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Bay Area adjustable-rate mortgages return as interest rates rise

Thu, 20 Oct 2022 03:48:43 +0000

New rules have also made it much harder to qualify for an ARM, and their initial discount compared to fixed-rate mortgages has not been compelling.

With a fixed-rate mortgage, the rate is fixed for the life of the loan, giving borrowers the security of a stable payment.

With ARMs, the rate and monthly payments are typically fixed for a certain number of years, then go up or down periodically in line with market rates – subject to certain limits. A loan that is fixed for five years, then adjusts every year thereafter, is known as a 5/1 ARM. If it’s fixed for seven years, then adjusts every six months, it’s called a 7/6-month or just a 7/6 ARM.

Donna Weber, left, and Ed Roseboom, right, prepare dinner at their home in Fairfax, Calif., on Tuesday, October 18, 2022. Donna Weber and Ed Roseboom sold their Palo Alto condo and bought a restored craftsman home in Fairfax, and their mortgage broker encouraged them to take out a 7-year Adjusted Rate Mortgage.

Salgu Wissmath/The Chronicle / The Chronicle

ARMs got started in the early 1980s when mortgage rates were in the teens. They’re more common in high-priced areas. The metro areas where ARMs had the largest share of conventional mortgage originations in January and February were San Jose, Bridgeport, Conn., and San Francisco, according to CoreLogic. But they’re not for everyone.

If you’re considering an ARM, it’s important to know how they work.

The interest rate on an ARM is made of two parts: an index, which changes over time, plus a percentage or “margin” that remains fixed for the life of the loan.

Many ARMs today are indexed to the Secured Overnight Financing Rate, which replaced the London Interbank Offer Rate following a scandal over LIBOR.

Suppose you take out a 5/6-month ARM indexed to SOFR with a 2.25% margin, and SOFR is 3%. Your “fully indexed” rate is the index when the loan is made plus the margin, or 5.25%.

Your starting rate, fixed for five years, is the “note rate.” It could be higher or lower than the fully-indexed rate. At the five year mark, the rate and your payment will adjust – up or down – to SOFR on that date plus 2.5%.

ARMs are generally subject to three rate-adjustment caps. A 2/1/5 cap, for example, means the rate can’t change by more than 2% at the first adjustment period, by 1% at each subsequent adjustment and by 5% over the life of the loan. Rates generally cannot fall below the margin, in this example 2.5%.

These details are in the “Loan Estimate” borrowers get when they apply for a mortgage.

- Kathleen Pender

When Victor Galvez and his wife sold their home in the outer Sunset and bought one in Long Beach, they chose a 30-year fixed-rate loan. “I wasn’t too excited about adjustable mortgage rates. I wanted to have better continuity,” he said. Plus, when they locked in a rate of 4.65% in mid-August, adjustable rates didn’t seem much lower. By the time they closed on their Long Beach home in September, fixed rates had risen by a full percentage point.

ARM rates typically start out lower than fixed-rate mortgages, so payments are initially lower. How much lower changes frequently and depends on the type of mortgage.

As of Tuesday, the average rate on a 30-year fixed-rate conforming loan was 7.15% versus 6.35% on a 5/1 ARM, a difference of 0.8 percentage point, according to trade publication Mortgage News Daily. At the end of December, both rates were around 3%.

Some people choose ARMs because they think interest rates will fall and they can refinance into a fixed-rate loan – or they plan to sell their home – before the first rate adjustment. In the meantime, they can enjoy the lower payments.

In the past, some chose ARMs because they could borrow more than they could with a fixed-rate loan. This helped prop up home sales and prices when interest rates rose. But this is not necessarily the case today, because it has gotten harder to qualify for some ARMs. “Underwriting is a lot more stringent,” said Joel Kan, deputy chief economist with the Mortgage Bankers Association.

As of last week, almost 12% of all mortgage applications were for ARMs, according to the association. That’s up from 3% at the start of the year, but their current share is far below the levels reached in late 1994, early 2000 and mid-2004 to mid-2005, when ARMs accounted for more than a third of all applications.

Separate data from BlackKnight show ARMs reaching 40% of loan originations, and 50% by dollar volume, in 2004-05. But today’s ARMs are downright sober compared to the ones being peddled in the maniacal years leading up to the mortgage meltdown in 2008.

Donna Weber, left, and Ed Roseboom, right, relax on the couch at their home in Fairfax, Calif., on Tuesday, Oct. 18, 2022. Donna Weber and Ed Roseboom sold their Palo Alto condo and bought a restored craftsman home in Fairfax, and their mortgage broker encouraged them to take out a 7-year Adjusted Rate Mortgage.

Salgu Wissmath/The Chronicle / The Chronicle

In that era, ARMs often came with an introductory or “teaser” rate that lasted only a year or two before adjusting. Lenders could qualify borrowers based on those initial rates. Many ARMs in this era were issued to borrowers with subprime credit scores and required little or no down payment or proof of income and assets. Many offered the option of paying interest only – and in some cases not even the full principal payment – for a number of years. These loans were packaged into pools and sold to investors. When some started defaulting soon after origination, it caused a ripple effect that helped bring the financial system to its knees.

Since then, rules have changed. The Dodd-Frank Act requires lenders to make a “good faith effort” to make sure all borrowers have the ability to repay. This rule applies to virtually all loans whether they are fixed or adjustable, conforming (meaning they can be guaranteed by Fannie Mae or Freddie Mac) or non-conforming (includuing jumbo loans, which exceed $970,800 in most Bay Are counties).

When lenders make what’s known as a “ qualified mortgage,” it’s presumed they complied with this rule. A qualified mortgage can not have interest-only payments, negative amortization (where unpaid principal is added to the loan balance), terms longer than 30 years or fees that exceed a certain limit. The lender must verify the borrower’s income, assets and employment.

The lender also must qualify the borrower based on the highest rate and monthly payment that could apply during the first five years. That’s why you rarely see ARMs shorter than five years.

Lenders can still make loans that don’t meet the definition of a qualified mortgage, but they can’t be sold to Fannie or Freddie, so they’re taking on more risk. Typically these “non-qualified mortgages,” such as interest-only ARMs, are made only to highly qualified buyers. The vast majority of all home loans, including jumbos, are qualified mortgages.

When Donna Weber and Ed Roseboom sold their Palo Alto condo and bought a home in Fairfax, their mortgage broker encouraged them to take out a 7-year ARM, “which I was really not into at all,” Donna said. But the loan had a start rate of 4.875%, which as Donna recalls was about 1 percentage point lower than the fixed-rates at that time, in mid-June.

They were thrilled to get the Fairfax home for less than the asking price, which had already been reduced. But they couldn’t sell their condo before they closed on the new home in mid-July. “It took us five weeks. We got one offer under asking, and a big part of that was the mortgage rates,” Donna said.

When the condo sold, they were allowed to “recast” their loan, reducing the balance by about half, which is one reason they chose that mortgage. When you recast, you make a lump-sum payment toward the principal. The lender reduces your payments but the rate and term remain the same. The recasting fee was just $250.

Beth Phoenix, on the other hand, locked in a rate of 5.625% on a 30-year fixed-rate loan when her offer on a home in San Mateo with an in-law unit for her daughter was accepted two weeks ago. She had enough savings for a large down payment and didn’t need an ARM to qualify.

“I don’t have any interest in an adjustable-rate mortgage because who knows what’s going to happen with mortgage rates. And given that I’m going to retire in a couple years, it did not seem like a wise idea,” she said. “It seems like ARMs are mostly useful for people who are a little younger, don’t have a big down payment, but whose earnings capacity is expected to go up. They can get into a house at a fairly affordable rate and by the time the rate adjusts, presumably they will have more assets. That’s kind of the opposite of my situation.”

But talking to young home buyers about ARMs “is very, very hard,” said Michael Bellings, a Compass real estate agent in San Francisco. “All these Millennials grew up in an environment of really, really low rates. They think, ‘Oh my God, once my fixed rate is up, I’m at the mercy of the economic index.’”

Keith Gumbinger, a vice president with mortgage website HSH.com, said young buyers “may have seen their parents or friends of their parents get into ARMs that didn’t work out for them,” he said. “It wasn’t the ARMs themselves that were dangerous. It was the layering on” of risky features that blew them up.

There’s another reason ARMs are lagging in popularity. Fixed-rate mortgages tend to follow the 10-year Treasury yield while ARM rates follow shorter-term yields. Normally short-term yields are less than long-term ones, but in recent months, two-year Treasuries have yielded more than the 10-year. Because of this anomaly, investors aren’t eager to buy ARMs and lenders aren’t eager to make them, said Gunnar Blix, Black Knight’s director of housing markets research.

It’s also why ARMs haven’t been offering much of a discount to fixed-rate mortgages, although that’s starting to change and may cause more borrowers to embrace ARMs.

