SF New Developments

Oct. 24 - KGO - Would you pay $20 million for a penthouse condo in San Francisco? A Miami developer thinks that person exists. A look at the plans for the latest high-rise condo project on Rincon Hill.

The hill that supports the west end of the Bay Bridge is causing lots of heads to look up. Thirteen hundred condominiums are under construction or planned over the next five years. The final site zoned for a high-rise is 350 Fremont Street. Its developer says it”s not going to be like the others. The others are in the $1 million or $2 million dollar category. Don Peebles will have a few of those. However, high-floor units will top off at $20 million dollars for a 15,000 square foot penthouse.Don Peebles, real estate developer: “The market will always pay for quality if you”re in an environment that attracts people who appreciate quality and can afford it.” Peebles says San Francisco doesn”t have many 3,500 square foot condos and none at 7,500 square feet. So he”s selling something unique.

Don Peebles: “We are building the best building in this market. The best architecture, the best quality, the best layouts, the best floor plans, the best services, and the best amenities. That”s what we”re building here.”

Peebles points to the 20-story bath club condos he built last year in Miami Beach as an example of the luxury he thinks San Francisco needs. Luxury condo buyers often are from overseas. Real estate analyst Matthew Anderson says the Bay Area has an estimated 10,000 households who can afford these units. As more come on the market, supply may outpace demand. Matthew Anderson, Foresight Analytics: “Units have typically sold, on average, in three months or less. We see that widening to about six to nine months on average in 2008.” The proliferation of luxury condos is also transforming the demographics of Rincon Hill. The median household income in San Francisco is $55,000 dollars. On Rincon Hill, it”s approaching $90,000 dollars.

Copyright 2006, ABC7/KGO-TV/DT.