April 21, 2010
A Couple Of New Cuts For The New Condos At 1327 7Th Avenue
The sale of 1327 7th Avenue #11 closed escrow on January 8, 2010 with a reported contract price of $1,150,000 ($904 per square foot and 2% under original asking).
Today, the list price for 1327 7th Avenue #9 was reduced $170,000 (12%) to $1,225,000 ($751 per square foot) while the list price for 1327 7th Avenue #7 was reduced another $74,000 to $1,075,000 (now asking 12% under its original list price as well).
Please don't make the mistake of comparing the price per square foot of a two-bedroom sale with the asking price of a much larger three. Wondering about how the units were relatively priced and how that's now changed, however, is fair game.
And once again, while we can’t vouch for whether or not the sale of #11 was an arms length transaction, we have no reason to doubt it was (nor would we really be surprised).
∙ Listing: 1327 7th Avenue #7 (3/2) - $1,075,000 [MLS]
∙ Listing: 1327 7th Avenue #9 (3/2.5) 1,631 sqft - $1,225,000 [MLS]
∙ From Rendering To Reality And On The Market For 1327 7th Avenue [SocketSite]
First Published: April 21, 2010 5:30 PM
Comments from "Plugged In" Readers
I love this neighborhood, especially with all the trees that have been planted!
Yes, it is incredibly foggy.
And this street is very busy, and the street isn't residential at all.
but I love the neighborhood.
there is a ton of things to walk to
and it's only a quick hop to GG park.
the units themselves seem nice enough.
maybe a Craigslist employee can buy it, since it's only 2 blocks away? :)
Posted by: ex SF-er at April 21, 2010 5:42 PM
Nice but so over priced!!!! $904 per sq/ft! Not for me - maybe at $504 per sq/ft.
Posted by: Pablo at April 21, 2010 8:34 PM
ex SF-er...100% agree....this is my favorite neighborhood in The City. You can get just about anywhere within about 20 minutes. But within walking distance you have great restaurants of almost every type.
Love Unit 9...a bit overpriced...but the ceilings are fabulous.
Posted by: CameronRex at April 21, 2010 9:19 PM
Anyone still falling for the first units "comps" scam is a doofus.
The developer (or an untraceable proxy) buys the first unit or two at a sky high price to sucker others into paying a similar price.
What a surprise that the other units didn't sell and are being "marked down"! Maybe compared to the first two "comps" someone will think these are now a bargain!
This is not a $900 psft neighborhood. Not even close. Nice touch on selling the "comps" under asking. I'll bet they bargained really hard-LOL!
Posted by: tipster at April 22, 2010 7:43 AM
I've never seen you prove such an allegation even one time.
Posted by: anonn at April 22, 2010 8:05 AM
And what would you accept as proof? A signed confession from the developer?
Just how stupid would you like us to be? Maybe the next time I receive an e-mail telling me that someone in Ghana would like to send me the sum of $12,000,000 US I should just send them my bank info because I don't have any proof that it's a scam.
Sorry my friend, but the world is full of people that will try to take advantage of and manipulate you. One must be cautious, even in the absence of "proof".
Posted by: diemos at April 22, 2010 8:22 AM
It was an arms length sale. Tipster is just making stuff up.
Developer purchased units may happen on huge developments but not on these smaller ones. The bank wants their money, they don't want you pretend selling a unit so it looks a little better for you. They aren't going to kick that money back to you later, once they get their hands on it the sale is finished.
The spa isn't a front for the developers offices either.
Posted by: sparky-b at April 22, 2010 8:33 AM
I don't want you to be stupid. I'd like you to put down the ultra bias posing as critical thinking that's turned thinking cap into dunce hat. Placing unproven allegations on a well read blog all the time. What you guys are alleging is in no way in line with the Ghana scan. Come on.
Take a step back for a minute. First smaller development -- you think there's generally enough money sitting around for the developer to buy up a unit? Let alone two, or in this case, three? Think about it.
And as for proof, here's your proof. Three of these units are sold. Two of them, at a glance, were Zephyr to Sotheby's, and Zephyr to Pacific Union -- real shady! OK? So there's that. Then, think of this, therre are three sold. Three! What? The developer buys up 3 out of 11 in order to snow other 8. That's your guys' story? GTFOOH.
Posted by: anonn at April 22, 2010 8:36 AM
Um, the developer can then sell the fake units when the others have sold. Bank still gets their money.
And there's more of it if the ruse works.
Me thinks you two protest too much.
Posted by: tipster at April 22, 2010 8:47 AM
So Zephyr, Sotherby's, Pacific Union and the bank are all in on the fake sales? Or is the bank not in on it and they got paid out of the extra $3M the small time developers have laying around.
