One Rincon Hill, The Infinity and Millennium Tower are among the high-profile condominium projects changing the landscape south of Market Street. One Rincon Hill consists of two towers, one at 60 stories tall (completed) and the other at 45 stories (under construction). The project is estimated to cost $270 million. Millennium Tower, also 60 stories with 419 luxury condo residences, is scheduled to open in spring 2009. Plans call for 7,800 square feet of sidewalk-level space devoted to two retail occupants, including m74, an upscale restaurant and wine bar operated by acclaimed chef Michael Mina. Millennium Partners is the developer and a nationally recognized luxury real estate developer.

The Infinity is being marketed and sold by The Mark Company, which provides design development, research, marketing and sales services to its real estate developer partners. The Infinity is close to the Embarcadero, AT&T Park, the Ferry Building, many restaurants and lots of night life. As of mid-spring, most of the tower’s units had been sold with a few availabilities in the mid-rise buildings, according to Alan Mark, President of The Mark Company.

In addition to its location and great views, amenities abound for Infinity residents. There is a 75-foot indoor lap pool, a 5,000-square-foot fitness center, a private screening room, conference rooms, a business center, an on-site concierge and a 24-hour attended lobby.

The Infinity appeals to move-up buyers, empty nesters or second-home buyers. A restaurant from the owners of Boulevard will be added on the ground floor. Prices range from the low-$600,000s to more than $1 million.

Mark says that the downtown condo market in San Francisco is relatively healthy. “There are still buyers who are purchasing, and job growth and the economy are strong here,” Mark says. In addition, Mark adds that there is not a lot of available product on the market. In fact, he notes it took eight years for The Infinity property to be completed, due to entitlement and construction specifications.

Another property marketed by The Mark Company is Arterra in Mission Bay, registered to be the first LEED™-certified high-rise in San Francisco. LEED, which stands for Leadership in Energy & Environmental Design, is a green-building rating system developed by the U.S. Green Building Council. Many building materials used to construct Arterra are recycled and sustainable. Mark says that the mid-rise property, consisting of 269 units, is 60 percent sold. Prices range from the mid-$400,000s to the low-$900,000s.

The third property noted by Mark is The Hayes, located in Hayes Valley. The neighborhood offers a variety of chic, independent shops, great restaurants, and the location is within walking distance of cultural attractions.  The eight-floor building consists of 111 units, and Mark says the building is 60 percent sold. He expects that it will be fully occupied by the end of 2008.

Active Market

Paul A. Zeger is principal, president & CEO of Pacific Marketing Associates (PMA), a leading San Francisco Bay Area provider of sales and marketing services for urban residential real-estate developers. Zeger says PMA is active with several properties in San Francisco, including One Rincon Hill, one of the most talked-about buildings in the city. It’s a 60-story tower located next to the San Francisco-Oakland Bay Bridge, with 390 units in Tower One. According to Zeger, Tower One was almost 100 percent presold with people waiting for 20 months for the closing. Zeger said that a high-rise building like One Rincon Hill attracts affluent, view-oriented and active San Franciscans. He’s finding a lot of interest from people on the Peninsula and from the East Bay because of the building’s convenient location.

The second property Zeger described is SOMA Grand, which is located at 8th and Mission streets. “It’s a wonderful project with 247 units in an emerging neighborhood,” says Zeger. “The building offers boutique hotel services – full concierge service, with twice-a-month maid service and the high-touch care of people at the front desk enthusiastic to serve the residents.” Zeger says that at least seven or eight other projects are coming up in the neighborhood, along with at least 12 new restaurants and clubs.

Zeger also describes the Heritage at Fillmore, which is located between Eddy and Geary streets and consists of 80 homes. A unique feature is Yoshi’s Jazz Club in the building along with a Japanese restaurant. Nearby is the Jazz Heritage Center. “The Heritage draws an established San Franciscan who is probably more mature, hip and enjoys nightlife,” Zeger says. “This person appreciates a more boutique building that is smaller with less amenities and, as a result, there are lower fees.” 

