Purchased for $1.25 million in December of 2015, the 941-square-foot Lumina unit #7E returned to the market priced at $1.359 million this past September, a sale at which would have represented total appreciation of 8.7 percent since the end of 2015 or roughly 4.9 percent per year on a straight line basis.
Reduced to $1.329 million in early October and then further “improved” (per its listing on the MLS) to $1.275 million after a month on the market, the resale of the luxury one-bedroom unit, which features a den, functional balcony and valet parking space, has just closed escrow with a $1.26 million contract price, a sale at which represents total appreciation of 0.8 percent over the past two years for 318 Main Street #7E on an apples-to-apples basis.
At the same time, the unit is now being advertised on Craigslist as an unfurnished rental for $5,000 per month.
And for those who are running the numbers at home, the condo’s HOA dues, which are paid by the owner, are currently running $1,005 per month.
What besides the selling price qualifies this unit to wear the “luxury” badge?
I agree: there aren’t even two sinks in the bath….sheesh!!
The amenities that cost you $1,000/month.
The 1 foot gap between the foot of the bed and wall is my favorite part
I agree these things are for people who buy an entry leve lexus and think they are suddenly luxury / upper class.
Or like when I moved here my roommate was like we arent middle class anymore because we make 40k (this was almost 20 years ago), and the national average is 30k…uhhhhhhh hu right.
The price on this thing, while high, is not remotely luxury by bay area standards as well.
What bath?…. that’s a shower and a powder room.
The balcony is nice but the den has no windows and would be a depressing spot to do any work. At best, it’s a large shoe closet and extra storage.
To each his own, but whenever I work near a window, I find myself staring at the outside more often than at interior office. If you can afford a place like that, you need to eek out every bit of productivity.
why the heck would you buy this to rent out at 5K/mo (if you can even get that).
Just a guess but the buyer is probably parking the money for a while and if he/she can get the rental rate, it is gravy. Buying real estate in SF as a viable investment is a long-term prospect of 10+ years.
Yup. This makes no sense as an investment – I’d say even if one’s horizon is 10 years out. There are too many robust RE markets for an investor to “hold and hope” with something like this in SF. 5K/month? I don’t know what similar units in the Lumina rent for but this seems high to me. You can get a 3/2 in Pneumonia Gulch for 5K/month.
whoever sold this effectively rented the condo out for ~$5400/month – assuming they even lived there.
hoa + property taxes = ~$2000/month
realtor commission = $75K for 22 months = $3400 / month
There is no way this unit will fetch $5K/month – with all the inventory in the neighborhood (I live in the building) – even $4K would be a stretch
Don’t forget the mortgage payments, or cost of capital, for the $1.25 million investment as well.
Correct, if one adds the opportunity cost of investing the $1.25M in a conservative 5% portfolio the hole gets 2x deep
Anecdotal Lumina stories but, as you are a tenant there, are there many units rented out in the Lumina complex? Are there many units that are used as part-time domiciles for their (presumably) wealthy owners? And, are there still brand new units which have not sold?
Many units are rented, the owner of my unit has multiple units. Not sure on wealthy part timers, there are 90+ units available. Most of the people i see around though are young professionals / families. Ohh and there are plenty of trophy toys in the garage.
@lumina tenant – Thanks. 90+ units available. Ouch. It’s hard to se how the owner of your unit cash flows the property. or the other units that they own in the building.
I was thinking the same thing. 5k is the new buyer hoping to break even on the mortgage.. which is probably not going to happen. 3.5 to 4k is probably fair market rent for this place.
And, if one adds the opportunity cost of investing the $1.25M in equities getting 10% returns, the hole gets even deeper.
When the next recession hits, I wonder what the foreclosure list price will be.
What’s HP room in the masterbedroom?
Still listed on craigslist for $5K, I’m sure if one waits long enough a fool will come by and rent this one …