As we outlined back in February:

With the project team having successfully secured forgiveness for the under-permitted redevelopment of their rather spectacularly “reimagined” home at 3847-3849 18th Street at the end of last year, the property recently returned to the market with a newly reduced list price of $8.5 million, down $900K from its previous listing and versus an $11.85 million price tag in 2018.

At the same time, the Dolores Park West property, which was allowed to slip into foreclosure last year, is technically slated to hit the courthouse steps this Thursday.

But with around $6 million of debt on the building, including a first mortgage for $4.95 million (which had been an estimated $400K past due, including penalties, at the end of last year), don’t be surprised if the slated auction is cancelled, or at least postponed, considering the target sale price and potential equity.

As foreshadowed, the foreclosure auction was postponed.

And having been further reduced to $7.5 million in April, to $6.995 million in July and then to $6.495 million in August, the sale of 3847-3849 18th Street has just closed escrow with a contract price of $6.625 million, a sale which is officially “over asking” according to all industry stats and aggregate reports but roughly 44 percent below original expectations and likely at a very real loss.

Comments from Plugged-In Readers

  1. Posted by Kyle S.

    Did they wind up building a third unit to replace the illegal one they illegally removed?

    • Posted by SocketSite

      As referenced, linked above, and we reported last year: Commissioners Grant Forgiveness for Reimagined $9.4M Home.

      • Posted by Kyle S.

        Right but that story ended with this:

        And while the Planning Commissions’ decision did include a finding to recognize an offer from the project team to gift the city $250,000 in lieu of having to add a third unit back to the building, and reject the requested DR, keep in mind that said offer isn’t legally binding or enforceable.

        I’m asking what ultimately happened? Did the developer build a 3rd unit to replace the one they removed? Did they pay the $250,000? Or did all that get lost on the way to bankruptcy court?

        • Posted by SocketSite

          As reported, the Commissions’ decision obviated the need to add back a third unit.

          And as far as we know, while “offered” and “recognized,” the $250,000 gift has yet to be received by the City.

  2. Posted by Brahma (incensed renter)

    If there is any justice or sanity in this world, the lender(s) required flippers to personally guarantee the loan and therefore the greedheads behind this debacle will not be able to walk away scott free. The lender(s) should force Dawson & Clinton to “reimagine” what their partnership’s net equity is.

  3. Posted by sf

    Why is “reimagined” in quotes but not “spectacular?”

  4. Posted by Incline JJ

    Foreclosure Auction Postponed to: 11/03/2020 by Beneficiary’s request
    APN: 3585-077
    TS Number: 8103

    [Editor’s Note: Which should soon be cancelled with the proceeds from the sale paying off the Deed of Trust.]

  5. Posted by jenofla

    TBH, given that the price covers the original real estate cost ($1.4mil), whatever permits they actually did pull, the cost, time, design, materials, and labor of building this (say, $700 psf x 5300 sf is already 4 mil), and procuring forgiveness (feels like getting an indulgence from the Church) from the City for all the trespasses, this seems like a deal! It’s a beautiful, pre-laundered house! Then you realize it’s still $6 mil plus.

  6. Posted by Jim

    Dawson & Clinton are a design-build firm so the architecture and at least the prime contractor (themselves) were wholesale.

  7. Posted by inclinejj

    Foreclosure Auction Status: Canceled: 11/03/2020

    [Editor’s Note: As expected.]

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