Connect with us

San Francisco, CA

San Francisco was written off as dead. Now, real estate investors are flocking back.

Published

on

San Francisco was written off as dead. Now, real estate investors are flocking back.


The clouds hanging over San Francisco since the pandemic appear to be finally lifting — leading to predictions of a real estate rebound.

Following years of emptying office buildings and vacated storefronts, Fog City is buzzing again, thanks to return-to-office mandates at Amazon, Google, Salesforce, and more. This is good news for the city’s apartment buildings — and now some professional investors are taking notice.

“San Francisco had become an unsavory city, but we believe we’re starting to see a real recovery and we think it’s a good time to buy,” said Tom Shapiro, the president and founder of GTIS, a New York City based real estate investment firm with $4.7 billion of assets under management.

Shapiro is predicting rents will grow between 4% and 6% this year and next. Property values, meanwhile, have declined 30% to 50% from their pre-pandemic highs, creating an attractive buying opportunity.

Advertisement

Asking rents in San Francisco were about $3,500 a month in the first quarter of 2020 and fell 25% by the end of the year as a result of the dislocation caused by the pandemic, according to estimates from the residential brokerage firm Compass. Average rents are now about $3,200 a month, closing in on pre-pandemic levels, including a 6.4% year-over-year jump in the first quarter, the Compass data showed.

Shapiro is also seeing growing competition in the space, including a nearly $100 million apartment property in the city that he said he is vying with three other bidders to purchase.

“There’s more people interested,” Shapiro said. “It’s not a secret like it was a year ago.”


Tom Shapiro

Tom Shapiro, president and founder of GTIS, a New York City based real estate investment firm

GTIS

Advertisement



Dealmaking is back

About $363 million of individual multifamily real estate assets were sold in San Francisco in the first quarter of 2025, according to data from MSCI, triple the dollar volume during the same period last year and the year prior. MSCI’s analysis omitted large, multi-property deals, such as Brookfield’s acquisition of a portfolio of more than 70 apartments buildings in the city in early 2024, because they can artificially inflate the data.

Eli Edwards, the US head of real estate equity investments at Fortress Investment Group, said it has acquired 13 rental buildings in San Francisco in the past two years. The firm is currently under contract to acquire two more rental buildings in the city and has offers out for several more rental properties. Edwards said he is looking to double the number of apartments in the firm’s portfolio there this year.

Edwards, who lived in the city’s Russian Hill neighborhood until recently, urged Fortress to become an early investor in the city’s turnaround because he felt that negative perceptions were overblown and that much of the homelessness and disorder associated with the city were focused in only a handful of areas, including its Financial District and the Tenderloin, a nearby neighborhood.


Homeless encampments

Homeless encampments in the city’s Tenderloin in 2023

Anadolu/Anadolu Agency via Getty Images

Advertisement



Edwards said the firm has signed over 20 leases in the last year with rents “about 10% above” what the firm had expected to fetch when the units were vacated.

“The Fortress DNA is, find a situation where the perception of risk is higher than the actual risk,” Edwards said. “That was San Francisco.”

Philip Saglimbeni, a senior managing director at Institutional Property Advisors, a commercial real estate sales firm, said he and his team recently found a buyer for Presidio Landmark, a 161-unit luxury rental building controlled by Brookfield through a long-term ground lease. Saglimbeni said the buyer was offering “north of a hundred million” dollars for the property, which is located in the Presidio, a national park south of the Golden Gate Bridge.

He declined to disclose the purchaser’s identity, saying the agreement was still being finalized, but said it was an “investment advisory shop.”

A spokeswoman for Brookfield declined to comment.

Advertisement

New inventory is scarce

The city’s anemic pipeline of new housing, which could raise rents even higher, adds to its appeal among investors, who believe the city’s scarcity of apartments will inflate rents.

A report by the San Francisco Planning Department that was released in April stated that 1,597 units of new housing were added in the city in 2024, 56% below the yearly average over the last decade. 1,024 units were permitted for construction during the year, 67% below the 10-year annual average.

“It’s a massive imbalance and it will be perpetual,” Saglimbeni said, describing the discrepancy between the demand for housing and new supply in San Francisco. “That’s what investors see and that’s why they gravitate to regions like this.”

The city’s beleaguered office market has also begun to improve, offering another potential boost to the apartment market’s recovery by luring in more workers who may want to rent apartments.

