Two days after 1081 Pine Street #301 hit the market for $1,375,000 (and “Priced to Sell”), the listing price on number #201 was reduced another $75,000 to $1,250,000 (for a total reduction of $235,000 or 16%). Keep in mind that while both units share the exact same floor plan, #301 has one more (tandem) parking space, and that #301 originally sold for $1,270,000 two years ago, while #201 sold for $1,149,000. And while it’s not officially listed, #401 is still available for $2,095,000 sold last week (anyone familiar with the contract price?).
UPDATE (9/19): If Sean is correct, the current owner of #301 purchased #401 for $2M (31% below the original asking price of $2.895M, and only $75K over the original sale price in early 2004). Not a bad move.
∙ Listing: 1081 Pine Street #301 – $1,375,000 [Pacific Union]
∙ Listing: 1081 Pine Street #201 – $1,250,000 [Joel Goodrich]
∙ 1081 Pine Street Redux [SocketSite]
∙ Not Huge (But Not Bad) [SocketSite]
∙ 1081 Pine Street Overview [louis-silcox.com]
I live very near this building and walk by it nearly everyday. It’s an oddity. First, it was built when the market was on a steep upward trend and lacks what a real luxury property should offer. The architecture is awful, there aren’t any real views, it has a teeny lobby that’s completely exposed to the street, the location isn’t very appealing, and it’s right next to a problematic Academy of Art dorm. One night I was walking my dog in front of the building, and a bunch of wire clothes hangers was flung out of one of the upper-unit windows. So, that tells you what type of person might be living there. The kids from the dorm take delight in jumping up to place empty beverage cups and other garbarge on the glass canopy over the entry. And, there’s the graffiti. I’m sure people who might be interested in the units from viewing photos are turned off when they see the location and state of the surroundings.
#401 sold last week.
I just don’t get it. The papers were awash in “news” that the median price went up 20% last year and is flat this year. I thought everyone was getting rich but silly people who rent.
The person who bought #301 paid at least 25,000 more than the price of a rental for the privelege (HOA, mortgage, taxes and insurance). He’s going to pay $70K to the realtor. He probably paid loan origination fees and may have paid points. He’ll probably pay the stagers at least $5K. In the end, he makes no money at all, and that’s if he gets his price.
And this is in one of the greatest bull markets of all time.
What is a person buying into something less than a stratospheric market to think other than the losses will be significant. The realtors and mortgage bankers are making all the money in this so called boom. No wonder the buyers have caught on and are staying on the sidelines.
In the end, the person made no
The person bought near the height of the bubble, like many people. At least they’ll be close to break even…could be worse: imagine the people who used option ARMs to squeeze into something last summer with no money down. How will they feel when they realize they owe more on their place than it’s worth?
I used to live in a condo one block away from this building at Pine & Taylor. One of the biggest issues that was brought up time and time again at the association meetings was that very Academy of Art dorm. Many older residents in our building didn’t even want to walk by due to the quality (or rather lack thereof) of dorm dwellers.
We all thought it was odd placement for a building with units at those price points to begin with. Perhaps others are catching on and factoring in the “Art Academy Factor.”
Lori–I know the Pine/Taylor building. I just sold my unit down the block and am moving. Not only is the Academy of Art presence spreading like a cancer in the neighborhood, but I think I may be getting out just in time. I’ve noticed more students renting the units where I live. I’ve seen a decline in the area in the past year, and I have to say it’s been proportionate to the increase of Academy of Art students in the area. What doesn’t bode well for 1081 Pine bodes equally badly for anyone living in that area. It’s really too bad. The irony? The president of the Academy of Art owns a unit in my building! We’ve called her a few times when things in the Pine dorm have gotten too out of control.
Christopher — when I lived in the Pine/Taylor building, our president of the association sent many a letter to the president of the Academy of Art. Unfortunately, every letter fell on deaf ears. I didn’t sell my unit due to the dorm dwellers, but I definitely would hesitate to buy around that area again. Thankfully, most of the time I was headed downtown, away from the dorm. It really is too bad, because when I lived there I just loved it. Then the art students moved in and like you say, that area started to decline. Unfortunately, I don’t see anything changing for the better.
Just curious – what exactly is so obnoxious about these Academy of Art students? Aren’t they mostly female?
Enough about the Art Academy students and back to 1081 Pine. The 3rd unit that just came on the market actually belongs to the person who just bought the penthouse. So despite the dire predictions about the students ruining the neighborhood, one person at least is increasing their investment there.
Dear TT:
I’m not sure about the male/female split of Academy of Art student body, but the dorm discussed above is all male. Not unlike dorms anywhere, this and other Academy of Art dorms in the neighborhood–and apartments building where many AoA student rent–see an increase of sidewalk activity in front of them (hanging out, smoking, cell phone chatting, etc.). Plus, there’s an increase of drug traffic in the area overall; it’s quite visible.
Anonymous: I agree that this thread is about 1081 Pine. My point is simply that the increasing presence of Academy of Art students in the area has made a huge impact on the neighborhood (including 1081 Pine) that affects owners and renters alike. And, the AoA hasn’t handled the very strong real estate/housing component of their business very responsibly. In the case of 1081 Pine, residents are treated to a paved recreation space right outside their windows where AofA students play basketball. As was commented earlier, this building and its AoA neighbor present an odd juxtaposition of $1 million-dollar real estate and the antithesis. Seems as though that might have something to do with the long sales periods, price reductions, etc.
Wouldn’t that be a great business model. You start an “Art academy” and buy a building for a dorm. Put in a basketball court, encourage the kids to talk on their cell phones, buy drugs, etc.
Prices in the neighborhood drop like a rock and you buy up everything in sight. Then, move the dorm, sell the now appreciated properties and start the whole process all over. If only I had a hundred mil, my path to further riches would be clear.
FYI: the owner of #301 bought the penthouse for $2 million.
This evening I walked by the Jones Street side of this building, where the garage entrance is–a fairly protected area. Slumped against the walls in the drive were three 20-something males, all clad in black, looking suspiciously like residents from the nearby Academy of Art dorm. The were having a marijuana smoke-out. So, for your $2-million penthouse or other $1 million-plus unit in this building, you get to come home to pot-heads hanging out in your garage entrance.
So what? Art students smoking dope don’t sound too scary. This is San Francisco!
Dan, it’s not too scary if you’re a big guy. But if you’re a 5’2″ chick like me, it can be intimidating if you walk by a group of guys when you’re alone. Same goes for the elderly residents in the neighborhood.