October 9, 2012
A Penthouse Monopoly And Moving On Up From Pacific Heights
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 we reported after the deed was recorded and the sale very quietly closed escrow at $5,565,500 (a record $2,784 per square foot), the buyer was, in fact, the aforementioned First Republic Bank Chairman and CEO that had to have it and now owns the entire floor.
And as a plugged-in reader presciently commented eight months ago:
I wouldn't be surprised if [a top agent] ends up with a nice view listing on Vallejo in a year or so. I don't know the family well, but 10 years ago I ended up at a Christmas sing along party at the Vallejo house and didn't spend much time singing in the front room with the piano since the view at the back of the home was just amazing...
While not yet listed, the CEO's home at 2636 Vallejo is now on the market and asking $11,500,000 for the 7,050 square foot house with big bay views out the back.
∙ Listing: 2636 Vallejo (7/5.5) 7,050 sqft - $11,500,000 [2636vallejo.com]
∙ 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]
∙ A Record $2,784 Per Square Foot In SF And Bank (Executive) Owned [SocketSite]
First Published: October 9, 2012 10:45 AM
Comments from "Plugged In" Readers
Is the editor suggesting a Dwelling Unit Merger?
That is not allowed. No, no, no.
It does not matter who owns it, or how much it costs.
It will remove 'affordable' housing from the market.
It will create a 'mansion' something that certain Planning Commissioners oppose routinely.
The Planning Department will rightfully and righteously oppose this.
DR must be filed quickly.
Even if there are 10,000 new units in the pipeline.
Posted by: conifer at October 9, 2012 11:04 AM
Very nice. This is a hard one to predict. $1631/per square foot seems very very high considering this home will eventually have some pretty major improvements thrust upon it. I'll go with a more conservative yet still aggressive $1400/psf. It could go either way in my opinion. Not too many homes with this location / view.
The house on Pacific (2420) with no garage between Fillmore / Steiner is looking to me like one of the best purchases over the past few years. $7.4M seems a bargain for that house, lot, view.
Posted by: eddy at October 9, 2012 11:41 AM
It does matter "how much it costs", and the Planning Commissioners do not oppose every dwelling unit merger.
I'm basing my non-professional opinion on 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.
There is no way that any one of these penthouse units could be considered "affordable".
Posted by: Brahma (incensed renter) at October 9, 2012 12:00 PM
There was a small one bedroom in a Soma highrise for over $1.2m a few years ago that the neighbor bought. She was supported by her fellow condo owners in wanting to merge it with her larger apartment on the same floor.
The Commission turned down the merger, claiming the units were "affordable."
The current policy is mad. In cities with far greater housing shortages, New York, London, and especially Paris, mergers are done routinely by right. Paris has a socialist mayor.
The only way to change SF policies like this is to change the Supervisors. Slowly but surely that is happening.
Posted by: conifer at October 9, 2012 12:24 PM
That was for a $1.2M property in pacific heights.
So it's not like planning commissioners oppose every dwelling unit merger.
Posted by: Brahma (incensed renter) at October 9, 2012 12:53 PM
This will be approved. The units were very, very expensive and the new tax base for the joined properties + remodel could add an annual 200k in property taxes to the city coffers. This guy isn't a plebe like the rest of us and he likely doesn't have to play by the same rules. I'm fine with that...
I'm surprised at the condition of the Vallejo house. It needs a lot of updating (most of it cosmetic), and the views are kind of meh. A house below at 2550 Green sold for 9.5 in a few days, so that's a good comp. This block is unique in that it only has a handful of homes, all on the north side. The south side is a sheer wall that leads up to Normandie. Only one other house, 2668, has come on the market in, say, the last 10 years. I say it goes really close to asking.
Posted by: Denis at October 9, 2012 1:16 PM
Brahma, as you well know, they do not oppose all of them, because 95 percent of the mergers are not brought to Planning. Most people are aware of the political climate.
As long as there are regulations that make no sense at all, people will ignore them and live a quiet private life.
The owner of the California Street house took the gamble because he needs to refinance.
Posted by: conifer at October 9, 2012 1:25 PM
According to the listing for 2636 Vallejo, the seller would like to rent back the property through December 31 at a rate of $25K/mo. I'm guessing that's because there will be major construction to the 1170 Sac condo to link all the units together.
Posted by: Lori at October 9, 2012 1:29 PM
I've never fully understood the sale of 2550 Green. Seemed way overpriced and sold very fast from listing to closed, 18 days. So I guess that is a good comp.
Posted by: eddy at October 9, 2012 4:51 PM
Why do I feel poor all of a sudden?
Posted by: Oceangoer at October 10, 2012 12:06 PM
Was on Nob Hill today and glanced up and saw the entire top floor of 1170 Sacramento is sheathed in fabric, so they are underway with the gut and rebuild of the entire floor.
Posted by: Jim at October 10, 2012 8:11 PM
The house on Vallejo is pending. No real surprise there.
Posted by: Denis at October 25, 2012 12:30 PM
I was wrong. 2.25 million OVER asking. 13.75 close... Almost 14 million... Sweet Jeebus.
Posted by: Denis at November 23, 2012 10:58 AM
Speaking of high-end real estate. I saw on WSJ that 2724 Pacific is for sale at 30 million (which isn't totally unreasonable). I also noticed a few weeks ago, Malin has a Gold Coast home listed, but no details. Any idea which home?
Posted by: Denis at November 23, 2012 2:15 PM