Referenced by a reader on our rundown of One Rincon Hill 04 stack condos headed for foreclosure, the resale of 425 1st Street #3604 closed escrow last month with a contract price of $455,000 but was just reported today.
The 605 square foot one bedroom had been purchased from the One Rincon Hill sales office for $707,254 in September 2008 before being lost to the bank this past May.
The 2011 sale represents a 36 percent drop below its 2008 value for the vacant view condo with “Italian cabinetry” and “State-of-the-art appliances” all intact.
∙ Four More One Rincon Hill ‘04’s Headed For Foreclosure [SocketSite]
ORH should be called One Rincon Bubbletop.
Pretty astounding. We’ve got around $100 million in vanished equity in just this single building over a three year period — a period that started about a year after the market peak.
By the way, this 36% decline is substantially worse than the 20% CSI condo decline for the SF MSA over the same period. But SF still has held up better than immediately neighboring counties. I’m sure of it. Imagine how bad things would be if SF real estate were not so remarkably resilient.
These units are not that remarkable for South of Market, though some do have good views. The main problem is that these units reached the market right at a peak of bubble frenzy. Some of the townhomes around the base lagged, but most of the building was sold to starry eyed investors who didn’t want to be priced out forever.
36% drop in 3 years.
awesome!
The person who paid $700k for a 600sf 1 bedroom condo near the freeway really deserves to lose much more than a couple hundred thou
We’re all Freddie now…
Initially purchased in sept. 08, wow!
Musta sucked seeing Lehman bros vaporize before your eyes on the evening news….while the ink was still drying on your signing docs.
^ Agreed about Lehman, lol. But not sure if the buyer would have even been watching the news then. Seems you’d have to be a supremely clueless sucker to be buying in ORH in 08. Probably wasn’t too aware of anything.
Doesn’t everyone want to live in a giant Ionic Breeze?
Heck, crap at The Beacon had gone for $800/sf a few years earlier and prices had only skyrocketed everywhere since then. And local “experts” were assuring everyone that SF is different because, you know, they’re not making any more land, Chinese buyers, the internet, and all that. I’m sure the 2008 buyer thought he was getting a deal and would make serious and easy bank on it, so why worry about some little thing about Lehman Bros. on the news?
Is anybody in this building still paying their mortgage? If so, why?
you’d have to be a supremely clueless sucker to be buying in ORH in 08
Or simply be a trend follower. It’s easy to follow trends. Simply look for a line in the street and join in. In 2007-2008 people would line up outside of condo towers for the privilege of not missing out. Price was no issue because when there was so much demand, nothing can go wrong, right?
Question for all your smart San Franciscans… is One Rincon built by Vancouver developers? If so, how long until it leaks? Any word on the quality of the structure, window seals, etc?
Yikes, I still consider that price to be too expensive and expect that units there still have further to drop.
So when do they break ground on Two Rincon Hill?
A strange world when you compare this to my rather small investment in Tesla Motors stock, which has returned almost 75% since I bought in. I thought I did that as a gesture, not an investment.
also $5000 credit from seller!
I wouldn’t take 04 even for free, unless HOA is also free. ORH is all about the view, and 04 has none. All you get is the freeway and the afternoon sun. 07 maybe.
sorry redseca2 the only stock purchases you are allowed to reference here are IPO’s and you must have purchased them at the highest price they hit within the first few days.
[Editor’s Note: Of course, we have made mention of Tesla before. Now back to One Rincon Hill…]
Is anybody in this building still paying their mortgage? If so, why?
There is plenty of Countrywide financing left in this building. Just sayin’…
This building is the west coast flagship for the real estate bubble. The years old Socketsite discussions among readers over whether this was a better property than Infinity (better brochures and party favors but with ventless dryers and better views vs. deeded parking and traditional laundry facilities in unit but no logo umbrellas) now seem beyond strange and VERY funny. The bubble haze caused hardly any clear thinking as people thought prices were “reasonable” since the “building was new” and “freeway close”. Those threads should be preserved so decades from now, people will understand how this could have been built.
So 3904 just sold for $455K, so now 2004, 19 floors below, gets listed for…$465K.
I’m thinking there is room for negotiation on that price, or maybe lots of closing costs and cash back.
