430 Eddy Street Site

As we reported last year:

Purchased as an un-entitled Tenderloin parcel for $1.6 million three years ago, plans for an eight-story, market-rate building with 23 sub-500-square-foot residential units to rise on the 430 Eddy Street site were approved by the City [in 2016].

Two months later, the now “Fully Entitled!” site returned to the market listed for $5 million, a price of roughly $220K per entitled unit, which was “around the price per unit that developers have been paying for luxury sites around the city“, as we first reported at the time.

The asking price for the parcel was subsequently reduced to $4.8 million, or “closer to $200,000 per entitled unit (which remains in the current luxury price range)“, as we also first reported at the time.

And today, the asking price for the 430 Eddy Street parcel is down to $3.5 million or roughly $152,000 per entitled unit (not including the value of its ground floor commercial space) with the building permit for the project having been requested and expected to be approved within the next four to five weeks.

And with the aforementioned building permit having since been approved, the list price for the 430 Eddy Street parcel and plans has just been reduced to $2.998 million or roughly $130,000 per entitled studio unit, “in [the] up and coming Tenderloin District…on a trendy block,” not including the value of the development’s 931-square-foot commercial space fronting Eddy.

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Comments from “Plugged-In” Readers

  1. Posted by Dave

    The entitlement’s original asking price was ridiculous -.even given the frothy exuberance days of 2015. The current price is in the ballpark but, with the location and the very uncertain condo market, it may need to be lowered further to get someone to bite. Of course it may sit unsold indefinitely. Developers/investors are steering clear of SF

    Good to see SS follow-up on this un-built entitlement. As more entitlements are put on the market SS might consider doing regular follow-ups such as this. Especially on the larger entitlements that are on the market. One Oak, 1270 Mission, the entitlements for two of the 4 proposed 6th St. housing blocks are on the market too – IIRC. Also the huge project in the Inner Sunset near 7th. Ave. It has been on the market for a year. Those projects alone number almost 2K housing units. It’s likely some of these entitlements won’t sell and the projects will be totally scttled. Of course some do sell. The entitlement for the townhome development on Mt. Sutr sold after several price reductions.

  2. Posted by Amewsed

    Death by a thousand cuts. List at $1.8M to see if there are immediate buyers. If not, you know you have to take a loss. Either hold on to the parcel until next cycle, or sell below cost and move on.

    Luxury condos in the Tenderloin is an oxymoron. People rather buy the worst house on the best block to maximize upside.

    • Posted by Dave

      At 1.8 Million it would probably be a loss for the investors. All the entitlement and architectural work likely cost several hundred K so they may need to sell for 2.1 million or so to break even. That said, they’d be wise to take a loss at some point as opposed to sitting on this site. The long-term potential for the area is not good – even in the next up cycle. Entitlements are hot right now in a number of metros (selling for steep premium) but not in SF. Entitlement only investors became wary of SF/the Bay Area in 2014/2015. About the time these folks were jumping in. Before they reinvest they better bring on board someone who knows entitlements and national macro real estate trends. They obviously had/have no clue.

  3. Posted by turn and bump

    super tiny units aren’t exactly luxury …..

  4. Posted by Zugamenzio Farnsworth

    300 Hyde block, half a block away, just dubbed dirtiest in town by SFGATE. I keep wondering if “this” area will ever tone up. A handful of new businesses dot the scene, but the homeless and drug dealers…

    • Posted by Brahma (incensed renter)

      Actually, I believe it was the New York Times’ San Francisco bureau which recently published the piece entitled Life on the Dirtiest Block in San Francisco, money ‘graph:

      According to city statisticians, the 300 block of Hyde Street, a span about the length of a football field in the heart of the Tenderloin neighborhood, received 2,227 complaints about street and sidewalk cleanliness over the past decade, more than any other. It’s an imperfect measurement — some blocks might be dirtier but have fewer calls — but residents on the 300 block say that they are not surprised by their ranking.

      and yes, the area has been one of the few (I’d say the only) in The City which has resisted gentrification. The eye-opening stat in the story: The Public Works Department and a nonprofit organization in the Tenderloin picked up 100,000 needles from the streets over the past year.

  5. Posted by Anon random

    This is a terrible block. For for a non profit it works. I would say the 200 block of Leavenworth is worse than this or the 300 block of Hyde.

  6. Posted by Conifer

    There are many horrible blocks in the Tenderloin, and it will never change until there is a city government that wants to change them. In other cities, such as London and Paris and Washington, huge chunks have been gentrified in recent years. It is not the average square foot price city-wide that determines if neighborhoods will change, but the zoning and approval process. San Francisco is still burdened with anti-growth politicians hoping to effect social change through sticks and not carrots. It will not work in general and certainly not in the Tenderloin.

    • Posted by Amewsed

      That is what I will never understand, the few who will let an entire area potentially worth hundreds of millions of dollars of business, housing, jobs, overall safety, walk ability and desirability left to rot and get support for such asinine policies. Anywhere else in the world, these people would be kicked to the curb and then run over by a car…twice.

      The epitome of a pauper sitting on a goldmine.

      • Posted by katdip

        “Kicked to the curb and run over….” – nice. So describe to me how it this capitalist paradise of yours would work. The City allows unfettered development in the Tenderloin, lets developers and landlords kick out the poor and the working class that actually live in the buiildings there? You do realize that most of the people pooping and shooting up on the streets don’t actually live in apartments, right? Are you talking about just emptying out the SROs or all the rent controlled apartments where many immigrant families live? Even if the city were able to get some revenue windfall from that displacement, where would those people go? Would you demand police caravans to ride them out of town to make way for the Masters of the Universe newcomers?

        • Posted by Amewsed

          Look at how other countries do it — it isn’t simply one extreme or another. Drug dealing and crime is bad and so are the mentally ill. The poor immigrants living in the Tenderloin deserve to be in a safer and more vibrant neighborhood where their children could safely play in the park without witnessing drug deals and other unsavory behavior.

          In Singapore over 90% of people live in government housing which they can buy at a reduced rate from the government. Nearly all of these housing have hawker stands, several hundred one or two people food stands serving up inexpensive meals and food to the entire general public. Mom and pop get to run a small shop, putting out a few items and earn some money with reduced rents for their food space overseen by their government, instead of a private landlord. This is how one of the hawkers, Hawker Chan, earned one Michelin star for his soy sauce chicken rice for about $3 an order.

          Just one example…

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