January 20, 2009
Cubix (766 Harrison) Officially Cuts "Up To 29.5%" For Stimulus Sale
With around 24 of their 98 condos either closed or in contract, Cubix (766 Harrison) launches a four week “Economic Stimulus Sale” today with reductions of up to 29.5% off of their original list prices. The goal, “to reach 50% sold, at which time lenders can offer FHA financing to [Cubix Yerba Buena] buyers.”
Prices on select units offering the most significant savings range from $215,000 for a courtyard-facing studio with patio (savings of $90,000 off the original price of $305,000) to $279,000 for a penthouse level home with a city view (savings of $65,000 off original price of $344,000).
As you might recall we caught a couple of early reductions when the inventory first hit the MLS (again, above savings are off original prices). And no word on whether or not the twelve-ish buyers who have already closed escrow are feeling "stimulated" (or the love).
∙ 766 Harrison: Condos Indeed And A Brand New Brand (“Cubix YB”) [SocketSite]
∙ Cubix Yerba Buena (766 Harrison): Reader Perspective And Pricing [SocketSite]
∙ A Couple Of Cubix Condos Hit The MLS (Now Starting At $249,000) [SocketSite]
∙ The SocketSite Scoop: Millennium Cuts Prices 15% Across The Board [SocketSite]
First Published: January 20, 2009 8:15 AM
Comments from "Plugged In" Readers
I might consider picking one up for around $100k or so.
Posted by: anon at January 20, 2009 8:47 AM
These would make sense if they dropped a zero of the end of the price. For $20-30K, I could see buying one to have a place to crash when I visit the city.
Posted by: Name at January 20, 2009 9:38 AM
Great move. 1000/sf was definitely too much in this market.
These units are starting to come close to becoming competitive with renting.
A 200K unit would rent for 1300? 1400? You will still be in the red with the HOAs as a landlord, but we're getting there.
Posted by: 137 DOM at January 20, 2009 9:38 AM
Does it come with parking? I've seen parking spots alone sell for nearly $200k.
Posted by: anon at January 20, 2009 9:48 AM
I've seen parking spots alone sell for nearly $200k.
Added on to a 30-year 5% loan - that would be a little over $1000/month for a parking space? I've never seen a parking space lease for even half that...
Posted by: unearthly at January 20, 2009 9:56 AM
some people have bashed Cubix, but it offers a product that fits some people's lifestyle.
I especially think this after seeing that uber cool Hong Kong apartment.
those who already closed on their units may be upset by this, but they shouldn't be. I would rather have an occupied building with people who paid less than me, than an empty building. also, the FHA financing may help this building once they qualify for it. (I'm not just talking out my bum either... a house on my block got foreclosed upon, and it sold for >150k+ lower than its previous listing price. Our block was so happy that we no longer had an empty albatross!)
Posted by: ex SF-er at January 20, 2009 9:56 AM
About those 12 buyers who apparently got suckered into closing already, it's time to reprise that wonderful Foolioism - truly "Cubix Rubes" :)
Posted by: LMRiM at January 20, 2009 10:20 AM
29.5% off? That means anyone who couldn't wait to purchase one just lost their entire downpayment.
But the flip side is that anyone who DID wait to purchase one just got to pocket 20% of their downpayment and 20% of their monthly payments, unlike the prior buyers.
And what's interesting is the wide range of price points the downturn is hitting - Millenium over the weekend is the tippy top and this is pretty much near the bottom. One would think at the low price points, loans would be easier to get and so demand would be stronger. Apparently that isn't the case. That means the downward pressure in the market is very, very strong.
One should consider that if one can wait.
Posted by: tipster at January 20, 2009 11:01 AM
The building has about 3 parking spots. Total.
Posted by: anon at January 20, 2009 11:05 AM
I hope managers at Cubix and others will apply a no-sucker rule: the discount should apply to people who already closed. They'd receive a nice tidy check, or better: a pre-payment on the mortgage (including fees if any). The big appeal of this last gimmick: you'd be able to refi with the same payment on a shorter term, mechanically increasing the principal over interest ratio. You'd build equity thru payments faster than your older 30 year mortgage.