I guess this applies here as well…hold on and buckle up…
“http://player.vimeo.com/video/11211712?title=0&byline=0&portrait=0”
Let’s try this link..
http://vimeo.com/moogaloop.swf?clip_id=11211712&server=vimeo.com&show_title=0&show_byline=0&show_portrait=0&color=00adef&fullscreen=1&autoplay=0&loop=0“
I know that many socketsite readers use resale price as the primary indication of whether purchasing a home was a good idea, but if you’re planning on staying a while, this week’s resale numbers may not matter much. I closed in September of 2008, perhaps on the very day that Lehman Brothers and everyone else fell apart, and sure, I wondered what I had gotten myself into. But it’s been 3 years, the views are still fantastic (especially the city at night, viewable from that ’04 unit), the HOA dues are the same, I refinanced a year ago, I have nice neighbors, we just had a great holiday party, a dog park is about to open nearby … and I’m looking forward to watching fancy boats in the America’s Cup.
Geez, is that the best you can do for $250,000.00? Instead of watching fancy boats, you could have BOUGHT a fancy boat with the money you lost.
Not that any of us have ever had a desire to watch the America’s Cup before, but if I suddenly feel the burning need to watch a “race” that will be about as exciting as watching paint dry, I can buy a $2000 60″ flat screen TV and have a better view of the thing than you’ll ever have sitting net to the freeway, inhaling all of those fumes.
And I don’t have to lose a quarter of a million dollars to do it!
Here is a similarly sized place in a lesser building that just sold for more than 50% off the 2005 price:
http://www.redfin.com/CA/San-Francisco/250-King-St-94107/unit-1404/home/22889630
Geez, I’ll bet these bubble buyers are breathing a sigh of relief that they bought in resilient ol’ San Francisco rather than one of those places where prices have really fallen.
AT you’re a sad case the way you constantly do this gloating. You simply go out of your way, choosing to be mean again and again and again. Odd stuff.
AT, once again, using the Beacon as a poster child is misleading. That building has legal problems that make it an outlier. You can find damning enough apples without resorting to hyperbole.
A lot of new condos go into litigation when the ten year liability period comes to an end. Litigation is more of a norm than an extereme outlier.
Furthermore, it isn’t clear that it makes that big of a difference. 88 King just settled its litigatiion and I haven’t seen any difference in price. There might be some slight difference, but it isn’t enough to dismiss a price as an extreme outlier.
Remember when realtors were cheering high prices and crowing that SF was different and would never see a correction? That was really mean and discouraging to all those who could never afford those prices – i.e. the vast majority of SF residents. Plummeting home prices are good for far more people than they are bad.
Here are the November sales numbers — volume up, but medians continue to fall YOY. Lower prices do tend to spur sales.
“Remember when realtors were cheering high prices and crowing that SF was different and would never see a correction”
On here? Wasn’t just realtors doing that. It was a commonly held opinion among a lot of posters on here. You, on the other hand, are operating in a context in which it’s a known fact that a certain type of condo, especially, has taken a big hit. And as a person who says the same things again and again and again. You choose to begin in hostile places with the exact same words chosen, not to talk about the market or specific properties, but rather to be antagonistic. It’s not tit for tat. It’s you being a certain way. Times have changed. Your “Gotcha” remarks are not only mean because of how rote and repetitive and hostile they are, but they’re going on three years of tired.
“but if you’re planning on staying a while, this week’s resale numbers may not matter much. I closed in September of 2008….”
Sorry to tell you, but you’ll be waiting another 10 years from today just to break even. Might even be 20.
“On here?”
Don’t make us trot out the famous “Scare tactics are dead … ” quote.
Don’t make us trot out the famous “Scare tactics are dead … ” quote.
“us” is it? You, Tipster, AT, etc? hahah. OK. Birds of a feather, is it? Got it.
Yes, diemos, on here. Plenty of the “up up up” crowd weren’t realtors. And anyway, that quote doesn’t speak to appreciation, as was recently pointed out in some detail in this thread: https://socketsite.com/archives/2011/12/over_asking_at_the_beacon_and_only_48_percent_under_200.html
You’re welcome to take up the challenge to try to fluj talking about appreciation, or talking about the newer condos having a tremendous future vis a vis a correction on the horizon. Truly, diemos. have at it.
Yes, you see, that fluj guy only said that prices would never go down. He didn’t “speak to appreciation.” And prices have never gone down, er, well, hmm . . .
“fluj guy only said that prices would never go down.”
Incorrect. He said a whole lot of things, not only that. In fact he said that once in a context of arguing with people saying that the market had already tanked, when it had yet to even decline. Go ahead, read up. It’s nice that 80 of you haters remember it so well, touching really, but do remember it correctly. Easy to do with a search tool. Now get to reading.
