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Dogpatch's only condo project selling fast in DM Development's 815 Tennessee

After sales launched two months ago, buyers have already snapped up a third of the condos in 815 Tennessee — the only new condo project on the market in San Francisco’s Dogpatch neighborhood.

Some homes in the $60 million, 69-unit complex, from DM Development, are priced starting at $885,000 for a one-bedroom and $1.1 million for a two-bedroom. While the average unit runs around $1,300 per square foot, some have gone for $1,700 per square foot, said Mark MacDonald, principal with DM.

“The market for new for-sale homes in San Francisco is still quite strong and despite the most recent deliveries, there’s still a lack of inventory in neighborhoods like Dogpatch,” MacDonald said. “We don’t have any direct competition for any new for-sale product and we’re not unhappy about that at the moment.”

The developer is wrapping up the final touches on 815 Tennessee with residents beginning to move in early next year. The project reconfigured the former Bowie Switch Company factory into a five-story residential building donning the original brick façade.

A month ago, Trumark Urban sold out its 91 condos in Knox, at 645 Texas St., in less than 10 months, with prices starting at around $805,000 for a one-bedroom to $1.8 million for a three-bedroom.

“Homebuyers are beginning to recognize the tremendous value of residing in the budding Dogpatch,” said Arden Hearing, managing director of Trumark Urban, in a statement. "We saw the limitless potential that the Dogpatch neighborhood held and with limited for-sale housing in the area, we knew that Knox would satisfy the demand.”

Dogpatch is a neighborhood south of Mission Bay along San Francisco’s southern waterfront, known for its mix of industrial buildings and single-family homes where developers have added hundreds of new condos and apartments in recent years.

Projects currently leasing up:

Build’s O & M at 650 Indiana St., a 116-unit apartment building. Rents in the building range from about $2,650 for a studio up to $6,300 for a three-bedroom.
Abaca, AGI’s 259-unit project at 1201 Tennessee St.
AvalonBay’s (NYSE: AVB) 326-unit Dogpatch at 800 Indiana St.

Major developments are also in the works nearby at Pier 70, where Orton Development is reviving about 300,000 square feet of former industrial buildings. Forest City recently landed approval for a $2 billion, waterfront community of housing, office and retail space.

The area once had an isolated feel that didn’t attract too many outsiders, but that is no longer the case. Besides new residents, the area has also attracted new restaurants, bars and small businesses adding to longtime merchants. Dogpatch sits in between major job centers in downtown San Francisco, Mission Bay and has access to the Peninsula for tech commuters, MacDonald said.

“The neighborhood will see incredible growth and change,” he said. “People see the future of the city here and more people want to call it home.”

The neighborhood’s transformation is, in typical San Francisco fashion, not without its critics. MacDonald said DM worked closely with residents and businesses in the area to ensure support for 815 Tennessee. The building incorporated historic elements, features artwork from local artists, and employed a high-quality aesthetic to create a building “as unique as is the neighborhood,” he said.

Members of the Dogpatch Neighborhood Association encouraged DM to keep as much of the façade as possible to maintain a “Dogpatch sensibility,” said Bruce Huie, who is president of the Dogpatch Neighborhood Association and has lived in the area for 18 years.

Current residents want to avoid the “boxy” aesthetic of Mission Bay as more new structures pop up in Dogpatch.

“We welcome everyone into the neighborhood,” Huie said regarding the influx of development. Residents would like to see better public transportation options such as improving service on the T light-rail line or perhaps adding a water taxi to downtown San Francisco.

“The population will double or triple in the next few years,” Huie said. “That puts pressure on having reliable transportation.”

Before jumping into the Dogpatch, DM developed three projects in Hayes Valley including the Hayes Valley’s 41-unit 450 Hayes, 34-unit 400 Grove and 47-unit 8 Octavia.

The developer secured approval for another Dogpatch site at 2290 Third St. that is entitled for 71 homes. MacDonald said he wishes the developer had more units to sell in the Dogpatch, but is considering selling 2290 Third to another developer.

“We’re evaluating what we’re going to do with it,” MacDonald said.