Americas Cup - the impact on SF's economy and waterfront

The San Francisco Bay will host the 34th America's Cup in 2013 with preliminary rounds for the Louis Vuitton Cup in summer/autumn of 2012. This will create a huge construction program which in simple terms is a mammoth undertaking. The first of which would be the transformation of Pier 27 which will be "America's Cup Village". “It will be a gathering place where race fans can view the tournament, shop, and eat" according to Eric Young for the San Francisco Business Times.

The San Francisco economy will be given a possible multi-billion dollar influx in spending. Over 8,800 new jobs will be created in order for America’s Cup to be ready by the deadline required. Also "America’s Cup has set a goal of using San Francisco based small businesses 30% of the time in contracts of at least $150,000". Great for the City and its residents.

The America's Cup - America's Cup race course revealed Seen Above

Whopping Effect

"The event will cost a whopping $300 million, $32 million of which will be raised by the nonprofit America's Cup Organizing Committee on behalf of the City. But according to the San Francisco Examiner, members of the committee have kept quiet as to how they plan to raise such a sum, and some City officials show little concern. "That's always been an overarching concern," Supervisor David Campos told the Examiner, noting that taxpayers would be forced to pay the leftovers should the committee fail to meet its fundraising goal.

It hasn't exactly been smooth sailing for the America's Cup executive team either. Last month, the San Francisco Business Times reported that even CEO Craig Thompson left the organization as a result of "lackluster financial performance, Richard Worth chairman of the America's Cup Event Authority, will replace him." Click Here for more on the CEO shake up.

To read More on the Topic Click Here

Projected Plans for the City 1

Projected Plans for the City 2

Bay Area Tri-County Market Overview

Optimism pervades the multi-family market in the Bay Area Tri-County

Looking ahead to 2012, Latitude 38 Group has identified excellent investment opportunities in the Bay Area Tri-County and has put together a market overview showing the major trends in this area.

Renter demand in San Francisco, Santa Clara and San Mateo counties continues to grow intensively, fueled by booming tech-sector job creation. The limited supply of housing in preferred urban neighborhoods has led to increasing demand in nearby communities in the Peninsula. Because of their proximity to the tech-startup companies, demand in Santa Clara and San Mateo County has been affected most positively. 

Rising rents are attracting investors targeting apartment properties.

In recent years transactions and sales velocity across both counties have built momentum, bringing cap rates close to those in the city.

This has created an opportunity because prices still have not reached pre-recession levels and therefore new development has been delayed. Find out more:CLICK HERE

Head to www.l38group.com for more in-depth look at the multi-family market. 

Artists Drawn to Hunters Point

The former Naval base is home to a group of decaying buildings built upon a toxic cleanup site, but since 1983, a community of artists have used Hunters Point as a studio space. Some 350 painters, sculptors, and musicians work at the location, making it the largest artist colony in the city and one of the largest in the U.S. Beginning this summer, a long-promised redevelopement of Hunters Point will take place with the construction of 88 houses.

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Raintree continues to buy locally

The acquisition of the Livermore asset is the latest of a number of assets Raintree has acquired in the Bay Area.

Read it here!

SF Bay Area Multi-family Market

Nationwide apartment market continues on a steady recovery. Effective rents increased or remained unchanged from last quarter in 29 out of 30 markets, as is occupancy. Decreasing cap rates followed the reduction in interest rates and increased buyer activity, while new construction was virtually nonexistent. San Francisco Bay Area Multi-family parallels the nationwide market....Read more