April 27, 2011
A Violation Of Trust
The rather ironic line from the listing for 690 Market Street #1505, a one-bedroom at San Francisco’s Ritz-Carlton Residences: "The world's most trusted luxury brand has brought a new measure of service to one of the world's most fascinating and engaging cities."
While we’ll naturally agree with the "one of the world's most fascinating and engaging cities" bit, how has this condo in the "world's most trusted luxury brand[ed]" building performed over the past four years in San Francisco?
Purchased for $1,193,000 in 2008 by way of a $894,440 loan (25 percent down), last year 690 Market #1505 was taken back by the bank with $937,377 owed.
Today, they’re asking $699,900 for the Ritz-Carlton condo, 41 percent ($493,100) less than its purchase price in 2008 and down from a list price of $729,900 last month.
Yesterday, the resale of 690 Market Street #1505 closed escrow with a reported contract price of $665,000, a 44 percent ($528,000) drop in value for the Ritz-Carlton condo since 2008. Let's just call that a violation of trust.
First Published: April 27, 2011 4:30 PM
Comments from "Plugged In" Readers
Gas prices are 25% higher than when this unit was purchased, yet it still fell 44% in spite of the fact that it sits right in the center of the city.
So much for the theory that high gas prices will "save" real estate in city centers.
And the former owner was actually a "rich foreigner". Looks like they aren't going to save anyone either.
Posted by: tipster at April 27, 2011 6:43 PM
Whose trust was violated?
The 2008 buyer overpaid. That's his or her fault.
Posted by: molly at April 27, 2011 7:44 PM
Ritz Carlton has always excelled in relieving separating their customers from their money. This building just takes that service to a whole new level.
At least the lobby doesn't look like Laura Ashley threw up, like the hotel's does.
Posted by: Embarcadero at April 27, 2011 8:16 PM
"Rich foreigners" are getting fleeced here.
The drop in price makes perfect sense. These were totally overpriced and were more status statements than rational purchases. If you put it in car terms, the turn of the key in the ignition costs you 30% then you lose 5% a year. Hopefully this should be it, but high HOAs kill any rational calculation. If I had to buy it for myself or for a rental, it would pencil out at $0. $2400 + maintenance = rent equivalent. No place for a mortgage! But buyers of luxury goods live on another planet.
The new buyer is still gonna have a very high maintenance home. As I said HOA fees are outrageous. If cost conscious buyers start moving in, they'll request cuts in the costly fluff this building offers and it will become just another condo building.
Do owners have a say or does RC control the level of amenities? Do you need all this security in a safe neighborhood, or do you leave them just to remind the plebe that nice people live there?
Posted by: lol at April 28, 2011 7:50 AM