September 20, 2012

Hipster Hotelier Wannabes Take Second Note

385 9th Street

As we first reported and warned this past May:

…the Vagabond Inn at 385 9th Street is scheduled to hit the courthouse steps in San Francisco this afternoon with an opening bid of $269,612. But budding hipster hoteliers take note, it’s the $250,000 second mortgage that’s foreclosing.
While a courthouse sale today would wipe out the $120,000 third, the $1,462,500 first mortgage on the property would remain. And yes, the first is currently in default as well, by $1,183,244 as of last month.

The move by the second mortgage holder to foreclose was subsequently cancelled.

As a plugged-in tipster notes, and no plugged-in reader should be caught by surprise, the first mortgage holder is now foreclosing with an auction scheduled for this afternoon, $1,344,714.78 now owed, and the second and third mortgages likely to be wiped out.

Hipster Hotelier Wannabes Take (Second) Note [SocketSite]
Failing Grades In Auction Buying 101 (And Commenting) [SocketSite]

First Published: September 20, 2012 10:00 AM

Comments from "Plugged In" Readers

Isn't it considered a bad thing to be a Vagabond?

Posted by: inclinejj at September 20, 2012 11:03 AM

I must be naive because it seems like this place ought to cash flow positive when rates for rooms in places like this go for $100-200. Are the internet aggregators taking that large of a cut these days?

But yeah, this place is prime for sprucing up and raising the rates further.

Posted by: The Milkshake of Despair at September 20, 2012 12:19 PM

Better yet, tear the whole thing down and build something that's not a complete piece of crap. That pig's already got all the lipstick she can hold. Dare we beg the Bored of Soup to allow this lot to cast a shadow?

Posted by: vagabond007 at September 20, 2012 2:37 PM

Yeah, that location could support at least four stories. Six would be better.

But don't abandon the hope of adding more lipstick to older bland boxy motels like this. I've seen some really nice remodels recently.

Posted by: The Milkshake of Despair at September 20, 2012 5:23 PM

Status: Sold to outside party for: $2,701,000.00
APN: LOT: 006 BLOCK: 3756
TS Number: FC28795-21
Sale Date: 09/20/2012
Sale Time: 2:00 PM
Property Address: 385 9TH STREET

Posted by: inclinejj at September 20, 2012 5:51 PM

Wonder who it was. This is the sort of property the Ace Hotel Group would really turn around nicely.

Posted by: Anon1 at September 20, 2012 6:11 PM

My sources say the owner bought it. Apparently there was some family dispute and owner wanted to wipe out junior lienholder (which is part of the family/clan). A divorce is also part of the dispute and the junior was siding with wife. So the junior came not only to bid to protect their note, but also to get in some overbidding that would go to wife. By going this way, owner settles debt and divorce, and still ends up keeping hotel! LOL.

Posted by: formerly%whatever at September 23, 2012 11:56 PM

After aqurirred title. Or something like that. This is a good way to get your ass sued off by everyone. If anyone has some legal expertise they can explain it better then me.

But the owner increased the debt from the first TD to over 2.7 mil so did he really win?

Posted by: inclinejj at September 24, 2012 5:24 AM

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