As we outlined earlier this year, the rather spectacular new Russian Hill home at 2626 Larkin Street, “the crowning achievement of every artist, designer & craftsman whose passion & dedication created this [nearly 11,000-square-foot] masterpiece,” sold for $20 million, or roughly $1,850 per square foot, in January of 2020 having hit the market priced at $25 million in 2018.
Featuring “intricately designed & crafted stonework, the finest woods and plaster walls, museum quality lighting and glasswork,” along with “ironwork and hardware forged by hand & sourced from Europe’s greatest foundries,” steel framing and piers anchored on the bedrock below, the five (plus) bedroom home and parking for five (plus) cars returned to the market priced at $19.995 million in October of last year.
Reduced to $17.995 million this past May, the asking price for 2626 Larkin was further reduced to $15.0 million in July, a sale at which would have been “at asking” according to all industry stats and aggregate reports but 25 percent below the price the home fetched in early 2020 on an apples-to-apples basis.
And the resale of 2626 Larkin Street has now quietly closed escrow with a reported contract price of $9.99 million, representing a 50.5 percent ($10.1 million) net drop in value over the past four years.
The great re-set? All SF properties to have 50% value wiped out?
You are mistaken, that’s 50% TODAY, it will be even more in the future.
Specifically, properties that sold for $1,850/SF in 2020. This “masterpiece” would make a very nice science lab.
I wonder what the cost of building it was? It seems as though no expense was spared.
One expense they spared was using flat glass on the curved bay windows!
I noticed that too, but I’m pretty sure that the energy-saving (insulated) glass which is now required by code is not produced in a curved format. Back when they were single pane glass, those curved windows could be produced at a borderline-reasonable cost, but I don’t think it would be possible to find them in multipane insulated glass. The cost, if even possible, would be ridiculous. So I’ll let them off the hook for this one.
The cost would be high though not ridiculous considering it would require an artisanal fabricator. Finding someone with the talent to build curved double pane windows at their cost + reasonable profit is the bigger challenge (hint: look towards scientific glassware fabricators). Expenses were spared.
50% less… so far!
Since we’re bringing up high-end properties in Russian Hill, only a six minute walk from this place, that Heirloom Home, “with views above neighboring homes on either side and across the street” located at 875 Francisco St., appears to have sold about two months ago, for an amount over asking, or $1,264 per ft.² unless I am misreading the listing (the property went back to the lender in July of 2022) but just over 48 percent below its “asking price” in February of 2021.
Of course, that was a distressed property, so it wouldn’t be a comp.
Property records indicate the 2020 grant deed was for $10mm. It’s not clear how the house was assessed so much higher.
i think there is more here you are not seeing.
this property has and is undergoing a severe soft-story upgrade — guessing at least 7-figures.
who knows what else is happening — let’s look at the permits?
Hmm…maybe. I just went out to The City’s Permit / Complaint Tracking System and checked for outstanding permits for
2626 LARKIN ST with Block/Lot: 0069 / 011and on the results page, after clicking Building Permits, didn’t see anything more recent than a job described as “123 HEADS THROUGHOUT ENTIRE BUILDING AND 15′ OF UNDERGROUND PIPING FROM METER TO BUILDING.” It was noted as “ALL WORK IS COMPLETE.” as of Sept 2nd of last year.Perhaps I am making a layman’s mistake and missing something that an industry insider would know about?
SJS, Your comment is puzzling. According to the realtor the house was built in 2013. A structure that recent would be built to modern seismic codes and would not in any way require a “severe soft-story upgrade.” Feel free to clarify your post.
Brahma, Even weirder, on the permit history you linked, there no permit listed for the original construction!
Never mind on the [construction] permit – it’s there.
Permit #200809262740 Filed 9/26/2008
Construction Cost: $4,200,000
Why would a new property need such an upgrade?? Yeah, sure, the requirements are frequently changing, but it’s hard to belive they’ve changed seven-figures worth in the few year since this was built.