299 Valencia

San Francisco is quickly running out of new condos.

The supply of available condos is being depleted so rapidly that 20.4 percent of San Francisco’s entire new construction condominium inventory sold in the month of June, alone, according to Polaris Pacific, which handles the marketing and sales of new condos.

In the first half of 2012, the city’s supply of available for-sale condominiums has shrunk from 881 homes in 15 developments to just 378 homes in 10 developments.

Chris Foley of Polaris Pacific was pleased earlier in the spring to finally have a couple of new projects to sell: the 36-unit 299 Valencia St. in the Mission district and the 32-unit Millwheel in the Dogpatch. Two months later both projects are sold out.

It took 45 days to sell out the Millwheel project and 60 days to sell out 299 Valencia. Average price per square foot was $900 on Valencia and $600 at Millwheel. (The units are much larger at Millwheel, which partially explains the lower price per square foot.)

Meanwhile, One Hawthorne and the Millennium Tower are both down to their last units and there are no large new projects coming on line before Bosa Development’s Madrone in Mission Bay, which will be complete this summer. All the rest of the projects under construction — more than 3,000 units — are all rental.

After Bosa’s project, the next significant condo developments hitting San Francisco will be 1998 Market St. and 1800 Van Ness Ave. Brian Spiers and Canyon Johnson Urban Funds are ramping up to start construction on the 114-unit 1998 Market next week; Oyster Development’s 98-unit 1800 Van Ness also starts this summer. Both projects will take 18 months to construct.

Meanwhile, Polaris Pacific is out of San Francisco inventory to sell. “We are selling the heck out of One Marina in Redwood City — other than that there is nothing out there,” he said.

By J.K. Dineen
Source: SF Business Times