“Year to date, most of my clients have applied for 30-year fixed mortgages, with the plan to pay discount points (an upfront fee) for a lower rate,” said Westin Miller, branch manager with Pinnacle Home Loans in Santa Rosa. However, “the pricing spread between ARMs and fixed-rate mortgages has recently widened in favor of ARMs. I suspect more ARM originations in the months to come.”

A rush to ARMs, if there is one, “will not be a contributor to unsustainable pricing or unqualified borrowers getting into homes like we saw prior to the housing bubble,” said Greg McBride, chief financial analyst with Bankrate.com.

For borrowers, an ARM could make sense “if you expect your earnings to accelerate rapidly in the years ahead, such as a doctor or lawyer building a practice,” said Greg McBride. “But it’s not a risk most borrowers should take.”

If you can’t afford a home with rates and prices where they are now, “be on the sidelines saving for bigger down payment,’ said Dean Wehrli, principal with John Burns Real Estate Consulting in Sacramento. “The higher the down payment, the lower your monthly payment.”

Kathleen Pender is a freelance writer and former columnist for The San Francisco Chronicle. Email: kathpender84@gmail.com Twitter: @KathPender

Article source: https://www.sfchronicle.com/bayarea/article/mortgage-arm-loan-17518425.php

San Francisco’s Housing Market Is Cooling Faster Than Rest of the Region

Wed, 19 Oct 2022 09:47:39 +0000

English

As home prices across the Bay Area continue to fall from the peaks seen a few months ago, San Francisco’s real estate market has been hit harder than most.

Although median home prices in the Bay Area writ large ticked down in the third quarter, San Francisco saw the single steepest decline of any county at 9%, according to a report from real estate agency Compass. That compared with a 1-2% decline over the same period for the entire region, according to Patrick Carlisle, the Bay Area chief market analyst for Compass.

The year-over-year quarterly decline is the first in San Francisco’s single-family home market since the beginning of 2019. This year, a typical seasonal slowdown has coincided with still-rising interest rates, sky-high inflation, stock market volatility and declining consumer confidence.

Carlisle attributed San Francisco’s outsize decline to a few factors, including the pandemic’s unique impact on the city and its demographics, as well as the negative spotlight placed on the city’s issues.

“Add bad branding to high housing costs and mix in demographic shifts, and all those things have added up to San Francisco being hit harder than the outlying counties,” Carlisle said.

He said that while the tech boom helped boost San Francisco’s housing prices to the top of the region in the pre-pandemic days, San Mateo, Marin and Santa Clara counties have leapfrogged the city more recently.

In the third quarter, San Francisco’s median home sales price was $1.65 million compared to $1.8 million one year prior. The figure brings median prices roughly to levels last seen in the third quarter of 2020.

The recent decline in home prices ranged by neighborhood, however. Neighborhoods that saw some of the largest drops included the Sunset and Parkside (-12%), the Mission and Bernal Heights (-11%) and the Richmond (-18%). On the other hand, median home values around West Portal and the Excelsior increased.

Condo prices, which were hit hard during the pandemic, are continuing to slide.

Housing Deconstructed Newsletter: Bay Area Housing Market Cooling Down, Burned Out House Listed for $765k, and SJ Offers RV Owners $500

Tue, 18 Oct 2022 15:46:17 +0000

Good afternoon Bay Area! Hey, I’m Tony Leong, one of the executive producers here at NBC Bay Area and I’ve been tracking all of the housing stories you need to know about this week. Let’s get started.

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The latest

Would-be homebuyers are getting hit twice. Interest rates are soaring and it is getting harder to qualify for a loan. The average rate for a 30-year fixed mortgage is now more than 7%. And mortgage credit availability is at the lowest level since March 2013. Lenders are worried about a possible recession, leading to more homeowners defaulting on their loans. CNBC takes an in-depth look at the numbers here.

We told you about this last week, the ongoing cleanup of a homeless encampment near the San Jose airport. Now we’re learning that at least 15 owners of RVs, trailers, and vehicles have taken up an offer of $500 from the city of San Jose. By the city’s count, 97 vehicles are still there at the encampment at Columbus Park. Those who refuse to take the deal to leave will be given notices on a rolling basis between now and Nov. 18 to immediately vacate the park. The goal is for the park to be cleared out by that date. Watch Robert Handa’s report for the latest.

A tale of two Bay Areas. Fremont is among the safest places to live in the country while Oakland is among the riskiest. That’s according to new rankings from Wallethub, that compared 182 cities and looked at three key dimensions: home and community safety, natural disaster risk, and financial safety. Fremont is ranked as the 17th safest city to live in the country, the highest California city on the list. On the other end, Oakland ranks 8th among the riskiest cities to live in the U.S. Watch the rankings.

Cooling down heating up

Cooling down: Home Prices in the Bay Area. This could be good or bad news for you, housing prices are dropping in the Bay Area and are expected to keep coming down next year. The California Association of Realtors is predicting home prices here will drop about 9% more in 2023 and they also expect sales to slow as the market cools. Watch NBC Bay Area’s Raj Mathai speak to a realtor about the shift.

Those higher rates are leading to home prices dropping too. The average home price across the country is down about 2%, or $8,800, off its June peak of $438,000. But we all know that Bay Area prices are way higher than that. A new report says home prices are off their peaks in 97 of the 100 largest U.S. markets, but they’re still roughly 40% higher than they were before the pandemic. Read more about what’s happening with homes prices.

Heating up: Inflation. You’ve seen the prices go up at the grocery store and gas station. Well, it’s confirmed, inflation jumped by 8.2% in September versus a year earlier, that’s higher than analysts expected. But a slight decline from August. To break it down easier, a basket of goods that cost $100 a year ago, will now cost you $108.20 today. And “core” inflation, which takes out food and energy costs, jumped to its highest level since 1982. See a chart on how inflation affects prices.

Listings on fire

NBC Bay Area

Is this a flipper’s dream? A burned-out home is on sale in Oakland for more than $765,000. The 4-bedroom, 2-bath is listed on Redfin as a “Rare opportunity to get in for less.” It’s located in Oakland’s Laurel District and is described as a “highly walkable, dog-friendly, and health-focused area!”

See a listing that’s too good to be true? Tell us about it by sending @NBCBayArea a direct message on Twitter or Instagram. You can also send us a message on Facebook.

Chris Miller/One Point Media Group; Getty Images

“Burning Love” isn’t just the name of an Elvis hit, it’s also the feeling you might get after you buy one of the King of Rock’s former homes. The Palm Springs home that Elvis and Priscilla Presley rented for a year just after their marriage in 1967 is hitting the market for $5.6 million. The 4-bedroom, 5-bathroom, 4,600-square-foot property earned the name “House of Tomorrow” because of its the futuristic design. See more photos here.

Making it in the Bay

Relief is on the way. This week, California’s ‘Inflation Relief’ Payments are going out. The first payments are expected to hit accounts this Friday with a second around on October 28th. Payments range from $200 to $1,050. It all depends on how much you make. California created a calculator to see how much you’ll receive here.

Two Bay Area Cities top the list of the most expensive U.S. Cities based on monthly expenses. Can you guess what they are? The list from Doxo calculates expenses by adding up Mortgage/Rent, Auto loan, Utilities, Insurance, mobile phone bill, and other items. People living in San Jose pay the highest monthly bills, with an average of $3,151 or 66.8% higher than the national average of $1,889. See what the second highest city here.

Beyond the Bay Area

You think rent prices are bad here? Check out what happened to this renter back east in New York. Her Manhattan apartment was $1,881 in 2020, increased to $2,400 in 2021 and jumped another whopping $1,100 to $3,500 this year. So, what will she do? “I’m going to put my stuff in storage and go to Europe and work remotely there.” What’s going on in NYC? CNBC has insight into unique challenges facing renters.

We jump from the big apple to across the pond where mortgage mayhem is sparking fears of a housing market crash in Britain. A swathe of tax cuts announced by the government sent interest rate expectations soaring, driving up lending rates for homebuyers. If interest rates remain the same, Oxford Economics estimates that house prices will be approximately 30% overvalued. Read more from CNBC’s Money Report.

By the numbers

Our NBC Bay Area business and tech reporter Scott Budman is always keeping a close eye on the latest housing stats. Be sure to follow him on Twitter @ScottBudman for more.

#New: The median home price in San Francisco is down 7.3% since this time last year.

Median price August: $1,582,000
Median price today: $1,400,000

Source: @Redfin

— scott budman (@scottbudman) October 10, 2022

#Update: As mortgage rates hit 7%, the average home monthly payment has changed in 2022:

San Jose:
January: $4,300
September: $7,000

San Francisco:
January: $3,800
September: $6,400

Source: @zillow

— scott budman (@scottbudman) October 11, 2022

#New: Even with interest rates rising, these have jumped in cost over the last year:

Plane tickets: +43%
Eggs: +31%
Health Insurance: +28%
Butter: +27%
Gas: +18%
Coffee: +17%
Cereal: +16%
Electricity: +16%
Bread: +15%
Milk: +15%
Pet Food: +14%

Source: Consumer Price Index

— scott budman (@scottbudman) October 13, 2022

Investigative series: Overpriced, Overwhelmed, Over It!