San Jose

Zeger’s company is also active in other parts of the San Francisco Bay Area, including San Jose. Zeger says the timing is right for condo living in San Jose. “Downtown is finally happening. San Jose’s downtown has excellent infrastructure,” says Zeger. He notes the city provides light rail, a train service to San Francisco via Caltrain, an efficient city bus system and, culturally, the city supports a recognized symphony and ballet company. The missing link, according to Zeger, has been residential housing. Now, finally, that element is in place with the completion of City Heights, which consists of 124 homes and many features.

Change of Lifestyle

You may be considering a high-rise for your next home, but do you know if the urban environment is right for you? Newcomers should review their answers to the following questions with their Realtor before making any major decisions.

Where is your office/work located? Do you enjoy/mind commuting?

Many people who live in lofts, mid-rises and high-rises can walk to work, especially if they live in downtown San Francisco or SoMa.

Are you married or single?

Usually, singles love urban life. Young married couples and empty nesters do as well. Typically, when living in an urban environment or city center, it’s convenient to shops, restaurants and theaters, and most of the time you can walk.

If married, do you have any children?

According to real-estate experts, once families grow and people begin to have children, they begin to opt for the single-family lifestyle. With housing choices in the Bay Area, many families choose the suburbs.

Do you like to travel?

Many couples who like to travel really enjoy the versatility of urban life. They can simply lock the door and leave every care and worry behind while traveling. There is no lawn to mow or painter to call, and maintenance is always someone else’s responsibility.

How will you finance? Or will you rent?

The San Francisco market is hot and continues to become more and more popular, especially with empty nesters growing in population and more international people moving here. As a result, it’s wise for potential homebuyers to have their financing ready.

Still stuck? If you still cannot decide which type of housing is best, you might try renting a loft, mid-rise or high-rise before buying.

High-Rise Living Considerations

High-rise projects bring a lot to the table in the form of services, amenities and low-maintenance living. For the moment, real-estate experts consider the high-rise market to have good investment potential, especially in San Francisco. If you’re considering the purchase of a high-rise condo, here are some points to consider.

Location

Many properties are located near downtown San Francisco. Residents who are interested in being centrally located and in close proximity to the action and excitement of the city find this a “plus.” Many projects offer spectacular views. The desirable location also appeals to the investor looking for potential rental income from a strategically placed property. Another hot location is San Jose, which according to Paul Zeger of Pacific Marketing Associates, is perfectly positioned to attract residents to its redeveloped downtown area.

Lifestyle

In addition to the easy access to unparalleled retail, entertainment and dining amenities, the high-rise lifestyle provides for very low-maintenance living. Many services associated with high-rises mirror those found at luxury resort hotels. This lifestyle appeals to many people, particularly busy executives, vacation homeowners and those who simply enjoy being pampered.

Design

Many projects currently on the market are “turnkey”– that is, they’ve been upgraded to the hilt and often come furnished with everything from furniture and appliances to bed linens and china!

Amenities

Probably the most impressive element of today’s high-rise condo market is the mix of amenities available on-site. Some services available today include:

•         Concierge and room service

•         Housekeeping

•         High-level security

•         Nightclubs

•         Fitness centers

•         Full-service spas

•         Gourmet food stores

•         Upscale restaurants

•         Movie and game rooms

•         Conference facilities

So is there a downside to high-rise condo ownership? It all depends on how you look at it. Because of the nature of the product, high-rise condo living is more restrictive than single-family residential life. Most properties have a strict management association that carefully regulates things such as noise levels, the freedom to own pets and in some cases, how you decorate your unit. You may also face limitations on how many guests you have and how you use your investment from a rental/sale perspective. You’re also likely to have a variety of fees assessed in addition to your mortgage, particularly if the property provides a significant amount of maintenance and upkeep. The key is to do your homework before making a purchasing decision.