Hello My Favorite People:
In honor of Bloomingdale’s grand opening, this ‘Buzz’ reviews two new home developments within striking distance of Union Square—The Odeon at 181 O’Farrell and The Ritz Carlton at the corner of Market and Kearny.

Nota Bene: I cannot completely verify the accuracy of all this information. I visited both these properties, but my retention is only as good as the notes I took. . . Also, please (please!) call me before going to these buildings. One you cross the threshold and sign in without me, I cannot represent you. You deserve excellent representation. I strongly believe you are not as well served and may not get as good a price if you deal directly with the developer’s representatives.

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Almost all of the 29 units are lofts. The smallest is about 1,000 square feet. The biggest is a 2,000+ square foot penthouse. Most are in the 1300-1500 square foot range. The lobby is a tiny teaspoon of a space, which means most of the building’s foot print is taken up by the units and huge, wide hallways.

Street-facing units look onto the back of Macy’s (which isn’t as bad as it sounds — Macy’s is a nice, vintage building) or across Powell Street. Units facing the interior of the building have decks or patios looking out over a courtyard with a sculptural collage and fountain.

The last time I was there I saw a loft facing Powell Street that made me feel like a hipster in SoHo– its view cleared Lori’s Diner across the street and took in a variegated landscape of brick buildings— very urban, very cool. 1,000 square feet, listed for $780,000.

Another unit I previewed felt much more peaceful—it faced the courtyard and was an ample 1400-1500 square feet with a closet big enough for a rock star. Price on this one is $935,000. Both these prices are indicative of the building’s general cost per square foot.

I like the finishings. Bamboo floors are standard and the bath tubs are extra deep. The concrete on the stairs stays exposed unless a buyer wants to change it out. The windows are another special feature. Because of the historic façade, they are tall and wide and the higher floors have wonderful Palladian arches.

Union Square’s atmosphere is almost carnival-like and the pedestrian/auto traffic is relentless. You have to be a true city-dweller to embrace living here. You should also lose your car, because the building doesn’t have a stitch of parking. To compensate, the developer is throwing in two years of rental parking next door, but after that, you’re on your own.

Sales have been fairly brisk. As of this week 1/3 of the units have reservations (the corner units went first). The Odeon buyer profile is diverse. There are second home buyers, first home buyers and several investors.

There are no rental restrictions and no mandatory holding period. For those willing to be a labor-intensive landlord, there could be a sweet market for furnished rentals at this location.

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I googled the term and am inclined to believe them. These Club Residences are part of the Ritz Carlton new homes development which also includes 52 luxury condominiums (which are nearly all sold).

Similar to a TIC purchase, you have the same tax benefits for a Club Residence as you would for any other real estate purchase. You can convey or bequeath your interest with no restrictions and resell it at any time. They can also be a profitable investment—the values at the Ritz Club Residence development in Aspen have tripled in the last 3-4 years.

It’s sort of like joining an affluent urban country club. You get reciprocal time at all present and future Club Residences (in St. Thomas, Florida, Colorado, Hawaii and Tahoe) and a per diem room rate of $170-180 any other Ritz Carlton in the world. You also get the pampering that comes with a luxury hotel stay, like a round-the-clock concierge, private spa and health club, and sumptuous 12th floor lounge.The minimum percentage of ownership is 1/12th of a 1,275 square foot one bedroom apatrtment. The minimum purchase price is $204,000. For that investment, you get 21 days booked and confirmed up to two years in advance. Anyone you designate can use your days and you can also donate them to a non-profit. You will not always be sleeping in the unit you invested in. This is where a condotel replicates a timeshare. You do get a locker for clothing and space in the ‘wine library’ for your Napa Valley purchases.

The sales office at the Ritz makes a persuasive argument for this kind of ownership, especially if you’re a pied-a-terre shopper but don’t plan on using your residence more than a few weeks each year. It’s a lot cheaper (and nicer) to own a $250,000 fractional ownership interest at the Ritz Carlton than it is to own a $900,000 pied-a-terre down the street in a building like 246 2nd Street or 199 New Montgomery—and you’re closer to the fun part of downtown with great shopping, theater and dining just steps away.

They choose to buy at The Ritz Carlton because it’s an easier, less expensive alternative than a pied-a-terre, but still offers the sense of ‘coming home’ to the same place each time they visit San Francisco.

The last of their 52 new condominiums is still available—a 3400 square foot view penthouse with bay windows galore listed for $5.42M. . . would we if we could??See you next week!

Posted in San Francisco Pied a Terres, Hot Properties, New Construction | Comments Off