Advertisement

Office attendance in San Francisco recently reached about 43% of its pre-pandemic levels, according to employee swipe data from Kastle System, far above its record low of about 8% in 2020. 1.7 million square feet of space was leased in San Francisco during the first quarter, the most activity since 2019, according to data from the real estate services firm Cushman & Wakefield.

Early last year, Brookfield paid more than $600 million to acquire distressed loans tied to more than 2,000 apartments spread across more than 70 buildings in San Francisco and took ownership of the properties.

“When we made that investment, people weren’t going to the office, people weren’t going downtown,” said Mike Greene, a managing director at Brookfield who oversees its residential investments in the western US. “And that’s dramatically changed.”

Greene said that the 75 buildings in the portfolio now have a 95% occupancy rate, up from 67% when Brookfield took ownership.

“We feel pretty good about that,” Greene said.

Advertisement





Source link

San Francisco, CA

Santa Rosa: The 1906 earthquake almost lost to history

Published

on

Santa Rosa: The 1906 earthquake almost lost to history


While the Great 1906 Earthquake was a centerpiece of news around the world when its massive damage and fire destroyed much of San Francisco and took 3,000 lives, another far smaller, far less famous town, suffered massive damage almost forgotten by history.

Nearly forgotten

Advertisement

On this day 120 years ago, stunned people were digging for survivors two nights after the quake. Like a demon in the night, the Great 1906 Earthquake also came to Santa Rosa also bent on mass death and destruction.

Eric Stanley is the history curator and deputy director of the Museum of Sonoma County in Santa Rosa that supplied these pictures. “Santa Rosa, in particular, was devastated by the 1906 earthquake,” he said.

Survivors were shaken awake as whole buildings collapsed around them or on them. “A good portion, a really significant portion, of downtown Santa Rosa was completely destroyed,” said Stanley.

Advertisement

Many never woke up; crushed to death in their sleep. There were over a hundred people killed in the 1906 earthquake in Santa Rosa that only had 7,000 people in it at the time,” said the curator.

Active fault line 

Sixty-three years later, in 1969, a time of budding, but far better science-based building codes, a double shaker nonetheless did significant damage and killed one person. “Even understanding all those things, you kind of at the earlier stage of that in the sixties,” said Stanley.

Advertisement

Today, four of Santa Rosa’s School buildings lie near or on the Rodgers Creek Earthquake Fault, capable of up to a 7.3 magnitude rupture. One is already closed with another due to close at the end of the school year for budgetary reasons.

That leaves two elementary schools, Hidden Valley, alongside the fault and Proctor, on the fault. The school board says both are seismically sound and safe to continue operating. “The two that are remaining open are both the ones that have the potential and the ability to grow because the entire site is not impacted by the fault line,” said Nick Caston, Santa Rosa City School Board president.

Advertisement

Staying prepared 

In other words, things can and will eventually be moved around. 

“What we’re gonna end up having to do is redesign the campus over the next several decades to have our fields and our parking in the front, which are totally acceptable to be over a fault line and actually move our academic builds and our student-serving buildings to the back,” said Caston.

Advertisement

Ultimately, the pictures and relics museums hold from natural disasters are given to those who come, a lesson and a warning. “Real people went through these experiences and we really do have to be aware of that and do our very best to prepare for those kinds of things,” said Stanley.

The 1933 Field Act requires earthquake-safe construction of schools, with evolving seismic codes as we learn more.

 

Advertisement

Natural DisastersSanta RosaSonoma CountyNorth BayEarthquakesNews



Source link

Continue Reading

San Francisco, CA

Sea lion pup found in San Francisco’s Outer Sunset malnourished but ‘feisty’

Published

on

Sea lion pup found in San Francisco’s Outer Sunset malnourished but ‘feisty’


A California sea lion pup found last week on a San Francisco street corner is malnourished but “active and quite feisty,” The Marine Mammal Center said Monday.

The sea lion, believed to be about 10 months old, had apparently wandered into city’s Outer Sunset neighborhood and was discovered early Thursday morning, authorities said.

The pup was spotted near 48th and Irving Streets, one block from Ocean Beach and Sunset Dunes park. A trained responder from the Marine Mammal Center was joined by San Francisco park rangers and police officers to safely corral the pup, now named ‘Irving’, into a carrier crate.

