08/29/16

Trumark Urban sells out first phase of ultra-luxury condos in Pacific Heights

Within a few weeks of starting sales, developer Trumark Urban has sold out its first phase of condos in the Pacific, a 76-unit ultra-luxury condo building in San Francisco’s tony Pacific Heights neighborhood.

Buyers have closed on or signed contracts for 28 units, totaling more than $120 million, since sales officially began in early August. The rapid sales pace comes at a time when a big influx of new condos is hitting the market.

“It is very encouraging to see such a strong reception,” said Arden Hearing, managing director for Trumark Urban. “If you have product that isn’t commodity, your project is on fire.”

The Pacific, at 2121 Webster St., consists of one-, two- and three-bedrooms flats and three-level townhomes selling for between $2 million and $18 million. Homes in the first phase sold for an average of about $4.3 million.

A 2,389-square-foot, three-bedroom, three-bathroom unit sold for $8.96 million or about $3,750 per square foot — an eye-popping figure considering that most new condos sell for between $1,198 to $1,324 per square foot, according to Polaris Pacific, a condo marketing and research firm that is handling sales at the Pacific.

Hearing said the average home in the Pacific is around 2,000 square feet, which is larger than typical units in other developments, and the location in Pacific Heights makes the project stand out.

San Francisco has about 965 new condos available in 15 projects and there are about 2,330 condos under construction, Polaris Pacific reports. Most of the new units are in the city’s eastern side in neighborhoods such as SoMa, downtown, Mission Bay and Hayes Valley.

San Francisco has not seen this many new condos on the market since 2008, when 2,069 units came on the market. The market went through a significant dry spell from 2009 to 2013 when only about 2,000 units hit the market over five years.

The influx of new condos this year has some experts concerned about a “condo glut” because in addition to new units, many owners are putting resale units up for sale.

Trumark launched or plans to launch sales of three condo projects during the second half of 2016 including the Pacific, the 70-unit Rowan in the Mission and the 91-unit Knox in Dogpatch.

The location of Trumark’s projects makes them distinctive, Hearing said. Buyers have several options if they want to live in SoMa or in a highrise, but much less so if they want a new condo in an area such as the Mission.

“There is intense lack of supply of high-end, neighborhood-focused projects,” he said. “San Francisco is a city of neighborhoods and the market has done a horrible job of providing supply in our neighborhoods.”

With the Pacific, Trumark aimed for a higher level of quality and luxury than other condo developments on the market.

“The understated elegance of the Pacific has been thoughtfully curated from start to finish,” said Mark Higgins, Trumark’s senior vice president of sales and marketing. “There is no other residential condo offering of the Pacific’s caliber available in the Pacific Heights neighborhood, San Francisco, or the country.”

Amenities including private vehicle valet, full service concierge, lobby attendant, a private observatory lounge overlooking the bay and Golden Gate Bridge, a private guest residence called “The Fillmore”, and a fitness center.

Trumark plans to start sales in early September on a second phase of 15 units in the Pacific.

Source
San Francisco Business Times
Blanca Torres

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