It’s Fall At The Four Seasons (765 Market Street) For #27BOctober 15, 2009
With no reported or recorded purchase price we could find, the tax assessed value of $1,204,542 for The Four Seasons (765 Market) #27B would suggest a lowest possible original purchase price of just over a million dollars assuming a purchase from the developer in 2001 and maximum yearly reassessments.
Listed for sale at $1,695,000 this past March, the price was reduced to $1,595,000 in April, to $1,395,000 in June, to $1,325,000 in July, to $1,250,000 in September, and to $999,000 the day before yesterday.
That being said, we can’t call it year 2001 pricing for this Four Seasons condo, for as a plugged-in tipster notes, “Apartment is being sold furnished with classically designed furniture and lighting. Eclectic art collection included.”
And as at least one voice is sure to shout out, it’s still $995 per square foot! But that would be eight years without any effective appreciation and a rather significant fall from peak.
Comments from Plugged-In Readers
1,695,000 to 999,000. All I can say is WTF. And to top that, its still overpriced.
unimpressive layout. especially when you consider the ridiculous HOAs.
Let’s see… I’m renting about the same thing at about the same location with a better view higher up for $2100. It’s got better appliance and a bit bigger, so I’d say about $3000/mo.
Wow, assuming $800K 30-year fixed at 7% (assume refinanced jumbo, since jumbo rates were probably slightly higher than 7% in 2001), that’d be around $5300 in monthly payments. Another $1600 in HOA is like mortgage payments on an additional $240K! Pretty pricey for a 1000 sqft 1/1.5.
“Wow, assuming $800K 30-year fixed at 7% (assume refinanced jumbo, since jumbo rates were probably slightly higher than 7% in 2001), that’d be around $5300 in monthly payments. Another $1600 in HOA is like mortgage payments on an additional $240K! Pretty pricey for a 1000 sqft 1/1.5.”
Talk about negative cash flow – even at this reduced price.
If you are going to live in it is one thing. If you are looking to invest is another.
You can purchase a newer home in a nice neighborhood, all brick, for 125K in booming Dallas. And rent it out for 1500/month.
In any case, prices still have not dropped enough in SF to make residential properties a good investment.
It’s a bit hard to read the tea leaves (err… property records) on this one, but what I can say for sure is that the owner’s primary residence (in Los Altos) was refinanced (variable) for $600k when this property was purchased. The SF Recorder’s website shows a Deed of Trust with the same bank (and owner’s name) on the purchase date, but it doesn’t show up on the APN search for this property (?). At any rate, the owners appear to want out and (likely) put enough down that they can afford ‘price discovery’. They are about to dump the cash flow negative albatross (much to the chagrin of their neighbors).
Comparing this unit to a house in Dallas is quite a stretch. This building was the first of the recent high service hotel and condo combos built in the City. The HOAs are that high because you can get first rate service at any time of day and can also use the fancy common areas. It does seem odd to have oligarch oriented residences located on Market where the street scenes are often off color. In time the nature of that area may change.
The wood floors are way over the top. Including art and furnishings is also unusual. Hopefully the owner is fleeing career problems or debt or a relationship gone sour and not bedbugs. I was expecting the art might suck, but at least one of those pieces is from a noted bay area artisan and could probably be resold for substantial amounts when the economy finally turns around for real.
This whole hotel/condo/pied a terre thing is a relic of the credit bubble years, when there were more people with more easy money than they knew what to do with. Let’s buy a luxury condo in SF so we have a place to stay the 4 weekends a year we go up there! One in NY too! Why not? It’s all monopoly money.
Those days are gone. Those who bought in these places are in for a world of hurt. I suspect most can afford to take the hit, and thus we will see relatively quick price discovery, but who really knows how much real wealth there was now that the gig is up. I can sure think of better toys to buy if I had a million bucks burning a hole in my pocket.
Note also that “classically designed” and “eclectic” do not necessarily mean “good.”
But they probably had 10 million burning a hole in their pocket at the time…
This is the owner’s current gig; he is one of the founders. Value Gap Calculator™ , I like the sound of that; maybe, they can customize the application for real estate values (hmmm… or maybe they already did).
For that much money I want somewhere to park my car.
For that kind of money, some folks would also want a place to park a part of their anatomy.
The sale of 765 Market St #27B closed escrow on 12/1/09 with what appears to be a “confidential” contract price.
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