Purchased for $5.475 million in April of 2015, the three-bedroom, 2,569-square-foot unit #28D in the Four Seasons Residences at 765 Market Street returned to the market priced at $5.475 million this past February, a sale at which would have represented net appreciation of 0.0 percent for the luxury unit over the past eight years.
Featuring walls of windows with panoramic views stretching over the City to the Bay, the corner unit’s formal foyer flows to its “grand salon” (living room) and around to the dining room and kitchen, with the unit’s third bedroom currently outfitted as a media room, custom window seats throughout, and two deeded parking spaces and a storage area in the building’s garage.
Despite a reduction to $4.95 million in April, a buyer had yet to emerge for the unit as of mid-June, as we outlined at the time, with the unit also being offered for rent at $18,000 a month (which would include the HOA fees of $3,905 a month for those running the numbers at home).
And with unit’s listing now touting that it’s “PRICED to SELL!”, the list price for 765 Market Street #28D has just been reduced to $4.25 million, a sale at which would be “at asking” according to all industry stats and aggregate reports but down over 22 percent on an apples-to-apples basis for a seven-figure loss.
If you think you know the high-end/luxury market in San Francisco, here’s another chance to tell.
This is going to be a great lesson in not trying to catch a falling knife. I doubt this unit clears above $3mm. What is the draw for living on a disgusting and degrading Market St. and pay those ridiculous HOA fees?
Jeez, that HOA is more than the mortgage on my Sunset house.
Well, it’s a luxury condo unit, what used to be called a “serviced apartment”. From the listing:
It doesn’t mention, but other sources do, that Owners /occupants have access to “housekeeping, the dynamic MKT restaurant and lounge, and the onsite 127, 000+/- sq.ft. Equinox fitness center”.
This sale may be a harbinger of doom for the 9 other available listings for this building if it closes for a price at or lower than asking. The 3 bedroom unit on the southern wing of the floor below this has been on sale on and off since June of 2020, asking $2,336 per ft.², compared to $1,654 per ft.² for this one.
“Access” does not necessarily mean “included in HOAs”. Housekeeping, 24/7 room service, and (probably) Equinox are extra.
I have clients in Asia who have told me that their local news sources are full of stories about people getting stabbed in San Francisco. Given that would be one of the target markets for units of this type, that’s not exactly helpful.
I’m generally negative on a lot of these SOMA condos but that building is at least on a decent part of Market. Super close to the Powell stop and a few new bars have popped up near there.
Nobody is renting at half the price. Why would you pay twice as much to buy? Only if you think the price will go straight up. At $18k, it’s still grossly overpriced. I might pay up to $9k to rent just for the view and convenience. A beautiful condo with a nice floorplan, though.
In related listing/building/luxury market news: Free Fallin’ Atop The Four Seasons
UPDATE: 765 Market Street #28D has just been relisted anew for $4.25 million, a sale at which would be considered to be “at asking” and with “only 1 day on the market,” according to all industry stats and aggregate reports. The asking rent for the unit, however, has been reduced to $15,000 a month.
I wonder if this affects that listing: “Westbrook Partners, which acquired the property for the Four Seasons San Francisco at the Embarcadero in 2019, was served a notice of default this week that said it had not paid on its monthly loan since December and is currently behind by more than $3 million.”
The listing says “Owners /occupants have access to the Four Seasons Hotel amenities”, so there is some kind of cross pollenization in ownership (or perhaps just management), but as the story you quoted from notes, The “Four Seasons San Francisco at the Embarcadero” refers to the hotel occupying the top 11 floors of 48 story office tower of 345 California Center at 222 Sansome St., and 765 Market St (i.e., at The Four Seasons Residences where unit #28D, and at my last count five other units, are currently available) is over half a mile away.
The competition for buyers is heating up, driving prices down.
And yes, Big Price Cut for Luxury Condo Already Listed at a Loss