If they don't make a gesture like this, it will be a tough sell for prospective buyers. What if they lower prices some more? Right now they went to around 700/sf, right? That's not low in my book. The only low thing is the square footage. It is the only reason the units are low-priced.
Posted by: 137 DOM at January 20, 2009 12:24 PM
"A 200K unit would rent for 1300? 1400? You will still be in the red with the HOAs as a landlord, but we're getting there."
Yeah, but you can't rent this size studio in this neighborhood for more than $800/mo
Posted by: spencer at January 20, 2009 1:31 PM
A friend of mine rents a new 300-ish sf studio on Mission between 6th and 7th for 1400. It's a duplex but it's tiny. Awful location too.
Posted by: 137 DOM at January 20, 2009 1:40 PM
"A friend of mine rents a new 300-ish sf studio on Mission between 6th and 7th for 1400. It's a duplex but it's tiny. Awful location too."
your friend is a landlord's best friend. You can rent a large studio in a prime area for that price.
Posted by: spencer at January 20, 2009 2:29 PM
These units are tiny. They are not going to rent for anywhere near $1400 in this market. Closer to $1000 I suggest.
These are headed below 200K for sure.
Posted by: Willow at January 20, 2009 2:33 PM
Fronz, Spencer is right, your buddy is getting fleeced.
The Edgewater, a new complex on Berry, is advertising new 1-bedrooms for under $2K/month.
Yes, it's tiny, but a 12-month lease gets you one free month, making the equivalent rent $1,915. And it appears to come with a free 42" TV.
I don't think the Cubix could rent these places for more than $1,200/month, in my opinion.
Posted by: Dude at January 20, 2009 2:39 PM
I guess he is. He was attracted by the central location of Soma Residences (he walks to work) and the clean modern look (aluminium cheapo sidings are not MY cup of tea).
Anyway, I grabbed this off the Web, fwiw:
I'll propose him to become my renter when I go back into the business...
Posted by: 137 DOM at January 20, 2009 2:41 PM
My partner and I went in the sales office when the building first hit the market and the female sales rep was terribly rude and dismissive. The rep that gave us the tour was a total idiot, singing the praises of the brand of coffee they would be serving in the coffee shop on the ground floor and the "communal" bbq's on the roof deck. If he was trying to sell the sizzle, he needed to try a lot harder!
I wonder where these fine folks are today?!
Posted by: sf_housedude at January 20, 2009 2:45 PM
The rep that gave us the tour was a total idiot, singing the praises of the brand of coffee they would be serving in the coffee shop
I wonder where these fine folks are today?!
It looks like the guy/gal has a clear carrer path into the coffee business.
Posted by: 137 DOM at January 20, 2009 2:51 PM
are rents really coming down that much? I have a friend who rents a studio for $800 on Sutter and Hyde and it is really small.
Posted by: viewlover at January 20, 2009 3:22 PM
The mental health facility next door should now offer mortgage bereavement coping classes for
those who unfortunately overpaid. In 6 months
when the prices are more in line with their worth
of around 180K will the building begin to finally
Posted by: DDJW at January 20, 2009 3:45 PM
Everyone here is assuming that the buyers that have closed already paid full price. How do we know that Cubix hasn't simply lowered their "offer" price down to the average that has actually been negotiated for the others?
Posted by: Brutus at January 20, 2009 4:33 PM
"Everyone here is assuming that the buyers that have closed already paid full price."
I don't assume that. But I do assume that the developers are trying to extract as much profit from this project as possible and there's no benefit to them in giving the chumps back their money.
This is something we've seen play out time and again across the country over the past several years. Oh wait, I forgot, SF is different.