Ah, reminiscing about the gilded age of SocketSite. First prices weren’t going to fall in San Francisco. Then fluj had to admit that they had fallen, but only in subprime areas. Then he had to admit they had fallen citywide, but only about 5 or 10%. And mostly condos but not prime SFRs. Then he had to fake his own blog death and disappear. Twice.
Where my bearrors at?
But seriously, SocketSite would be much less interesting to read without opposing viewpoints. To anon.ed’s point, there was a handful of blowhards on here cheering the market and spewing meaningless rhetoric on a daily basis, and he wasn’t one of them. All of them, having been proven wrong, disappeared and never resurfaced to own up to their BS.
A lot of us made predictions. The bearish contingent here, for example, was early in predicting the decline, and then overestimated its magnitude (or underestimated the amount of government intervention, take your pick). Fluj seems to have been on the flipside of that prediction – refused to believe the decline was real and material until it became too obvious to write off as statistical anomaly.
So while I’ll admit I admire your tenacity, flujnonn.ed, you’ve been plenty wrong about many things here yourself. Which SS regular has never made a bad call? Search tools in glass houses.
No doubt, it’s OK to admit error when you get something wrong, like that infamous comment, which was wrong. Faking the blog death? Faking what, man? Try taking a break from time to time. The vitriol from some more nasty types, who have also fallen away thankfully, gets old. And that’s the long and short of it. But in all honesty, you can go look for yourself. The funny thing is that that comment airybody luhs so much wasn’t typical. Before, after, during the same timeframe there were plenty of comments issued about the volume of condo supply making it likely to see correction. You echoed the search tool. See for yourself.
“Fluj seems to have been on the flipside of that prediction – refused to believe the decline was real and material until it became too obvious to write off as statistical anomaly.”
Rather then bull/bear, the main take home here goes to the low to negative utility of realtor/booster market knowledge. In theory someone in the trenches could have a faster take on where the stats were going or see if they were becoming inacurate. But in practice any of that type of knowledge is swamped by bias and “salesman’s brain” analysis.
So while we’re on this topic, whatever happened to AC, james, paco, anon the realtor, ORH buyer, NewBuyer, movingback, and the rest of the glee club in their various permutations? Sorry if I overlooked anyone.
And to tc_sf’s comment, who could forget Marina Prime? If that clown, whoever they were, has not had their real estate license revoked for malpractice, then inductive logic leads me to believe that there is no such thing as karma.
You’re not a knowledge peer. And you can’t encapsulate worth a darn as you need to resort to Upton Sinclair paraphrase/cliche over and over again. Learn how to write better, or else don’t type words anywhere near me.
I never took Prime for a realtor, rather a speculator. And that last comment was @ TCSF, btw, not you dude.
And Paco? Paco didn’t belong in that crowd. He is/was a builder who knows a lot more than the average “teach me teach me teach me FEED ME whomp I just bit the hand that feeds” crowd on here. To say the very least.
“never took Prime for a realtor, rather a speculator.”
Yeah, I had the same impression and he/she’s probably gone because of completing the dump after the pump. And those Squaw Creek condos too.
Paco/anonee/kid char is probably too busy playing raquetball with his bankruptcy attorney.
“So while we’re on this topic, whatever happened to AC, james, paco, anon the realtor, ORH buyer, NewBuyer, movingback, and the rest of the glee club in their various permutations? ”
More recently, it’s certainly notable how quickly and completely the advocates of median prices disappear when the median is down!
I fully expect that once we see apples with monthly gains vs losses or inflation benefiting people with fixed rate loans that boosters rallying against these points will either disappear or have a sudden change of heart!
More noticeable still is the former median naysayers who suddenly find religion when it’s down. Also, while the individuals you speak about aren’t posting, and haven’t for some time, here are you and your cronies, holding court. Not having that pal.
Who cares about medians? It’s cold hard cash that matters, and when you can buy a $1,400,000 condo for $845,000 in one of the most upscale buildings in the city, things are down, hard.
http://www.redfin.com/CA/San-Francisco/229-Brannan-St-94107/unit-2D/home/855111
In a more modest hood, same thing. Was $545K, now $300K. It’s spreading all over the city like wildfire.
http://www.redfin.com/CA/San-Francisco/988-Fulton-St-94117/unit-134/home/22886326