The project is one of the most lucrative in San Francisco history.
The Pacific, one of the most lucrative condo buildings in San Francisco history with $300 million in sales, is down to one final unsold penthouse.
The 3,128-square-foot listing for GPH4, priced at $13.85 million, is an unfinished shell with Golden Gate Bridge views. A buyer would design and build out the interiors.
It was one of eight shell units in the 76-unit Pacific Heights project at 2121 Webster St., which opened in 2016. The gut renovation transformed the former 1967 home of the Dugoni School of Dentistry into ultra-luxury condos. Sales have closed between $1,300 to nearly $4,000 per square foot. (The school moved into a building on Second St. in South of Market.)
“We have been surprised for the better and very encouraged at the market support for the Pacific,” said Arden Hearing, managing director of developer Trumark Urban. “We would love to have more inventory, more projects like this. But really it’s the scarcity that makes the Pacific so special.”
Very little new housing has been added in upscale Pacific Heights. The neighborhood saw 38 new housing units completed in in 2016 and only a single unit was finished last year, according to city data.
Kevin Wakelin, an agent with brokerage Pacific Union, has a listing for a two-bedroom, two-bathroom condo in Pacific Heights that he said is only one of two such units on the market.
“What comes on the market gets snapped up in two weeks,” said Wakelin, who isn’t involved in the Pacific. “Demand drives price when the inventory is so low.”
Handel Architects designed the Pacific. Plant Construction was the general contractor.
Having shell units is uncommon in San Francisco, but had been done in a handful of high-end projects like the St. Regis and in other cities.
A key was guiding buyers with assistance from Handel Architects, and tools such as virtual reality headsets with images designed by Steelblue, said Garrett Frakes, partner at Polaris Pacific, the Pacific’s sales broker. The developer also used temporary walls and sample furniture.
“Some people are not as visual,” said Frakes. “We needed to help them with the visualization portion.”
Trumark has no more active San Francisco projects after selling out at 91-unit Knox at 645 Texas St. and 70-unit Rowan at 338 Potrero Ave. It also sold landwhere it had approvals for projects but hadn’t broken ground.
The company is still looking in the Bay Area in cities like Palo Alto, but rising costs have made the for-sale landscape challenging, said Hearing.
“The construction costs are making it prohibitively expensive to build condominium projects in the city right now,” said Frakes.
Read it at San Francisco Business Times