Ironic Decor and Reduction for a Remodeled ‘Penthouse’ LoftNovember 9, 2017
Purchased for $1.65 million in May of 2016, the 2,000-ish-square-foot unit #403 on the fourth floor of 767 Bryant Street returned to the market listed for $1.75 million this past June having been completed remodeled “from the studs up,” with high-end and custom finishes throughout and the phrase, “Success consists of going from failure to failure without loss of enthusiasm,” prominently stenciled near the ceiling of the now “penthouse” loft’s main room.
And at the end of June, the sale of the newly remodeled loft closed escrow with a reported contract price of $1.87 million.
A couple weeks later, the unit was listed for rent at $11,500 per month. In September, the asking rent was dropped to $8,500 per month. And last month, the“stunning panoramic view penthouse loft” suddenly returned to the market listed for $1.695 million without a tenant in place.
This afternoon, the list price for 767 Bryant Street #403 was dropped to $1.495 million. And while the furnishings have changed, the stencil remains.
Comments from Plugged-In Readers
With 20% down at a $1.87M purchase price and $11.500 monthly rental income the numbers would have worked… estimated cap rate of 5.5% and cash-on-cash return of about 3.2%, free cash flow >$1K… but of course the rent estimate was “a bit” optimistic 😉
The from the “studs up” remake of the unit must have cost what? 100K? 150K? Add in sales costs and such and, at 1.87 million, the original seller got little better than a wash out of the deal.
The next buyer I don’t get – really I do. They paid way too much for the unit out of irrational exuberance. They did not do their due diligence on rents in the building. They have set the price low hoping for a bidding war but, whatever the selling price, this was a money loser for them.
$1.65 million to 1.87 million to 1.695 million (assuming the low 1.495 million gets bid up to around 1.695 at sale) in a year and a half?!
why assume that it gets bid up to “around 1.695” when that is precisely the price that it has failed to sell at?
“And last month, the“stunning panoramic view penthouse loft” suddenly returned to the market listed for $1.695 million without a tenant in place.”
What is “stunning” about this big white warehouse a block from an elevated freeway? Call me hopelessly out of date or a rube, but for $1.5 million I want a door and a window in my bedroom.
“stunning” is used fairly to describe any and every property in SF nowdays. You will be stunned how much things cost and how little you get. 🙂
“Stunning” means it has a view across more than one street.
Bryant between 6th and 7th? There’s a real SOMA garden spot
Good god that staging furniture, and finishing choices in the first version are just aweful. So amateurish and gauche. Probably attracted a knucklehead that fell upon some money, or more likely one backed by a wealthy family. That $11,500 asking rent is a few bong hits away from laughable delusion. Guess when that wasn’t coming daddy took away the keys to the kingdom…
I don’t think I’ve ever seen a giant motivational statement on the wall of a home before. Awesome.
I will see your motivation poster, and raise you something harder to remove.
Incredible it wasn’t painted over when the property was listed, though, to be fair, the motto is pretty ironic given the history of this place.
Seriously, I guess they are tying to justify thier huge loss as a success??
One problem might be the staging is simply hideous! I can picture this great room sleek and serene if done right but this is much too busy with splotches of mismatching colors like a bad carnival. If they didn’t want to pay for staging they should have simply shown it completely empty and let the buyer use their imagination.
UPDATE: An Ironic $320K Hit for a Remodeled ‘Penthouse’ Loft
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