Shell Shocked?

Clean Power SF vs Shell Shocked?

According to the SF Chronicle, 4 out of 5 residents haven’t heard of the Clean Power SF program that the Board of Supervisors adopted recently after years of debate.

Clean Power SF

Will rates go up under the new Clean Power SF program? Image Source: StopTheShellShock.Org

This coming Monday, the SF PUC is set to vote on the ceiling rate for power under the Clean Power SF program. The Clean Power SF program represents the first time that San Francisco residents will have a choice about their power generation source, because PG&E has had a monopoly on power generation and distribution in San Francisco for decades.

Clean Power SF

CleanPowerSF – Image Source Clean Power SF

Beginning this fall (October, if all goes well), about half of SF’s residential energy customers will find themselves automatically enrolled in the program that provides energy from 100% renewable energy sources. If you find yourself auto-enrolled in the new program, you can opt-out and revert back to the “normal” PG&E rates and energy sources.

The question of what it will cost residents enrolled in Clean Power SF remains to be answered. After the vote by the SF PUC this coming Monday, energy consumers in SF will know the ceiling rate for the Clean Power SF program, and be able to make an informed decision about paying more for clean energy.

Shell Shocked SF is a website against the program that is paid for by IBEW Local 1245. According to their website, “Contracting with Shell would hurt our members, their families and all San Franciscans who would face higher rates and fewer local jobs as a result. IBEW 1245 represents over 19,000 utility workers in Northern and Central California and Northern Nevada.”

Clean Power SF is a website that touts the benefits of the program, and appears to be paid for and/or operated by the SF Public Utility Commission.

The New Exploratorium at Pier 15

Agents across San Francisco have been claiming to do some pretty impressive walkthroughs lately. Agents across San Francisco also can sign up for emails from the sales office that represents the developer. Everyone can come to their own conclusions. But when we do a walkthrough here at JacksonFuller, we take pictures.

Yesterday we had the opportunity to explore the not-yet-open-to-the-general public Exploratorium. Their official grand opening is coming up next month on April 17, but they are in soft-open mode and are letting small groups come through on a time-allocated system. I’m not saying who I bribed, but apparently membership does have its perks!

 

Overall, the new Exploratorium is awesome! As in, seriously awesome! It has all of the great exhibits from their old building, but also lots more room for new exhibits.

The new Bay Observatory was absolutely incredible, I didn’t want to leave and if it wasn’t for my time-limited ticket and parking meter requirements, I would probably still be there right now.

I also found the exhibit about mental illness and changing attitudes towards treatment to be incredibly interesting. Again, I would have stayed much longer if I could have.

A few other impressions:

  • The new building is beautiful. Nice light, good flow, and a beautiful outlook onto the bay. And have I mentioned the new Bay Observatory?
  • I didn’t see the menu for the new restaurant, but it looks like nice space. It also looks like it will probably always be crowded, at least for the next couple of years.
  • There was a lot more space in the new building, so in addition to a lot more exhibits things are just layed out with more space between the activities, which made for a really nice feeling.
  • Pier 15 is located along The Embarcadero at Green street. There isn’t much in the way of street parking, so I’d highly suggest public transit if you can make that work.

I hope you enjoy the photos from the new Exploratorium!

Bay Bridge Light Show

As you’ve probably heard by now, the SF Bay Bridge has an awesome light show happening every evening for the next two years.

I had the chance to get out on the water yesterday evening with some friends, and I took the above video. I’m sorry in advance if the video is a little choppy. I did the best I could between the (pretty calm) waves on the water and my shivering hands.

It was absolutely beautiful, and between the cheering fans in Giants Park (a game between Puerto Rico and Japan), the downtown lights, and the bay bridge lights, it was a pretty excellent San Francisco evening.

Have you seen the bay bridge light show yet? Plans to?

Have a great Monday!

Sales of Red Headed Step-Children Are Up!

I often refer to TIC shares as the red-headed step children of San Francisco real estate. Which probably sounds harsh, but I’ve seen too many buyers equate tenancy-in-common (TIC) shares as being “just like” or “almost like” condos, which they really, really aren’t.

TIC Sales are up year over year

TIC Sales are up year over year

Which isn’t to say that there aren’t a few situations where purchasing a TIC share makes sense. Just like any other investment, you need to make sure you understand what you are purchasing, what the risks currently are, what the future risks could be, and how those risks may impact the value of your investment.

