As we reported this past November:
Purchased for $2,201,500 in March 2008 on the penultimate floor atop the Ritz-Carlton Residences in San Francisco, 690 Market Street #2301 returned to the market listed for $2,299,000 eight months later.
Reduced to $2,099,000 in February 2009 and then to $1,999,999 that April, the 1,660 square foot two-bedroom was withdrawn from the market that June.
It’s now two years later and 690 Market Street #2301 has returned to the market listed for $1,350,000. Recently rented asking $6,800 per month in rent, but delivered empty at close of escrow according to the MLS, it’s not a foreclosure, nor a short-sale. And if a reader is correct, the buyer in 2008 paid cash.
The resale of 690 Market Street #2301 closed escrow on Friday with a reported contract price of $1,340,000. Call it 39 percent ($861,500) below its 2008 purchase price which isn’t too bad considering the foreclosed upon two-bedroom the floor below sold for $1,050,000 this past March having been purchased for $2,173,000 in 2007 (a drop of 52 percent).
∙ Following In The Footsteps Of A 52 Percent Drop At The Ritz-Carlton [SocketSite]
∙ Reductions And Returns At The Ritz-Carlton Residences (690 Market) [SocketSite]
That building looks like a lego is attached to it.
Wow. Another one of those beauties from a capitalist’s point of view. Ignoring transaction costs, inflation, etc., and just using the numbers from the above post, comes to about a simple annualized ROI of -10% for the the buyer in 2008.
The unfinished unit at #1704 is currently on the market (a 2 bd/3ba with 1 parking spot and HOA Dues: $2,854) as a short sale, but is marked contingent. It’ll be interesting to see what happens there.
Wow…that is a really painful loss to accept. Props to the seller for taking the hit and moving on. These units in general have not held value despite the Ritz Carlton brand. The Four Seasons and St Regis homes have fared considerably better.
Congrats to Ritz Carlton for the sale in 2008. They found a bubble topper.
But the sale proves there’s still a market for luxury, especially with the high HOA dues. Obviously not at 2008 prices… I wonder how the fractionals are faring.
“But the sale proves there’s still a market for luxury”
This sale proves there’s a market for anything, if the the price is right. I don’t care how wealthy you are, a $861,500 loss has to hurt.
“I don’t care how wealthy you are, a $861,500 loss has to hurt.”
Yup, and don’t forget the $67,000 commission they got to pay on top of that for the pleasure of dumping this albatross for a loss that would fund a decent retirement all by itself. They stayed out of the million dollar loss club, but just barely.
“Actually you all are wrong…. My mother bought the place in raw condition and is doing her own build out as she is an interior designer. For an investment standpoint, the condos will be worth double 5 years from now. If you need further information, contact the Ritz sales staff directly.
Sincerely,
Greg Fox
Posted by: Greg Fox at January 14, 2008 10:08 AM”
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Never gets old watching these suckers lose their money!!
El Bombero, that comment was the first thing that came to mind when I saw that unit at #1704, which is unfinished, is on the market as a short sale.
Perhaps Mr. Fox’s interior designer mother is the seller. Guess we’ll find out if that particular condo is going to be “worth double 5 years from” 2008 next year some time.
It’ll probably still be on the market.