Purchased as an un-entitled Tenderloin parcel for $1.6 million three years ago, plans for an eight-story, market-rate building with 23 sub-500-square-foot residential units to rise on the 430 Eddy Street site were approved by the City early last year.
Two months later, the now “Fully Entitled!” site returned to the market listed for $5 million, a price of roughly $220K per entitled unit, which was “around the price per unit that developers have been paying for luxury sites around the city,” as we first reported at the time.
The asking price for the parcel was subsequently reduced to $4.8 million, or “closer to $200,000 per entitled unit (which remains in the current luxury price range),” as we also first reported at the time.
And today, the asking price for the 430 Eddy Street parcel is down to $3.5 million or roughly $152,000 per entitled unit (not including the value of its ground floor commercial space) with the building permit for the project having been requested and expected to be approved within the next four to five weeks.
I’m guessing up to a million to get the project entitled? Say all told the developer is in for 2.5 million. A sale at 3.5 million would be a nice profit, but is someone else going to pay that much? For this sketchy area? They’d have to start building w/in a year to retain the entitlement. If the purchaser does not intend to build soon this property is worth closer to the 1.6 million the current owner paid for it 3 years ago.
I live across the street from this site, a welcome addition to my neighborhood that can’t get built soon enough. I’m really waiting for the project at 950 Market to break ground. I call walking down that block “going into the hornet’s nest” we need to deep clean that stretch like 30 years ago.
(1) this ain’t no “luxury” housing location.
(2) right now construction prices are still rediculously high.
therefore, (3) no one going to touch this property at any price.
UPDATE: Bigger Cut for Approved Development in the Trendyloin