Purchased for $2.38 million in February of 2018, the two-bedroom unit #31C on the 31st floor of LUMINA’s Tower B (201 Folsom Street, at the corner of Beale) returned to the market with a $2.688 million price tag three months ago, a sale at which would have represented anticipated appreciation of 12.9 percent over the past year.

The 1,495-square-foot unit features “spectacular city views facing South, East and N/W,” with floor-to-ceiling windows, two full bathrooms and a designated parking space in the garage.

And having been first reduced to $2.575 million after a few weeks on the market, and then to $2.449 million last month, the resale of 201 Folsom Street #31C has now closed escrow with a contract price of $2.36 million, representing depreciation of 0.8 percent since the first quarter of last year with a tenant in place paying $8,500 a month and monthly HOA dues of $1,160 for those running the numbers at home.

Comments from “Plugged-In” Readers

  1. Posted by Michael

    $8.5K rent – $1.1K HOA – $2.4K tax = $5K income/mo = $60K/yr
    $60K/2.36M = 2.5% Cap rate

    That math worked when the market was on fire, problematic when the market is down. And that’s with a $8.5K rent! At least the agents made money…

    • Posted by moose

      I would guess these owners aren’t in it for the rental investment return.

  2. Posted by sfwatcher

    Michael, are you assuming an all-cash purchase? If financed at 50% down that would add another $4k of debt servicing (just interest, not factoring principal repayment here). That leaves a meager $1k/month

    • Posted by badatmath

      so a cap rate of 0.04%

      • Posted by SocketSite

        badatmath, indeed. It would appear you forgot to multiply that monthly income by 12. But more importantly, cap rates should be calculated on an unleveraged basis.

  3. Posted by Metroliner

    Nice unit, I suppose, but god-almighty $1,160/month HOA dues (now, sure to go up in the future) are simply insane.

    • Posted by Brahma (incensed renter)

      I was going to say that it’s all about signalling (It’s a luxury building), but then when you read the listing you see it has an on-site gym, swimming pool, multiple common areas with high-end finishes that require regular maintenance to maintain their appearance and a doorperson. Given all of that $1,160/mo is actually reasonable.

  4. Posted by Conifer

    A nice very modern pied-a-terre, relatively large, but too small for a primary residence of a person who can afford this price. It would be interesting to know the demographics of people who buy in this building.

  5. Posted by Richard Michaels

    This was an all cash purchase. Client already lived/lives in the building and was upgrading from the 20th floor.

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