December 4, 2009
The Citadine (1299 Bush) Scoop: Seeking A Bulk Sale Of The Building
According to a plugged-in tipster, the developers of Citadine (1299 Bush) are now seeking a bulk sale of the entire building. Details when we have them and can confirm.
∙ Twenty-Six In The Bush At 1299 Rising (And A Reality Check) [SocketSite]
∙ Citadine (1299 Bush): Current Pricing And A Peek Inside [SocketSite]
∙ Citadine Cuts Between Four And Ten Percent For Listed Condos [SocketSite]
First Published: December 4, 2009 4:15 PM
Comments from "Plugged In" Readers
Let us know when it's for rent. Probably get some good pricing on it.
Posted by: scurvy at December 5, 2009 9:38 AM
there are only 2 "bulk sale" buyers now -
(1) condo speculators - very few if any today - and they will pay, at most, $150-200 psf LESS than the market price of retail condo sales comps for this project t,l that mean bulk sale at $400 to 450 psf. this has to be an all equity investor, no debt.
(2) rental operators hoping to get back in to the market. they will buy at a 6 or 7% cap rate (yield on cost). if a one BR here would rent for $1800 per mo (high) and its 700 sf, and op exs are 30%, that means the rent is $2.50 per mo gross, 1.75 net x12 = 21.pp psf / yr. which means it worth say $325 psf to a rental investor.
so it would go to a condo speculator, if it is a desperate bank that just wants to end it, and not sell out slow take the $200 bulk discount as profit themselves.
so the bulk sale is a long shot, which is why there have been so few of them in SF, and the converion to a "value" level rental will never happen.
Posted by: Louis at December 5, 2009 10:39 AM
They were offering financing through First Republic Bank, which i don't think is a struggling bank.
Posted by: timeisnow at December 7, 2009 9:38 AM