TICs – as a general rule – are the least desired property type in San Francisco. If the exact same property were theoretically available as a condo or a TIC, it would always make more sense to purchase the condo version. But, this being real estate, no such equivalency exists other than in the realm of the hypothetical.

How are TIC shares doing?

As you can see from the above chart, TIC sales in February of 2013 are up about 12%, year over year. Just as interesting as the increase in transaction is the increase in price:

TIC Prices, Compared Year over Year

TIC Prices, Compared Year over Year

Fast forward a year, and the median list price for a TIC share has increased from $584,000 to $589,000, and the median sales price for a TIC share is up from $574,000 to $593,000. So not only are prices up, but even TIC shares are going for more than the asking price in our current market. Which is a remarkable change from even one year ago.

What are your thoughts about tenancies-in-common and the current SF real estate market?

Benches of the Inner Sunset

Have you ever walked down Irving St. in the Inner Sunset and wondered where the benches came from? Well, wonder no more! Neighborhood resident C. Duderstadt is the genesis of these comfortable and beautiful neighborhood benches. If you want to bring a bench to your own neighborhood, they’ll probably make one for you at no cost.

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Public Bench in Inner Sunset neighborhood along 9th Ave. at Irving.

We had a few questions for Mr. Duderstadt about the benches, and his answers are below:

1. How did you come up with the idea?

Back in 1976 a friend asked me to design and make wall mounted seating for his veterinary clinic–so he could easily mop the floors. Since then I have studied benches, literally all over the world, and the contour refined to make it as comfortable as possible.

In 1978 I put one on the front of our house on 10th Ave and have lived with a public bench since then. In 2003 I approached the SF Rec and Park Dept with a offer to make and install benches at the skating area at 6th Ave. They demanded that I use 2 x 4′s rather than the 2 x 3′s and the current contour was refined and 4 benches placed in Golden Gate Park. In January Adam asked if a freestanding bench was possible and using a structural design I found looking at old images of the Park I developed the current bench.

2. Do you plan to expand beyond the Inner Sunset?

There are benches in San Rafael and overlooking Muir Woods as well. I’m always interested in good locations.

3. Do you make the benches yourself?

Adam has made three, I taught a 5 year old friend to make one, but to date I have made 20 more.

4. How long does each take to make?

It takes ME about 1.5 hrs, actual labor, to make one bench. Paint and collecting materials, about another hour.

5. If someone wants a bench, how do they go about getting one?

The benches are only available to be placed into the public realm, in front of private homes or businesses. We first ask that they be “fostered” and if there are no problems, they then are “adopted” and custom paint is possible. People can contact me (via the website) and I will check out the location and put them in the loop when a bench is available, depending on how busy I am, I do have other pursuits.

6. Anything else we should know about you, the benches, the feedback you’ve been getting?

These benches are my retirement plan. I’d like to have them as common as Starbucks. Where ever you are sitting on one you can see the next one to walk to. Adam has put up a website with pictures of most of the benches.

The one in front of Le Video in the Inner Sunset made it through fostering and I painted it such that it is now always sunny on 9th…

image

Golden Gate Park Benches. Image Source Unknown.

 

Up, Up and Away – February Market Stats

How’s the market in San Francisco? If you haven’t heard, it’s a very busy market right now, with more buyers than inventory. I gathered data and created a chart to help you visualize how rapidly the San Francisco real estate market has changed. Below, you can see the number of transactions reported in the MLS for the months of February 2012 and February 2013. Looking only at single family homes, the number of sales/purchases is down from 165 in February of 2012 to 122 in February of 2013. That’s a decrease of roughly 35%!

Number of Sales for Single Family Homes is down year over year

Number of Sales for Single Family Homes is down year over year

The chart below gives you some more insight into the market for single family homes. You can see that in February of 2012, the median list price for a single family home in San Francisco was $629,000 and the median sales price was just a little bit higher at $633,000. Fast forward 12 months to 2013, and you can see that the median list price is up substantially to $723,500 and the median sales price is up even higher to $800,500. The median size reported for 2012 was 1,404 and for 2013 was 1,412, so I think it is fair to assume that market dynamics are driving this change, not a feature of the underlying homes for sale.

chart_2

The median list and sales price are both up substantially for single family homes in San Francisco

Year over year, for single family homes, the median list price is up about 14%, and the median sales price is up about 20%. Please remember that these statistics are only for single family homes in San Francisco (districts 1- 10), and all data is from the San Francisco Association of Realtors multiple listing service (SFAR MLS). I’ll be taking a look at data for other property types in the next couple of days, so if you aren’t interested in single family home data, check back later in the week for a look at condos, TICs, and lofts.  What are your thoughts?

