Price Cut for Permitted Development Site on ValenciaFebruary 7, 2020
As we outlined back in the fourth quarter of 2017:
While forced to be redesigned in order to minimize its projected future shadow following a semi-successful challenge initiated by the owner of Zeitgeist across the street, the contentious plans for a five-story building with 28 condos over 6,300 square feet of new retail space and a 19-car garage to rise upon the Oil Changer site at 198 Valencia Street have been approved and newly rendered below.
While the permit to start demolishing the existing building on the site is on hold pending an approval of a building permit for the project, said permit is expected to be approved by the end of this year.
But rather than preparing to break ground, the 198 Valencia Street site and plans are now on the market with a $9.25 million price tag.
Permits for the development were subsequently approved and issued, but the project has yet to break ground. And with that in mind, the entitled parcel is now back on the market with a reduced $6.95 million list price.
Comments from Plugged-In Readers
This was proposed during the irrational exuberance days – a time when SF real estate was going to go up double digits every few years for the indefinite future. Asking 9.25 million for the entitlement was a Hail Mary. That puts the cost/unit at 330K before construction starts. SF has the highest construction costs in the world and, per construction dive, pencil at 416 sq ft. Meaning these units would cost the developer about 750K apiece. In a building that would be non-luxury but also in the middle of an area where condo prices are falling – some at a fast clip. Presumably the owner has had the property for a while and their land costs are not high so they will still make out – despite the large 25% drop in the asking price. I suspect they will have to go somewhat lower than 6.95 to get someone to take this entitlement off their hands.
My prediction: the lot sells to someone who decides to throw out the existing entitlements and do a State Density Bonus project that is eight stories, shadows on Zeitgeist be damned.
But I’d love to see the entitled project go forward and get built sooner.
8 stories with density bonus, and no parking, would certainly be preferable
We have a good comp at 2100 Mission Street currently occupied by a dollar store. The Taboni’s bought it entitled for 29 units last year for $4.8 million albeit with the retail restricted with a BMResque lease for 50 years. Valencia and Duboce is a better location. I’d expect it to trade with a 6 in front of it.
I can’t think of a worse intersection to live on. Endless aggressive traffic up the Duboce incline, cyclists paranoid for their lives on Valencia; overall a cheerless crossroads of 24/7 traffic Why would anyone?
There’s a dog park right across the street. Close to Whole Foods/Safeway. Right by Stuff, Martunis and Burma Love, Four Barrel. Why would anyone not?
I used to live across the street at 222 Valencia (by Fred’s Liquor). It’s a great location. Not nearly as busy as 16th but completely accessible. Hayes Valley and the Castro just a short uphill away. Freeway also super close.
That part of Valencia has gotten some protected bike lanes recently, and there seems to be some momentum for more changes.
This is an extremely hot (i.e. bad) take. This location is near a bunch of transit, multiple neighborhood commercial corridors, parks, restaurants, bars, etc.
I like that the new-project rendering shows the freeway missing. Could this be that the architect predicts a major earthquake before it ever gets built?
Way over priced
Oil change is gone and foundation work is happening as we speak. Not sure what the final product will look like, but it seems to be progressing quickly.
I like the NYC-style traffic light over the middle of the intersection
Just about to start selling at $600k+, what do y’all make of it in today’s market?
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