October 23, 2013

What Would You Do With 57 Acres 20 Minutes From SF And SFO?

Pacifica%20Parcel.jpg

A twenty minute drive south from the heart of San Francisco and twenty minutes from SFO, a 57-acre parcel overlooking the Pacific Ocean in Pacifica is on the market with a "suggested offering price" of $6 million and offers due by November 15.

The marketing notes an "opportunity for future development of residential community with ocean views or use as a private estate," or perhaps a commune for startups? The marketing also notes a "potential tax credit for conservation easement of $14M available this year."

If you pick it up, don't forget to tip your dealers and feel free to throw an acre or two our way.

First Published: October 23, 2013 8:45 AM

Comments from "Plugged In" Readers

Unless there's a severe flaw with this property there's no way it sells for as low as $6M. The "tax credit for conservation easement" sounds as if it might be under the Williamson Act and possibly not subdividable. Could that be the problem?

Posted by: The Milkshake of Despair at October 23, 2013 8:54 AM

Doesn't look like it from the map

ftp://ftp.consrv.ca.gov/pub/dlrp/wa/sanmateo_06_07_WA.pdf

Posted by: B at October 23, 2013 9:03 AM

I'm a huge fan of infill development close to urbanized areas, but this is one of those parcels -- peripheral location not adjacent to established mixed-use, no transit infrastructure, challenging terrain virtually astride a fault line -- that would be better used contributing to the greenbelt it already abuts. My $ to Greenbelt Alliance and TPL are exactly intended to facilitate such acquisitions.

Posted by: Friscan at October 23, 2013 9:06 AM

Diligence posits donating 40 acres to the GGNRA in exchange for a tax credit of up to 14mm (if your bracket is high, implicitly).

The balance of the land is hypothesized as 14 lots. With very steep grading. And of course, neighbors in this area moved to the coast so they could be closer to new residential developments, so you will be getting lots of community support for your efforts. Zoned for 5-acre minimum density, but obviously would need to get rezoned tighter for the 14 lots left over. Nobody really cares about California Coast conservation right? Should be able to slide this little baby right through planning in a few months (!)

I HAVE NEW BRIDGE FROM TREASURE ISLAND TO OAKLAND FOR SALE VERY GOOD PRICE YOU PAY ONLY $5MM DOWN, SELLER FINANCING FOR BALANCE. WHEN CAN WE MEET?

Buena Suerte, Amigos.

Posted by: soccermom at October 23, 2013 9:13 AM

Why, if you were the seller, would you not list this property in the traditional market with a normal due-diligence period, unless you thought doing so would reveal a host of challenges that would impact the property valuation?

http://en.wikipedia.org/wiki/Winner's_curse

Posted by: soccermom at October 23, 2013 9:23 AM

I would like to buy this and build a single-family 30,000 square foot mansion with a helipad.

Oh, wait... fog. Daly City. Blech.

Posted by: Jimmy (No Longer Bitter) at October 23, 2013 10:07 AM

Calling Vinod Khosla.

Posted by: Jimmy at October 23, 2013 10:09 AM

The more I think about it, the benefit of the auction process is that it creates the potential for some bullheaded developer to come along and try to buy and build.

The mere threat of such an outcome could motivate an otherwise wavering conservation group such as those mentioned above to finalize funding for a pure conservation purchase. "IF YOU DON'T PAY UP, I'LL SELL TO A DEVELOPER!"

At least, that's the only way I could rationalize this auction. Like most on-line RE auctions, it's probably a red herring.

Posted by: soccermom at October 23, 2013 10:22 AM

Pacifica is the place where all the nimby's nobees and hippies run City Council. Been this way for over 35 years.

The very reason why the city looks like a 3rd world country.

Posted by: inclinejj at October 23, 2013 10:41 AM

I think calling Pacifica the home of nimbys nobees and hippies when you are writing from San Francisco is sort of like the pot calling the kettle black.

Posted by: sunset guy at October 23, 2013 2:55 PM

Easy access to Gorilla Barbecue, which is a plus in my book.

Posted by: Adam at October 23, 2013 3:33 PM

I used to board my horse in Pacifica. Properties on the flat land by the Ocean sell for more than the houses on the hills, even with a better view. People there want to be closer to the Beach.

Posted by: TESLA at October 23, 2013 4:06 PM

The property is land locked, no access to the coast highway.

Posted by: Hexilog at October 23, 2013 7:10 PM

All properties are granted automatic easements to the nearest road, although it's sometimes desirable to negotiate a different means of access. Also, the graphic indicates there is already an access road.

Posted by: lyqwyd at October 23, 2013 7:15 PM

This was a comp in an appraisal I did a year or two ago. The property has lots of problems. The only real access is at the end of Reichling Ave, a very steep dead-end street. It is in the Coastal Zone, which adds another layer of cost to the entitlement process. The topography is mostly hilly. Steep slopes in coastal San Mateo County tend to be very unstable. Witness Hwy 1 at Devil's Slide. Because of these issues, the only feasible development would probably be very low density. That means the cost to extend the street and utilities would be amortized over a fairly small number of sites. It costs about $200/foot to build dirt/gravel roads in hill country. Since this property is in the city, it would cost much more, since it would have to be wider and paved. I could go on....

Posted by: Schaetzer at October 23, 2013 10:35 PM

I think calling Pacifica the home of nimbys nobees and hippies when you are writing from San Francisco is sort of like the pot calling the kettle black.

Posted by: sunset guy at October 23, 2013 2:55 PM

I grew up in Pacifica. Got the hell out after High School. The name should be a dead giveaway!

Posted by: inclinejj at October 24, 2013 1:22 PM

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