March 21, 2008

"A" Final Release (And “Substantially" Reduced Prices) At The Potrero

The Potrero: Interior

From a plugged-in tipster: “On Sunday, March 30th, The Potrero will release all remaining homes in the north building at substantially reduced prices.”

Unfortunately no word on exactly what constitutes “substantially” (although it was in italics and underlined...), nor an exact count on how many condos remain unsold in the north building versus the south.

The Potrero (451 Kansas) Update: Now 70% In Contract Or Closed [SocketSite]

First Published: March 21, 2008 8:38 AM

Comments from "Plugged In" Readers

The sales office told me yesterday that there are approximately 10 units left.

2 studios

Zero 1-bedrooms

8 2-bedrooms

2-bedrooms will run $640K-$699K. Only 1 2-bedroom left with the "E" floor plan

Posted by: PessimisticBear at March 21, 2008 10:09 AM

From the last thread:

Looks like the price reduction and the incentives (2 years HOAs, plus some appliances) may have worked (somewhat) in the south building. Still, they can't be too thrilled about the 4 condo/month rate.

I smell more reductions.

Posted by: Foolio at December 18, 2007 2:14 PM

and

big difference between 18 and 4 but with only 50 units left that's a year of inventory which isn't at all unreasonable. i'd also expect a bump in activity come spring.

Posted by: nonanon at December 18, 2007 3:10 PM

Foolio FTW, nonanon FTL.

Posted by: mike at March 21, 2008 10:16 AM

Why are they reducing prices?? Let's get fluj to bring some of his rabid buyers over... they're sure to snap these up.

Posted by: Jimmy (Bitter Renter) at March 21, 2008 10:55 AM

how would you feel as a buyer, who got in early and then saw your same condo selling for 100K less one year later?

i would not be happy.

for $550, i would consider one of these 2bdrooms. anyone think they might go that low?

Posted by: spencer at March 21, 2008 11:37 AM

Jimmy - It's unclear. I thought prices in SF only went up. I mean, sure, Bayview and Visitacion Valley can go down. But this is a neighborhood that I would actually - *gasp* - consider living in. Why would they reduce prices?? Does not compute!!

Don't worry, though, I'm sure that no property in Pac Heights will ever sell for less than its previous price (absent fire, natural disaster, etc.). ;-)

Posted by: mike at March 21, 2008 11:38 AM

Hate to play fluj's advocate, but if it's true that there are only 10 of over 150 units left isn't reducing prices only now a good showing? When I visited the Beacon when there were about 15 (undesirable) units left the sales agent was practically grabbing my ankle on the way out shouting incentives at me. And that's when the market was relatively hot.

Posted by: Gdog at March 21, 2008 12:11 PM

Exactly Gdog. like most developments, there are units at the Protrero that aren't worth as much. These last units will never be worth as much as others so it doesn't really matter if they sell for less- they should sell for less now and will resale for less in the future. If you're not that picky, you might get a good deal on one.

Posted by: anono at March 21, 2008 12:43 PM


Only 1 2-bedroom left with the "E" floor plan - This one was priced at $750K in Dec. 07, up to $779 in Jan. 08, and $810 in Feb. 08. Be sure to check out comps in the neighborhood as IMO, each of these price points are out of touch w/ reality (evidenced by the fact it is still on the market). Also, keep in mind that while Potrero is a great neighborhood, it is not as isolated from downward price pressures as other neighborhoods like Noe, and prices have been coming down. 2007 Condo median sales price in Potrero Hill fell 3.7% (source was Zephyr Real Estate 2007 SF Annual Summary)

Perhaps @ 700K is more reasonable given the current conditions.

Posted by: gaper at March 21, 2008 12:52 PM

anono,

Not sure if that statement is true. Maybe I've been watching the market in my 3 year old new development. Units that sold at the end of the cycle "cheaper units"; resold at almost the same as units that were bought during the first release. I'm talking about units that face the courtyard "fishbowl" vs overlooking the streets. Street views were priced $20k more when they were released. I'm not sure if those units resold actually got the $20k+ price.

Of course I am not talking about high unit view units compared to low level courtyard units.

I think people will pay the comps in the building if they really have to be in the building no matter where your unit is located at.

So if there is a demand in at The Potrero in the next few years, these units will go for just the same as the units that have sold earlier.

It doesn't always pay to be part of the "first release"

Posted by: jk at March 21, 2008 12:59 PM

I checked it out a few months back and even then what was left was pretty yucky, so these are probably the least desirable units. I do like the area, though, so it might be a good deal.

Posted by: anon at March 21, 2008 3:15 PM

my friend bought a 2/2 in this building. location is great, and the units themselves are nice as well. the units they are trying to get rid of are all ground floor which were poorly designed, because any foot traffic around the building is extremely intrusive.

Posted by: Jonathan at March 21, 2008 3:47 PM

mike,

Thanks, I think. What's FTW?

Posted by: Foolio at March 24, 2008 9:48 AM

FTW = For The Win = You were right/better.

Posted by: brian at March 24, 2008 4:03 PM

Oh, cool. Miracles do happen.

Posted by: Foolio at March 25, 2008 9:36 AM

FWIW, Just got an email this morning reminding us that the 1-year no-payments incentive will end 7/15, and there are 15 units left, five more units than what PessimisticBear was told, as posted on March 21, 2008.

Posted by: Bart at July 10, 2008 12:37 PM

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