As a reader wrote this past November: “Anyone see that [425 1st Street] #4107 sold on April 30th of this year for $830,000 and now is listed again at $865,000?”
Said resale of One Rincon Hill #4107 closed escrow on 3/31/11 with a reported contract price of $798,000, down 3.6 percent year-over-year. At the same time, One Rincon Hill is self-reportedly down to “less than 25” new units to sell, or roughly 95 percent sold.
∙ One Rincon (Back) Up To 87 Percent Sold [SocketSite]
a loss of $32k + commission + other costs of ownership in under a year.
meanwhile, anyone that has their money in stocks is very happy.
FWIW, my sense is that the YOY decline of 3.6% is a reflection of the seller modestly overpaying rather than a declining market for this unit (but alas, irrational exuberance is still baked into both prices).
the building has many renters and unintentional landlords. there is a lot of so called “pent up supply” in that building. However, many units are not coming to market because so many are so grossly underwater.
I know several people in that building, including a few above the 41st floor. they are trapped, and rents are nowhere near holding costs. I have recommended to two of them to just let the house go to foreclosure, but they don’t wish to do that for specific reasons.
these units are medium level and/or starter condos in a subpar location with a KILLER view and some nice exterior spaces (excluding the terrible gym). Thus, they will continue to struggle so long as they are priced this way.
there are a few units in the building that are more than starter housing, such as the 3BR delux units on 52nd and 53rd floor and the units on level 55-60, but that’s about it.
this building will continue to struggle for some time.
I understand the developer filed BK on Tower 2 a few weeks ago. The land parcel had a pretty hefty mortgage and I’m not sure who will end up owning it.
ORH started sales 5 YEARS AGO – almost the day infinity ph1 started. as far as i can tell from these post they started treading water at 85% sold 2 years ago and are now finally near the end.
What is making this go so slow? I get the market , the economy etc, all of that. My question is is ORH pricing sales to get the last dollar on every deal, no matter how long it takes? something else?
That works for lenders? Equity investors?
It just unusual.
Didn’t ORH start selling units in 2008?
#4107 bought for 4/30/10 for $830K (that’s this unit)
#4407 bought for 10/1/10 for $840K. http://www.redfin.com/CA/San-Francisco/425-1st-St-94105/unit-4407/home/17304843
The seller of #4107 bought on the last day of tax credits that #4407 never got.
Doesn’t look like the seller overpaid at all.
Maybe *everyone* overpaid? Maybe everyone is overpaying now?
…and 4507 just sold for $850K in January which is still in line with the first sale of 4107 and the sale of 4407, whereas 4007 just sold for $800K in February which is more in line with the resale of 4107. Perhaps the term *overpaid* is not particularly meaningful in this context, but my real point is that we should be careful about extrapolating from the apples-to-apples resale of 4107 that the market for this unit has dropped 3.6% YOY.
I’d guess the higher prices for 4407 and 4507 has more to do with the floor.
^^^ Do four floors really make that much of a difference when you’re already forty floors up? I’d think that 4007, 4107, 4207, 4307, 4407, and 4507 are nearly identical comps if the interior finishes are similar.
I was at a party last night at Terra Gallery and from the outside patio area you are very close up looking directly across from ORH. It suprisingly appeared very attractive from that angle. I hope T2 gets built.
Does anyone know how the change in ownership of the second parcel affects the pricing of these condos? I love ORH for the views, but am hesitant to buy due to the uncertainty of the second tower.
Louis, etc. One Rincon Hill pre-sales began June 2006. However, the first move-in weren’t until 2008 and even then it was a phased occupancy (like they do in NYC) and the upper floors weren’t finished off until Sept. 2008. Due to the real estate market crash, many of the upper homes fell out of contract (and they lost their substantial deposits) and, in a sense, had to be sold again.