Purchased for $3.2 million in April of 2014, following the conversion of the Park Lane at 1100 Sacramento Street into a Tenancy in Common building, the “elegant and sophisticated” unit #208, a remodeled three-bedroom with a “spacious, open floor plan” and private 1,400-square-foot terrace, returned to the market listed for $3.995 million this past March, a sale at which would have represented total appreciation of 24.8 percent for the Nob Hill unit over the past four years.

On Monday, the resale of 1100 Sacramento Street #208 closed escrow with a contract price of $3.2 million, representing 0.0 percent appreciation for the 2,538-square-foot unit on an apples-to-apples basis since the second quarter of 2014.

And having been relisted for $3.495 million last month, the sale was officially “within 10 percent of asking” and with only “30 days on the market” according to all industry stats and aggregate reports.

Comments from Plugged-In Readers

  1. Posted by John

    It is mind-boggling that anyone would select a similarly-priced unit in SOMA over this beautiful unit. It shows that once you remove yourself from the warped mindset that living in SOMA is somehow important to you (saving a few minutes on the commute to I-280, closer to Caltrain), there are relative “bargains” to be had out there elsewhere in the City in better and more beautiful neighborhoods.

    • Posted by EBGuy

      A TIC behaves like a condo… until it doesn’t. YMMV.

      • Posted by Dixon Hill

        Has anybody studied market performance of good-quality/well-located TICs in downturns? Do they take a bigger price hit or do they take longer to sell?

    • Posted by JWS

      While NH isn’t as notoriously “no new things ever” as Telegraph Hill, the lack of new development, and subsequently new restaurants, bars, gyms, and cafes, are really going to continue to drag these older desirable areas down in value. The reason why people are jumping for SOMA over Nob Hill or Telegraph Hill or Presidio Heights is because they can walk to any number of services and restaurants that cater to current tastes. I love the architecture in Nob Hill but would never ever live there because there is nothing to do. I chose a modern skyscraper close to Hayes Valley and love being able to walk there to an endless supply of restaurants and services.

      High HOAs also have something to do with it, I’m sure. Enormous monthlies for some of these places but with absolutely none of the amenities that larger Rincon Hill, Mid-Market, and SOMA offer (state of the art gyms, package deliveries, commercial speed building Wi-Fi, dog friendly policies and spaces, etc). That’s why whenever THD sticks their fingers in things (most recently the new restaurant ban in Jackson Square) they are further killing demand for buyers in their 20s-40s who care more about what’s located around them than the design of the building itself.

      YMMV of course.

  2. Posted by sfmanly

    well… the HOA’s are probably 3x that of one in SOMA, it’s rent controlled, and the location is on top of a hill actually not that great

    • Posted by Reemz

      If Zillow is accurate listed HOA is $2,682/month. That’s a mortgage on its own.

  3. Posted by s

    That terrace is freaking awesome!

  4. Posted by Dixon Hill

    My grandmother lived in this building during the 80s (I think the monthly rent was <$2K). I get that the open kitchen/great room concept is all the rage now but I think that is a mistake in a building as classically elegant as this one. Also, those white built-ins in the bedroom look cheap.

    IMO, the staging is sterile and leaves a lot to be desired.

    I love the terrace. Would the units be more marketable if they changed their ownership structure from TIC to co-op? Co-op ownership seems to have more cachet than TIC.

    • Posted by EBGuy

      From Sirkin: As a result, laws that restrict or prohibit the conversion of apartment buildings into legal subdivisions such as condominiums generally impose those same restrictions and prohibitions on the conversion of apartment buildings into stock cooperatives.

  5. Posted by denis

    A lot of Russian Hill condos aren’t holding their value. I’m not going so far as to say it’s a buyers market, obviously, but so many beautiful units in older buildings are getting closer to prices we were seeing 10 years ago.

    The New York condo/co-op market is seeing a similar fate. Lots of units that I could never dream of buying when I lived there are suddenly 10-20% off. New construction in all-inclusive buildings, lower rents, and, I would argue, the Trump property tax deduction limitations are continuing to put downward pressure on prices on NYC realty.

    • Posted by Pablito

      The property tax deduction limitations are probably the best thing in American tax policy we have seen in the last 20 years. Subsidizing the Top 5% of income earners is ridiculous.

      • Posted by hundo_p

        You need to also consider AMT and Pease.

      • Posted by BobN

        Yeah, because I’m sure that that was the GOP’s motivation in enacting the limitation.

    • Posted by Tipster

      Don’t forget that the deduction for mortgage interest also has a lower cap: $750K instead of $1100K.

      So, for example, a condo using the 1100K deduction at a mortgage rate of 4.4% (in 2014) cost (1100000*.044*(1-.28)/12 or $2904/mo. Adding a deductible property tax added $795/mo (1100*(1-.28)). Total $3699. Adding in 3% inflation compounded over 5 years to 2019 is $4288.

