Purchased as two adjacent but completely separate units in the Royal Towers building at 1750 Taylor Street for a combined $4.6 million back in January of 2014, an application to legally merge the one-bedroom unit #804 and the two-bedroom unit #805 was soon filed with the city, citing a need to accommodate the buyer’s family.
While San Francisco’s Planning Code generally disallows the merger of a unit which isn’t deemed to be demonstrably unaffordable, the threshold for which was $1.63 million at the time, units 804 and 805 had been appraised for $1.695 million and $3.5 million respectively, and the Dwelling Unit Merger (DUM) was approved by San Francisco’s Planning Commission last June.
Keep in mind that the merger had been opposed by the Planning Department, which noted: “Although the smaller unit exceeds the Numerical Criteria, the merging of two unaffordable units into one unit that would approach or exceed $5,000,000 and be unaffordable to a larger percentage of the population than the two individual units considered separately would not be in the best interest of the community.”
In addition, citing Mayor Lee’s 2013 Executive Directive that all housing, including owner occupied, should be preserved when possible, the Department noted: “While the applicant’s family would occupy the merged unit, there is no compelling reason as to why the family could not continue to occupy both units as currently configured,” and once the units are merged, “there is little chance that the City would recoup the loss of the unit.”
Shortly after being merged and remodeled, the now four-bedroom unit simply known as 1750 Taylor Street #805 inexplicably returned to the market priced at $8.6 million, the sale of which has just closed escrow for $7.075 million ($2,141 per square foot).
As an aside, with the list price for the unit having been reduced to $7.298 million in February, the sale is officially “within 3 percent of asking” according to all MLS-based stats and reports.