November 21, 2012
The Facebook Effect On Noe
Nine months ago the newly constructed 3,400 square foot modern home at 1507 Noe Street hit the market listed for $2,750,000 and sold for $2,950,000 this past March. The faceless buyer of the Noe home was officially "Hangar Labs LLC," which we'll report was formed by a single Facebook engineer.
Two months after the purchase of 1507 Noe, just before Facebook went public at $38 a share, a two million dollar adjustable rate mortgage was taken on the property.
And yes, this is the house with the shower from which to see and be seen:
∙ Listing: 1507 Noe Street (4/3.5) 3,400 sqft - $3,599,000 [1507noestreet.com]
∙ Say Hello To Your Little Friend (In The Shower) At 1507 Noe [SocketSite]
∙ Facebook On The Home Front [SocketSite]
∙ We've Been Looking Past The Overhyped Facebook Effect, Have You? [SocketSite]
First Published: November 21, 2012 10:30 AM
Comments from "Plugged In" Readers
The February 23rd socketsite post: Look Past The Overhyped Facebook Effect.
[Editor's Note: That's correct and we'd make the same point again (as we did), but "the Facebook effect" that's in play with respect to the quick sale of 1507 Noe might not be what you're thinking.]
Posted by: sparky*b at November 21, 2012 11:08 AM
It is all just play money now.
Posted by: Cade at November 21, 2012 12:30 PM
How does CA treat single member LLC's for tax purposes? The IRS frowns upon them and basically strips them of LLC status and treats them like sole proprietors.
If the LLC is sold, does the low tax rate stay with it or does CA say "no you're not a real LLC so you don't get that privilege?"
Posted by: scurvy at November 21, 2012 12:37 PM
I hope it sells for at least asking.
Posted by: futurist at November 21, 2012 12:45 PM
The FB employees I know are doing fine but their plans to buy in Atherton changed to Mountain View, houses to condos, etc. For better or worse, none were in a position to buy before the lockup ended and they knew what they were worth.
Posted by: Michael at November 21, 2012 12:58 PM
What are you talking about? Llcs have pass thru taxation. There is no such thing as lower tax rates. People buy and hold thru llcs to limit personal liability and sometimes for a veil of more anonymity. Maybe I'm getting overworked over this but I sensed a rant towards higher taxes for the "rich". Plenty of good reasons to take advantage of llcs but lowering taxes is not one of them.
Posted by: Oscar at November 22, 2012 9:32 AM
Man, the Ed's take on how he called this stuff when he took pains to argue against it is too funny + typical. And LOL at Tipster X infinity.
Posted by: Anew at November 23, 2012 3:48 PM
Scurvy - Short answer is that for a single member LLC that owns real property in CA a change in ownership of the LLC needs to be reported to the county where it will be treated as a change in ownership of the property.
So no property tax savings by buying the LLC with the property rather then just the property. Unless you fail to report it to the county and risk the penalties and back taxes if they find out later.
Posted by: Rillion at November 26, 2012 9:32 AM
Oscar, my little slice of pumpkin pie, where did I reference LLC or property taxes? What are you talking about, luv?
I'm referring to a price increase from 2.7 to 3.6 MILLION for what should be a family home for the working class not the continual influx of rich children with phantom cash. This is why SF has lost all its charm and personality. But then, you already knew that didn't you lambchop.
Posted by: Cade at November 26, 2012 10:15 AM
The seller is trying to cash out his leveraged asset and make a 22% profit before-fees and taxes.
One thing to consider is that the market has been up "only" 15% in 94131 since February.
Therefore the seller, who overbid by 7% in February and probably baked future increases into his bid, is assuming someone will do the same as him and pay 7% more than the market 15% increase.
Very bubbly data point if this ever sells close to asking.
Posted by: lol at November 26, 2012 10:55 AM
@ CADE: What does "phantom cash" mean?
Posted by: VancouverJones at November 26, 2012 2:30 PM
Rillion, thanks for the response.
It seems like Oscar is both off his rocker and off his meds.
Posted by: scurvy at November 28, 2012 3:06 PM
The list price for 1507 Noe has just been reduced $200,000, now asking $3,399,000.
Posted by: SocketSite at January 2, 2013 1:16 PM
The listing for 1507 Noe has been withdrawn from the MLS after 109 days on the market without a reported sale.
Posted by: SocketSite at February 27, 2013 8:01 AM
In contract, actually.
[Editor’s Note: The listing status was changed from Withdrawn On Tuesady to In Escrow late yesterday.]
Posted by: Anonchiban at February 28, 2013 3:47 PM
Out of contract, actually, and once again listed as active.
Posted by: SocketSite at March 5, 2013 7:35 AM