August 7, 2013

Unreal Expectations For Castro Street Corner Of Condos

With approved designs for 24 condos to be built at 376 Castro Street now in hand, the owner of the gas station site is trying to sell the parcel for $12,000,000, not including the cost of construction, a whopping $500,000 per door (industry speak for potential unit).

Keep in mind that the average cost per door for entitled land deals of this size in San Francisco is currently running around $150,000. And while that's up from closer to $50,000 per door in 2010, it's still a long way from $500,000 which would be quite a record and could spell trouble for those hoping for a quick development of the corner.

That being said, according to the listing on craigslist, "financing for 12,000,000 may be available depending on down payment & credit," so there's that.

The Refined Designs For A Prime Market And Castro Street Corner [SocketSite]

First Published: August 7, 2013 10:00 AM

Comments from "Plugged In" Readers

I really like the look and feel of this building...hope it's built....

Posted by: Brian at August 7, 2013 10:21 AM

Greed, greed, greed.

Posted by: Joel V at August 7, 2013 10:47 AM

If they are posting this property on craigslist they don't know what they are doing, and it's not gonna sell anywhere near that price if the average is less than a third of what they are asking.

Posted by: lyqwyd at August 7, 2013 10:47 AM

10:47 nailed it.

If you are posting a $12,000,000 property on Craigslist aka cheap skates gazette, you are either blowing smoke, pipe dreaming, or on the pipe too much.

Posted by: inclinejj at August 7, 2013 10:58 AM

While convenient, it's also a very noisy corner with lots of traffic. Good luck!

Posted by: jlasf at August 7, 2013 11:26 AM

I remember in 2005 this same gas station getting in trouble for price gouging when they one day raised the price per gallon from $3 and change to $6 and change.

The city had to step in and tell them it was illegal.

Not surprised they are going for the big bucks with the land deal. Will be interesting to see if it causes the deal to fall apart.

Posted by: badlydrawnbear at August 7, 2013 11:36 AM

I don't know, putting things up for sale in odd places seems to be the new thing:

http://www.amazon.com/LEnfant-tasse-portrait-Jean-Monet/dp/B00E2PAN0Q/ref=cm_cr_pr_product_top

Posted by: redseca2 at August 7, 2013 11:38 AM

To the question of whether the owner is "cheap," one might also consider why the name of the gas station is "RC." See, it used to be an Arco. And when it went independent, the owner simply painted over the "A" and the "O." Voila.

Posted by: NJ at August 7, 2013 11:43 AM

"While convenient, it's also a very noisy corner with lots of traffic..."

I recently stayed at a hotel in New York on a busy street. The triple pane windows made the road noise a non-issue. I'm sure they'd use something similar here.

Posted by: zzzzzzzz at August 7, 2013 11:58 AM

I like that the Monet on Amazon in the link above comes with free shipping...

Maybe the craigslist poster should offer the buyer free gas while in escrow...

Posted by: lyqwyd at August 7, 2013 12:28 PM

This same gas station also covered up all their signage with banners advertising/celebrating Sarah Palin's visit a few years ago. They seem to be a bit batty.

Posted by: Jason at August 7, 2013 12:42 PM

LMFAO. This is too funny for words.

As for the proposed development...IMO there is way too much glass for this intersection...noise, wind, dirt and pollution.

Posted by: Mark at August 7, 2013 1:15 PM

$500K per door is way too much especially when consider the remediation cost of cleaning up the land under the gas station which is typically contaminated.

I refuse to patronize this gas station -- the operator is totally sketchy. If you go to gasbuddy, they always have the cheapest price for gas in the city, but then when you go there, the price is usually about 50 cents more. Sites like gasbuddy are crowdsourced (individuals submit the "price they paid" at a given station). I guarantee you these guys are going online and submitting fake price reports for their own station.

Posted by: Greg at August 7, 2013 1:44 PM

Does the "$500 per door" figure account for mandatory "affordable" units or in-lieu fees?

What is the total per-unit exaction (affordable housing fees, infrastructure fees, public art fees, etc.) that the city demands for a development such as this?

Posted by: observant neighbor at August 7, 2013 2:32 PM

Triple the height ;)

Posted by: Mike at August 7, 2013 3:24 PM

Strangely, it has been in MLS since July 23rd, but there is a duplicate listing entered at 3:59pm today by a different broker (maybe in response to this blog?) Normally duplicate listings can't be done because the re-use of a parcel number causes a rejection, but the earlier listing bypassed the parcel number input.

Posted by: formerly%whatever at August 7, 2013 4:54 PM

So how did the plans for the building get drawn, debated and approved with no regard to how much the land was going to cost?

Posted by: grumpy at August 7, 2013 5:23 PM

Is that $500k per door figure after the seller credit for environmental remediation? Underground Storage Tanks almost always never leak sometimes....would be surprised if the market value for the land (setting aside any potential environmental issues) is much north of $120k per door.

Posted by: DB73 at August 8, 2013 8:27 AM

IMO, the new developments springing up along the length of mid-Market and Castro districts are too tall... lop off one storey for starters.

Posted by: John B at August 10, 2013 10:45 PM

I think the building is pretty ugly and clearly inappropriate for the location. It should cut out some units and drop a story off the street edges, and some effort could be made to acknowledge and deal with the impact to units behind it - I know someone living in one of them. Ideally it would be mostly smallish, all very affordable units. There are MANY street festivals right at this intersection. The building as it is currently designed somehow already looks, to me, intolerant of such activities. I deeply hope it doesn't get built the way it is.

Posted by: Drew at August 14, 2013 1:24 AM

^Also, there should be free ice cream available at all times in the building. And cookies. And maybe milk too.

Posted by: anon at August 14, 2013 7:08 AM

I vote for free beer!

I'm curious where you got the data for the current $150k/door.

Posted by: Skirunman at August 14, 2013 7:24 PM

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