Bank Aims To Double Its Money On Tenderloin Foreclosure
July 30, 2015
Purchased for $308,000 in 2005, the 520-square-foot studio #1006 at The Hamilton (631 O’Farrell) in the Tenderloin was remodeled with marble counters and new cabinetry in the kitchen.
And in August of 2012, the studio was taken back by the bank in a foreclosure auction with no bidders at $296,863 in cash on the courthouse steps.
Still owned by the bank and sitting empty, 631 O’Farrell #1006 returned to the market yesterday listed for $674,900 ($1,297 per square foot).
The 520-square-foot studio one floor below, 631 O’Farrell #906, sold for $235,000 in 2010, while the designer 520-square-foot studio four floors above, 631 O’Farrell #1406, sold for $405,000 in 2013.
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Not all that impressive, but I bet it sells for list. Crazy market.
This is a $40,000 apartment in most markets.
Sort of irrelevant though, right? Or is your view that price/sq ft should be uniform across markets?
Of course not.
The last studio apt in this building sold for $480K. This price is crazy. I can’t see a bank financing at this asking price. I think it would go for $500K.
last one sold in 2013, figure two years of additional appreciate in this market…probably 20%-25% on top. That gets it to $575k – $600k. Over $600k is realistic today.
Karl – the last apt sold was around 3 months ago for 480K. There was one sold a month before for $480K.
I don’t believe your estimate on appreciation is correct.
it’s kind of a sad mix of nice and not so nice “design flourishes,” and good money after bad, aka, $400 stove next to carrera marble…and horrid main space at a glance. just the neighborhood and the main room probably send many scampering off, but personally i love that building the hood. i’d call that locale “Dante’s Gate.” aka….really not impossible
You are so right about that stove…
Since it was a foreclosure, the previous owner probably took out the nice 24″ range. My understanding is that in order for a property to clear an appraisal for a loan it needs to have a functioning stove so the seller puts in the cheapest available.
that would explain the stove alright. that lil light over the snack bar looks really out of place also. and the main room, it’s like it’s trying out for the ugly award. and the hardwood patch under the eating bar? it’s just sad.
It’s nearly impossible to find a “nice” 24″ range because they aren’t standard size these days. If they had moved the plumbing over a couple of inches to the right they could have put in a 30″ range and not bothered with the tiny cabinet on the far right. IMO this is just a case of pure laziness. Whoever put this in didn’t know what they were doing because the cabinets don’t even go all the way to the window — there is a space.
I also just noticed they didn’t replace the outlets with GFCIs, so I’m wondering if they even pulled permits for this job. Buyer beware. If you replace cabinets you’re required to pull a building permit.
good point about the GFCIs and the cabinet-window intersection. a pal in the building had a banquette in the kitchen window….another way to utilize the space more efficiently: aka, avoid the cumbersome window/cabinet line intersection
That price sounds absolutely ridiculous. I really like that building and I looked at a couple units in it two years ago that were going for around $300,000. The building has a lot of charm but it is still in the heart of the tenderloin and the neighboring streets are rough and filled with drugs and crime. I just can’t imagine this unit selling for that much.
ya know it’s not that far from union square. you could waltz up leavenworth one block, and then saunter down geary 3 blocks to the square. it is on the edge of disaster but just the edge. and a glorious sun deck on about the 16th, and many units have stupendous virtually unobstructed views. if i wasn’t penniless…
I almost feel sorry for the [people] who move from BFE just to go deep into debt on a property in one of the scummiest locations in the country. It’s like watching The Wire and paying half a mill to live in a small portion of a boarded up vacant. I moved to SF for the amazing daily life. How can these poseurs enjoy the daily life of being surrounded by drug addicts who use your sidewalk as a toilet, flea market and shooting gallery? Was Tulsa really so boring you had to make this big of a mistake?
BTW, I remember when you could rent a freshly remodeled 1br unit on this block for under $800/mo. and that was just before the recession. Too recent to justify these ridiculous prices.
That price is just crazy for a studio in that part of town. I just saw a huge 2/1 at 47th and Balboa listed for $699K a few days ago.
Meanwhile, in Michigan.
That is in Detroit,Michigan, where the economy and unemployment rates are very different than here. From (namelink):
“according to the Bureau of Labor Statistics, unemployment in Detroit was 13% by the end of May. Granted, that 13% is (thankfully) a drop from the 16.90% level of May of 2014, or the 18.6 percent level reached in May the year before that.”
Anyone know how long it has been since SF had 13% unemployment?
Yes, I am aware that Detroit is pretty depressed. Still, lots of genuine bargains if you have a bit of cash.
I can’t see this getting over 600K even in this market. Plus I think the HOA’s a very high here.
UPDATE: The list price for 631 O’Farrell #1006 has just been reduced $45,000 (7 percent), now asking $629,900.
UPDATE: The list price for 631 O’Farrell #1006 has just been reduced another $30,000 (5 percent), now asking $599,900.
UPDATE: The listing for 631 O’Farrell #1006 has been withdrawn from the MLS without a reported sale.
UPDATE: The asking price for 631 O’Farrell #1006 has been reduced another $43,500 (7 percent) and the unit has just been relisted anew for $556,400 with an official “1” day on the market according to industry stats and reports.
UPDATE: The asking price for 631 O’Farrell #1006 has just been reduced another $36,500 (7 percent), now asking $519,900 or $155,000 (23 percent) less than its original list price above.
UPDATE: The asking price for 631 O’Farrell #1006 has just been reduced another $19,901 (4 percent), now asking $499,999 or $174,901 (26 percent) less than its original list price above.