July 9, 2012
Noe Valley TIC Picked: September 2008 To Today
Purchased for $1,368,000 in September 2008, the sale of 1278 Church Street has closed escrow with a reported contract price of $1,425,000, up 4 percent on an apples-to-apples basis versus late 2008 for the three-bedroom Noe Valley Tenancy In Common (TIC).
No word on how the proposed TIC to condo conversion lottery bypass legislation was factored into the purchase, price or marketing.
∙ Green Construction (But Red Comp) Returns On Church [SocketSite]
∙ TIC-Tock It's Apple O'clock [SocketSite]
∙ The Devilish Details For Bypassing SF's Condo Conversion Lottery [SocketSite]
First Published: July 9, 2012 7:00 AM
Comments from "Plugged In" Readers
Well a rational buyer would be willing to pay a premium due to the legislation. The amount of the premium would be calculated by taking the the expected increase in value upon condo conversion less the fees and costs of the conversion times percent chance of the legislation actual passing. So multiple whatever the gain on condo conversion by 0% and you get the premium a rational buyer would add due to the legislation.
Posted by: Rillion at July 9, 2012 9:38 AM
Okay, I have to say I had to read Rillion's comment twice before the snark registered.
But assuming that the proposed TIC to condo conversion lottery bypass legislation actually passes becomes law, then I'd expect the premium for TICs to go over 4 percent. The only interesting thing for me would be to see how fast the TIC price level would reach the new market equilibrium price.
Posted by: Brahma (incensed renter) at July 9, 2012 9:55 AM
Assuming this building is eligible for condo conversion (2/3's owner occupied, not Ellis'd, etc), and has been entering the lottery, they are probably not too many years from winning the lottery. 100% of the 8th year entrants won last year. So if they are in year 3 of entering, for instance, then they have just a few more years before going condo.
They don't mention anything about condo converting in the listing, though, so maybe they're not eligible.
Posted by: rabbits at July 9, 2012 9:56 AM
If there's 'no word on how...', then why is it worth mentioning?
In this example (this sale) I would have thought the offer would have been made fairly-well-prior to the legislation proposal details.
More importantly, at what point in time is it 'generally believable' (general consensus) that buyers out there are offering more $$ for TICs?
Shall we say mid-June, 2012? Late June, 2012? Still no proof yet at all because it's just proposed legislation at this point? Anything that we can point to?
Posted by: DanRH at July 9, 2012 11:03 AM
I'd have to say a good result for the seller. They sold at a good time if they needed to sell.
It's a lot of $$ for a TIC, but these are large units and probably still have a bit of that new-kitchen smell.
Posted by: RenterAgain at July 9, 2012 7:52 PM
Anyone want to hazard a guess about what this would have sold for if it were a condo?
Posted by: observant neighbor at July 9, 2012 9:47 PM
A very good time for condos, so presumably thats spilling over into TICs too.
Last month in SF saw a 7 year high for condo sales, up over 35% YOY, with medians up over 12%!
Posted by: REpornaddict at July 10, 2012 9:24 AM