As we outlined earlier this year:
Purchased as new for $1.53 million, or roughly $1,284 per square foot, in early 2008, right as the Great Recession was picking up steam, the two-bedroom Ritz-Carlton Residences unit #1702 at 690 Market Street returned to the market in early 2015 priced at $1.75 million.
Reduced to $1.65 million and then withdrawn from the market after being offered for rent at $8,500 a month, the condo was listed anew in 2017 with a $1.6 million price tag.
Reduced to $1.5 million [in July of last year] and then to $1.4 million in November, the list price for 690 Market Street #1702 has just been reduced again to $1.3 million (which is roughly $1,091 per square foot and 15 percent below the price which was paid for the unit in the first quarter of 2008, not accounting for the value of the all furnishings which are now included in the sale price as well).
And yes, having been financed in 2008 with 30 percent down and a loan for $1,065,540, the loan is now a little over $100,000 past due with a remaining balance of $1,015,514 and a foreclosure auction looming. Or in listing speak: “The timing is right!”
And as we added in July:
Withdrawn from the MLS and then relisted anew at the end of June, with the unit having since been emptied of its aforementioned furnishings, a trustee deed having newly been granted to HSBC Bank and a new $1.2 million price tag, the list price for 690 Market Street #1702 has just been reduced another 5 percent to $1.14 million, or roughly $956 per square foot, a sale at which would now represent a 25.5 percent drop in value for the unit since the first quarter of 2008 (with some ups and downs between).
The price for the two-bedroom was reduced another 5 percent at the end of August.
And as of this morning, the list price for 690 Market Street #1702, which has since been virtually staged, is now down to $1,028,850, which is roughly 32.7 percent below its 2008-era purchase price and 41.2 percent below its 2015-era list.
getting tempting!! I love this location and building! the unit itself does feel like a hotel room but this is a classic building in a prime location.
same thing I said last time this thing came up. its looking like a steal. I wonder why its not selling? Cant wait to see hot this one shakes out.
Cuz it will look like even more of a ‘steal’ when the over and under (and up for air!) hits 50%…or 60% (tho I guess you risk charges of felony theft at that rate)
I’m guessing the nearly $3K HOA dues might be weighing this unit down. $3K is not as big of an obstacle for the bigger, more expensive units. But this unit has a lower price tag. Until you factor in the HOA.
Maybe those $2700+/month HOA fees
HOA is almost 3000 a month.
2800 HOA + 2% property tax
This does seem like a fair price and likely will be bid up some. Is there an issue with the unit? How have other recent resales done in the building? Surely not “over 40 percent under”.
Maybe the fact that the HOA is at $2,827 has something to do with it. Not everyone wants the amenities that come with while nearly doubling the mortgage payments.
Oakland Lover,
The HOA dues are $2,827 a month, which I suspect affects the willingness of folks to purchase this unit!
HOA dues are $2,827… that takes alot of non-tax deductible temptation off my buying table.
The monthly HOAs are ridiculous. I think in a previous article about this property someone said they were like $2K/mo.
What are the monthly dues and fees at the Ritz-Carlton? That may have something to do with it not selling?
Virtually staged…who knew?
I remember this building when it was “remodeled”. After the “remodel” the folks in City Hall were shocked to realize that the interior was completely gutted. I WAS glad that the stone was revealed on the ground level.
What are the HOA fees? Maybe that’s a factor keeping buyers away?
The price seems reasonable for a 2B, but the HOA at $2,827.57 per month? Not so much…
Must be the $3,000 monthly HOA assessment
One man’s “classic building”…
Before reading your comment, I was contemplating the building and what the vibe would be like in a home that was, for generations, offices.
For years I worked on Maiden Lane when this building was offices and a ground floor Wamu branch, all clad in an ugly white paneling for the purpose of making it look modern circa 1960-something.
That the cladding would one day come down and reveal the secret (to me, anyway) lovely old building beneath, was a thrilling development. All the same, that intersection felt like a sad place to live, and the development from the start felt like it would be a stack of pied a terres at best – it was hard to envision an appealing residential community of any kind.
I worked enough late nights, seeking a late bite, or a drink with a colleague, to know that it’s not a part of town that beckons for much besides work, parade viewing, and the annual commemoration at Lotta’s fountain.
One man’s “classic building”…
Before reading your comment, I was contemplating the building and what the vibe would be like in a home that was, for generations, offices.