Are real estate investors to blame for the housing crisis? While many investors say they add value to neighborhoods, neighbors, and tenants impacted by the developments say they expedite gentrification. In episode 1 of our digital-exclusive investigative series, “Overpriced, Overwhelmed, Over It!”, we explore why in some areas cash is king.

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Article source: https://www.nbcbayarea.com/news/local/making-it-in-the-bay/housing-deconstructed-newsletter-bay-area-housing-market-cooling-down-burned-out-house-listed-for-765k-and-sj-offers-rv-owners-500/3032454/

SF can follow Calgary and turn empty downtown offices into housing

Mon, 17 Oct 2022 21:46:10 +0000

But if creating housing from office space is such a good idea, then why hasn’t it happened? Local developers generally say it’s too expensive and difficult here — even though it can cost less than bottom-up construction in some cases.

It also looked too expensive and difficult in Calgary, Alberta, until the government did something about it. Canadian officials responded to the long-term decline of its business district with a 10-year, $1 billion initiative — equivalent to about $721 million U.S. dollars — to transform the area into a diverse, thriving neighborhood, in large part by funding and fast-tracking projects that convert offices to housing.

Top of story: The Canadian city of Calgary is supporting the conversion of unused office buildings into residential space to help revitalize its downtown core.

Above: A sign advertising office space in the targeted redevelopment zone in downtown Calgary, Alberta.

Amber Bracken / for The Globe and Mail

Similar strategies could help conversions pencil out in San Francisco, local builders say.

“As it stands today, these projects are unfeasible,” speculated Strachan Forgan, principal at SCB, the architecture and design firm for one of the city’s few recent conversions at 100 Van Ness, a 28-story, glass covered building that yielded 418 housing units near City Hall when it was completed in 2015. Projects like that could become more possible if “construction prices fall off a cliff because of the recession — or if the government changes policies” to make them cost less, he said. Efforts to make projects more doable would need to survive the city’s fractious politics, and factor in the major costs to developers of satisfying the city’s affordable-housing requirements.

San Francisco officials have begun openly discussing the possibility of repurposing buildings, though housing is just one potential new use, they say.

Office conversions are gaining traction in many other cities, including Cleveland and Atlanta, thanks to their potential to breathe life into downtown areas hobbled by the pandemic. In Washington, D.C., the mayor is considering tax and other incentives to make them more feasible.

In New York City, conversions added thousands of residents to lower Manhattan in the aftermath of the Sept. 11 attacks, making it the city’s fastest-growing neighborhood. Today office buildings in the Big Apple are once again transforming into homes and a task force is exploring how to make that work easier.

San Francisco’s downtown should follow suit, becoming more than a place where people go to work, said Karen Chapple, director of the School of Cities at the University of Toronto. Along with colleagues in Toronto and at UC Berkeley, Chapple recently studied cell phone data to measure downtown recoveries in more than 60 North American cities and found San Francisco to be the slowest. Though the streets show signs of renewed life as tourism gradually recovers, recent data shows that San Francisco’s office vacancies have climbed to record highs.

“In the end, San Francisco is going to have to figure out why people should come there,” Chapple said, “and that means rethinking itself entirely, probably.”

The work “can’t be building by building,” Chapple said. Instead, the time is right for a broad initiative that converts buildings, she said, as society learns to live with COVID-19 — an idea endorsed by other urban thinkers and economists.

Between office workers and tourists, San Francisco’s downtown was doing well enough right up to COVID-19’s arrival, though its relative lack of housing made it much less vibrant outside working hours. Many have wondered whether it would bounce back as the threat of the virus receded, but new factors indicate that it won’t. Recent bids for office buildings have been far below seller expectations, and other properties’ owners are applying to have their values adjusted downward, portending widespread drops in the tax revenue that funds public services.

In coming years, the city could find itself in a similar position to Calgary, making the Canadian city’s choices potentially instructive.

The need to be creative

Calgary seeks to revitalize downtown by converting offices into residential units.

Amber Bracken / for The Globe and Mail

Unlike in San Francisco, Calgary’s downtown was long in decline. Energy companies departed after oil prices crashed in 2014, and, when the pandemic spurred remote work, it became clearer that the area would not recover. Falling real estate values meant that if the government didn’t spend money on a long-term solution, it would keep losing tax revenue anyway.

The government pursued office-to-housing conversions for their dual benefits: reducing the overall supply of office space so that the remainder was more valuable, and increasing the housing supply.

Wary of how difficult and pricey the work could be, officials hired architecture and design firm Gensler, which got its start in San Francisco, to analyze the feasibility of conversions throughout downtown. Gensler identified a pocket of the area where properties seemed suitable, so the government targeted financial and other incentives there, encouraging developers to build the residential foundation of a new community.

Calgary has so far approved about one-quarter of the Greater Downtown Plan’s projected expenditures for about $184 million.

Of the initial outlays, about 40% will help fund office conversions. Each project gets $54 per square foot, up to about $7.2 million without further review from the City Council — two projects have exceeded that, with one scheduled to get about $11 million. To date, five conversions have been approved to create 707 units of housing. The remaining 60% of the approved money will fund major upgrades to local arts venues and revitalize public spaces to make the downtown area more comfortable and attractive to visitors and residents, and to stimulate economic activity.

Before the government’s funding commitment, the projects’ developers found it “difficult to get financing,” said Thom Mahler, director of downtown strategy for Calgary. With the financial incentive, “their pro forma worked,” he said, referring to a document that lays out financial viability.

The money made it possible for developer Peoplefirst to offer 40% of its project’s units at 20% below the current market value, said founder and managing director Maxim Olshevsky. It also gave them the financial breathing room to install balconies and build apartments with no fewer than two bedrooms, rather than cramming more, smaller units in to increase overall rent revenue. The larger units could give families a foothold in the new community — Olshevsky said he wanted to build the kinds of homes he wished he’d had as a teenager, upon immigrating to Calgary from Ukraine.

“My whole family lived in a two-bedroom apartment because we couldn’t get a three-bedroom that we could afford,” he said, “so I slept on the couch.”

Pedestrians ride a scooter in the target zone for redevelopment in downtown Calgary, where the city is converting unused office space to residential units.

Amber Bracken / for The Globe and Mail

The government also sped up the timetables for these projects, in part by waiving one of the major construction permits that can take months to procure. To further quicken things, a new committee worked directly with developers to help them satisfy strict building requirements, which can be difficult for projects that shift a structure’s use. All of this amounts to major savings for developers, Olshevsky said.

“So there’s no delay — you’re having a conversation with a decision maker who can get it approved, or tell you, ‘OK, you’re trying something too creative here, do it like this,’” Olshevsky said. “That’s huge.”

Thanks to the help, Olshevsky hopes the project — offering 112 housing units, with ground-floor retail and co-working spaces on the second story — will be finished by October 2023, with all units leased by the end of that year.

The project’s total estimated “hard costs,” or materials plus labor, came out to $131,020 per residential unit. After including “soft costs” — things like planning and management, or developer overhead — the price was equal to $177,670. That omits the cost to buy the building.

By comparison, the price per residential unit for 100 Van Ness in San Francisco was $311,000, including only hard costs, said Tim Vrabel, principal and chief financial officer for developer Emerald Fund. Those costs would be much higher in today’s market, he said. He did not provide soft costs, which he said were “highly variable, project to project” and might be equivalent to 40% to 70% of hard costs, depending on how the developer chose to satisfy the city’s affordable housing requirements.

The cost of conversion depends on the target building, which must fit many criteria for a project to be worth doing.

Newer and high-end office buildings are generally not suitable for two big reasons: They’re still in demand, leaving little financial incentive to convert them to homes. And they tend to have bigger footprints, with expansive floors that are difficult to separate into apartments with comfortable, attractive layouts.

Instead, older and lower-end buildings are best. But even then, the question is not whether one is largely empty — as many in San Francisco’s downtown are — but whether floors are still leased to commercial tenants.

“What if they find an office building that’s 87% leased for the next 10 years? What do you do with that?” said Trey Clark, chief investment officer for Vanke US, a real estate investment company.

The complexities of the S.F. market

In its redevelopment zone, Calgary is working with developers to improve the process of converting office spaces into residential units.

Amber Bracken / for The Globe and Mail

Every conversion is a major undertaking, partly because no two are the same.