Dubbed ‘Irving’ by his rescuers, Irving weighed in at 40 pounds and is considered malnourished, the Marine Mammal Center said.

Advertisement

“The sea lion is active and quite feisty which is a positive initial sign in terms of general behavior,” the center said in a news release on Monday.

During an exam by veterinarians, a series of blood samples were also taken to determine whether there’s any underlying ailment.

Irving is being tube fed a fish smoothie blend two times per day to boost hydration and weight; offers of whole herring will also begin shortly.

The quick actions by police, recreation and parks staff and Ocean Avenue Animal Hospital gave the young sea lion a second chance at life, said Lauren Campbell, animal husbandry manager at The Marine Mammal Center.

“As a roughly 10-month-old pup in his first year of learning how to forage on his own, this animal has a long road to recovery due to his severe malnutrition,” Campbell said. “We are hopeful that in the coming weeks with continued specialized care that this pup starts to make positive strides toward recovery and release.”

Advertisement

Irving will be held in the Center’s Intensive Quarantine Unit until clearing medical protocols, before likely being transferred this week to a traditional rehabilitation pool pen. A long-term prognosis and potential release timeline are not currently known.



Source link

Continue Reading

San Francisco, CA

Giants Head Home to San Francisco After Shutout Loss

Published

on

Giants Head Home to San Francisco After Shutout Loss


After Sunday’s 3-0 loss to the Washington Nationals, the San Francisco Giants headed back to the West Coast. They’re going back to the Bay Area, too.

The Giants have a date with the Los Angeles Dodgers for a three-game series at Oracle Park starting Tuesday night.

Advertisement

So, San Francisco probably wanted to get out of Washington, D.C., with a win. That didn’t happen at Nationals Park on Sunday afternoon.

Advertisement

Nationals reliever Andrew Alvarez, the third pitcher used by the team on Sunday, picked up the victory with 4 1/3 innings of work. Giants starter Robbie Ray absorbed the loss, falling to 2-3 this season.

Ray worked six innings, giving up seven hits, three runs (all earned), walking one, and striking out seven Nationals. If the Giants’ offense had found a way to tack on some runs, then Ray’s outing wouldn’t have looked so bad.

The Giants’ bats, though, had eight hits. The big number for Giants manager Tony Vitello to look at in the box score after this one was, well, pretty big. San Francisco left 10 runners on base on Sunday, going 0-for-11 with runners in scoring position. This indicates that San Francisco had plenty of opportunities to score some runs.

Advertisement

They just didn’t get the job done.

Advertisement

Let’s go to the bottom of the fifth with the Giants and Nationals in a scoreless tie. With nobody out, the Nationals’ Keibert Ruiz connected for his third double this season. Nasim Nuñez scored to put Washington up 1-0.

With one out, Curtis Mead sent a Ray pitch over the left-field wall, a two-run blast that gave the Nationals a 3-0 lead.

San Francisco had a scoring threat in the top of the eighth inning. With runners at first and second base and nobody out, Casey Schmitt grounded into a double play. Matt Chapman, who was on second base, went to third. But the Giants were unable to bring him home.

Advertisement

Rafael Devers and Drew Gilbert went 2-for-4 at the plate for the Giants, producing half of the Giants’ hits.

Advertisement

The Giants fall to 9-13 this season, sitting in fourth place in the National League West Division. The Nationals’ record goes to 10-12, good enough for third place in the National League East Division.

All eyes now turn toward Oracle on Tuesday night. It’ll be a chance for two longtime rivals to renew their rivalry.

Baseball fans know that the Giants-Dodgers matchups usually are must-see TV.

That’s probably going to be the case once again as Giants fans watch their team battle the Dodgers. Those lucky to have tickets to the three-game series at Oracle Park will show up in Giants colors, hoping to see Los Angeles head back to Southern California with either a series loss or a Giants’ sweep.

Advertisement

Advertisement

Buckle up, Giants fans. It’s about to get rowdy at Oracle Park.

Don’t miss out on our ROUNDTABLE community and the latest news!

It’s completely free to join. Share your thoughts, engage with our Roundtable writers, and chat with fellow members.

Download the free Roundtable APP, and stay even more connected!



Source link

Advertisement
Continue Reading
Advertisement

Trending