142 Mallorca Way
The address might be “undisclosed” on the public facing MLS, but plugged-in people know it’s 142 Mallorca Way (and a Marina apple to be). Purchased for $1,226,000 in February of 2006, asking $1,157,000 today.
∙ Listing: 142 Mallorca Way (2/2) – $1,157,000 [MLS]

22 thoughts on “An “Undisclosed” Marina Apple On The Tree (142 Mallorca Way)”
  1. I doubt they’ll get that price, but I’ve noticed a definite “You need to list this UNDER what you paid in 2005-2008” attitude from the realtors.
    2608 Sacramento is another one that came on today. Purchased for 2.675 in 2005(!) and remodeled – new kitchen and baths: certainly over $100K, it came on for 2.395. $1100 psft: probably not gonna happen, but it’s on for less than its 2005 price on a quiet street in Pac Heights.
    2315 Divisadero Unit O is one that sold a few weeks ago, and I think it finally broke the attitude that prices in prime SF were going to hold. Purchased about a year ago for $810K, and then they sunk about $120K into a remodel (total: $930K), they originally listed it for $939K – just trying to get their money out. It sold last month for $735K. It’s not the busiest part of Divis, but still plenty busy, however, the fact that it went so far under what it cost the owner finally changed the attitude that the market in that area was unaffected. Once it sold, asking prices started dropping. Not as low as they need to, but there are fewer “I want what I paid plus what I spent” asking prices.
    The market is definitely turning in D7.

  2. Does anyone know what nearby 1756 North Point sold for? Purchased for $1.92M in 2007, it looks to have sold after a long time, probably below its last listing price of $1.595M.
    Looking at that North Point condo, the pricing on 142 Mallorca, and the wishing price of 228 Mallorca (under its 5/2004 price), it looks like this is another category/segment where average prices are certainly off more than 10-15% from “peak” valuations, perhaps as much as 20-25% (recognizing that selection bias regarding what actually gets sold likely masks a larger average underlying price decline across the category/segment).
    A lot of people are going to get really hosed in the SF real estate market. Schumpeter’s “creative destruction” I guess, or that other catchy phrase: the Darwinian principle of ‘Capital’ Selection.
    [Editor’s Note: 1756 North Point has yet to close escrow (but we’ll let you know when it does).]

  3. The # of Prime D7 houses hitting the market is actually quite staggering:
    $1,550,000 2232 Divisadero St
    $3,495,000 2680 Jackson St
    $5,350,000 37 Presidio Ave
    $2,395,000 2608 Sacramento St
    $5,500,000 3778 Clay St
    $7,995,000 3712 Jackson St
    $3,600,000 2223 Pacific Ave
    $1,649,000 51 Pixley St
    $1,995,000 1812 Pacific
    $1,875,000 1810 Pacific

  4. why don’t they want people to know that it’s selling for less than what they bought it for? does it steer away buyers?

  5. It would be interesting to get your fair value take on this one.
    Something like this, maybe 125x current monthly “equilibrium” rent. (I’d guess “equilibrium is another 10% off current rents, because the economic unwind is still continuing and there is still quite a bit of sticky froth in all housing related assets to burn off.)
    I know that sounds low, but that’s the price I think balances the potential risks versus reward for what is essentially a glorified apartment in light of the outlook for credit, price inflation, interest rates, etc. If you’re pretty sure you could live there for 10+ years, it might make sense to pay a bit above fair value in order to lock in the benefits of today’s lower than equilibrium mortgage interest rates, maybe 150x?

  6. tipster,
    regarding your comment “I doubt they’ll get that price, but I’ve noticed a definite “You need to list this UNDER what you paid in 2005-2008″ attitude from the realtors” – have you noticed this trend on SFH in specific areas, or have you noticed that across the board, ie the loft and condo market in SOMA?

  7. No, sorry, loftshopper, just in D7. Not across the board there either, but the tired “we paid this and spent this much more so our asking price is the sum of those two” seems to be on its way out.
    Now it’s more like “the market price is X, so we’ll ask 110%-115% of X because we only need one.”

  8. tipster,
    thanks for sharing your observation. i asked because i am in the market ready to make an offer. only thing is the asking is about 15% higher still from its 2005 purchase price, even after a $100K reduction from its original asking four months ago.

  9. Undisclosed address, but Mallorca is only two blocks long!
    Quaint street though, and within staggering distance of the Horseshoe Bar.

  10. I recently came across this listing for 1257 Franciso. It appears to be a resale in an “unconvertable” TIC complex (originally sold by Maven Investments). Hard to know which unit it is, but I believe that it could be one of the more expensive TICs that went for ~$930k (or else it’s a wild eyed specUvestor with dollar signs in their eyes). Should be a good test under existing market conditions. Currently asking $899k.

  11. I went looking to see if I could find the listing for 2680 Jackson. Trulia usually gives the best info.
    But the funniest part was when I clicked onto a link to a forum they had off to one side of the listing page from a recent buyer in January of 2008 asking what the SF market would be like 2 years from now. That was, of course, 18 months ago.
    5 responses, all from Realtors, are hilarious. Needless to say, they were a bit off.

  12. Yeah, 2680 Jackson was obviously a real horror story for everybody involved. Very apropos link there buddy.

  13. Pretty interesting link there tipster. The funniest agent quote in there was :
    “To sell your condo you will need about 10% of the sale price to cover transfer taxes and fees.”
    10% is about right but the agent neglects to mention that the largest component of selling fees is the agent’s commission.

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