Listed for $3.2 million in July, reduced to $3.0 million in August, and then withdrawn from the MLS in September, the Roosevelt Tamale Parlor building at 2817 24th Street in the Mission has just been relisted anew for $2.9 million.
The building quietly traded hands for $1.85 million in February, at which point the two one-bedroom flats above the restaurant were rented for $2,200 a month and the Tamale Parlor was paying $4,370 per month with a long-term lease.
While the Parlor remains in place and is turning a profit at its current rent, its lease expires November 2017 according to the new listing. And the two flats, which were emptied of tenants and renovated after the last sale, remain vacant but are now staged and listed with projected rents of $3,700 and $4,100 per month.
Wow, one bedroom across from Pops and next to St. Francis for 4k. You literally could never have convinced me of that in my early 24th street days when Pops traded hands to the previous owner (2003 maybe? I’ve been to the new Pops once, meh, if Phone Booth closes the hip days of my 24th street college youth will be over.
I’ve lived in the neighborhood 19 years. Lots of changes. I’ll be very sad if Roosevelt closes, but I’m afraid the writing is on the wall.
Yeah, with rising rents and all….Roosevelt is on the doomed list. While the upstairs unit look nice, I really can’t justify the rental price.
Is Roosevelt good these days?
For what it’s worth, I saw them doing work to restore the sign recently. Something about that made me feel better about the visibly empty units above. Speaking of which, they’re much, much nicer than I’d expect. To think, it wasn’t long ago the Police had a gang unit parked in a trailer on that part of 24th.
It is quite good, maybe not great. It is a far cry from the greasy spoon it used to be. It’s good enough for regular visits. Oh, and the portions are huuuuge!
Everyone can do GRM and/or CAP rate calcs. Why these guys feel as if they can get ~3M is beyond me. They are off by well over $1M.
Check out 2018 Fell St, which just traded hands at $2,500,000. A 3 flat residential Edwardian building in NoPa with rental income of $13,250 a month and a gross CAP rate, at the sales price, of 6.4%. It sold within a week of being listed at $2,090,000, probably with multiple offers. The market for investors, IMHO, is all about CAP rate calculations, as it has always been.
This building is a perfect example of sellers being too greedy to price their property to attract investors – the only market for multi-unit buildings in SF. Even if the projected rent is realized on the two apartments, and the Tamal property’s rent is increased by $1,000 a month to $5,370, the gross CAP rate at $2.9M is not even 2.5%. You can almost do better in CDs.
UPDATE: Roosevelt Tamale Parlor on the Market in the Mission (and not simply the building this time).
UPDATE: Withdrawn from the MLS last month, the Tamale Parlor building has just been relisted for $2.9 million and with an official “1” day on the market for the third time in seven months.
UPDATE: The listing for the Tamale Parlor building has once again been withdrawn from the MLS without a reported sale.
UPDATE: Having failed to sell back in 2015, the Roosevelt Tamale Parlor building is now back on the market without an advertised (i.e., fluid) price.
UPDATE: With the former Roosevelt Tamale Parlor space having been taken over by Tacos Del Barrio, the 3-unit building at 2817 24th Street returned to the market with a $2.395 million price tag two months ago.
And having been dropped to $2.195 million two weeks ago, touting a “Huge Price Reduction!” at the time, the list price for 2817 24th Street, a sale at which would be “at asking” according to all industry stats and surging market reports, just got even huger, having just dropped to $1.995 million.