1390 McAllister Living.jpg
While the listing was changed from “REO” (bank-owned) to a regular sale following our featuring it, the change doesn’t seem to have affected the outcome for 1390 McAllister.
Purchased for $710,000 in June 2006, the resale of the three-bedroom, two-bath Alamo Square Tenancy In Common (TIC) closed escrow on Friday with a reported contract price of $595,000, 16 percent ($115,000) below its 2006 price.
First! (Individual TIC Unit In San Francisco To Return Bank-Owned) [SocketSite]

Comments from Plugged-In Readers

  1. Posted by badlydrawnbear

    So the questions is, is this an outlier or part of trend?

  2. Posted by sfrenegade

    Unclear. It’s a TIC, so that might make it an outlier for some purposes, but it’s still Alamo Square and still potentially family-sized at 3/2.
    TICs should perform worse than an identical condo because of the inherent risks of being in a TIC. To some extent, TICs are marginal collateral.

  3. Posted by lol

    There is risk but risk is usually priced accordingly. What was disturbing in bubble years was to see TICs selling with the hypothetical condo conversion baked in the price.
    TICs are rather illiquid. If the very few banks that provide fractional financing leave this line of business that will put many many households in “house arrest”. What’s left? Having to bunk up with strangers in group financing? Not for the faint of heart.
    TIC should be more than 25% cheaper than condos or SFHs. 40%+ if they are in 7+ buildings with no chance to convert. Much much less if they are rented out.
    I have a friend who pounced on a TIC in a 2-unit building, pretty advanced in the conversion process 4 years ago, bidding up and up to lock in the “instant equity” that the conversion would provide. Of course this conversion required some expenses to be up to code. He wanted to move up last year. No takers and he has already given up on some of his downpayment.

  4. Posted by 47yo hipster

    Down only 16%, not too bad…Coulda been -30%!

  5. Posted by Legacy Dude

    hipster, are you just copying the same comment to every thread today?
    “Only an X% loss, could have been X%+ like in CentralValleyTown!!”

Add a Comment

Your email address will not be published. Required fields are marked *

Recent Articles