July 23, 2007
310 Townsend: Additional Evidence Of Price Reductions
Five months ago 310 Townsend #412 hit the market at $970,000 (with the option of purchasing parking for an additional $20-25,000). Three days ago it was listed on the MLS for $895,000 (including parking).
That’s an effective reduction of $95,000 (10.6%). And yes, they’re still offering “Special 3.875% financing.”
UPDATE (9/7): Closed escrow on 9/5/07 for $890,000 (8.2% under original asking, and not accounting for any parking).
∙ Listing: 310 Townsend #412 (1/1) - $895,000 [MLS]
∙ 310 Townsend: Available And Selling [SocketSite]
∙ 310 Townsend: Two New Listings, (At Least) One New Price [SocketSite]
First Published: July 23, 2007 3:30 AM
Comments from "Plugged In" Readers
I'm not surprised that 310 Townsend isn't selling that well. There's no amenities to speak of in this building.
On a side note, does anyone know where I can find the dining table pictured? Thanks.
Posted by: InMy20s at July 23, 2007 11:39 AM
I think Santa Fe Partners in both of their current projects: 310 Townsend and One South Park pushed pricing just a little too far for the current changing market conditions, adding a HOA incentive to #412 would make it interesting.
Posted by: Observer at July 23, 2007 11:45 AM
"pushed pricing just a little too far for the current changing market conditions. . . ."
Agreed but this is nothing unusual and more toward the rule than the exception. The developers of The Brannan priced aggressively back when and were more than willing to let the units sit on the market unsold rather than offer any incentives. Encouraging that Santa Fe is willing to conceed that they might have been too far out there.
But when I read here and elsewhere that people actually expect pricing on new construction here to undergo measured "correction", I just don't see any historical basis for that. Only way it might happen would be if a developer were to get in a bind and the units were to go to auction . . . . But I'm not holding my breath waiting for that to happen.
Posted by: anonN at July 23, 2007 12:58 PM
anonN - You don't consider a $100K/10% drop plus a financing incentive to be a measured correction? I have a feeling any of the early buyers/investors in this project would tend to disagree.
Posted by: Michael at July 23, 2007 1:39 PM
I wouldn't take the price reduction as any big indication of general market conditions -- it was way overpriced to start with. The conversion from office to condos was very poor. Just because you add a kitchen to an office, it doesn't make the place a home, okay!
Posted by: SFCondo Guy at July 23, 2007 2:49 PM
Fair comment anonN, like anything it comes down to the dynamics of the deal and you've got to assume Santa Fe can sit on these.
It's funny you mention the Brannan, becuase both it and 88 King both had empty units up to 2 years after the buildings finished, when a 2 bedroom unit as $500k in South Beach... ah the good old days :-)
Posted by: Observer at July 23, 2007 3:51 PM
Santa Fe actually builds quality things, but they have a habit of overpricing their stuff for what they are. Not a good way to build reputation is this town...
Posted by: blahhh at July 24, 2007 2:01 AM
I would pay $525,000 for this loft, nothing more. Until it hits that price, someone is being ripped off.
Posted by: Spencer at July 25, 2007 10:41 PM
"I would pay $525,000 for this loft, nothing more. Until it hits that price, someone is being ripped off."
The only people who can get "ripped off" are the ill-informed ones, and you might very well be one of them if you think this unit is a rip off at $525,001. For your suggested price you can’t even find a 650 sp.ft 1bd at the Palms. This is a boutique building with well preserved original brick work and very nice finishes. It’s a much more unique, stylish and “serious” development than most other ones in that area, not to mention this unit is 950 sq.ft WITH pkg. Santa Fe is a niche market company. People tend to either hate or love their stuff, and they do use that overpricing plus heavy reduction and lots of incentives strategy more than often. This deal is not too far off after the 10% reduction.
Posted by: blahhh at July 26, 2007 12:50 PM
"This deal is not too far off after the 10% reduction."
As nice as the place is, 895K for a one bedroom is still too high. There are many two bedrooms in the area for around that price. I think 750K-800K is more appropriate and will generate interest.
Posted by: James at July 27, 2007 10:37 AM
"I think 750K-800K will generate interest."
Absolutely. But this unit is one of the best units in this building with great layout, view, and PARKING. I checked it out months ago when the building first came out. They hadn't staged it back then, but immediately I realized that this unit had lots of potential for people who look for the openness in a large 1bd den in a boutique building rather than a 950 sq.ft cookie cutter 2bd in a complex such as the Palms. Like I said, it's not for everyone, but this building really is a much more serious and tasteful development than most other ones in that area. I would recommend a tour.
Posted by: blahhh at July 27, 2007 9:04 PM
I did take a tour and saw several units. I do agree that it's a unique building and the unit featured is nice. I liked the kitchen but felt the bathroom's finishing was cheap looking. There's a parking lot across the street from Unit 412 so you do get a view of the city(for now). Parking garage is cramped. The compacted spaces are also really tight, and it was hard getting my small car within the lines. It's my personal opinion that $941/sq ft is still too much for Unit 412, or else it would've been snatched up already. The building also does not feel high end like some of the other developments.
Posted by: James at July 28, 2007 5:52 PM
310 Townsend Street #412 closed escrow on 9/5/07 for $890,000 (8.2% under original asking, and not accounting for the parking).
Posted by: SocketSite at September 7, 2007 2:07 PM