Living spaces need access to light and fresh air, which might call for installing ventilation systems, replacing the exterior so that previously sealed windows can open, or even carving away sections of the building to improve the design. Plumbing and electrical systems must reroute from large, congregate areas to each new apartment or condo. With the change in use, an older building may suddenly need major seismic upgrades or fire safety systems. Elevators or stairs may need to be built, or ripped out and relocated. Every alteration bumps up the price tag.

“There’s a thousand things to analyze,” said Michael Covarrubias, chairman and CEO of TMG Partners, a Bay Area developer with experience in conversions. And new design obstacles can surface after builders tear into the structure. “There can be a surprise a minute,” he said, increasing costs.

In buildings more amenable to conversions, construction is generally faster and per-unit costs are about 30% lower than demolishing the structure and building apartments from the ground up, according to research by Emil Malizia, a professor specializing in real estate development at the University of North Carolina at Chapel Hill.

About 25% to 30% of the hundreds of buildings that Gensler has analyzed across North America have made good candidates for conversion, a spokesperson said in June. And San Francisco’s downtown has buildings that could work, said Manan Shah, principal at the company’s Oakland office.

“It’s a pretty mixed market,” Shah said. “A lot of historic buildings, a lot of development that happened in the 1970s, ’80s, ’90s.”

Elevated construction costs have helped bog down real estate development in the city. And with office property generally more valuable than residential, developers are hesitant to do conversions and take a potential net financial loss.

That’s where the government could tip the scales, some say.

Conversions would be subject to the city’s affordable housing laws, which require that developers of large projects either pay a fee or incur long-term costs by setting aside some apartments for tenants in low income brackets. A project that included affordable housing on site would rent about one-fifth of its units to households earning 55% to 110% of the local median income, which is $97,000 for someone living alone.

The Cornerstone affordable housing office conversion is in the beginning stages of construction in downtown Calgary.

Amber Bracken / for The Globe and Mail

Maybe the city could cut that unit requirement in half, said Forgan, of SCB architects. A milder reduction helped the numbers work for the 100 Van Ness project.

Real estate experts said the city could make financing conversions easier by reducing impact fees or giving developers more time to pay them. Or the city could directly contribute money, like Calgary did.

Also, like Calgary, San Francisco’s government could waive certain permits and work directly with builders to clear bureaucratic hurdles quickly. Or it could exempt conversions from “discretionary review,” said Clark of Vanke, a process that lets officials and members of the public challenge aspects of the project, delaying it and costing the developer money. Conversions could also draw less objection than new construction in established neighborhoods.

No coming back from office conversions

Calgary is supporting the conversion of unused office buildings into residential space to help revitalize the downtown core.

Amber Bracken / for The Globe and Mail

As San Francisco’s downtown has limped along, the idea of converting buildings there to housing has remained resilient and contagious, shared among developers and frequently surfacing in news stories.

In fact, Forgan recently fielded an inquiry from Emerald Fund about an office property fresh on the market.

“Hey, we’re trying to figure out if this building makes sense for residential conversion,” Forgan’s contact told him. Some quick math revealed that the numbers weren’t good enough. When asked if government interventions could make conversions worth Emerald Fund’s while, President Marc Babsin said, “Any little bit helps.”

San Francisco officials are weighing whether to help conversions happen — but not just to create new housing. If vacant downtown buildings, instead, received industries that diversified the local economy, it could guard against a repeat of what happened during the pandemic: An overreliance on tech and other highly professionalized workforces crippled the area when they departed, in what could be an early step toward citywide financial downturn.

“Say, for example, we pursued conversions from office to lab space, or to light manufacturing,” said Jeff Cretan, spokesperson for Mayor London Breed. “Because San Francisco is situated as an economic center, in a technology-rich, university-rich area, there could be alternatives to what happened in Calgary.”

And if the goal were to produce homes downtown, it might be better to identify approved office projects that haven’t begun and let them become housing instead, said Rich Hillis, director of the San Francisco Planning Department.

“Once an office is converted, there is no converting it back,” Gloria Chan, spokesperson for the Office of Economic and Workforce Development, cautioned in an email. “Our Economic Core is the only part of the city where we are allowed to have offices and moving away from this too prematurely can have implications that include the loss of business and the revenue that goes with them.”

Pedestrians in the target zone for redevelopment in downtown Calgary, Alberta, Canada, on Wednesday, October 12, 2022. The City of Calgary is supporting the conversion of unused office buildings into residential space, to help revitalize the downtown core. Amber Bracken for San Francisco Chronicle

Amber Bracken / Special to The Chronicle

A sign advertising office space across the street from the Cornerstone affordable housing office conversion in downtown Calgary, Alberta, Canada, on Wednesday, October 12, 2022. The City of Calgary is supporting the conversion of unused office buildings into residential space, to help revitalize the downtown core. Amber Bracken for San Francisco Chronicle

Amber Bracken / Special to The Chronicle

To help officials weigh the many ideas to save downtown, the office is commissioning studies on the pandemic’s local impacts, shifts in key industries, and how San Francisco might compete with other cities to attract and retain businesses, Chan said. The office is scheduled to spend $64.2 million over the next two years on citywide pandemic recovery efforts that include helping businesses, holding recurring events downtown and other efforts to spur foot traffic.

If downtown received more housing, it might help San Francisco satisfy the state’s mandate to build more than 82,000 housing units by 2030.

But tenant advocates have been hesitant to say that the government should help market-rate developers build homes for high earners. New policies should result in housing that’s permanently set aside for lower-income tenants, said Joseph Smooke, community organizer with the Race Equity in All Planning Coalition, which advocates for building affordable housing.

“We’ve got to deal with reality. We need affordable housing, and the market’s not producing it,” Smooke said. “It needs to come from the city really being innovative and bold.”

Growing a new community

The Neoma project, an affordable housing conversion office space in downtown Calgary, is an example of how the city is supporting the conversion of unused office buildings into residential spaces.

Amber Bracken / for The Globe and Mail

Back in Calgary in late September, a building that was formerly the headquarters for Dome Petroleum finished its transformation into housing. Though not officially part of the Greater Downtown Plan, the Neoma project falls within its focus area and will help a new community grow there.

“Now there’s 82 apartment units, family shelter, supports and amenities in the building that was once mostly cubicles,” tweeted developer HomeSpace Society.

Other Twitter users were generally jubilant. One summed up a widespread sentiment: “Congratulations! This is such a great project. Hope it catches on in other cities.”

Noah Arroyo is The San Francisco Chronicle’s SFNext lead reporter. Email: noah.arroyo@sfchronicle.com

Article source: https://www.sfchronicle.com/sf/article/empty-offices-housing-17510576.php

Bay Area ‘Western White House’ sells far below asking price

Mon, 17 Oct 2022 03:45:17 +0000

The original mansion at 401 El Cerrito Ave. wasn’t what we see now. In fact, it wasn’t even located in the same spot. According to real estate writer Bradley Inman, cattle rancher William Henry Howard built the home in 1878. The next owner was silver baron Charles Frederick Crocker, whose family eventually sold to Burlingame contractor Charles Lundgren.

As Inman wrote, Lundgren “physically moved the home a quarter mile away to El Cerrito Street in 1915. The relocation was to take advantage of the lush landscaping and the creek on El Cerrito Street. Hailed as an engineering achievement, the house move was written up in Popular Mechanics magazine.”

In the late 1920s, a fire seriously damaged the mansion. Its next owner, George Hearst — the eldest son of William Randolph Hearst — commissioned Julia Morgan to re-envision the home in the style of the presidential White House in 1930.

George Hearst clearly sought Morgan’s expertise in building the Western White House because of her work on the similarly opulent Hearst Castle. Both of these startlingly over-the-top mansions represented a departure from Morgan’s signature style of elevated Craftsman-inspired homes composed of natural materials like wood and stone.

An interior shot of the “Western White House.”

Danny Chung

Nowadays, the Western White House is a 25,00-square-foot, 24-room mansion standing on almost 3 acres of land at 401 El Cerrito Ave. Its Georgian Colonial design echoes Washington’s White House, as do its cherry trees and its Oval Office-like library.

Inside, there’s an abundance of marble and silk. According to Inman’s 1995 profile, the home’s four floors are served by both dramatic staircases and an elevator. Hanging from the ceilings are three cut-glass chandeliers, at least one of which is purportedly a Waterford, Inman wrote. Morgan even cut a trap door in the third floor above the formal dining room so that workers could raise and lower the chandelier in order to clean it. The latest real estate listing shows the home has 11 bedrooms, 10 full bathrooms and four half-bathrooms.

One of the bedrooms in the “Western White House.”

Danny Chung

While the latest listing doesn’t detail any potential changes to the interior, it does detail a thoroughly modern exterior life, including, “the pool, bathhouse, gazebo solar array.”

An exterior shot of the “Western White House.”

Danny Chung

The poolside area of the “Western White House.”

