CFAH

Purchased for $1,098,000 in December of 2015, the lower level two-bedroom, two-bath unit #1B at The Brannan, a “fully remodeled and upgraded” unit and “jewel of South Beach,” was listed for $1,198,500 in April of 2019, the price at which it sold that August, representing total appreciation of 9.1 percent from 2015 to 2019 despite the “short-term hold” and having been “used.”

Having returned to the market priced at $1,050,000 this past October, the 876-squre-foot unit was re-listed anew for $995,000 this past March and just sold for $985,000, a sale at which was officially “within 1 percent of asking” according to all industry stats but down 17.8 percent on an apples-to-apples basis from the third quarter of 2019 and 10.3 percent below its value at the end of 2015.

Comments from Plugged-In Readers

  1. Posted by SFresident

    Everyone knows lower-level units fetch less. Was it lower-level in 2015 as well?

    • Posted by The Milkshake of Despair

      Almost every building continuously sinks into the earth. This unit was probably a few millimeters higher in 2015. You have identified the cause of this property’s drop in value 🙂

  2. Posted by George

    Did something happen to the area between 2019 and today? Asking for a friend

    • Posted by Shane

      Something called COVID. U every heard of that? Urban flight

      • Posted by Sierrajeff

        Neighbors would also point to the homeless housing center that was built nearby – which I’m guessing was the tongue-in-cheek context of OP’s comment…

        • Posted by SocketSite

          After which, crime rates in the area dropped, the relative rates of which (higher before, lower after) have held.

          • Posted by Sierrajeff

            I wasn’t saying otherwise – was merely noting that that may have been an underlying allusion. And irrespective of actual facts (!), I can say as a potential buyer that the perception of having the center there is still a negative.

          • Posted by Brahma (incensed renter)

            It would be interesting to test Sierrajeff’s hypothesis by investigating whether or not the existence of the Navigation Center has also affected resale values at the Watermark, and if the impairment percentage is similar between the two buildings.

            But an even better way would be to take advantage of the fact that the lease for the Embarcadero Navigation Center is temporary, and compare resale values recorded while it was in operation to those recorded after it closes (the center is supposed to be temporary) in a couple of years. That’ll be as close to a natural experiment as you can get in real estate.

          • Posted by Brahma (incensed renter)

            If I am reading things correctly, both Unit 10E and Unit 4D were listed for sale at 501 Beale St – The Watermark – in March of this year. It’ll be interesting to see their closing prices.

        • Posted by Brahma (incensed renter)

          Which center? The Embarcadero SAFE Navigation Center almost a kilometer away?

          • Posted by Sierrajeff

            “almost a kilometer” is a nice long-sounding distance. Unlike, say “barely half a mile”, or “a few blocks”. Isn’t it wonderful how language can be used…

          • Posted by Notcom

            The problem isn’t the metricization, the problem is the claim is patently false, as the distance struggles to reach a half-kilo. Of course this is a real-estate site, so the perceived positives are all “a short stroll away”and the negatives are “(over) there”.

          • Posted by Brahma (incensed renter)

            Well, what coordinates or addresses are you using? If you use your favorite internet mapping application, and the 219 Brannan St. and 555 Beale St addresses as the start and destination respectively, you’ll get 0.8 kilometres as the walking distance (not the “as the crow flies” distance). I call that almost a kilometer.

            It comes out as half a mile, so perhaps you’re reading the U. S. customary units

          • Posted by Notcom

            I’m not sure what detours your app was using, but just looking at it on an aerial shot – or the map inset (above) – you can see it’s about a block-and-a-half away…~300 metres.
            I guess you could add the distance from the sidewalk into the building, to the elevator, down the hall, etc. but that seems like a bit of cheating.

  3. Posted by James

    Yeah George is in here at every possible opening to write something rude about homeless people.

  4. Posted by B

    Imagine if Chase Center ended up getting built just around the corner? Oops.

  5. Posted by soccermom

    Three years ago, San Francisco was very expensive compared to nearby suburbs. Now, prices have increased so much in those nearby communities that the “walkable urban living” premium is diminishing.

    Whether house prices go up or down here (in nominal or real terms) is not clear, but I would venture the relative prices of residential housing now put SF proper in more of a balanced value proposition.

    Three years ago, this condo sold for more over $1,350 per foot. A nice house in San Rafael might have gone for $850psf or Mill Valley at $1000psf

    Now the condo trades $1124psf and the same San Rafael house might be $950-$1000 and Mill Valley $1200.

    Feels like we’re overdue for a mark-down story on a Lumina condo sale. How cheap are those now?

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