      At the same price, using 4.9% interest (today’s 30 year rate) and capping the deduction at 750, that same place costs 1100000*.048*(((1-.28)*750/1100)+350/1100)/12= $3560. Property tax adds 1100, for a total of $4660, about 10% higher.

      Of note is the fact the non-deductible property tax added $300, but the higher interest and cap on mortgage interest added $600.

      • Posted by Dixon Hill

        Standard deduction increased to $12K for a single filer. W-2 workers without a lot of deductions won’t get much benefit from deductible interest on relatively small mortgages. People with $5 million mortgages will still be able to deduct all (or nearly all) of the interest although they lose deductability of property taxes.

        • Posted by Tipster

          There has long been a 1.1M cap on deducting mortgage interest. That was lowered to 750K last year.

          So no, you can’t deduct nearly all the interest and 2018 buyers can deduct a lot less.

  6. Posted by denis

    On the plus side, the oft-cited 2170 Pacific, which was on the market in 2007, 2008, 2009, 2010, and 2013, sold off market for 4.3 after selling in 2013 for 3mm. Not exactly an apple – they painted all the extensive wood paneling white (the kitchen is exactly the same (countertops, flooring, cabinetry)…. just white).

    • Posted by SocketSite

      There was a major bathroom remodel, and perhaps a few other “touch ups” by the permitted crew, following the purchase of 2170 Pacific in May of 2013 as well.

      • Posted by Notcom

        Certainly you’re not suggesting a bathroom remodel – even a “major” one – accounts for a $1.3M increase.

  7. Posted by anon2

    We’ve gone from “you’ll never see 2016 pricing unless we all stop using our cell phones or go to war with North Korea” to a drumbeat of 2014 prices so fast your head could spin. Wonder when we break the 2013 barrier?

    • Posted by Ohlone Californio

      The thing you put quotation marks around is a nonsense strawman quote, made up by you. The second clause is a conclusion you can’t come close to supporting. The third part, of course is a silly hypothetical that you placed there for a comedic effect. I didn’t find it funny. I guess you did. The fact that your nonsense take is still up means the editor though you were amusing as well because generally unsupported nonsense like your post is deleted.

      • Posted by anon2

        Firstly, if you were as experienced in the ways of the calendar as I am, you might notice that April 2014 is a scant four months distant from 2013. So the “comedy of 2013 prices” may turn to tragedy sooner than you think.

        Secondly, while I suppose that I could say that when 2013 apples do arrive I will make sure to quote you verbatim, any student of literature would tell you that even the great Shakespeare had significant textual differences between his First Quarto and First Folio editions. But irrespective of changes in wording the heat of the matter is that in all of the editions, Hamlet dies in the end.

        And I think we can all agree that your words need a little ‘spit and polish’, so maybe when we get 2013 price apples, I can say: “They said the idea of 2013 pricing was Hyperbolic Hypothetical Hysteria!” or “They said the idea of 2013 pricing was Calamitous, Comedic, Cow Manure!!”

        • Posted by Ohlone Californio

          You didn’t make a single point there and only riffed about your first post which was a straw take.

          • Posted by Anonoly

            I am not sure what point you are making. Take a look out there and you will see many units going for 10%+ under list price. This was unheard of around 2016-2017, where almost all units were selling for well above ask. I am honestly shocked at how rapidly the market is turning. It appears many readers on SocketSite are in denial.

          • Posted by Ohlone Californio

            No, I’m not in denial that there is a market shift underway. What I deny is the statement that anyone on here talked about never being able to see 2016-2017 pricing again. I think everyone was pretty much thinking that was a peak. Who said we’d only kick on from there and continue to soar? Anyone at all? That said there are sub strata within all these things. I made the point the other day about how the conventional wisdom was that during 2016 and 2017 the 5M+ sale was over for areas 5 in SF. That particular market has rebounded. And it has rebounded along side, yes, a lot more inventory and a lot of properties trading for under previous high levels. We’re also seeing southerly neighborhoods continue to perform at never before seen levels. It’s too much of a mixed bag for me to go along with people talking about being shocked at seeing something. Are you not also shocked that Miraloma Park routinely gets high 1Ms, Visitacion Valley, Bayview, Ingleside, Mission Terrace, Excelsior single family homes frequently continuing to trade at very high dollars per square feet?

        • Posted by sparky-b

          We haven’t even hit the segment of the cycle where agents have to get there fingers out of the photo to get nearly $1m. That is comedy.

  8. Posted by anon2.5

    As a staunch liberal, I totally agree even though I benefited from the older limitation of $1 million. And, 500k is a reasonable limitation to support middle and low income homeowners without giving upper middle income earner a huge giveaway. Also, it has contributed a fair amount in driving up property prices, and hopefully that process will slow down.

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