Danny Chung

Hearst eventually sold the Western White House without ever having lived in it. “According to an old newspaper account in the San Mateo Times, John and Yoko Lennon intended to buy the house in the early 1970s but they backed out of the deal at the last minute,” wrote Inman.

Though the history here is impressive, the mansion is no time capsule. The kitchen is very much an updated affair, as are the luxurious bathrooms. There’s also a solar heating system.

An interior shot of the “Western White House” kitchen.

Danny Chung

The home listed for $25 million in late October of 2021. While waiting for its next owner, it suffered multiple price cuts, finally selling early this September for $15 million. Compass agent Alex Buljan, who represented the buyer in this transaction, didn’t find such a long stint on the market unusual: “The property, because of its size and significance, required a buyer willing to put time, effort and capital into preserving its rich history.”

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert

Article source: https://www.sfgate.com/local/article/western-white-house-sells-low-17487411.php

5 Huge Housing Projects That Beat Insane SF Rules To Get Built

Sun, 16 Oct 2022 09:44:02 +0000

English

When you’re trying to build housing in San Francisco, the city is a jungle. Its overgrown regulation, astronomical costs and myriad reasons to say ‘no’ have killed many a development project.

Despite all of that, some projects somehow still get built.

The average San Francisco building cost clocks in at an astronomical $440 per square foot, the highest in the world, according to data research group CBRE.

Labor costs are also sky-high. A multitude of fees—some citywide, others neighborhood-specific — erode the profitability of housing projects, dollar by dollar.

The city’s affordable housing rules require developers to either pay a massive fee or make 20% to 33% of units below market-rate in any development larger than 10 units—though political or community groups often push for more. And the Board of Supervisors can still deny a project, even if it meets all the other requirements.

The Standard analyzed SF Planning’s housing pipeline data from Q1 2022, and had a look at the largest developments that made it through the crazy system.

The top five are located in SoMA or nearby. But other, smaller projects stretch across much of the city.

The data paints a stark picture of the city’s struggle to increase its housing stock and create affordable units. When all the projects listed in the Q1 data are complete, they will add just 4,150 new units to the city—2,098 of them will be affordable.

And the state government is cracking down on the city’s attitude towards building homes, launching an investigation into why it takes so long and demanding the city submit a plan to build 82,000 homes by 2030.

Dan Sider, chief of staff at SF Planning, admits that the state has set high goals for San Francisco. But he says the numbers are far from bleak.

“Any unit of housing helps and the good news is that we have a lot of units coming online,” he said. “Some are market rate, some are affordable. We need all of them.”

Here are the largest projects coming down the pipeline.

Hayes Point

30 Van Ness Avenue, Civic Center

A rendering of the exterior of a new development at 30 Van Ness (center) in San Francisco. Courtesy Solomon Cordwell Buenz

Hailed by Mayor London Breed as the kind of project San Francisco needs to “unclog the housing pipeline,” the development at 30 Van Ness Avenue—christened Hayes Point—is an unusual one.

At a time when the city is struggling to attract renters to its commercial office buildings, this new development just north of Market Street plans to place 333 condos on top of a five-story, 29,000 square foot office building.

It was possible to construct such a building because Australian developer Lendlease is able to handle the financing, construction, and development all on its own, a company manager told the San Francisco Chronicle earlier this month.

The firm officially broke ground on the project, which Lendlease values at over $1 billion, in September. It is scheduled for completion in 2025.

Notably, 25% of the units in Hayes Point—or 83 condos—will be priced below market rate, more than was required at the time. Lendlease was able to purchase and develop the property in part because it agreed to so many affordable units.

Lendlease has been contacted for comment.

UC Hastings Student Housing, 198 McAllister St., Tenderloin

An exterior of the UC Hastings Student Housing at 198 McAllister St in San Francisco, Calif., on September 26, 2022. The building’s approval involved an elaborate and complex permitting process. | Justin Katigbak for The Standard

Technically, the largest housing development project in San Francisco’s pipeline as of Q1 2022 isn’t “traditional” apartments available to the broader public; it’s part of UC Hastings College of Law’s “Academic Village.”

Developed by Greystar, the residential complex in San Francisco’s rough-and-tumble Tenderloin neighborhood will add 656 new units of housing to the city — but only for graduate students from Hastings, UCSF, and other Bay Area universities. Most of the apartments will be small efficiency units and studios. According to the university, the new 14-story building, called Academe at 198, will also feature classrooms, offices, mock courtrooms, and a 400-person auditorium on its first three floors and ground-floor retail space.

Academe at 198 should be completed in July 2023. Another phase of the project, which envisions renovating the historic building at 100 McAllister Street next door, will be finished in 2025 or later.

Why is the largest ongoing housing development in San Francisco specifically for students? Part of the reason may be that Academe at 198 had an inherent advantage over construction projects: Hastings is affiliated with the University of California system, it is not under the purview of SF Planning.

David Seward, the university’s chief financial officer, disagrees that this is an advantage. He says UC Hastings works “very collaboratively” with SF Planning and takes its input, but “there’s no approval authority there.”

He says Academe at 198 aims to solve affordable housing issues for graduate students, a group underserved by much student housing, and to become a “community activator” for the underserved Tenderloin, putting students on the sidewalks and money into local businesses.

“Urban campuses—it’s really all about the energy and the vibe and the collaborations that will result” when students from different disciplines live together, Seward said.

1064 Mission Street

1064 Mission St., SoMA

Construction is underway for a new residential development project on 1064 Mission Street in in San Francisco, Calif., on September 23, 2022. The building approvals involved an elaborate and complex permitting process. | Justin Katigbak for The Standard

Unlike many of the other developments currently under construction, 1064 Mission St. is not the work of a major for-profit developer. Rather, it is a joint project of Mercy Housing, a national affordable housing nonprofit, and Episcopal Community Services of San Francisco.

Construction began in March 2020 and is nearing completion. The complex is set to begin receiving residents on October 3, 2022.

The two buildings that make up the complex will offer 256 affordable studio apartments for formerly homeless adults and seniors, adding to the city’s growing portfolio of permanent supportive housing. They will also have case managers and support service managers on staff. Additionally, an urgent care clinic and a satellite clinic of St. Anthony’s Medical Center, a federally qualified health center, will be located in the complex.

Prospective residents will be referred to the facility through the city Department of Homelessness and Supportive Housing’s Adult Coordinated Entry system.

The complex is being constructed on land provided by the federal government exclusively to house the homeless.

It is being built using a modular construction technique, which means that the individual apartments are assembled off-site and later “clicked into place,” according to Beth Stokes, executive director of Episcopal Community Services.

Ventana Residences

99 Ocean Avenue, Mission Terrace/Excelsior

A rendering of a new residential building at 99 Ocean Avenue. Courtesy RG-Architecture

This new high-density residential complex in the Mission Terrace area will add 193 units to San Francisco’s housing stock, 48 of which will be affordable.

It will be located half a mile from the Balboa Park BART station, giving residents access to the rapid transit system, multiple Muni lines, and numerous bus routes.

The complex will also include the Wu Yee Children’s Services, a preschool that will serve up to 75 children, on site. Developer Presidio Bay Ventures says this will be a first for a housing development project in San Francisco, where most developers simply pay into the San Francisco Childcare Impact Fee Fund.

One of the goals of the project is to accommodate young families, who might otherwise struggle to find housing that can accommodate their need for more space, Kabir Seth, chief operations officer of Presidio Bay Ventures said. These families might otherwise have to leave the city.

Getting the project approved was difficult, Seth said, explaining that his company acquired the site at the end of 2016, but couldn’t get it “shovel ready” until 2020.

In 2019, a coalition of community groups publicly opposed the project, demanding that 100% of the apartments be affordable. The Planning Commission eventually advanced the project, the San Francisco Examiner reported.

Seth told The Standard that he believes community input results in better outcomes. But materials, labor, taxes and affordability requirements already make multi-family development very difficult. When even going above the affordability minimums—as Presidio did by making 25% of the units affordable—is not enough, that can derail important construction projects.

“Our project still got appealed,” he said, “and we still had to present it and overcome the appeal at the Board of Appeals, following what was already a very lengthy entitlement and environmental review process.”

‘Brady Block’ residential building

1621 Market St, SoMA

A rendering the view of Brady Park from Brady Street at the new residential building at 1621 Market Street in San Francisco. Courtesy Kennerly Architecture and Planning

The building at 1621 Market St. was long the home of the UA Local 38 plumbers and pipefitter’s union. But in 2017, the union teamed up with Strada Investment Group to construct a six-building housing project, according to the San Francisco Business Times.

That project, which is located between Market and Brady streets and sometimes called the “Brady Block,” will create a total of 595 residential units. Of those, 103 will be affordable and 96 will be supportive housing for formerly homeless individuals, according to SF Planning.

