Last week Zephyr agents got a sneak peek of the much publicized SF Shipyard project now underway. The first two buildings are rising on the hilltop lot, the first lot to be developed at the Shipyard site. The eastern building, called Merchant, offers studios, 1 bed, 2 bed and 3 bed units. The western building (seen on the left in the above photo) is called Olympia and consists of 3-level town home style units. Lennar, the builder behind the project, has pulled out all the stops to offer high end finishes and treatments as standard options in all units in the project.
In their current state, these modern buildings going up on an otherwise empty Shipyard site appear alien. The new construction, swanky sales office and high-end finishes are in stark contrast to the surrounding poverty and urban blight. On the drive out I wondered what the level of demand would be for these first units. To take the plunge at this early stage, a buyer would have to be a pioneer.
Given the soaring prices of new construction in the center of SF (well over $1100/sq ft) these units, which are estimated at around $600/sq ft, seem like a real bargain. Especially given that these hilltop buildings offer stunning downtown and bay views! However the location currently lacks good transportation and basic amenities. Lennar is offering a free shuttle for Shipyard owners to the 3rd Street rail and to downtown, but there is no word on how long the shuttle will last. And while a tentative plan exists to develop the Candlestick lot into a high-end shopping district starting in 2015, a deal has yet to be signed and any work done there is at least 2 years from being completed.
Despite the unknowns, Lennar and the City of San Francisco have big plans for the SF Shipyard and given time this last large piece of open space will hit its stride and will attract buyers in droves who are priced out of the northern neighborhoods. But you’ll need to have a large dose of pioneer spirit if you plan to jump in early.