WHAT'S IT WORTH 1996?

This issue is devoted to the delineation of the 1996 comparable sales prices for all the units sold within the South of Market Area in buildings which Ed Campaña specializes. These buildings include: 355 Bryant, Baycrest, The Clock Tower, Hills Plaza, The Lofts, Museum Parc, The Portside, Portrero Square and South Park.

The market has been red hot the first quarter of 1997, with very little inventory and a great number of new buyers. Now is an advantageous time for Sellers to be on the market.

As I have indicated before, unless a building is located in a terrific location, eg, South Park, the historic sites will command a better price than buildings built from the ground up. There have been a number of new developments that have come on line this year. The next issue of What's Shakin' will track the sales activity in all of the new developments which have sold out in 1996 and early 1997. I think you will be pleased with the performance of your buildings from the stand point of value.

So What's Really Shakin'?

When units in the South of Market are selling close to a million dollars, you know that real estate in the area is recovering and recovering well. If you review the comps, you will see the both condominiums and lofts command the high end dollar. The product in the area is a microcosm of the City's Condominium market. The area has product that appeals to all strata of the population of the City at large. The market is now at a point where buying or selling have equal advantage. Sellers are doing well because there isn't much inventory and rates are still down. On the other hand Buyers are doing well because prices have remained reasonable in a low supply, high demand market.

SOMA Makes the News

Almost every day you pick up the news paper some issue involving the SOMA will appear. From the architecture of a small plaza of the proposed Jewish Museum, to the twenty year plan for Folsom Street. The good news is that you are --or can be-- a part of it ,or is that the bad news?

Of course it's good news! It indicates that the area is news. It indicates that the most exciting place to be in the City is the South of Market. It indicates that people, development, vision and money are heading your way. What's unique about this moment in our City's history is that the opportunity for major development is there; the plan is in place; the Board of Stupes is focused on other maters; and the synergy between the public sector, private sector, and reality is in tact. This synergy has to be attributed to the efforts of the various groups watching over the area, especially the Transbay 20/20 group.

One example which appeared most recently in the news was the finalization of the plan for the GAP building. The GAP agreed to move their tower back from Folsom Street and away from the Hills Plaza Condominium Complex, reduce the building height by two floors, widen the sidewalk to 23 feet and build and maintain an Embarcadero Park at the foot of their building to the East. This is a clear indication of the private and public sectors coming together in compromise. It is also the 1^st step towards commitment to the Folsom Boulevard concept as laid out in the previous news letter. Great news!

Along similar lines, the Port Authority has proposed plans to develop the Waterfront in favor of the environment. The plan calls for a Fisherman's Wharf Plaza, a Brannan Street Green which will resemble the Marina Green and an open plaza between Piers 15 and 27. The plan is expected to come to a vote this Spring.

The Mayor recently did something with which I strongly agree. He appointed Jim Morales to head up the Redevelopment Agency. Jim is one of the "good guys". His leadership will hopefully move us closer to the current vision of what the South of Market should be. He will have to deal with the mega buildings going in around 3^rd and Mission. On the Northeast corner of that intersection, a 40-47 story, 500 unit apartment building is planned. Additionally, two 30 story hotels have been approved for Mission at Third and Howard at Third respectively. And finally a 40 story, extended stay-time share tower will be going up on Market between 3^rd an 4^th Street.

As most of you are aware the City is planning a new Bus Depot, just southeast of the Transbay Terminal. The new depot will serve Greyhound, AC Transit, Sam Trans and be the terminus for Eight Muni lines. The proposed new $124.5 million depot is perceived as a livelier place than the current Transbay Terminal, with retail space surrounding the ground floor. There are alternative plans that are less costly but have their problems. With no major delays the new depot should be complete by the year 2,000, just in time for Giants opening day at Pac Bell Park.

Last but not least, Caltrans, not satisfied with disrupting traffic on the East side of the Bay Bridge will be initiating the retrofit of the West approach to the Bay Bridge. This effort is currently scheduled to begin in the spring of 1988 and could continue for several years. The work will focus on the section between seventh street and the bridge. Traffic should clear in time for the second or third opening day at Pac Bell Parc.

In summary, we are in the thick of it. The plan is in motion, the vision true, and destiny will have the final word.

And as an aside, a great supporter of that vision is gone. God knows we'll miss you...

Comparable Sales 1996

SOUTH PARK 10 South Park 10 Units No resales to date.

When selling prices appear for South Park, it will be a momentous occasion. There has not been a sale in this sought after building since it's initial occupancy. A recent face lift, makes it an even a more desirable property. As demand continues to mount for this prestigious location, expect to see some resales in the building. Hopefully, it will be brought to the world on my web site! www.somapro.com

ed@somapro.com

415 441-0656 ext 266