January 9, 2008

Another Opportunity For “Instant Equity” Over At One Rincon Hill?

While it’s not the first, and it’s not likely to be the last, a plugged-in tipster forwards a Craigslist ad for a “re-sale” (re-contract?) condo in the first tower of One Rincon Hill:

Looking for someone to take over my purchase agreement for a great price that you won't find again, ever, for a building like this. Unit will be ready for move-in around March 2008.
I'm looking to find a co-signer who I will sign over my initial deposit AND deed/title to. I now need a house outside the city, but I reserved this unit for the original low price a long time ago (above price [$700,000] not actual price). You can now secure a home for undermarket value.

We’re always more than a little weary when “under market” (a.k.a. “instant equity!”) is involved (and doubly so when closings are right around the corner). But then again, if you honestly feel like you initially missed out, perhaps it's an interesting opportunity to pursue (with the help of an excellent attorney of course).

$700000 1 Rincon Hill - Original Purchase Sale [Craigslist]
A Quick Flip At One Rincon Hill? [SocketSite]
Not Exactly A Flip, But Possibly A Push, Over At One Rincon Hill [SocketSite]

First Published: January 9, 2008 9:59 AM

Comments from "Plugged In" Readers

I don't think 700K for a low floor 1 bedroom in that building is under market at all. This building's closings are going to be fun to watch.

Posted by: anonSF at January 9, 2008 10:13 AM

For that building and location, 700k is still on the high side. I must have seen over a dozen of these ads on Craigslist over the last year. Seems like there's a lot of nervous Rincon buyers out there. Indeed OneRincon's closing will be very interesting.
Also, I notice the SF Biz Times mentioned OneRincon as having the highest number of investors and will be a measuring stick on the state of the market...

Posted by: missionbayres at January 9, 2008 10:26 AM

Not to mention a couple of other little tid bits like, what floor is the unit on and what side of the building is it located?

Get real, without knowing that, how can anyone make a call as to whether it's above, at or below market?

However, the fact that that information was not disclosed on the add makes me suspicious already. Besides, in addition to the above missing information, price always needs to be stated in terms of price per square foot in order to get a good measure of how good or bad the deal is.

I paid $800/sq for a 20ish floor 2-2 unit facing downtown and twin peaks and I'm plenty happy with that price, even in this SHORT-TERM (1-3 year) down market. And I'm not an investor.

Posted by: RinconHill_Res at January 9, 2008 10:58 AM

RinconHill_Res,
Given the size of your investment, it's hardly a surprise that you think it's a good one. Considering that under the purchase contract you can't effectively sell the unit for 2 years, you certainly don't have anything to gain by saying otherwise.
The market forces at work here will do whatever they do regardless of your postings however. I sincerely hope it works out for you, although my suspicion is that it will be many years before it does. In that case, I hope you are able to stay there long enough for it to be worth your while.
Good luck!

Posted by: missionite at January 9, 2008 11:30 AM

C'mon Missionbayres, your propaganda is tiring.

What do you have against this building? How can you make such claims without even knowing the floor, size of unit, etc.?

Posted by: anon at January 9, 2008 12:23 PM

"The market forces at work here will do whatever they do regardless of your postings however."

I appreciate your profound insight into the fact that there are market forces at work. Bottom line is that the new Transbay Terminal and the area surrounding it (Folsom corridor, parks, restaurants and shops) should be up and running like a well oiled machine by 2014 and, as a result, places like ORH, the Infinity and others like it will be a gold mine. That's a 5-7 year outlook. Let's revisit this chat at that time.

I find it so amusing that all of the bashers on this project use the convenient and intellectually lazy flippers' mentality (1-3 year investment) when trying to caution others that they may lose their shirts.

Posted by: RinconHill_Res at January 9, 2008 1:45 PM

@RinconHill_Res

I SERIOUSLY doubt the TBT area will be "running like a well-oiled machine" by 2014. IF they started NOW (like today), maybe. Check out the area around the ballpark. That's pretty much done (at least down King) and the area, while an improvement, is still kind of dead with lots of empty retail spaces. Just because they build it, doesn't mean people will come. I DO think it's going to be nice, someday, but, as with everything in SF, the pace will be glacial.

Posted by: anonSF at January 9, 2008 1:58 PM

This is a 1B/1Ba unit. There are still 1B/1Ba's available from the developer in tower one, and they're in a better position to make a deal.

Tower two's plan has been changed, eliminating a line of 1B/1Ba's to make larger 2B/2.5Ba's; more demand for larger, more expensive units.

Posted by: rocco at January 9, 2008 3:12 PM

"Tower two's plan has been changed, eliminating a line of 1B/1Ba's to make larger 2B/2.5Ba's; more demand for larger, more expensive units."

Interesting. The sales office shared that information with you?

and to anonSF, while I respect your opinion, I respectfully disagree. I've lived in Rincon Hill for 4 years now and even in that time period it's nowhere near what it was like when I first moved here.

I don't really lump the area south of the bridge (South Beach/Mission Bay) in with this newer area when I talk about "the neighborhood" so we're really talking apples and oranges here. That area is sort blah if you ask me. Nice and new, yes, but no real personality.

Posted by: RinconHill_Res at January 9, 2008 3:19 PM

@RinconHill_Res

I've lived in the area for 7 years. There's been a few restaurants/clubs/bars opened along 2nd street, the Met and the Lansing have gone up, but that's about it for meaningful change. Hopefully the Infinity will jump start the area.

Posted by: anonSF at January 9, 2008 3:24 PM

I would be utterly shocked if the TBT was finished on schedule. I sure hope it is, but we shall see.

Even something as simple as building the park on the Embarcadero at Brannan St (and demolition of pier 36) was supposed to be completed by now.....and the revised timeline is showing completion in summer 2012, 4 1/2 years from now. At the earliest! Sigh.

Posted by: anon at January 9, 2008 4:46 PM

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