May 22, 2012

A Record $2,784 Per Square Foot In SF And Bank (Executive) Owned

1170 Sacramento #19B View

As a plugged-in reader wrote when we first reported that 1170 Sacramento #19B was in contract having been listed for $6 million or $3,000 per square foot:

No doubt the new owner is the same First Republic Bank exec that swooped up PH A and C. Both within the last year. Now he can build out a full floor penthouse mecca. Who else would have paid the over-the-top asking price? Only someone that had to have it.

As another plugged-in tipster notes, the deed has been recorded and the sale has very quietly closed escrow at $5,565,500. While not over $3,000 per square foot, call it $2,784 which is still a new record in San Francisco, we do believe.

And the buyer? Yes, that would be the aforementioned First Republic Bank Chairman and CEO that had to have it and now owns the entire floor.

Scoop: A Record $3,000 Per Square Foot In San Francisco Within Sight [SocketSite]
Shooting For A Record $3,000 Per Square In San Francisco [SocketSite]
The Shell Of The Northern Penthouse Atop 1170 Sacramento Sells [SocketSite]

First Published: May 22, 2012 11:00 AM

Comments from "Plugged In" Readers

This is sort of interesting as there were some rumblings out there of more potential offers and interest. Even the editor heard $6M and $3k/psf. Never a dull moment in high end real estate. Maybe there were some late stage negotiations.

Posted by: eddy at May 22, 2012 11:26 AM

I believe the price per square foot record has already been broken again by 2845 Fillmore, which, if Redfin's records are accurate, sold for $2988 per foot. I don't have any more info, however. It's possible the square footage is greater than what was recorded by the city. Anyone?

[Editor's Note: With respect to 2845 Fillmore: Hidden From The Street And Public Records.]

Posted by: Denis at May 22, 2012 11:27 AM

I wonder if this extraordinary sale will be used as a comp.

Posted by: The Milkshake of Despair at May 22, 2012 11:50 AM

This is a great sale, but I don't think it's going to be that effective a comp for condos any more than the Getty Penthouse was back in 99. That sale didn't spur a bunch of $2700+ per foot sales.

Anyway... I wonder if the owner will sell his Pac Heights home once this project is complete?

I think it's also really telling that this place is going to be gutted again. Should be interesting.

Posted by: Denis at May 22, 2012 1:15 PM

"I think it's also really telling that this place is going to be gutted again."

I doubt this place will be gutted, the renovation was over the top nice and expensive. I bet the other two units will be renovated to match and then linked together.

Posted by: ExAgent at May 22, 2012 1:22 PM

Is this property not covered by restrictions on merging units and reducing the housing stock? Or are some people just not covered by those restrictions?

Posted by: Les Ismore at May 22, 2012 1:47 PM

Glad to see that the taxpayer dollars that pulled First Republic out of trouble are spent on a nice apartment for its CEO.

Posted by: unwarrantedinlaw at May 22, 2012 2:41 PM

Is this property not covered by restrictions on merging units and reducing the housing stock? Or are some people just not covered by those restrictions?

I suspect this unit isn't.

I'm going by this S.F. Planning page explaining Removing Dwelling Units:

In some cases, a mandatory public hearing may not be required. Since the policies against dwelling unit removal/merger are designed to protect affordable and 'sound' housing, housing that is either not affordable, or not sound, may be approved administratively

Emphasis added.

Since there is no way that this unit could be considered "affordable", a simple administrative consideration would happen and probably be granted via ministerial approval.

Posted by: Brahma (incensed renter) at May 22, 2012 3:33 PM

First Republic was never "in trouble". They were sold to Merrill Lynch for a tidy sum, transferred to Bank of America when ML went under and then repurchased by the original owners at a deep discount. All that time they were well run and profitable and never over extended. Um, yes I bank (borrow) there almost exclusively. Additionally, I am grateful to their underwriters who discouraged me from buying more property in 2007.

So, in short, if the executives are doing well there, at least they run a good company.

Posted by: ryan at May 23, 2012 7:40 AM

Taxpayer dollars were used to bailout First Republic? Are you sure about that?

Posted by: Jordan at May 23, 2012 7:45 AM

yes, although indirectly. it was a sub of Merrill Lynch and would have gone under with the rest of the firm but for the taxpayer.

after the b of a acquisition it spun off into a separate firm with an IPO.

Posted by: anon at May 23, 2012 8:10 AM

I knew it.

Posted by: RJ at May 23, 2012 4:24 PM

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