What is a Mechanic’s Lien?

Whether you are a first time San Francisco home buyer or a seasoned pro, you might not know what a Mechanic’s Lien is and how it can affect your purchase of a home in SF.

Simply put, a mechanic’s lien is:

A security interest in the title to the property for the protection of those who have supplied labor or materials that improve the property. It is called by various names, most often a construction lien.

Under Construction. Does it have a Mechanic's lien?

Under Construction. Does it have a Mechanic’s lien?

Other Names:

  • Materialman’s lien
  • Supplier’s lien (when referring to those supplying materials)
  • Laborer’s lien  (when referring to those supplying labor)
  • Design Professional’s lien (when referring to architects or designers )

Why?

Mechanics’ Liens were created by the legislature to protect contractors and suppliers in the building business.  The construction business can be a brutal field, so these types of liens were created to give contractors and subcontractors a stronger course of action for non-payment. Instead of just suing under contract law, they can file a lien. Under CA state law, the lien is usually created by the performance of labor or the supplying of material that improves the property.  If you can think of a construction job that improves a property, they can probably file a mechanic’s lien.

The state laws that make possible a mechanics’ lien, also (usually) give them a higher priority with respect to other interests in the title (which is normally based solely on the date and time when a security interest was recorded). Some states, like California, provide priority insurance for a construction loan mortgage recorded before work visibly begins and where the lender is obligated to disburse funds.

How do they work?

Once the work has been completed and a “Notice of Completion” has been filed, the primary contractor has 60 days and a subcontractor has 30 days to file a mechanic’s lien. The lien will last of an additional three months (90 days) and is dropped unless a lis pendens or notice of extension is filed.

Mechanic’s liens can be complicated. You would discover a lien when reviewing a preliminary title report, and your escrow officer, title officer, or favorite real estate attorney would be able to advise you as to the best course of action.

Is UCSF A Good Neighbor?

UCSF has been in the news recently for their forest management plan at Mt. Sutro. Last Monday night there was a public meeting about UCSF’s proposal to manage the open space reserve, which in total covers about 61 acres of land.

Magical Forest

A photo taken in the Mt. Sutro Open Space Reserve

If you believe UCSF, then you’ll take their Director of Community Relations, Barbara Bagot-Lopez, at her word when she says:

“We are developing a management plan to keep the forest beautiful, accessible to the community, healthy as a forest and safe for our community and for our neighbors’ homes…”

However, if you don’t believe UCSF, then you will probably turn to the draft environmental impact report, which envisions clearing a maximum of 60% of the estimated 45,000 trees in the Mt. Sutro open space reserve. For those of you who aren’t so good at math, 60% of 45,000 is about 27,000 trees!

The point of contention is the Blue Gum Eucalyptus trees, a non-native species that is very hardy and wind resistant, and was planted all over San Francisco in previous decades. The current thinking is that substantial thinning of the Eucalyptus trees allows native plants to regain a foothold in the ecosystem, and that thinning the Eucalyptus trees would also significantly reduce the fire danger.

I live near the Mt. Sutro open space reserve and enjoy hiking through it on a regular basis. It truly is a gem of a location, an oasis of trees and nature located in the geographic heart of the city. My experience with UCSF is that regardless of what they say about wanting to be a good neighbor, at the end of the day UCSF is going to do what is best for UCSF, and they will gladly throw local neighbors and residents under the proverbial bus if neighborhood interests don’t align with the desires of UCSF.

That might sound harsh, but to take but one example, when UCSF became a smoke-free campus, it forced all of the smokers off campus and onto neighborhood streets that are now littered with cigarette butts, not to mention the blowing smoke from smokers congregating together. In short, their solution to their problem was to drive the smokers off of their property and make it the neighborhoods problem.

But don’t worry, because being the good neighbor they are, UCSF put up banners along Parnassus that say: Peace, Love, No Smoking. Which did absolutely nothing to alleviate litter or other neighborhood problems.

So when UCSF claims to be interested in forest management for the sake of the community, I’m not buying it. My hunch is that cutting trees is the cheapest way for UCSF to make sure their forest doesn’t burn down their hospitals or other campus buildings. I’m not at all convinced that it is in the best interest of the reserve, although I do certainly support efforts to re-introduce native species.

What are your thoughts?

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