November 3, 2009
A Lower High Watermark For 501 Beale Penthouses (#PH2B Closes)
The sale of Watermark (501 Beale) penthouse #2B closed escrow on 10/19/09 with a reported contract price of $950,000. While still "not cheap" at $932 per square foot, it is 31 percent cheaper than its "buy, sell, repeat, retire" resale price of $1,375,000 in December of 2006, 24 percent cheaper than its purchase price of $1,250,000 in October of 2006.
It's also 27 percent cheaper than the identical "penthouse" unit a floor below (#PH1B) that sold for $1,300,000 in October of 2006 and was likley a supporting comp for the flip of #PH2B. And so on. And so forth.
No word on whether or not it was our plugged-in reader who had offered $950,000 in cash to the bank for #PH2B prior to its last list price reduction (at which time they wouldn’t "even take a look at it") who ended up with the condo. If so, one word: housewarming.
∙ A Pair Of Bank-Owned Penthouses Atop The Watermark (501 Beale) [SocketSite]
∙ From Flippy To Floppy For Watermark (501 Beale) Penthouse #2B [SocketSite]
First Published: November 3, 2009 7:45 AM
Comments from "Plugged In" Readers
This is part of a picture that suggests the bottom from san francisco condos is 25% down from the leak, more or less. whether this happened 6 months ago or still happening now, we have to wait and see, but it look to have solidified and a lot of new inventory sold out last 6 mos.
Fairly consistent picture from resales in top end projects - i.e. st regis- and discounts at new projects - say infinity and sfblu.
comps out of this line - say beacon, 4th and frelon - have seperate issues, whether bubble initial sales or quality.
Posted by: louis at November 3, 2009 8:16 AM
Isn't 932 sq. foot getting close to the point where it is not finacially viable to build these condo towers?
I recall hearing that with the weak dollar, surging cost of materials and falling prices in SF, we are approaching the point where large condo towers simply don't pencil out anymore.
2 Rincon hill is dead, the 10th & Market project - though rentals now - is likely never to get built. The 2 towers that were supposed to be built across from the Infinity towers - I don't think anyone is holding their breath on that project getting started.
It seems this is the perfect opportunity for Planning and city residents to re-visit the original SOMA plan and start over. Times have completely changed and the bubble economy those grandiose plans were assuming is gone and likely won't come back. Even if it does, it will take decades.
So, rather than extending permits for high-rise towers that will never get built, why not re-look the zoning and uses of these blocks and come up with a smaller scale more people- friendly vision for SOMA.
Posted by: Gil at November 3, 2009 9:02 AM
Great idea, I'd love a waterfront SFR!
Posted by: EH at November 3, 2009 9:10 AM
"Great idea, I'd love a waterfront SFR!"
Posted by: DH at November 3, 2009 9:57 AM
People friendly means making room. There is even a state law about localities needing to build housing for some fraction of the economic activity they host. Materials costs have fallen along with demand. High rise plans that were approved in the past will almost certainly be revisited in some form. Decades of stagnation following this bust are easy to imagine, but never is a very long time indeed.
Posted by: Mole Man at November 3, 2009 11:25 AM
This is part of a picture that suggests the bottom from san francisco condos is 25% down from the leak, more or less.
Uh, given that the property in question is down 31% from its highest sale price (which by definition must be less than its true peak, but let's ignore that), I'd say "more" rather than "less"...
Posted by: anonm at November 3, 2009 4:12 PM
In response to the posting, I was the offeror who put a 950k cash offer on PH2B in mid-August. The bank said I was, "way too low" and wouldn't even counter. In September, I purchased a different unit in the downtown/soma area which I like more and cost significantly less. The owner needed to sell. I guess it took the bank a couple months to come down to reality on PH2B. Buyers, stick to your prices! And best of luck to the new owner at PH2B!
Posted by: Kate at November 8, 2009 11:42 AM