Purchased for $3.195 million in June of 2016, the 1,791-square-foot, three-bedroom, three-bath unit #30E in the LUMINA tower at 338 Main Street failed to resell when listed for only 3 percent more ($3.295 million) last May, after which is was listed for rent at $10,000 per month. For those quickly calculating that rather nominal CAP rate in your head, keep in mind that the HOA dues for the unit are $1,365 a month and the property tax bill was $42,956 last year.
The corner unit in “San Francisco’s best condominium project” features “Bay to Downtown views,” with “some of the most iconic buildings in the city framed by floor to ceiling walls of glass,” “an oversized sun-drenched living room,” and a “fabulous chef-grade kitchen” (with Gaggenau appliances, SieMatic cabinetry, and Caesarstone countertops).
And with the three-bedroom, three-bath unit with the same floor plan two floors above (338 Main Street #32E) having closed escrow with a contract price of $2.68 million at the end of last year, which was 17.5 percent below its value in the second quarter of 2016, and down 23.4 percent from the third quarter of 2019, 338 Main Street #30E has now returned to the market priced at $2.85 million, a sale at which would be 10.8 percent below its value in June of 2016 on an apples-to-apples basis. And yes, that’s despite the fact that the widely misreported Index for “San Francisco” condo values is “still up 15 percent!” over the same period of time (but dropping fast).
If you think you know the market for luxury units in San Francisco, now’s the time to tell.