August 24, 2006
Price Reductions At 188 King
If you’ve been “plugged in” to SocketSite over the past couple of months this shouldn’t come as any big surprise (if not, well...): As of today, 188 King Street has officially dropped the prices on at least four units by $100,000 (or up to 12%) and removed a number of their listings from the MLS (only seven of what we estimate to be 30+ available units are currently listed). The recent reductions include:
∙ 188 King Street #201: Reduced from $825,000 to $725,000 (12.1%)
∙ 188 King Street #203: Reduced from $925,000 to $895,000 (3.2%)
∙ 188 King Street #301: Reduced from $825,000 to $725,000 (12.1%)
∙ 188 King Street #306: Reduced from $895,000 to $795,000 (11.2%)
∙ 188 King Street #404: Reduced from $925,000 to $825,000 (10.8%)
We're guessing this isn't exactly what they (or the buyers in "Phase I") had in mind for "Phase II" pricing.
UPDATE (8/25): Units #208 ($850,000) and #504 ($950,000) were just listed on the MLS. Deductive reasoning would suggest that the original target price for #504 was at least $1,025,000 (the original list price for #506).
∙ 188 King Street: Sales Update [SocketSite]
First Published: August 24, 2006 12:43 PM
Comments from "Plugged In" Readers
Posted by: garrett at August 24, 2006 2:58 PM
These are actually very nice units. Yes, they don't have Sub-Zeros but that's not a deal killer.
Posted by: Anonymous at August 24, 2006 4:44 PM
Posted by: Future SouthBeach Resident at August 24, 2006 4:46 PM
Hm. I can't imagine the Phase I buyers are too pleased about this; they all just lost $100K. Ouch! I foresee the same for One Rincon and The Infinity.
Too bad it's not Nordstrom where one can get a price adjustment when one's purchase goes on sale shortly after the purchase!
Posted by: Sexy & Sassy in SF at August 24, 2006 7:11 PM
If the units from Phase I haven't closed yet and are just 'under contract', can't the Phase I folks negotiate with the developer to adjust the price?? Or at least throw in some incentives??
I can't imagine the feeling of the Phase I buyers to know they just lost $100k!! It must be terrible!
Posted by: RinconFan at August 24, 2006 8:55 PM
And say OneRincon and Infinity does lower prices while still under construction, the earlier buyers could certainly revoke against the developer and pressure them to adjust the prices right??
Posted by: RinconFan at August 24, 2006 9:00 PM
I doubt it, RinconFan. There are specific reasons for going into contract. In large projects like these, it's the sales of the early releases that fund the continuation/completion of the project. Sure, buyers could walk away from their deposits and back out altogether, but I don't think many people are willing to forego $27K (3% of $900K).
Posted by: Sexy & Sassy in SF at August 24, 2006 9:33 PM
Why not walk away if you believe its declined by 10%, you walk from your 3% to save losing additional 7%
Posted by: walker at August 24, 2006 9:42 PM
I thought about buying in Soma condo oversupply land, and thought better. I bought nice 2bed/2bath Marina flat for $1.3 million, and comps are now at 1.4-1.5 million. There is no building and no supply in The Marina.
Posted by: tang at August 24, 2006 9:50 PM
It is not true to say that these early contracts fund the "continuation/completion of the project". Typically, any unit can only close escrow after final inspection and completion of all documentation with DRE. This is some time AFTER the building is totally finished. As a practical matter the builder is likely to adjust prices to keep the present deals together if he has any sense.
Posted by: alan at August 24, 2006 9:55 PM
6 years ago one could easily buy an entire two-flat building in the Marina (which included a small and semi-legal first floor studio) for $1 million...
Of course, being able to walk to Fuzio and The Horseshoe is worth at least an extra $1,000,000 to you - right? No bubble in The Marina!
Posted by: Anonymous at August 24, 2006 10:01 PM
There is more than one building in some of these projects, alan.
Posted by: Sexy & Sassy in SF at August 24, 2006 10:26 PM
But is usually not the case, Sexy. The Beacon is the only one i can think of.
Posted by: Alan at August 24, 2006 10:50 PM
The sad part is that Fuzio is a chain. A million+ to walk to a bunch of chain stores sounds like a waste of money.
