Healdsburg condo project is setting records in Sonoma County, with more likely to come as the last two — and most expensive — penthouses in the 43-unit project hit the market, according to developer Replay Destinations.
The current MLS record for condos in Sonoma is $4.5 million, but penthouses in the first phase of the Mill District — a $500-million project on a 10-acre former saw mill site within walking distance of the wine country town’s historic plaza — are in contract with asking prices around $7 million, according to the Vancouver-based developer, which also has projects in Park City, Scottsdale and Hawaii.
Three penthouses are in contract. The last two are asking $7.5 million for a 3,200-square-foot unit with an approximately 1,000-square-foot outdoor terrace and $8.6 million for the largest penthouse in the development at 3,600 square feet, with an additional approximately 2,000 square feet on the wraparound terrace with outdoor kitchen, fire pit and fountain. The latter unit is the only condo in the Snowflake subleases 773K sf in development that takes up an entire floor.
Condos remain a relative novelty in Sonoma, according to Mike McCone, vice president of development for Replay, as single-families have long dominated a region known for its suburban and rural character. There are resort-branded developments such as Auberge in Napa, which also sells luxury condos, as well as Montage Residences, selling homes and land sites. But the Mill District is the only standalone luxury condo development in Northern California, according to McCone, with prices starting at $1.65 million.
“This exclusivity appeals to buyers seeking a high-end, low maintenance lifestyle in a walkable community,” he said, adding that there has been competition among buyers on some units.
In August, a two-bed, two-bath with about 2,000 square feet sold for slightly over its $3.55-million ask, while a three-bedroom, 3.5-bath with about 2,400 square feet sold for slightly more than its $4.5-million ask in September. SagePoint Real Estate, a Napa-based firm that also represents listings in Montage, represented Replay in the sales and is also listing the new penthouse offerings.
In this first phase of the overall development — dubbed Canopy and designed by Olson Kundig, the architecture firm that was behind the recent overhaul of the Bay Area Discovery Museum in Sausalito — 26 of the units have been sold, with 17 still available, McCone said. Still to come is a lap pool and pool deck, resident lounge, fitness center, culinary and retail “experiences” and a 1-acre neighborhood park surrounded by old growth redwoods.
There will also be a boutique hotel with 41 rooms and 12 suites, in a partnership between Replay and nearby golf course and fractional ownership community Mayacama. Greg Champion, the Texas-based
COO of Benchmark Hospitality International who worked on the Bardessono Hotel & Spa in Yountville, is also involved in the hotel development.
Thus far, the condo buyers have largely fit the profile the developer was expecting, according to McCone, with most “active individuals” over 65, as well as a smaller subset of younger professionals in their late 40s. Most buyers are couples with adult children or grandchildren nearby, who may live in Canopy as full-time residents or own multiple properties, with their condo as a “lock-and-leave” option.
Many luxury wine country buyers also maintain homes in or near San Francisco as well as Lake Tahoe, a trio known as the “Magic Triangle,” said Sonoma-based agent Matt Sevenau of Compass. That longstanding trend is now evolving into a “Magic Q,” he said, with high-end buyers adding on homes in desert communities like Palm Springs, Rancho Mirage or Palm Desert.
Buyers at the Mill District tend to come from the Bay Area, and roughly one-third are downsizing from homes they already owned in Sonoma, McCone said. Another third have family connections to the area and the rest have been regular visitors to Healdsburg. The walkability to the town’s square and the convenience of Mill District’s lifestyle are two big selling points.
“The Mill District highlights a growing demand among high-end buyers for proximity, charm, convenience, and amenities in wine country—without the burden of maintaining large properties,” said Sevenau. He added that the new development as well as the recently opened Enso Village, a 60-plus “zen-inspired life plan community” also located in Healdsburg, “indicate a growing trend toward these communities.”
The Sonoma County market has normalized since the Bay Area’s urban residents fled to its hills and valleys at the height of the pandemic. Median home prices this fall were down slightly compared to last year, according to Compass data, though sales volume is up by 10 percent. Luxury sales volume, considered homes over $2 million, were up 6.5 percent in the first 11 months of the year.
By Emily Landes