This past September Kirk Hammett’s Pacific Heights “Monster” mansion at 2505 Divisadero came roaring back on the market at $8,995,000 having once sought $12,500,000 when first listed four years ago.
In contract within two months, the sale closed escrow on December 11, 2009 with a confidential sale price on the MLS. And as such, all MLS based reports and averages would have reflected a selling price of $8,995,000 (and an “official” 63 days on the market).
As a plugged-in tipster notes, however, the recorded sale price is now public. And the property actually sold for $7,600,000. Don’t forget to adjust those industry stats and newsletters accordingly.
it is currently undergoing some sort of renovation as there is a debris slide from the 2nd storey window to the ground and debris box out front.
The Memory Remains…
39% drop in overall asking price over those 4 years, but what’s also impressive is the 16% drop from that final asking price.
Big reduction is not a surprise at this tier of the market. World has changed since 2006, a lot, for the really big earners.
We do a fair amount of work for hedge fund and private equity guys. I know a lot of people that were making 10-20 million a year in 2005-2007. Last couple years has been more like 2 million. Still obscene sums in my book, but a massive cut from a few years ago. The money available for really high-end places like this has dried up a lot, and it ain’t coming back.
I still think this is a pretty good price for a place that needs quite a bit of renovation. They’ll still probably spend another million or two on it. At least it sold! I really just hope this is going to be someone’s house and not “Decorator Showcase 2011.”
Ouch! Off to never never land, indeed.
Ouch! Enter Sandman and off to never never land, indeed.
Permit to remodel the kitchen and 7 bathrooms.
Despite the big drop from the $12.5mm that Mark Levinson listed the home for back in 2006 Kirk did well on this investment. He bought 2505 Divisadero Street in 1993 for $2.5mm and it is hard not to be happy about an asset that appreciated at $300K/yr…
FAB — that is true. He paid $2.56M in 1993, which is around $3.8M adjusted for inflation in 2009. He made about twice that in the end, although I wonder how much work went into the place in between. He admits to a very low 6 figure number via the permits.
On a side note, he also might have gotten a decent deal in 1993 relative to the early 90s peak in housing. Just for Ss and Gs, the prior 1988 sale was for $2.2M, which is $2.69M adjusted for inflation in 1993 and $3.99M adjusted for inflation in 2009.
wow, only $7.6 million for a fixer on divis with no views. in the midst of a world wide correction this still seems fairly expensive…maybe they had an alt-a i/o arm reset looming…lol.
Like the Washingtom firehouse, it sold at about 2/3 original expectation after several painful years of price recognition (4 for this one, 3 for 3022 Washington). At least we know what PH houses are worth now.
What was the selling price of the brown brick house listed by the Tobonis at $14m, on Pacific, around the corner from this? Gothelf is sending out notices that he represented the buyer.
“At least we know what PH houses are worth now.”
“it sold at about 2/3 original expectation after several painful years of price recognition ”
so that’s your takeaway? d7 houses will move at 1/3off after several years of waiting? lol.
i see you don’t let facts get in the way of your bias…
anonee, barking at the wrong tree there. Many here, including bulls, have commented on the aparent delusion of some sellers on PH. But in PH almost everything is possible and we’ve been surprised many times in the past. I think it is pretty positive that these people are now opening up to reality. We see prices that are pretty bullish. I am mostly a bull, but also a realist.
@ Conifer
“Okay, so perhaps the sale price for 2849 Pacific won’t be at its asking of $14,000,000. But according to a plugged-in tipster the “price will provide encouragement for sellers of large, good condition, D7 properties” and starts with a twelve (12).”
https://socketsite.com/archives/2009/12/and_on_the_twelfth_day_million_of_2849_pacific.html
[Editor’s Note: And the new new word on the street is twelve even. But once again, will be considered to have been a data point of $14,000,000 with respect to MLS based stats, reports and averages.]
At $12m, it still sets a record for the year per square foot for a house with a southern, not northern view. It probably also sets a record for profit on investment, including carrying costs.
vs. asking price is one of the dumbest metrics. i’m going to ask $4 million for my 1BR condo and then sell it for $600k. wow, what a price drop. boy won’t that buyer think they got a deal!!!!
“vs. asking price is one of the dumbest metrics”
Is it though, hangemhi? Asking price certainly gives us an idea of what sellers/realtors are expecting to receive. Presumably, the seller and the realtor evaluated what they thought were comps and set their price based on that. Would most prudent realtors allow a $600K 1BR condo to be listed for $4M?
I think it’s hard to say asking price tells us nothing.
vs. asking price is one of the dumbest metrics.
And yet “Over asking!!!” was one of the oft-repeated mantras of the bubble years to describe how HOT!!! the market was.
But I guess, “way, way under asking” means nothing and is just a dumb metric.
One heck of a down payment (no Deed of Trust that I can see). Tennis pro?
I heard another musician purchased the home.
I hope it’s Lady Gaga!