The project currently coming down the pipeline is a nine-story residential building that will include 185 units. According to the Q1 2022 data, none of them will be affordable, suggesting that the below-market apartments may be in other Brady Block structures. The development is currently under construction.

The union hall originally at 1621 Market St. has been demolished and included in another building in the new development.

Strada has been contacted for comment.

Here’s a map of some of the larger developments coming down the pipeline:

English

Article source: https://sfstandard.com/housing-development/san-francisco-real-estate-5-huge-housing-projects-that-beat-insane-city-rules-to-get-built/

The best things to do in the San Francisco Bay Area for Halloween

Sat, 15 Oct 2022 15:42:37 +0000

But have no fear — this guide offers a little bit of everything, from the real-life filming locations of some of the Bay Area’s scariest movies to drag horror parodies and the sources of San Francisco’s most famous ghost stories.

Here are 20 of the best things to do in the Bay Area for Halloween.

1. Tour the Bay Area’s city of the dead

“It’s great to be alive in Colma!” or so the town’s slogan goes. Founded as a necropolis in 1924 after San Francisco began running out of space for the dead, it has a living population of about 1,700, with another 1.5 million buried 6 feet under. Today, 17 cemeteries make up 73% of Colma’s land mass — and they’re open to the public. Look for the grave of San Francisco eccentric Emperor Norton in Woodlawn Memorial Park, head to Pet’s Rest to see the final resting place of Tina Turner’s dog and stop by Holy Cross Catholic Cemetery to find the grave of Joe DiMaggio.

Various locations in Colma.

The Sutro Cave near the Sutro Baths in San Francisco is seen on March 11.

Douglas Zimmerman/SFGATE

2. Delve into the spooky tunnel at Sutro Baths

Some people swear up and down that the 130-year-old tunnel at San Francisco’s Sutro Baths is haunted — one of the most famous tales alleges that if you enter in the middle of the night and light a candle, a drowned spirit will materialize and cast it into the rushing water. Anton LaVey, the founder of the Church of Satan, which was headquartered nearby in the Richmond District, said he regularly patronized the Sutro Baths and claimed to have spent hours looking for ghosts there, even going so far as to say he placed a curse on the ruins that led to their fiery demise in 1966. (However, Blanche Barton, his partner for the last 13 years of his life, disputed rumors that satanists painted pentagrams on the walls and held human sacrifices there.) You can read the full story about the lore surrounding the tunnel, but it’s worth the visit for a bit of festive atmosphere. Light a candle if you’re feeling brave.

1004 Point Lobos Ave. in San Francisco. Open daily.

3. Look for the famed White Lady of Stow Lake

It’s no secret that the White Lady of Stow Lake is San Francisco’s most famous ghost story — the lore has been going around for well over 100 years. For those who’ve never heard the tragic tale, here’s a recap: In the years before the 1906 earthquake, a young mother decided to go for a stroll around the lake in Golden Gate Park with her baby in tow. Eventually, she stopped at a bench to rest her feet and talk with a friend. While the two were chatting, the stroller rolled away, unnoticed.

A few minutes later, the mother looked over to check on her baby and realized the stroller was gone. In a panic, she ran around the lake, frantically looking for her child, who was nowhere to be found. When she realized what had happened, she cried out in agony and ran into the lake, never to be seen or heard from again. That is, while she was alive.

Some say she still haunts the area on foggy nights, occasionally emerging from the lake to ask people if they’ve seen her baby. Others have only heard her haunting sobs. There’s only one way to find out if the fable is true.

Too spooked to venture out yourself? Cozy up with your warm beverage of choice and read the real story behind the legend.

Stow Lake Drive in San Francisco. Open daily.

4. Visit Point Reyes Station for ‘The Fog’

This misty retreat has plenty of haunting allure on its own, but it’s also home to several iconic filming locations from John Carpenter’s criminally overlooked 1980 horror flick, “The Fog,” which centers on a band of ghostly sailors that come back from the dead to seek vengeance on the fictional town of Antonio Bay.

It features a legendary cast, namely real-life mother-daughter duo Janet Leigh (“Psycho”) and Jamie Lee Curtis (fresh off her breakout role as final girl Laurie Strode in 1978’s “Halloween”).

Carpenter and late screenwriter-producer Debra Hill said they chose the town of Point Reyes Station for the film because of the now 152-year-old landmark, and how creepy it looked from its perch overlooking a cliff.

Unfortunately, you can’t go inside the lighthouse, and if you did, you wouldn’t find a radio station. But Loretta Farley, a retired ranger with the National Park Service who gave many tours of the landmark over her 20-year career there, said you can still take in plenty of the film’s chilling ambiance.

“I’ve seen ‘The Fog’ at least 15 or 20 times over the years,” Farley told SFGATE last October. “I’ve bought a number of copies of the film because it’s a great travelogue of West Marin, the lighthouse, the stairs. If you know the area and you’re from the bay and see the scenery, it’s kind of special that way.”

Inverness. Open daily.

5. Go to a haunted house in historical digs with a vampire-themed bar

If you dare to brave the depths of the Old Mint building on Fifth and Mission, you’ll find the best haunted experience San Francisco has to offer. Returning with an all-new theme, drag legend and filmmaker Peaches Christ’s immersive attraction “The Summoning” is back and better than ever. First, guests are invited to mingle with sultry ghouls at its ’80s new wave-themed cocktail lounge, Fang Bang — a nod to the bygone goth club Roderick’s Chamber — before journeying through the 148-year-old vaults to retrieve the severed head of Lucretia, a disgraced vampire queen. Unlike previous years, guests can go up to the third floor of the building and even see the guillotine from Christ’s 2010 horror comedy, “All About Evil,” dodging plenty of scares along the way.

88 Fifth St. in San Francisco. Wednesdays to Sundays through Nov. 5. Tickets $55-$75.

6. Or try a haunted Victorian

For the last decade, a 136-year-old Victorian between Washington and Jackson streets in San Francisco has transformed into Mayhem Mansion, a horrific reimagining of the carefully preserved Haas-Lilienthal House. If you dare, embark on a guided tour of all three stories facilitated by history-focused nonprofit SF Heritage, which is also headquartered in the spooky abode. Just be wary of the spirits hiding in the shadows of every room.

New this year, guests can also calm their nerves at the Spookeasy in the ballroom and, as always, dip into the complimentary candy cauldron.

2007 Franklin St. in San Francisco. Oct. 21-22 and 27-29, 7-11 p.m. Tickets $20-$30.

Tana and Curtis Howard own the Avenue, a neighborhood bar in the Temescal neighborhood of Oakland. Each year, the couple puts together one of the most elaborate Halloween displays in the city.

Douglas Zimmerman/SFGate.com

7. Party at a dive bar themed around Halloween 365 days a year

If you have to choose one spot to grab a drink on Halloween, make it the Avenue in Oakland. Operated by die-hard horror fans Curtis and Tana Howard, it’s the only bar in the Bay Area themed after the holiday every single day of the year, with a treasure trove of horror movie relics bursting from every corner. On one side of the bar, you might see a pinstriped cavern of killer clowns like Pennywise from “It,” while evil jesters with yellow eyes ominously play on a teeter-totter. On another, you could encounter a DIY escape pod from “Alien” complete with a creature bursting through the wall, a xenomorph table and real footage from the International Space Station. And that’s barely scratching the surface. For the ultimate experience, be sure to go to the bar’s annual Halloween party and costume contest.

4822 Telegraph Ave. in Oakland. Open nightly.

8. Pay your respects at the Winchester Mystery House

The famed mansion is going all out this year with a celebration of life for heiress Sarah Winchester, who died in her curiously designed abode just over 100 years ago. While it’s likely that everything you know about the Winchester Mystery House isn’t true — namely, claims that Winchester built her estate to escape from vengeful spirits and held seances there — you’ll find that today it’s home to one of the most popular walk-through haunts in the South Bay, “Unhinged: Nightshade’s Curse.” As usual, guests can go on guided daytime tours of the mansion and are invited to leave flowers, cards, photos and mementos in the front gardens to honor Winchester. Looking for something a little more supernatural? Check out “Beyond the Veil,” where psychic medium James Van Praagh will lead guests through the halls of Winchester’s home and attempt to contact the spirits within. Midway games, ax-throwing and more will round out the festivities.

525 S. Winchester Blvd. in San Jose. Tickets $64.99-$250.

9. Get your scary movie fix

There are so many horror classics to see at the Bay Area’s historical movie houses this month that it’ll be hard to choose just one. And why should you? Here’s what I think you shouldn’t miss — but be sure to check your local theater’s website for other programming.

