One Rincon Hill | A Year In Review

One Rincon Hill bounced back after a questionable year in 2018.

I wrote a piece in 2018 that questioned ORH’s value resilience in the face of new development swarming the local neighborhood. In 2019, One Rincon Hill answered all those questions. The building saw 19 sales averaging $1,545,118, which was roughly in line with the average sales price in 2018. Despite this, price per square foot jumped up nearly $150.

425 1st Street is nearing the age where units are in need of updates, which explains the lower price per square foot value in 2018. This is further impacted by new developments like The Avery, 181 Fremont, MIRA and the continual sales of The Harrison were competing for buyer attention.

One thing that remains true; One Rincon Hill has the best views from the most units compared to any other building. This unique feature that is all-but permanent will retain value for this building for years to come. Homeowners, in turn, will be required to continually update their homes to compete with the local market surrounding the building when it comes time to sell.

2019 saw some monumental sales in One Rincon Hill, including a penthouse that sold for a building record $2,196 per foot. #6001 was one of my favourite units to bring buyers to who were interested in 181 Fremont and The Avery. I was able to show them how a resale penthouse compares to new development, including the added benefit of no Mello-Roos tax which is a huge benefit ORH has over buildings north of Folsom Street. This unit selling for a building record didn’t surprise me, no other buildings have views that can top high-floor units at ORH. 

A sales technique that #6001 used that proved exceptional was mirroring the interior design and staging that the Four Seasons Private Residences and 181 Fremont have used to lure ultra-lux buyers. The furniture palette combined with the lighting and finishes brought in for staging really added to the finishing touches needed to get over the hump. Ironically, the kitchen in #6001 was arguably the least desirable feature of the home. It had not been updated since construction in 2008 and was still boxed in, with a small window looking out to the dining space. The buyer saw through the need for an update, and purchased the home at record value anyway.

2 other high floor units sold for $1,890 plus, #5406 and #5903. Remarkably, the views from all three of these monumental sales face in different directions, debunking the theory that everyone wants Bay Bridge views.

An interesting note from 2019, 12 out of the 19 units sold were 1 bedroom homes. 1 bedrooms tend to command a slightly higher price per square foot due to the smaller floor plan, lower total sales price and a highly desirable building. With 1 bedroom stacks running all the way up 3 sides of the building, there is an abundance of supply of these homes.

2020 looks to see much of the same for One Rincon Hill. With over 700 units, 19 sales per year is barely a 2% turnover rate. Traditionally, buildings in the 10-year-old range see closer to a 5% turnover rate each year. With interest rates being historically low to start Spring 2020, we anticipate a higher turnover than 2019 with a stable price per foot value. New development in the neighborhood is seeing a steady flow of buyers, meaning the supply of the most highly desirable units will slowly deplete, leaving buyers seeking something in the resale market that fulfills their view & luxury lifestyle needs.