In February of 2012, the newly constructed 3,400 square foot home at 1507 Noe Street hit the market listed for $2,750,000 and sold for $2,950,000 that March. The faceless buyer of the Noe Valley home was officially “Hangar Labs LLC,” which we reported was formed by a single Facebook engineer.
Two months after the purchase of 1507 Noe and just before Facebook went public at $38 a share, a two million dollar mortgage was taken out on the property. And with Facebook trading around $24 a share, this past November 1507 Noe quickly returned to the market listed for $3,599,000.
Reduced to $3,399,000 in January, the sale of 1507 Noe Street closed escrow on Monday with a reported contract price of $3,230,000, up 9 percent on an apples-to-apples basis, roughly 8.4 percent when annualized.
Facebook closed the day at $27.43 per share, down roughly 28 percent year-over-year while the S&P 500 is up 13.6 percent and the workforce in San Francisco has grown by 19,500 over the past twelve months.
∙ SF Unemployment Rate Drops To 6.0% For First Time Since 2008 [SocketSite]
∙ The Dow Hits An All-Time High, S&P 500 Comes Close [SocketSite]
Comments from Plugged-In Readers
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FB up roughly 50% from its $17.75 low in September. Quite a ride.
The schmuck probably pocketed $50k. At least he didn’t loose his ass. Moral of the story: don’t count your chickens before they hatch.
You mean a 1 year hold and still making a buck? That’s poor strategy saved by a bull market. Doing that in 2009 would have sent you to the cleaners.
This is a great example of my no-lose three step strategy for real-estate riches!
1. Buy house on open market at inflated retail price.
2. ?
3. Profit!
I applaud the seller for successful execution of the plan.
“Smart people’s money” doesn’t automatically become “smart money”. The next few years are gonna be entertaining.