Posted by: sparky-b at April 22, 2010 8:55 AM
Come on tipster, your comments are quite ludicrous even for you. No way the funding bank would ever allow such shenanigans. Speaking as someone that has developed multiple projects in SF and worked with many banks. Off subject, First Republic is current bank I'm working with, any one know of any other banks funding
Posted by: Skirunman at April 22, 2010 8:59 AM
Shameless, Tipster. I don't know why the editor let's you get away with this sort of thing. It gives people mistaken notions. And that's clearly your intention.
Posted by: anonn at April 22, 2010 8:59 AM
I personally know the couple that bought #11. It was an all-cash sale.
Posted by: innersunset at April 22, 2010 9:25 AM
I don't know how plausible the shill buyer scenario is in this case though it does seem possible to pull off without the brokers or bank involved knowing anything. A backroom deal can be made between the developer and the shill buyer with the developer promising to compensate the shill buyer is only known by those two people, right ? Compensation can be transferred immediately or when the shill buyer sells or at any time for that matter so long as trust is maintained between those two individuals.
A shill deal can be done without causing any alarms or being able to be "proved". Whether or not it makes business sense is a different story.
Posted by: The Milkshake of Despair at April 22, 2010 9:56 AM
Is this the real SF?
Posted by: curious at April 22, 2010 10:07 AM
at these prices, it's gettin' real-er.
And I agree with those who rave about the hood, and for the reasons given.
Posted by: sanfrantim at April 22, 2010 11:07 AM
I walked through with a soon to be divorced friend a couple of weeks ago. The project is aspirational for the neighborhood (I have some idea having lived there for the past 8 yrs). Generally view this as a bad location but the development wasn't bad. I have a hard time seeing kids in any of these places but if you are single or married with no kids, like the neighborhood, and want higher end "new" this works just fine. My buddy (real estate attorney) loved it - said he saw quality and good attention to detail. The only thing I saw was a really expensive place that I couldn't live in. Single with a $1m to blow - maybe.
There is a lower unit on 8th (close to Judah) that in my view is more desirable than any of these. Same agent I think. Orig listed at $1.3. Reduced to 1.25. I think the 7th reductions should put more downward pressure on this.
Posted by: simpr at April 22, 2010 11:12 AM
I use to rent in this hood. I loved it. Though, if I had a million bucks, I'd look elsewhere.
Posted by: bornnraised at April 22, 2010 2:00 PM
In my "shenanigans search", about the only thing of interest I turned up was that the buyer used to live about two blocks away. It makes sense that someone who loves the neighborhood (because they live there) and has seen the project go up would be willing to pay a premium... FWIW.
Posted by: EBGuy at April 22, 2010 2:06 PM
we live directly across the street from this development and have been watching it from day one. the seller's unwillingness to face reality has been a long running joke. hopefully the units will start selling soon (but not too discounted bc we need to keep our comps up!).
love love love our neighborhood!
at least one of the sales is a legit sale. it's one of the best units (has a peekaboo view of the gg bridge) and is currently occupied.
Posted by: melon at April 22, 2010 3:44 PM
All three sales are legit sales, and owners in the neighborhood are probably ecstatic about them.
Posted by: anonn at April 22, 2010 4:19 PM
How ecstatic are the three buyers with the reductions on the unsold units? Love the neighborhood too.
Posted by: SFSal at April 22, 2010 4:28 PM
Probably not all that happy, obviously. Have you seen them all? I haven't, but word has it that they're not even remotely all the same product.
Posted by: anonn at April 22, 2010 7:05 PM
err preemptive point, "remotely" is a bit of hyperbole, lest I get hated on a sixth or seventh way for pointing out true things and questioning false ones ...
Posted by: anonn at April 22, 2010 7:11 PM
Is the refusal to believe that this was an arms length transaction the first stage of the housing market recovery for bears...denial?
Posted by: REpornaddict at April 22, 2010 10:53 PM
Having been reduced in price by 10% ($110,000), the listing for 1327 7th Ave #4 has been withdrawn from the MLS after 98 days on the market without a sale. Last asking $985,000 for the three-bedroom.
The listing for 1327 7th Ave #3 has been withdrawn from the MLS without a sale after 98 days as well (asking $869,000 for the rear cottage two-bedroom).
Posted by: SocketSite at June 24, 2010 9:28 AM
And ## 7 and 9 were just reduced another $75,000. Anyone still going to try to argue the early January "comp" sales at $904/sf were bona fide arms-length transactions (no cash-back, no nothing)? It's possible they just found a major league sucker, but I wouldn't bet on it. Buyers in this price range need to use their own money, and they're not that stupid.
Posted by: A.T. at June 24, 2010 9:39 AM
Anyone still falling for the first units "comps" scam is a doofus.
Posted by: tipster at June 24, 2010 9:51 AM
anyone believing it's a real spa in the commercial space is a doofas as well, I suppose.
Posted by: sparky-b at June 24, 2010 10:43 AM
The story continues: First Mover Disadvantage (And A Few More Cuts) At 1327 7th Ave?
Posted by: SocketSite at June 24, 2010 11:07 AM