Posted by: diemos at January 20, 2009 4:41 PM
These are definitely strange little units. The bathrooms are huge in comparison to living space. No closet space to speak of. Hubby and I looked at them for a second home but just could not picture how you could get anything beyond a bed in the place. I think the front units that look out on the freeway are pretty neat and I would consider one for $150k. The ones in back have lousy views.
Posted by: dkzody at January 20, 2009 5:22 PM
Act fast and they'll upgrade you to a California Twin.
Posted by: dub dub at January 20, 2009 5:40 PM
Geez,at $1000 sq ft and these are smaller than my daugher's dorm room. Perhaps with another round of stimulus incentives, maybe I might consider buying one of these dorm rooms and I'll use it on my weekends in SF even though they remind of a Holiday Inn with alot of freeway noise.
Posted by: Tickled Pink at January 20, 2009 10:36 PM
"I don't assume that. But I do assume that the developers are trying to extract as much profit from this project as possible and there's no benefit to them in giving the chumps back their money."
Oh definitely. I was just questioning the assumption of many that the developer must have gotten full price for the sold units.
Posted by: Brutus at January 20, 2009 10:46 PM
there's no benefit to them in giving the chumps back their money
I beg to disagree: prospective buyers might be scared with catching a falling knife and price guarantees would be very reassuring in this market.
Then again, the selling entity is not a charity and the early fools have only themselves to blame.
Posted by: 137 DOM at January 20, 2009 10:57 PM
Looks like there is one unit listed on CL for 1500/month:
Posted by: anon at January 21, 2009 12:09 AM
That seems high to me. From my observations, newer Soma units tend to be renting around $3.50 per square foot, +/- 10% or so. That would imply a market rent of $1,000 to $1,200/month for this place.
Posted by: Dude at January 21, 2009 9:33 AM
That Craigslist posting is listed by someone with HausBau who is the developer. Looks like they may be going rental.
Posted by: Ed at January 21, 2009 1:07 PM
I got an email from Cubix today. The one unit I liked, 413, is for sale for $244K, down from $314K. Still too much for me. I printed out the pictures and showed my department; they all laughed hysterically. Also, I don't think anyone has mentioned the fact that there is only a 2-burner stove and no oven, just a microwave. Maybe this is reality for SF.
Posted by: dkzody at January 21, 2009 5:04 PM
Terribly rude people. I fell in love with the units. But I don't see myself signing a mortgage with Wells Fargo (their pick, at least) to buy one. I mean, come on, it's a tiny studio, and I'm 29, and no one knows how the chances are that I could get rid of it later.
I'd most definitely rent it! Even for 2k a month, because it's super-pretty. But I ain't buying, especially not when the aforementioned coffee-shop gets better marketed by the cubix-staff than the units.
Does anyone know how the chances are that they'll rent antime soon?
Posted by: Marie at March 22, 2009 6:22 PM
"Does anyone know how the chances are that they'll rent antime soon?"
Rent to own! Google is your friend.
Posted by: diemos at March 22, 2009 8:30 PM
CUBIX will someday be a case study for all that was WRONG with the bubble insanity we are now waking up from. Living in a closet so that you can enjoy the pride of ownership and fork over payments double to what they would rent for is not my idea of a good investment, or a fun way to enjoy living in "world class" San Francisco.
Posted by: Oh Please at March 22, 2009 9:06 PM
"Rent to own"
...hmmm, guess they didn't hit that 50% mark.
Posted by: sunnyvalesteve at March 23, 2009 12:17 AM
I have to agree with Oh Please. We will look back at this in a few years as one the signs leading up to our downturn. These tiny units will continue to have a place in SF's housing inventory, and who knows, in another 20 years we may all wish we had bought when we had the chance.
Posted by: dkzody at March 23, 2009 5:48 AM
"These tiny units will continue to have a place in SF's housing inventory,"
Everything has a place in SF's housing inventory ...
... at the right price.
Posted by: diemos at March 23, 2009 7:17 AM
so how is cubix these days?
Posted by: diemos at May 18, 2011 6:47 AM