November 8, 2013
Price For Potrero Hill Compound Cut Another 13% After Twitter IPO
Listed for $5,995,000 this past June, the price tag for the Potrero Hill compound on the corner of Mariposa and Utah was cut to $4,995,000 in September.
Last night, the list price for the 6,645 square foot former art school building at 2255 Mariposa Street which was remodeled and converted to legal dwelling units in 1987 was cut another $645,000, now asking $4,350,000.
From the comments at the time of the previous reduction to $4,995,000: "No way this place is overpriced at this point. Gutted SFHs are going for over $750/sq ft near there - all it takes is one buyer (or that twitter IPO)." While that one buyer hasn't been found, that IPO has happened.
First Published: November 8, 2013 9:00 AM
Comments from "Plugged In" Readers
Good Morning Socketsiters. I just went to the property web site and it said it is no longer listed. Maybe it was already gobbled up by the IPO. Quite a property.
[Editor's Note: While the property web site hasn't been updated for the new price, the property is still active and available on the MLS.]
Posted by: noe mom at November 8, 2013 9:17 AM
Technically, everything that happens from today forward will be "after the Twitter IPO". I don't believe these two events (Twitter IPO and Price Reduction) are correlated in anyway. I've always felt this property was overpriced. The exterior doesn't match the interior. Still, it's a cool property but prices in this area isn't really supported by anything else in the area. Lot's of potential there. But probably still over priced. Will be curious to see how Twitter's value changes over time.
Posted by: eddy at November 8, 2013 9:34 AM
This place is looking for a very specific buyer -- one that actually wants over 6500 sq ft of living space and is willing to live in a rather odd location -- sandwiched between Potrero Ave and the 101 freeway, 1 block from the UPS depot, etc.
Posted by: Greg at November 8, 2013 9:45 AM
Also, that IPO money isn't going to be circulating (en masse) until the lockup expires.
Posted by: xyz at November 8, 2013 10:21 AM
Amazing how focused on negative data points this site can be...a few years ago there were multiple postings about the Noe Firehouse, until it finally sold in 2011. The haters crowed with pleasure. It resold this year - less than 2 1/2 years later - for much more money...over asking, actually. No mention of that data point on the site at all, unless I missed it.
[Editor's Note: That's right, we cherry picked this data point five months ago when we first featured it knowing that it would be reduced in September and then again a few hours after the markets closed on the day of Twitter's IPO. Brilliant.
With respect to the Noe Firehouse, stay tuned and keep ignoring all the other "positive" data points and data we post, because then you might not have anything to publicly not bash about.]
Posted by: Not bashing at November 8, 2013 10:46 AM
My understanding is that there are six trustees and that's why they wanted 6m. This property would sell for around 3m. Not much more.
Posted by: Truth at November 8, 2013 11:38 AM
I visited this house. Lots of space. But lot of work to be done -- both cosmetic and structural. No parking either, which is a challenge.
Posted by: wenttoseethehouse at November 8, 2013 3:13 PM
No parking? No problem - just make yourself a little batcave underneath! Also, the twitter folks are locked out for 6 months, but that's not too long for a property like this to wait. It's easily the biggest SFH for quite dome distance, and as previously mentioned, the location is a bit, uh, unique.
Posted by: Brian at November 8, 2013 3:42 PM
Again, it would be hugely expensive to excavate a garage out of that franciscan assemblage (see name link)
Posted by: Truth at November 8, 2013 6:23 PM
If you can afford to drop that kinda cash on a place that needs that kind of work, you can afford the batcave.
Posted by: Brian at November 8, 2013 6:39 PM
This thing is the textbook definition of a white elephant.
Freud must be in the house...as it's painted all white too ;)
Posted by: poor.ass.millionaire (formerly 49yo hipster) at November 9, 2013 1:03 AM
Again, it would be hugely expensive to excavate a garage out of that franciscan assemblage
Good lord! NIMBY friars??!?!?!?
Posted by: BobN at November 9, 2013 5:54 AM
@bobN , huh? No NIMBY here + guess you didn't read the link. I kind of like the deal for 3M because it will take a million to build a garage, and the place is worth 4.
Posted by: Truth at November 9, 2013 7:51 AM
The term for the rock is Serpentine. Naturally occurring asbestos. Very difficult to get approval to remove and it can not be "dumped" in SF. The underpinning of the building would be a structural nightmare. It also comes with the house on stilts to the south and a cinder block building you can not see from the street. The view is partially blocked by massive amounts of wires. It is easy $2MM of work and $600K+ for parking. Then you get to walk around the corner up a triple staircase with your groceries. Good luck getting over $3MM.
Posted by: Been there at November 9, 2013 10:54 AM
Nice enough location, and huge amounts of space but it needs parking at this price point and a significant amount of work done not to mention it borders the Bayshore FWY
Will be interesting to what it goes for.
Posted by: Joseph A at November 9, 2013 2:26 PM
This is tangential, but in the boom of the last few years, it is amazing the amount of personal wealth creation that has happened from companies that don't make any money. Twitter has lost about $500mm cumulatively over the last three years. They lost $134 million over the first three quarters of this year; this loss is up about 89% YoY. It's not that hard to grow revenue when you don't care how much it costs you to do so.
Posted by: gray at November 11, 2013 10:23 AM
Forget the house, I want the artwork.
Posted by: MoneyMan at November 12, 2013 2:19 PM
This is at best a teardown. Rotted beams, rusted staircases and at least $500-750,000 to put in a garage!!!
All systems are either out of code, unknown or 40+ years old.
You need to walk up three to six flights a day depending on what floor you need to collapse on, and whisper was it wasn't ready for an earthquake.
It would cost $2-3m to make this liveable, and at least two to three years of permits and pain. Even if you paid $2m you would at best breakeven after sacrificing years of your life to a project that sites next to a wave of never ending smog.
Will a trust that started at $6m sell for $2m? It can't be rented, because for $15-20k a month you could live in a stunning high rise with a doorman--and three parking spaces.
... and not endanger the life of your family.
You can put all the art you want into it, but only a fool would consider this a viable option. Why not buy two teardowns in the area, over pay for them and spend $200-400 a sq foot on your dream home, get it done in 18 months and not have to risk blowing through bed rock?
$6m to $5m to $4m... what do you guys think this realistically would go for?
Who else has visited it?
Posted by: chitowner at November 18, 2013 9:45 AM