The two-bedroom, 870-square-foot cottage at 835 Sanchez Street, which sits on a 2,200-square-foot parcel with big views atop Liberty Hill, has just sold for $2.725 million. That’s $3,132 per square foot!

But as is the case with almost every breathless report about the “insane!” price of a fire damaged, dilapidated or substandard shack in San Francisco or to its south, the purchase price was based on the lot value and development potential of the site, not the existing structure itself.

And in fact, plans to raze the existing cottage and develop a modern 3,936-square-foot, four-level home designed by Dumican Mosey have already been drawn and both the project and permits have already been approved, as rendered below but subject to change.

We’ll also note that the parcel and approved plans, which have been in the works since 2016 when the parcel was secured for $1.9 million, had actually been priced at $2.995 million in June.

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Comments from “Plugged-In” Readers

  1. Posted by Notcom

    “why can we no longer have cute cottages in San Francisco” Pt II

    • Posted by Miraloma Man

      Indeed, more heavily barricaded, psuedo-modern amenity boxes for the One Percent. I miss funky old San Francisco. RIP. I am sure that this is what they will do with my house once I decide I’ve had enough and get out of Dodge.

  2. Posted by rinconmike

    Oh get over it… it’s beautiful and represents the 21st century.

    • Posted by sfjohn

      if you want a sterile office meeting room for a dining area……

      • Posted by Miraloma Man

        Or a fertility clinic waiting room.

        • Posted by pablito

          The SF version of the 21st century. People in other places are building more interesting things….

      • Posted by matteo

        it feels warmer once filled with family and friends.

        • Posted by kbbl

          One hopes the buyer can afford both this and those.

    • Posted by Oh My

      Thank you Stanley.

  3. Posted by Stop Driving

    That’s quite a house next door.

  4. Posted by hundo_p

    That interior design aesthetic is growing increasingly boring.

    • Posted by Maxp

      “Increasingly”? It was boring from the beginning.

    • Posted by Serge

      Indeed. It was DOA in my opinion. About as useless as an open office plan (which has been found to be less than ideal).

  5. Posted by Ed A.

    @StopDriving: That ‘house next door’ sold for $9,995,000 in March 2018. That’s just the garage/guesthouse you’re looking at.

  6. Posted by Scott F

    Apartments are banned in Liberty Hill, but four-level SFHs, no problem. This is what climate denial looks like.

    • Posted by Notcom

      Oh but it’ll be LEED Platinum Certified !!! Uses only as many resources as a four family apartment house (as opposed to, say, a six-family one)

  7. Posted by John

    amazing the trend of living in hotel lobbies…

  8. Posted by propertius

    I went to a party at this house abut twenty years ago when a friend and his wife were renting it. Was a neat little house back then. At least us unimproved ’90s hayseeds thought so.

  9. Posted by Bernalkid

    That facade doesn’t send me, will they have 30 caliber machine guns in the gun turret on top?

    • Posted by Brian M

      I’m think particle beam weapons, myself.

      I actually don’t mind it. It’s not a concrete box.

  10. Posted by shza

    This seems more than a little overboard from the Editor. $2.725 million dirt value for a small lot might not be unprecedented but is still fairly insane.

    • Posted by SocketSite

      The sub $2 million lot value sale occurred back in 2016. The sale price today reflected the lot value plus the value of the approved and permitted plans and the time value of the two years it took to entitle the project.

      But again, this shack just sold for over $3K per square foot! Or $2.725 million for the dirt! (Ignoring the value of the approved and permitted plans and the time value of the two years it took to entitle the project.)

      • Posted by Ohlone Californio

        800K for plans? Not generally. They have value of course. But 800? I don’t see that sort of markup. Not on this side of town.

        That said, they likely got the price they did because of the several very high price sales in D5 that were not really happening during the 20-teens. There was a sort of arbitrary ceiling at ~5M for Noe Valley and surrounding for a few years, there. It’s no longer the case in the current market.

        • Posted by SocketSite

          That’s odd. There have actually been fewer sales above the $5 million mark in Noe Valley and the surrounding area over the past two years than there were prior, at least according to actual sales records versus one’s recollection.

          And once again, the added value wasn’t simply “plans” but the entitlement and approved permits, both building and demolition, as well.

          • Posted by Ohlone Californio

            Read what I wrote again. You’re not responding to what was written, there, and you’re being snarky while doing so.

          • Posted by SocketSite

            “800K for plans? Not generally. They have value of course. But 800? I don’t see that sort of markup. Not on this side of town.”

            [T]he added value wasn’t simply “plans” but the entitlement and approved permits, both building and demolition, as well.

            “There was a sort of arbitrary ceiling at ~5M for Noe Valley and surrounding for a few years, there. It’s no longer the case in the current market.”

            There have actually been fewer sales above the $5 million mark in Noe Valley and the surrounding area over the past two years than there were prior, at least according to actual sales records versus one’s recollection.

          • Posted by Ohlone Californio

            Yes of course plain old “plans” without entitlements aren’t worth much generally.

            You say years prior. That was not the point. The point was that there was a lull in 5M and up Noe and surrounding sales, beginning late 2015 and lasting throughout 2016 with only an exception or two. That market has come back in the past year, year and a half.

          • Posted by Ohlone Californio

            So I went back and reread what I’d wrote. I should have said “mid-teens.”

            But this whole thing is a strawman post anyway. Nobody touted the dollar per foot count here. It was always about the lot and the entitled permits. But there you are, criticizing language of your own invention as a lede, and then criticizing others’ language. heh.

          • Posted by no_ vally

            Those who have lived in Noe for a long time will probably agree that when a significant local tech unicorn IPO is on the horizon (e.g. FB in 2012), local banks (led by FRB) will float low cost mortgages allowing a pledge of equity as a proxy for downpayment so even mid-level execs can start buying before the actual IPO event or lockup period expires…with a noticeable effect on local SFR interest and activity. Barring a significant tech market collapse, 2019 will probably see Uber ($120b?), Airbnb ($40b?), Palantir ($40b?), Stripe ($30b?), Lyft ($20b?), Pinterest ($15b?). Could be an interesting year ahead…

          • Posted by SocketSite

            Meanwhile, with Apple ($1T), Google ($765B), Facebook ($445B) and Salesforce ($106B) still trading near their all-time highs, the actual sales volume of homes in San Francisco recently dropped to a 7-year low while inventory has climbed to a 7-year high and price cuts are on the rise.

          • Posted by Notcom

            Maybe double up on some of those question marks.

  11. Posted by MyOddCommentHandle

    inside looks nice, outside looks like Woody Allen vision of houses in the future.

    insert giant tomato

    • Posted by BobN

      Does it come with an orgasmatron?

      • Posted by Some Guy

        Yes, and a mega-vegetable garden in back, with 8-foot long bananas and tomatoes 3 feet across.

  12. Posted by stevenj

    This is near the top of Noe Hill (just 1/2 or so block away). Liberty Hill is a registered historic district.

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