For years I worked on Maiden Lane when this building was offices and a ground floor Wamu branch, all clad in an ugly white paneling for the purpose of making it look modern circa 1960-something.
That the cladding would one day come down and reveal the secret (to me, anyway) lovely old building beneath, was a thrilling development. All the same, that intersection felt like a sad place to live, and the development from the start felt like it would be a stack of pied a terres at best – it was hard to envision an appealing residential community of any kind.
I worked enough late nights, seeking a late bite, or a drink with a colleague, to know that it’s not a part of town that beckons for much besides work, parade viewing, and the annual commemoration at Lotta’s fountain.
The $2,827 a month HOA is certainly a kicker.
It’s a very pleasant unit with a good location, but the HOA dues are pretty steep.
It’s the same basic “shoebox” design found in all modern multi-family buildings in the City. Not that exciting. Over time, there seem to have been a large number of failed unit resales in that building.
Putting aside the HOA dues, which I hear may be over $2800 a month, the place has only three small windows, all set three feet off the floor.
So you have a $1MM+ unit with an over $4M monthly cost to own (HOA + taxes + homeowner’s insurance), that is somewhat claustrophobic, with little in the way of overhead lighting, and that is in a neighborhood that shuts down on weekends.
What’s not to love?
“…that is in a neighborhood that shuts down on weekends.”
While many readers here are urbanophiles who appreciate an active street life, keep in mind that the majority of Bay Area residents live in the suburbs which are effectively dead 24/7. Pull your car into the garage and get cozy on the couch for an evening if `burb nightlife.
I don’t see someone who wants suburban living buying a condo on Market and Kearny.
In the burbs you can get a coffee on a Saturday afternoon. Many of the Peets and Sbux close to this building are closed during the day on weekends.
The building has always been an ultra high amenity building, same as when it was purchased.
And I’m not entirely certain, but I’m pretty sure the windows were the same size and position when it was purchased too.
As for the neighborhood, Target and Trader Joes moved in a few blocks away, AFTER the purchase, so it only got better.
And interest rates are down 40% from its original purchase.
So no, none of these things are anything but excuses from nervous realtors and sellers.
Impressive coordinated posting by the apologists. HOA! HOA! HOA! Tora! Tora! Tora!
Q for the apologists: why are HOA fees suddenly a problem now, while they weren’t a problem during the run-up?
(it’s a rhetorical Q; I think we all know the answer)
Tax cuts and trade war. Finally.
There are apparently three other units for sale in this building. Rather than settle for that two-level “penthouse shell” at the LUMINA tower recently reduced to $9.995 million, you could instead opt for the two level penthouse unit #2401 here for the low, low price of $9,900,000 and skip the multi-million dollar “buildout”, as the latter unit is “newly completed following a five-year custom design and build…the result of a collaboration of experienced Italian designers, builders, and craftsmen all brought in from Italy along with the materials that comprise the sophisticated interior”, according to the listing. HOA Dues for the unit is $3,718 per month vs. $3,670/month for unit 41A at the LUMINA.
Worth noting that it’s value was not $1.75M in 2015. That was its asking price and it didn’t sell. Therefore, it was worth less than that in 2015.
Yes, the real story is that this buyer bought just as the market was treading water and ready to head down in 2008 at $1284 psft. Had they waited one year, the sales office reduced #1701 next door to 906 psft, and they probably could have gotten this for about the same price. That 2009 buy would have been only about $50K above its current ask, but they couldn’t wait. They just had to buy right now.
The signs of an imminent crash were all there in 2008: Socketsite arguments, with realtors arguing that certain segments of the market were still doing OK while others were falling, nervous sellers trying to ensure that the properties doing poorly were distinguished from theirs by repeated postings of similar comments pointing out a flaw, occasional properties showing 20-30% losses on poor buys, star companies (Opsware) going public and seeing their stock prices immediately fall, yield curve inversions, IPOs being pulled. When you see those signs, your best bet is to sit on the sidelines.
But those signs are nowhere to be see…Oh.
Different issues today. Trade wars and exploding deficit spending.
One person’s “making excuses” is another person’s posting year over year sales statistics on this website. heh
Does anyone know what the HOA fees are for this unit? It’s too bad that information isn’t included anywhere . . .
$500/month it says in the listing
UPDATE: The resale of 690 Market Street #1702 has officially closed escrow at an “over asking” price.