Purchased for $1.2 million February of 2016, the “chic” penthouse unit #801 at the Palms on 4th Street, returned to the market listed for $1.295 million at the end of last year, a sale at which would have represented total appreciation of 7.9 percent over the past three years for the two-level, 1,021-square-foot unit on an apples-to-apples basis.
In addition to a powder room on the first floor, a little patio and high-end finishes in the kitchen, the loft-style unit features a deeded parking space in the garage and a new Central Subway stop steps from the building’s front door.
And this past Wednesday, the re-sale of 555 4th Street #801 closed escrow with a contract price of $1.175 million, down 2.1 percent versus the first quarter of 2016 on an apples-to-apples basis.
Is their light/view going to get blocked when parcels to the south develop?
Yes. But no more so than was expected back in 2016 (or the year before).
Nobody lives in these places. They’re pieds-a-terre at best, investment laundering at worst.
Shhh, you’ll disrupt the narrative here that the market is in chaos. Cherry-picked outliers really do represent the market and aren’t held by LLCs, housing collectors, or sold by executive RE MGMT when an SVP gets relo to elsewhere.
But why aren’t the Juullionaires bidding this up with multiple overbids??
condo decoupling?
Word on the street is they’re looking in Richmond, VA. SF City is going to push them out and Phillip Morris is going to bring them home. Won’t be here five years from now. No point getting into a short hold at the end of a market cycle.
““I don’t eventually want to see them leave this city,” Supervisor Shamann Walton said. “I would have liked for them to have been gone yesterday.”
That piece indicated that Juul is still private. Just because the company has a “unicorn” valuation doesn’t mean that the highly-compensated staff has the liquidity to purchase real estate in S.F. Did I miss something? Some private cash-out event?
Yes you missed the Phillip Morris purchase cash out
Thanks, sparky, I did miss that. Reading the story in the New York Times after your comment, Juul Closes Deal with Tobacco Giant Altria it still wasn’t clear to me, irrespective of the headline, when the actual payout happened if the deal was just approved in late December by both companies boards. In my experience, there’s typically a substantial delay between when a deal is approved and when it closes and the subsequent transactions can actually happen but I guess that three months is enough time for the people involved to have their money in hand.
It was only $2B which is unlikely to make a noticeable dent, regardless of payout timing. Juul is a sideshow.
The Lyft and Pinterest S-1 include the usual 180 day lockout. Slack is considering a direct listing which could be done with no lockout if they choose. I assume Uber will have a 180 day lockout.
But if people are borrowing (and they would be fools not to) then the lockup may not make a huge difference. It’s easy to borrow against unvested shares at this point.
$2B is the employee payout for Juul. Equivalent to a $20B IPO. Round the size of Lyft.
I stand corrected, thanks.