The Alamo Drafthouse will present the 1983 gothic vampire thriller “The Hunger” starring David Bowie, Susan Sarandon and Catherine Deneuve on Oct. 17 as part of Peaches Christ Presents: Queer Horror, with a special intro recorded by the former host of “Midnight Mass.” A double feature of “Predator” and “Predator 2” will be shown on 35 mm at the Castro Theatre on Oct. 22. The Roxie Theater’s Gialloween series on Oct. 18-27 will return with four blood-drenched murder mysteries from the ’60s and ’70s, including the San Francisco-set “Perversion Story.” Best of all, a series pass grants you free admission to Dario Argento’s latest film, “Dark Glasses.” The Balboa Theater will present “The Exorcist” on 35 mm on Oct. 24, followed by the 1924 Austrian silent horror film “The Hands of Orlac” accompanied by a live orchestra on Oct. 26, plus the 1987 slasher “Blood Diner” with a director QA and a DJ afterparty on Oct. 30. Finally, Grace Cathedral and SF Jazz will join forces for a screening of the 1923 silent film classic “The Hunchback of Notre Dame,” live scored by organist Dorothy Papadakos, on Oct. 31.

Various locations, dates and ticket prices.

Head to Rye bar for a cocktail menu themed around “The Shining.”

Courtesy of Rye bar

10. Experience ‘The Shining’ like never before

All work and no play makes Jack a dull boy. Head over to Rye bar in Nob Hill throughout the month of October for an eerie tribute to the Overlook Hotel’s cocktail lounge — red jacket-wearing bartenders, creepy twins and all. Imbibe on a Red Rum (Denizen vatted dark rum, Campari, pineapple, lime and coconut with a large red ice cube), an Overlook Old Fashioned (spice-infused Knob Creek rye, creme de cacao, pumpkin and bitters served on an ice cube with an orange twist) and other beverages on a themed menu inspired by the horror classic written by Stephen King and directed by Stanley Kubrick. Just look out for swinging axes!

688 Geary St. in San Francisco. Open nightly.

11. Go on a corny ghost tour

Walking tours aren’t just for out-of-towners anymore — they’re a great way to take in the history of the city, and the possibility of encountering an apparition along the way is just fun, whether you believe in them or not. The Haunt offers a walking tour through Chinatown and Jackson Square, and you might hear about the tale of whiskey king A.P. Hotaling or the mysterious pale face in a window that shocked scores of San Franciscans in the late 1800s. Or, check out the Haunted Haight Pub Crawl, which promises a paranormal adventure through the haunted bars and clubs of the neighborhood. And the Vampire Tour of San Francisco led by Kitty Burns-Nasarow will guide you through a special gothic history of Nob Hill.

Various locations, dates and ticket prices.

12. Ward off undead pirates

Pirates of Emerson’s walk-through attraction is back after hosting the Bay Area’s only drive-through haunted house during the pandemic, preserving the same commitment to a good scare that it had when it began more than 30 years ago.

Founder Brian Fields and his parents, Patty and Karl Fields, have managed their DIY haunted theme park for just over three decades, beginning in the backyard of their Fremont home on Emerson Street in 1991. Over time, the haunt grew in size and popularity, and they had to find a new venue.

“We started with a keg and some friends in the backyard and a bunch of the neighborhood kids,” Brian Fields told SFGATE in 2020. “It got bigger and bigger. During our last year at the house, we had 3,000 people show up over two nights, and so the city shut us down and said we couldn’t do it anymore.”

The annual haunt moved to the Alameda County Fairgrounds 13 years ago, and since then, it’s been one of the most popular Halloween attractions in the Bay Area, featuring mazes, live music, a “misfortune” teller and other horror-centric entertainment.

Alameda County Fairgrounds in Pleasanton. Various dates in October. Tickets $20-$78.

Veronica Cartwright, Rod Taylor, Tippi Hedren and Jessica Tandy are seen with director and producer Alfred Hitchcock on the set of “The Birds.”

Sunset Boulevard/Corbis via Getty Images

13. Trek to the Bay Area towns still living in the shadow of ‘The Birds’

It’s been nearly 60 years since Alfred Hitchcock’s avian thriller “The Birds” was released in theaters and became one of the most iconic horror movies of all time, paving the way for creature classics such as “Jaws” and inspiring the likes of Carpenter and Guillermo del Toro. Today, thousands of fans still flock to Bodega and Bodega Bay, the tiny Bay Area towns where the movie was filmed. Stop by the St. Teresa of Avila Church and the historical Potter Schoolhouse where Tippi Hedren and dozens of children fled from a murder of crows, and grab a bowl of clam chowder for lunch at the Tides Wharf Restaurant where the town’s residents sought shelter from the winged predators. You can also pose for a photo with Hedren and Hitchcock mannequins at Seagull Antiques and purchase a souvenir at Artisans’ Co-op, where crows are etched into pottery, painted on plates and carved into gold vermeil jewelry. Just be aware that you might have to dodge some birds yourself, as I did.

Bodega and Bodega Bay. Most attractions open daily.

14. Try your hand at zombie paintball

You’ll have to venture just outside of the Bay Area for this one, but where else can you find 15 acres of terror replete with a Fear Farm, a sinister hospital and a hayrack ride that culminates in a game of zombie paintball? On its website, Corbett’s House of Horror calls itself the largest haunt in Northern California and promises meticulous set design from artists featured on “Yard Crashers” and “Turf Wars,” plus a team of dedicated live actors and plenty of terrifying effects. What are you waiting for?

46500 County Road 32B, Davis. Various dates in October. Tickets $20-$40.

15. Summon the famed ‘ghost girl’ at the Chapel

Next time you go to this former mortuary-turned-music venue in the Mission District, you might want to keep your wits about you. Six years ago, ex-employees were reviewing security footage after a theft had taken place there only to discover an unsettling sight: a little girl in a white dress running toward the front door before disappearing out of frame. Her presence was unexplained — no children had been in the building that morning.

Staff told SFGATE that other creepy occurrences have taken place at the Chapel over the years, from doors slamming shut with no explanation to floating beer cans and creepy shadows in the bathroom. You’ve been warned.

777 Valencia St. Open most nights.

16. Have a gourd time at Half Moon Bay’s 50th annual pumpkin festival

The weigh-off results were just announced, and this year’s largest pumpkin grown by Travis Gienger broke the U.S. record at a whopping 2,560 pounds. This weekend, you can enjoy even more festivities, from a costume contest, Great Pumpkin Parade and back-to-back pie-eating contests to pumpkin-carving and the 44th Annual Pumpkin Run.

Main Street, Half Moon Bay. Oct. 15-16, 7 a.m. to 5 p.m.

17. Trick or treat with the best of them

Eucalyptus Avenue in San Carlos isn’t just known for its over-the-top Christmas decorations — the two blocks connecting Tamarack and Orange avenues go all out for Halloween, too. Expect animatronics, live actors, dry ice, fake blood and lots of candy. Just be sure to be respectful of the people living there. In recent years, the city has had to mitigate crowding and traffic issues.

Looking for an alternative? Russell Street in Berkeley and Grand Street in Alameda are similarly popular destinations for trick-or-treating.

Various locations and dates.

18. Explore a giant corn maze or pumpkin patch

Petaluma Pumpkin Patch is just as well known for its 4-acre corn maze, and you can also partake in pony rides, enjoy a carnival fun slide and chow down on funnel cake and kettle corn. You’ll find several other pumpkin patches throughout the Bay Area for all of your jack-o’-lantern needs. Clancy’s Pumpkin Patch at 2101 Sloat Blvd. was the first pumpkin patch to pop up in San Francisco and has been around for 59 years. The Great Pumpkin Patch just past Stern Grove at 317 Sloat Blvd. offers fun houses and a small train for children, while Piedmont Avenue Pumpkin Patch in Oakland even rigs up a haunted house.

Various locations and dates.

19. Watch a horror-themed drag show

Do you like scary movies? Then, you’d better head to Oasis. For most of October, you can catch “SQREAM,” D’Arcy Drollinger’s immersive ’90s drag slasher parody musical loosely based on Wes Craven’s hit film set in Tomales. Fans of the Boulet Brothers’ horror-centric drag competition “Dragula” will also want to be sure to stop by the club on Oct. 14 and 15 for a very special “Reparations” show presented by Nicki Jizz and featuring Saint, the winner of “Dragula Resurrection.”

298 11th St. in San Francisco. Various dates and ticket prices.

The San Francisco Columbarium is located at 1 Loraine Court.

Andrew Chamings

20. Rest in peace in the San Francisco Columbarium

Tucked away in the Inner Richmond is one of the only places still inhabited by the dead in San Francisco. Housing thousands of memorial niches and vaults for cremated remains, the Columbarium is the last active nondenominational resting place in the city. The urns on display range from Summer of Love-era music producer Chet Helms to “Muppets” writer and puppeteer Jerry Juhl to Carlos Santana’s father, violinist Jose Santana. In the Athena Room, just beyond the entryway of the Hall of Olympians, you can also say hello to the San Francisco twins, Marian and Vivian Brown. This city landmark is a tranquil, hidden gem.

