today. SFRA was very supportive of a LEED high rise. Agreed that as more and more buildings are built or retrofitted to achieve LEED certification that it will diminish the appeal of buildings that are not green.
    My favorite green feature of Arterra is the diverter on the trash chute. You select trash or recycling by pushing a button by the chute door and there’s a diverter at the bottom that directs the bag to either trash or recycling bins.

  27. Posted by John

    Unfortunately we rejected Arterra on the basis of the “non-green” constant idling of Caltrains in the yard across the street – you simply cannot open any windows on the north or east sides of Arterra without that awful sound pounding in. The outdoor decks facing northward on the top floors are less than useless, for this reason.

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