October 30, 2012
It's Time To Acquire A New Garage Up In Pacific Heights
Once again, previous owners of the Pacific Heights home at 1945 Franklin Street have included Nicholas Cage and Patricia Arquette. And as plugged-in people know, the infamous Excalibur with "ACQUIRE" license plates currently resides in the garage.
As we reported when 1945 Franklin was scheduled to be un-acquired on the courthouse steps last year:
Purchased in June of 2005 for $3,000,000 by way of a $2,350,000 first mortgage and a $790,000 construction loan second (yes, that's over 100% financed), the property was refinanced in September 2006 to the tune of $5,000,000 to which a $500,000 home equity line of credit was added three months later.
Scheduled to hit the courthouse steps [in 2009] with $5,684,086 owed as of [that August], the balance due on the $5,000,000 first was up to $6,157,795 as of [January 2011]. And no, we don’t believe any payments have been made since.
Having received a last minute reprieve two weeks ago, and with over $6,594,973 then owed on that $5,000,000 first alone, the title to 1945 Franklin was taken back by the bank yesterday with no bidders at $3,235,600 in cash on the courthouse steps.
No word from the now ex-owner who runs a boutique investment bank advising clients in ways to borrow money and appears to have walked away with well over $2,000,000 that had been borrowed against the house along with a few years (and counting) of payment free living in Pacific Heights.
∙ On The Verge Of Being Un-Acquired. Again. [SocketSite]
∙ How To Acquire "Free" Money: Borrow, Then Don’t Pay It Back... [SocketSite]
∙ 1945 Franklin On The Verge Of Being Un-Acquired [SocketSite]
First Published: October 30, 2012 12:00 PM
Comments from "Plugged In" Readers
I obviously haven't seen any loan docs, but I'd bet that a rather large chunk of that $6,594,973 owed on the $5M first lien was accumulated late fees, penalties, and interest. Any self-respecting master of the universe finance type wouldn't pay any of that, and he was probably expecting to negotiate his way out of it in order to bring the loan current and relive the lender from having to foreclose.
Guess that didn't work out so well.
Posted by: Brahma (incensed renter) at October 30, 2012 2:56 PM
Seven years in Pac Heights and he not only paid $0 but got paid $2 million! Worked out pretty well for him indeed!
Posted by: anon at October 30, 2012 3:15 PM
And yeah, it was all those sub-prime welfare queens that caused the meltdown...
What a crook. This guy should be in jail.
Posted by: MattM at October 30, 2012 10:13 PM
In jail? From a pure business prospective, this enterprise was extremely successful. If he gets anything, it will be a promotion in pure Robber Baron fashion.
Posted by: lol at October 30, 2012 11:26 PM
friendly guy. I thought he was the manager of some rock band or a retired musician.i did not think the capatalist world embraced individuality.
Posted by: meep at October 31, 2012 9:05 AM
How come I never get in on any of these great deals? $2M cash out and rent-free living for 5 years in Pac Heights... I feel like such a schmuck for working and paying my mortgage on time...
Posted by: Jimmy (No Longer Bitter) at October 31, 2012 9:25 AM
Maybe this guy went to the VanWagner school of how to bilk people out of money?
Posted by: inclinejj at October 31, 2012 11:45 AM
For the longest time I thought he was a retired heavy metal musician based on his appearance. Really friendly guy, always says hello when I pass his house walking my dog. But he and his wife and daughter are still very much in the house, with no indication that they're going anywhere.
Posted by: Lori at November 1, 2012 2:23 PM
I've seen him several times at the Blue Bear School of Music down in Fort Mason. Like others, I thought he was some retired rocker. Kudos for the outfit. Wish I could get away with not paying for housing...
Posted by: Gregg at November 14, 2012 3:34 PM
Posted by: eddy at March 7, 2013 7:30 PM
Reduced: 2,750,000 (previously reduced to:$3,182,500 at some point)
Posted by: eddy at June 4, 2013 3:59 PM
Posted by: eddy at July 23, 2013 5:56 PM
Sold @ 2.525. I'd say the banks got what they deserved on this one.
Posted by: eddy at August 26, 2013 6:30 PM
The pictures of the interior were.... scary. I'm surprised no one commented. $480 per foot sounds like a steal, but I'm not so sure. Lots of deferred maintenance, poor location, and it seems in perpetual shadow....
Posted by: Denis at August 26, 2013 10:44 PM