The Madrone is taking reservations for move-ins late next summer/early fall, with 3% due at contract signing and an additional 3% to escrow sometime in early 2012. A lot can change between now and then, but as long as you are committed to the neighborhood for a while it seems like a very solid building.
The answer to is it a good investment depends a lot on your holding timeframe, and what you would do with your cash if you didn't purchase. If your holding time period is 5+ years, you should feel fairly comfortable that the current tax benefits probably put you in a pretty good position when compared to renting a home of similar quality in the neighborhood. If you are looking for a short term flip, you'll probably come out disappointed on the other side.
The Madrone has some nice amenities that other buildings in the area won't have. The air-conditioning in the homes is one great example of something that The Radiance will most likely never have. Businesses also seem fairly committed to the area, with the saleforce campus being the obvious example.
There is a fair amount of construction planned for the area, so depending on when you sell you will most likely be competing with new homes that have never been lived in. So where those developers price their inventory will have a pretty big impact on what you will be able to sell for down the road.
Ultimately, I would say your own personal situation should be the biggest driver of your decision. Chasing the market up or down can be a pretty futile experience - focus on what you know you can control and make decisions from there.
Good luck, and don't hesitate to let me know if I can be of any other help.
South Beach and SOMA area have seen a definite revitalization after sitting fairly idle for years seemingly defeated by the .dot com bust in the 1990's. The city Plan is definitely developing towards 3rd street and South towards BayView. Being a new condo development, Im not sure many agents are familiar with the Madrone just yet. I would venture to guess that anything in the dogpatch area is in the path of development and as such would most likely make a great investment.
The homes that line that corridor are priced high and are likely to continue that trend as that area picks up and more new people populate that area. In short, If high rise condos are your thing...then go for it..but I would check out the other comparable buildings in South Beach and take a look before you make your decision. Also take a look at other parts of San Francisco.....just so you know what you could be getting for the same money in a different part of the city. You may be pleasantly surprised.
Cheers and Best of Luck
There is very little new construction in the works for San Francisco. If you're looking for a home with brand new, modern finishes in an up-and-coming location, The Madrone is worth considering. I would just be careful of rushing in with a deposit, as there is a fair amount of inventory available in the Mission Bay/South Beach/Soma area. There are alternatives to The Madrone, so you may find it worth your time to explore all your options.
I would not suggest to rush into purchasing in the Mission Bay, it is a long project before the area become feels as neighborhood. Besides around South Beach area has a lot of for sale currentlly. More of newer buildings are coming in the next few years. Also under current economy situation this area has also a lot of short sale properties around. Never buy developer first release properties, because you as buyer pay the premium price per square foot and it takes a long time to catch up with the market on the value unless you plan on a long term ownership. I hope that helps on the purchase guide line.
Many of us would be pleased to help, myself included.
I would concentrate on getting the best location in the building to retain the value of your unit-some items to focus on-floor, views, layout, natural lighting etc. Also look at units at the Glassworks, One Rincon, Infinity and the Brannan for comparison purposes.
With the advent of Salesforce.com, the Old Navy Headquarters and the UCSF medical center there will certainly be an influx of new residents to the area. Mission Bay is in close proximity to 280, public transportation, shops, and restaurants-all things that are important to prospective buyers.
South Beach is a very popular area. We see a lot of activity.
Even rental prices are going up (2 bed townhome @325 Berry St. Was rented for $4.300) I think it's a good investment- UCSF has new medical complex, neighborhood is growing...