Purchased for $1,052,500 in February 2007 (which might or might not have included “over $50,000 in upgrades”), 235 Berry #416 returned to the market in April asking $1,295,000 ($804 per square foot). It closed escrow yesterday with a reported contract price of $1,045,000 ($649 per square foot).
∙ I’ll See Your $800 Per Square Foot And Raise Lower You $200 At 235 [SocketSite]
“…asking $1,295,000…”
I love how these sellers always hold out hope that a greater fool will save them from their well deserved losses.
That being said, this could have a been a whole lot worse, and actually seems a pretty good result for the sellers. Just losing the commission, other transaction costs and (perhaps) $50K of upgrade cost after 2-1/2 years is about as good an outcome as could have been expected.
Agree with LMRiM. For a condo that was purchased in 07 the seller did well. (That unit I think is the largest one in 235 Berry. It’s pretty nice too. That said I think the buyer overpaid and will see a 50-80K drop in value over the next 12 months.)
The sellers pricing strategy was also a disaster. If they had gone out initially at a price of $1.1M they surely would have come out ahead.
less than 1% loss from 07 peak to whatever today is. How can this be?
less than 1% since ’07 is impressive.
if the drop in prices occurs at this pace, it would take another 30 years for it to match the C-S index for SF.
maybe it will take 30 years, in which case, buy whenever you like – in the long run we are all dead anyway.
even if it loses 80K, and that’s if, it still only brings the difference to 8.4% from the “peak”.
how do you know they would have come out ahead? Were you prepared to buy it at $1.1?
you guys just can’t call it for what it is, a 1% drop, period. You have to add the negative perspective just to make yourselves able to stomach your own poison.
This property is in an nutshell the best case scenario of what a flipper might expect in the near future.
even if it loses 80K, and that’s if, it still only brings the difference to 8.4% from the “peak”.
how do you know they would have come out ahead? Were you prepared to buy it at $1.1?
VL: I think this sale is positive news for that particular development and Mission Bay in general. It’s actually remarkable considering all the doom and gloom that the price drop was so minimal. I’m also totally speculating that the value will come down by 50-80K over the next 12 months. (However I am basing my assessment on the economic outlook for the foreseeable future and the dim employment prospects in the Bay Area and the nation in general.) Honestly who knows where this will end up, but there is no doubt SOMA (including Mission Bay, Rincon Hill & South Beach) condos have been particularly punished in this downturn. On the pricing strategy, there was no way that this was ever going to sell for $1.295M. There’s not a significant # of comparables in Mission Bay to really support that asking price. I always believe that once you’ve made the decision to sell don’t delude yourself into thinking that your property can somehow defy the direction of the market. 99% of the time that simply doesn’t work. My strategy would have been to price at the market or slighty under. The seller (or sellers agent) felt otherwise and the results speak for themselves in the final sales price.
No doubt, that is an excellent result for the seller in this market! Nice job!
Here is another recent sale a few blocks away with similar timeframes:
http://www.redfin.com/CA/San-Francisco/767-Bryant-St-94107/unit-205/home/875492
Purchased in April ’07 for $933k and just sold in late June for $595k — down 36.3%. I can’t help feeling that the 235 Berry buyer may not have gotten the best deal out there, but I hope he is as happy with the purchase as I imagine the seller is with the sale.
No way you can compare the Bryant location with Berry. SF, a few blocks or even one block can make a world of difference.
Everyone knows that condo (pricing) problems are a result of stricter standards at the GSEs; let the floodgates open (again)!
The quagmire prompted Reps. Barney Frank, D-Mass., and Anthony Weiner, D-N.Y., to call on Fannie and Freddie to back away from their stricter requirements.
*Sarcasm in this post for the humor impaired.
@Trip – The location of 235 Berry is along the creek and if you’ve ever walked along Berry or the creek, it is a VERY different feel than 6th and Bryant. I think this can account for the steep price drop of the Bryant condo. That said, the Berry seller still did an excellent job in this economy and market.
Berry is definitely different than Bryant. Both are way shady at night, Berry and the area along the canal is just slightly less so.
Some places seem to hold up. Some dont. From my walking around e.g., it seems like the Beacon is getting killed, some 30-40% cuts from original prices, whereas the Brannan (229/239) seems to be holding up quite nicely.
5th and Bryant is horrible. Berry is at least ok during the day.
Berry is more than OK during the day!
A lovely characteristic of Bryant location is the cornucopia of beautiful bail bonds shops right next store. 767 Bryant has to be the worst managed SOMA development.
The high HOA doesn’t help the Beacon. Did they have any builder provided teaser rate loans when new?
@lolcat_94123
I’m curious what your experience has been on Berry and along the canal to make you say that it’s “way shady” at night. I walk the dog every night down Berry between 5th and 3rd and back up along the canal, anytime between 10PM and midnight. I’ve never had a problem or felt threatened. Mission Creek Park, along both sides of the canal, has 24-hour private security with hourly walk-throughs by the guards. (They’ve even stopped me when I’m walking the dog to tell me that the park closes at 10.) I have to say that it’s a LOT better than Lafayette Park in Pac Heights. I lived across the street from it for 3 years and almost no one went in there after dark. The Northern Station police command told us in a community meeting last year, after an assault on an early morning jogger, not to go in there unless the sun is up and to always carry ID with us. Oy!
@lolcat_94123
What data do you have to support that 235 Barry is “way shady at night?”
I just took at look at crimereports.com Statistically speaking, 235 Berry, doesn’t look any better or worse than 94123.
I have to mirror Roger’s question, what experience do you have along the canals at Berry? Or are you just sharing your ill informed opinion rather than actual data?
If I am mistaken, it’s shady everywhere during night times. The sun’s not out
But seriously, there’s nothing “shady” about Berry St if you ask me, unless you’re talking about the scalpers out on 3rd and Berry.
235 Berry #601 is on the market asking $749k of $749 psft. An increase over the sales price in 2008.
It will be interesting to see where this goes… According to most of the people on here it should go for 20-30% below the 2008 sales price of $718k.