Asking $399,000 in the second release at The Palms (555 4th Street) in 2006, the 475 square foot studio #103 sold for $403,000. Taken back by the bank in December 2009 and then listed for $275,000, yesterday it closed escrow with a reported contract price of $269,900 (33 percent under its 2006 price).
∙ The Palms: Phase II Release [SocketSite]
PITI is something like $1900 to $2000 per month, without parking.
How much could this shoebox of a studio rent for?
Down 33% from 2006 at the Palms is standard. I would have expected that to be the price…No surprise hear. There are examples of condos in that area (not that building) holding flat from 2006/07 or actually increasing, which would be more newsworthy than this.
this is the price where i’d be a buyer of a studio in soma, but only if it did not have the combination of being on the street level and on or west of 4th street.
This unit is strange, but it is a great little nook for foot traffic. Some artist or service provider could conveniently work from home there. Then there would finally be some sort of commercial activity in the building.
A scan of craigslist shows a studio at the Palms with parking available asking $1800 plus $175 for the parking, a studio at Baycrest with parking included for $1500, a studio at Harrison & Fremont in what I’m assuming is a non-prime building with no parking available for $995, and Archstone for $1920 plus parking available for $200.
That’s a huge spread, but if we call this a prime building with no available parking, say maybe $1600? A super crude GRM of 160 (which is probably too low in this low interest rate environment) comes up with a purchase price of $256,000, so this looks like a fine deal.
Waiting 4 months got you 30% more space (from a small studio to a large one) and way off the ground floor.
Sale Date Size Unit Price Original Price
4/1/10 .. 475 . 103 $269K $403K
8/4/10 .. 616 . 510 $280K $495K
Whoever bought #103 4 months ago has lost their entire downpayment and is underwater on their loan. Jeremy’s “Fine Deal” has turned into a disaster, in 4 months.
http://www.redfin.com/CA/San-Francisco/555-4th-St-94107/unit-510/home/12443585