Posted by: SaveYourMoney at August 24, 2006 11:21 PM
I walked the complete 2nd floor not too long ago during the middle of a Giants game and noticed a few things, like getting in and out of the garage is impossible. Also, some of the balconies in the rear of the building are so close to the new construction going up behind 188 King that one could personally hand a beverage of choice to their neighbor in that other building (maybe that's a good thing?) and that said balconies come complete with the aroma of McDonald's french fries (but, to be fair, my visit was during the heat wave). By the way, there was a lot of squeeking in the metal staircases (but maybe becuase they're new?). Combine all that with a unit design that appears very narrow and probably claustraphobic to some when viewed from just inside the unit, and minimal in-unit storage and I can see how prices will drop, especially in a market with lots of competition.
Posted by: Anonymous at August 25, 2006 7:37 AM
You can keep the Marina. A handful of good/great restaurants (A16, Terzo) but unfortunately, living in the Marina means living among the Marina types. No thanks. Plus, getting anywhere else in the city and to the major freeways isn't easy.
Posted by: TheLandOfTheDudes at August 25, 2006 9:55 AM
Only a handful of restaurants and such in the Marina? Are you kidding?
Betelnut Peiju Wu
Pane e Vino (the best Italian restaurant in the city)
and the list goes on.
Not to mention Moscone Park, Chrissy Fields, Fort Mason Park, Golden Gate Bridge, and a nice clean tree-lined environment.
The Marina is great, and prices are up huge this year unlike in SOMA.
Posted by: MarinaMarina at August 26, 2006 11:09 AM
Reality check people---For the first 6 months of 2006 over the same period of 05, the average condo price is UP 8% for SOMA, even for South Beach and up 5% for Marina. The sky is not falling.
Posted by: wobbles at August 26, 2006 12:53 PM
wobbles - are you referring to the median sales price?
Posted by: SocketSite at August 26, 2006 6:58 PM
No..average sale price, with a comparable number of sales for each of those areas for the periods in question.
[Editor's Note: While movements in either the Median or Average sales price can be useful in helping to understand how the local real estate market is changing, neither metric is a particularly good measure of actual home price appreciation. More on this soon.]
Posted by: wobbles at August 26, 2006 10:46 PM
If Izzy's and Home are your idea of a great restaurant with Pane e Vino being the "best" Italian restaurant in SF, then it's a matter of taste and you're where you belong.
Posted by: TheMarinaIsOneBigSororityFraternityVillage at August 27, 2006 7:49 AM
We won't be jealous of Marina homeowners when the Big One hits!
(And I doubt that most Marina homebuyers are twenty-somethings.)
The Marina's location is inconvenient for me, and I don't know anyone who lives there, so it wouldn't be "smart" for me to buy there. If one is buying a primary residence, it is "smart" to buy in a home and neighborhood in which one anticipates wanting to live for at least a few years. Then, if there is a downturn, one won't feel trapped in a home and neighborhood one doesn't like.
Posted by: Dan at August 27, 2006 4:16 PM
Socketman oh Socketman...please kill this Marina thread before I explode! Remember, this is supposed to be about 188 King people.
I will hold my tongue about the "skilled and high powered" comment. Personally I love my home in the Castro or Eureka Valley or Dolores Heights (or even Noe Valley depending on your realtor....). People are plenty nuf high powered around here for me. Without being obnoxious about it...
Oh...and 188 King sucks! Definitely!
[Editor’s Note: With regard to the Marina tangent, agreed and done.]
Posted by: curmudgeon at August 27, 2006 7:17 PM
What's the consensus on 188 King's price reductions? Original pricing too lofty? Sales slow down? Poor marketing? Poor product?
On paper it loks like a nice offering. Some nice layouts (triplexes, some width, galley kitchens, private balconies) although the circular stairs on the penthouses stinks.
On the Marina, I'll just point out that it contains perhaps the best restaurant block in the City: Steiner between Chestnut and Lombard (Three Seasons, Newroz, Ace Wasabi, Izzy's, Lettus, Askew, Barney's, Bistro Aix, Nectar, Isa's, Harry's Hibachi, Parma and Amici's in September). Not saying these are all fantastic restaurant but pretty good for one little block.
