250 King Street #802 Bedroom
In April of 2006, the 1,476 square foot Beacon two-bedroom known as 250 King Street #802 was purchased for $906,666 ($614 per square foot) with not only no money down, but five percent back.
In November of 2009, the eighth floor unit was purchased off the courthouse steps for $527,077 cash. And in May of 2010, the Beacon condo resold for $670,000.
Listed for $850,000 last month, yesterday the sale of 250 King Street #802 closed escrow with a reported contract price of $811,000 ($549 per square foot), up 21 percent versus 2010 but still 10 percent below 2006.
A Beacon Of Distress (250 King #802) [SocketSite]

19 thoughts on “A Beacon Of Hope”
  1. Agreed with R….this seems quite good for that building. I’m also curious about the litigation status, as that used to mean a 15% discount to the market was factored in to anything selling at the Beacon. So, this is one data point that suggests: 1) things are better than they were at “the bottom” (which I still define as Spring 2009), 2) foreclosures and short sales are not indicative of open market RE prices, and 3) prices are not down 40% since the peak for SF as many people on here have repeatedly suggested on here.
    And before I get slammed, I am not saying this is fact but rather things suggested by this one example.

  2. crazy price. one born every minute as they say!
    As for that nonsense about 40% drops, check out #432 in this same building which just sold. down 46% from 2005. Obviously more than that from the 2007 peak. And another 16% from inflation. So I guess you’re right that prices are not down 40%. It’s more!
    But this seller sure found a live one. I hope it was a cash buyer so the taxpayers don’t end up eating the loss from his stupidity.

  3. Financing is everything. The 527K purchase was all cash. The 670K purchase was done when it was very hard to get any kind of financing due to pending litigation. I suspect this latter price of 811K is a properly financed purchase. This building is too specific to represent the condo market. But (careful) congrats to buyers from the dog days of 2009-2011.

  4. @ Anon. First of all, don’t post as “anon”. Not only is it unoriginal, it makes you seem like a troll….probably fitting in this case. Secondly, I clearly said that this was one data point and that foreclosures and short sales demand a discount to market price. This transaction that you referenced was a short sale.

  5. I’m having a hard time believe this sale price. I love SS, but that price just seems way too high for that building.
    Can someone else confirm that $811k number?
    Also what is the $549k number in parenthesis?
    [Editor’s Note: No need to apologize for being skeptical, but the sale price is correct. The “$549,000” was indeed a typo, however, and should have read $549 per square foot.]

  6. I am not too surprised. Amenities are nice. I have seen the swimming pool and the gym. Location is a big plus too, close to the bay, Caltrain, 2 freeways, Bay Bridge, Embarcadero, South Park. Safeway’s downstairs and Trader Joe’s less than 1 mile away.
    Now that the dust is settling we’ll see if $550/sf is sustainable. If good areas of SF are recovering, why not the Beacon after all…

  7. I know it’s the Beacon, but you’ve got to look at the cost on a per square foot basis. $549 a foot is certainly not outrageous pricing. And 1,476 feet is freakin’ huge for a 2br in SoBe.
    And now that the economy is starting to solidify it is good to remember that prices are set buy the one buyer who closes the deal, not the 100 people on the sideline who think the price is too expensive.

  8. So is the litigation settled at the Beacon? Or do you still need to put 25% or more down and pay a higher interest rate?

  9. At that selling price, I’m guessing the litigation has to be settled. Who’s going to pay 800k+ cash to buy there?

  10. Litigation isn’t settled. To be specific it is settled at the moment with the COA (Commercial Association). However the SB800 continues and might have to go to trial late next year unless some settlements happen before then.
    I have lived at the Beacon for almost 7 years. Great location and my unit is nice but I still need a snorkel to breath as my unit is so under water (+200k). So sad the American dream of owning your own home is really the American nightmare. Boy, do I wish I was a renter. I continue to pay my mortgage each month since it is about the same amount that I would have to pay in rent to live in the same neighborhood. I just try not to think about it. Maybe I am in denial……
    So with all that said $800k seems pricey to me.
    Welcome to the Beacon new owner of unit #802. Let me know if you want borrow my snorkel as you probably need it if you paid that price in today’s market.

  11. Thanks for the price confirmation SS and R. It’s really hard to believe someone would pay this.
    I checked out that building at the height of the bubble, and IIRC they wanted “eight hundred and change”, which meant $899k, for some 2BRs in (I believe) this same stack. I thought it was comical then, but I’m just floored someone would pay over $800k for that building now.
    If the price was $611k I’d probably still raise an eyebrow. Amazing.

  12. It’s almost 1,500 square feet. Most of you seem to be fixated on $811,000.
    I think if an entire floor sold for $811k many of the regular commenters here would still be saying it’s too much. And it will be the mantra all the way up (not that you’d ever concede that housing prices will ever rise again, or if they do that it’s sane), however long that may last, until we ever cycle down again (whenever that may be) and they start saying, “I told you so”. It’s the lifecycle of a SocketSite(TM) commenter.

  13. 1,476 sq. ft. for an eighth-floor, 2-BD SF condo is huge, and if the condition of the unit is as good I think the picture looks, I’d snap this up for $811K no problem. I think it’s a good buy.

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