1 Loraine Court in San Francisco. Open daily.

Article source: https://www.sfgate.com/local/article/sf-bay-area-halloween-events-17499377.php

‘Dream of a Deal’: Burned-Out Oakland Home Selling for $765,000

Fri, 14 Oct 2022 21:41:32 +0000

A home in a prime Bay Area location is selling for under $800,000.

Sounds like a hot deal, but there is a catch – there’s always one right?

Photos from the Redfin listing show obvious fire damage to the 1,390 square foot residence in Oakland’s Upper Laurel neighborhood. And there’s also not much to see inside, but the bones are still intact for those looking for a fixer-upper house.

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Here’s how the real estate agent describes the opportunity to own the home, which was built in 1912:

“Don’t miss out on a dream of a deal on Midvale Ave! Rare opportunity to get in for less and renovate…”

View the full listing on Redfin.com.

See a listing that’s too good to be true? Tell us about it by sending @NBCBayArea a direct message on Twitter or Instagram. You can also send us a message on Facebook.

Investigative Series

Article source: https://www.nbcbayarea.com/news/local/east-bay/burned-oakland-home-sale/3027217/

Census Bureau: San Francisco metro area sees mass exodus during pandemic; More consider leaving – KGO

Fri, 14 Oct 2022 03:39:12 +0000

SAN FRANCISCO (KGO) — A mass exodus from San Francisco. New numbers from the Census Bureau indicate that 55,000 people moved out of San Francisco in a single year during the COVID-19 pandemic.

That’s more than 6% of the city’s population.

Those dramatic numbers put San Francisco on the map in a different way.

So many people are leaving San Francisco metro area or are thinking about it.

Many people agree: living in San Francisco can be a truly remarkable experience.

“Right now, I’m excited to be in the Bay area because of all the perks — the nature, the sunshine, the weather,” said Lisa Gonzalez. “All the awesome outdoor activities we get to do that.”

But it’s an expense that comes at a very steep price tag, says Gonzalez, who rents in the city.

“Right now, I’m fortunate to have a salary that allows me to be here. But that’s not the case for everyone,” she said.

New U.S. Census Bureau Data shows 7.6% of San Francisco metropolitan area residents surveyed considered moving to a different city in the next year.

The American housing survey shows SF at the top of the list for people thinking about leaving. That’s followed by Seattle and Dallas.

“I’m not surprised. It is crazy expensive,” said Chris Seavey, who rents in SF.

“One friend moved to Denver. Another friend moved to Austin,” Gonzalez said.

“The cost of housing is really high here. I know of people who have left. And many of them have moved to states like Texas. Sometimes it’s housing. Sometimes it’s state taxes,” said San Francisco resident Sachin Chawla. “I think it’s more than housing costs. My suspicion is now with work-from-anywhere, people are finding they can have a bigger space, maybe a more comfortable life. Perhaps they want to move back to their family and where they grew up, and I suspect some people are moving back to just their hometowns or to other cities that are building up.”

“We’ve seen a lot of people leave the Bay Area for other destinations elsewhere in the country. The Southeast is pretty popular, and Atlanta or the Carolinas,” said real estate agent Kevin Ho.

More people say they’re moving for quality of life reasons and because their dollar can go much further elsewhere.

“Median prices here in San Francisco are still well over $1 million,” said Ho. “A single family house will go anywhere from $1.6 million to $2 million on average. And a condominium isn’t too far behind.”

“The last time interest rates were where they are at now, the prices were at half of where they are right now. As interest rates go up, affordability becomes even more of a challenge for folks,” Ho added.

Ho says both buyers and sellers are being tested right now.

“We are seeing lots of qualified folks leave and people who would otherwise stay here. There are plenty of folks who want to take their places. But the mortgages rates being $500 to $1000 more than before, it’s just too much for people to bear.”

Earlier this year, Ho said when clients would leave, it would take a week or two to sell their home. Now, he says it’s taking a month or more.

If you’re on the ABC7 News app, click here to watch live

Article source: https://abc7news.com/san-francisco-metro-area-census-bureau-data-affordable-housing-prices/12326094/

What happened to San Francisco’s ‘Million Dollar Listing’?

Thu, 13 Oct 2022 09:38:17 +0000

And no one really knows why. Or at least, no one can agree on why.

Casting and timing were the most likely culprits a second season never materialized, even though it was allegedly greenlit for one originally. While their stories didn’t match up even today, stars Justin Fichelson, Andrew Greenwell and Roh Habibi all agreed there was one cast member the network fired — but none would admit it was him. Bravo declined to comment for this article.

Habibi said the replacement real estate agent quit after a few weeks of filming a second season. Greenwell said they found a new agent for the new season but the timing didn’t work out for the network. However, it’s unlikely casting was the only problem, and the decision to cancel the second season permanently probably is attributable to a combination of factors. Each cast member mentioned that San Francisco wasn’t as flashy and drama-filled as its Los Angeles and New York competitors. Buyers and sellers in San Francisco are also much more private. Moreover, the real estate isn’t as flashy and modern as other cities.

Plus, since it was an inaugural season, it was difficult to get clients to agree to put themselves or their properties on TV. By the time talk of the second season began, though, both Fichelson and Habibi said people were lining up to be on the show.

Greenwell said he was constantly turned down by people he approached. “San Francisco is hard because people are really private,” Greenwell said. “I was doing deals that were really interesting with huge players and they didn’t want to be on television.”

Even with plenty of gorgeous city panoramas, real estate listings from high rises to wineries and even a Kathy Hilton cameo (IYKYK), it didn’t make up for the show’s rough spots. The cast members weren’t at ease in early episodes, family and relationship drama felt manufactured, and the mention of “tech” and “tech people” throughout the season became an almost grating cliche. Greenwell said that type of buyer doesn’t translate as well on TV.

“I could hold an open house and someone could show up in $10 thrift store pants and they could be worth a billion dollars,” Greenwell said. “I just don’t think we had the right group that wanted to be on television.”

There were plenty of moments, in particular, tailor-made to make the local viewer cringe, especially watching nearly eight years later. The complexities and slow timeline of renovating a Victorian. A potential buyer complaining about a giant redwood blocking a home’s city view. An agent who calls Bernal Heights “the hood.” The unanimous praise of Stanley Saitowitz. An attempt to sell a home in St. Francis Wood as anything but sleepy. The moment when Fichelson says the construction is part of what makes the Millennium Tower such a top-tier building. (Though he of course had no idea what would happen in the future.)

Overplayed drama is part and parcel with reality TV, but at least one part appears authentic: The San Francisco cast members did not know each other before the show started filming and they aren’t in touch today. While Greenwell and Fichelson seem cordial, Habibi said he doesn’t get along with either even now. “I didn’t like either one of those guys and I’m sure they didn’t like me,” he said. “It was three alpha personalities trying to be the star of the show. We didn’t get along. We still don’t get along.”

The one thing the three stars unanimously agreed on was how much the show helped their careers. “There is no better way to build your brand than national or international television,” Habibi said. “What would have taken me 20 years to build, I did in one season.”

Habibi later founded the Habibi Group, which currently operates in the Bay Area, Hawaii and Lake Tahoe.

Fichelson said a tech entrepreneur called him up after watching the show’s season and asked him to represent him for a sale. While he wouldn’t reveal who the client was, he said he had founded one of the biggest unicorn companies in SF and he went on to do multiple multimillion dollar real estate deals with the entrepreneur. “It was as if I added several years to my career that weren’t there,” Fichelson said.

Fichelson, an SF local, now runs the brokerage firm Avenue 8, operating throughout California and New York.

Greenwell, who founded his own real estate brokerage as part of Sotheby’s and sells in the Bay Area and Hawaii, said he met amazing clients because of the show.

The cast members did agree on one other thing — the fashion on the show wasn’t representative of the city at all. “All the clothes from the show, I haven’t worn them since,” Greenwell said with a laugh.

Fichelson, often seen at his tailor on the show, concurred, “I never wear ties.”

Houses in San Francisco overlook the city’s skyline. More homebuyers here were looking to relocate than any other metro in July and August.

Axel Schmies/Getty Images

Eight years later, they don’t get recognized as much as they used to, but it still happens occasionally. Both Fichelson and Greenwell said people often say they look familiar and they can’t quite place them.

Greenwell said he’s thankful social media wasn’t like it is today and thinks he might feel differently if it was. He said the day before the show premiered they all got several threatening notes from an organization that accused the show of assisting in gentrifying the city. He said he stayed in a hotel for several nights as a precaution.

If there’s one thing that’s definitely not to blame for the show’s demise, it’s the real estate transactions themselves. In a market where all cash, multimillion dollar overbidding wars are normal, there’s plenty of drama to be had. You just won’t see it on TV.

Article source: https://www.sfgate.com/sf-culture/article/million-dollar-listing-sf-failed-17499802.php