Posted by: pwb at August 27, 2006 8:32 PM
I visited 188 king a while ago and thought the product was OK, if pricey even for that neighborhood. I was at an open house today at 776 Tehama which I thought was nicely finished. While a different kind of building to 188 king, there are 2 bed, 2 bath units there for around 700K. Have any of you been by the Tehama bldg and any thoughts.
Posted by: Wobbles at August 27, 2006 9:36 PM
We stopped by 188 King again this weekend. It's a love-like relationship. We still think the lack of storage in the units is a huge drawback. There we were, figuring out ways to spend another $5-10k to incorporate built-ins and other storage ideas. The units that face the rear aren't as bad as some posters have mentioned and with the right window coverings, privacy will still be easily acheivable without spoiling what view there is. From the units we looked at, 170 Off Third's presence won't be an issue (and man, the bedrooms there are TINY). But again, the lack of a single true closet and the clunky Amana refrigerator that looks a little off-kilter in its space are making us lean towards skipping this development.
Posted by: deshard at August 27, 2006 10:26 PM
For the most part I love these units (I'm a sucker for the volume in lofts). High ceilings (even for lofts), comparatively large foot-prints and location across from (and views of) the ball park. The problem I have is with how these condos can sell for $914/sqft ($838/sqft for solds since March for South Beach as a whole.)
∙ 188 King #207 (1799 sq. ft.)-$1,650,000 (“Sold”)
∙ 188 King #307 (1123 sq. ft.)-$925,000 (“Sold”)
∙ 188 King #507 (1123 sq. ft.)-$1,075,000 (“Sold”)
∙ 188 King #508 (1070 sq. ft.)-$1,025,000 (“Sold”)
I think the debate regarding the Marina dist. is important for this discussion. The average sale price per sq/ft in the Marina dist. according to the MLS is $824/sqft.
How can that be when it has a plethora of restaurants, coffee shops, parks, night life and the overall neighborhood appeal is much stronger? If you live at 188 King where do you get good eats? Amici's? Where do you walk your dog? Where do you get a good cup of coffee (Starbucks doesn't qualify)? How do you even know if you like the people that live in South Beach? You're never going see anyone twice because the area is a ghost town at night unless there's a giants game (83 home games/yr).
I live in the Dog Patch and have none of these neighborhood amenities either, but the price per square foot is in the mid-$500's.
Call me when the "mom and pops" vendors move in or when the price per sqft drops to around $675.
Posted by: Marble Slab is it! at August 28, 2006 1:27 PM
The unit we like is at $740/sq foot. Restuarants within walking distance? Tres Agaves, Paragon, Jack Falstaff, Zuppa, Coco500, Bacar, Fringale and I don't drink coffee, but I think there are a couple of funky and good spots at South Park which is all of two blocks away. As well, you can walk to Safeway or Whole Foods in a matter of minutes. I think the amenities are fine. Will it ever be as "charming" as Cole Valley or "upscale" as the Marina? Probably not, and as for walking your dog, well, with the entire Embarcadero at your disposal, I'd say dog walks will be most pleasant.
Posted by: deshard at August 28, 2006 4:56 PM
Wowii needs to understand that not everyone finds the Marina attractive. I know the banter can get ugly in these posts, but I'll add my two cents by just saying that I have no desire to live in the Marina. I fully understand that price per square foot is higher than South Beach, but I can't imagine it's any more expensive than, say, Eureka or Cole Valley because there's not much room in those established neighborhoods for new development, so demand for existing is high and people will therefore pay more.
As well, people like myself who are in the market may find South Beach more attractive because of its location and easy access in and out of the city. We don't plan on being here more than 5 to 7 more years and feel strongly that there'll be a market for the more "transient" resident and want the high-rise lifestyle. We have a large home in SoCal with a yard and pool and that's enough for us. We're happy with a deck big enough for reading the Sunday paper. I agree that the market in SoBeach is evolving and buyers like us just need to be smart and they may mean waiting a little longer to see where things go...
Posted by: deshard at August 28, 2006 8:20 PM