In this little “Ask Us” segment we typically field the standard, “I’m buying a house, I need your help” type question, but this one that came across our email recently is quite extraordinary, if not bordering on spam, but somehow, we think it’s legit:
Good afternoon,
I know you are probably busy but it would be nice to receive a message back in regards to my question. I am an Infantry soldier from the San Francisco Bay Area currently deployed. I am looking at going back to active duty and working on college when I return from this combat deployment.
I have always been a hard worker and believe strongly in being paid for my hard work. My question for you is what types of people purchase these units and other units like them. More or less how do they generally go about assuming such wealth where they can afford prices like these. I am not appalled or discouraged just curious as to where they are coming from so that one day I might be able to provide for my family in such a similar manner.
Thank you in advance for your time and assistance.
When you say “deployed”…care to elaborate a little on where you might be? Wherever you are, Hi to your fellow soldiers from all of us here. Happy Holidays to you as well.
(This all assumes your email is legitimate, and we didn’t just get spammed. [See Update Below.]
We aren’t that busy, and we’ll gladly send a message back, but we thought we could do better and post it, so maybe, just maybe, some other readers can shed some light.
Some people you might have heard of that take residence at the St. Regis: Former Vice President of the United States, Al Gore; and Former Mayor of San Francisco, Willie Brown. Our post on the buyer of one of the penthouses at Millennium Tower might help shed some light as well. Of course, these buyers are a bit extraordinary, and there are also savvy business men and women, day traders, bankers, venture capitalists, real estate developers, and the like that buy these homes as well, so don’t go thinking you need to get into politics to buy a home at the St. Regis or any other high rise luxury condominium.
[Update: The reader is legit, and had this to say in response, "Yes, I am forward deployed to a combat zone, due to the nature of the situation I can not give too much information tho. When the weather clears, hopefully soon, and we have increased bandwidth I look forward to finishing the story of Tom Perkins."
Okay then, when the weather clears and you need some comic relief, have a look at this too. Here's another one. Make sure to get to 2:00, so as not to miss Osama bin Manicure, and 2:39 for extra laughs. Good luck, and Happy Holidays!]
Those of you that read this site frequently, know that we like to keep our eye on the St. Regis Residences here in San Francisco. We do this for many reasons, and we always like to report back to you, our dear readers as to what is going on in there.
Well….prices they are a droppin! So if you’ve had your eye on this building, give us a shout and we’ll give you the real deal scoop that is not fit to print. In a nutshell, here is a list of Recent BOM, and withdrawn listings at St. Regis (BOM=Back On Market).
Why would a property be BOM? In this day and age, the number one deal killer is financing. Especially when the building is as nice and well kept as the St. Regis.
The BOMs are interesting, but the recent sales prices are more interesting. Take a look at Unit 27D, which hit the market ages ago for $3,995,000 and recently sold for $2,300,000 (42% less than original asking and almost $1300/sqft)! Victory for the new owners for sure. What a fantastic unit and great way to take advantage of timing and unlucky pricing.
One more example, Unit 24C, originally listed for $2,495,000 sold recently for $2,195,000* (The asterisk means sales price was not disclosed, but we have it on good intel the price was around $1,850,000 +/-, which puts that price per square foot near $1100!) That is $1100 per square foot for one of the premier residences in San Francisco! That’s a little bit different than the >$1500 per square foot we had been accustomed to.
Okay, some more stats for all you St. Regis lookers. Average sales price per square foot in the building for recent sales $1476. Average price per square foot for expired or withdrawn listings at the St. Regis, we’ll call it around $1650.
Moral to the story…pricing is crucial when selling your unit at the St. Regis these days, and buyers are clearly in the driver’s seat. Millennium Tower is putting forth some good competition for the St. Regis too, so make sure you check out all of the property available to you… especially those on top.
Because I had a listing not too long ago at the St. Regis, I like to keep up on that building, and lucky for you, I like to share what I find. Although young, considerably younger than my colleagues (most of whom I completely respect and admire) selling in the building, I’m no dummy.
Here is a list of most recent activity at the St. Regis (188 Minna). What is important to note on all of the “active” listings, every single one of them has either been on the market before with another agent, or been reduced by a large enough margin to reset the DOM (Days On Market). So they are hardly “new” and hardly “active”. In fact, I’d go so far as to say every listing there is a Stalefish, which by no stretch of the imagination means it is a bad property, just getting a little long on the market, and a great opportunity for you buyers that have your eyes on the St. Regis.
Let’s take a look at the most recent sales: Unit 27D, which started in June of 2008 at $3,475,000, reduced countless times, eventually down to $2,995,000 in December 2008 and withdrawn from the market. Relisted in January 2009 at $2,550,000 and recently sold in March 2009 at $2,300,000. That is $1,175,000 (34%) less than original asking price and it took nine months to get there.
Unit 25D was the only other 2009 sale, and was originally listed in September 2008 for $3,995,000, withdrawn in December, relisted with a new agent in January 2009 at $3,200,000 and eventually sold April 2009 for $2,500,000 ($1,495,000 or 37% less than original asking price) or $1402 per square foot and eight months on the market.
For comparison, we sold unit 38B three months prior to unit 27D, and we sold it in seven days for a higher price per square foot than what 27D recently achieved, and many would argue 27D to be a nicer unit. At the time we advised our clients to take the offer we had on the table and run to the hills, even though it was below asking (asking $2,395,000), and we knew we’d be laughed at by some other agents selling in the building and rumors about our sale would quickly circle, which they did, and which is exactly why we kept the sales price confidential.
So that brings us to the facts, and good comparisons to see what has happened to high rise luxury real estate in San Francisco in just one year, and how a little foreshadowing saved our clients time and money. Unit 38B sold in March 2008 after seven days on the market (with us), for roughly $1350+ per square foot…cash. Unit 27D listed three months after our sale for $1940 per square foot, took nine months to sell for $1337 per square foot. Unit 25D listed six months after our sale, eventually sold eight months later for $1402 per square foot.
We’ll let you do the math and discuss. For us, the writing is on the wall, and if you’re interested in a unit at the St. Regis, or currently live there, we’d be happy to discuss all high rise luxury sales and listings with you (email alexclark@gmail.com).
Hats off to Gregg Lynn and Louis Silcox for getting this $70,000,000
20,000+ square feet (including 2,900 of terraces); six bedrooms, seven full baths, four powder rooms; 2,500 square foot master suite (including the closet of dreams below); thirteen-seat home cinema designed by Keith Yates; 22 foot floor-to-ceiling glass walls in the living; and four terraces, four fireplaces and six car parking
home on the market. It is truly a remarkable piece of San Francisco luxury real estate, and we can’t wait to put you in this home.
We take it back, Kevin Rose, you should buy this pad instead.
Stalefish at the St. Regis, San Francisco.
Originally listed at $3,495,000 for this 2 bedroom, 2.5 bath, 1792 square foot, luxury slice of pie in the sky, the price has been dropping, while the days on market have been climbing. Price now, $2,995,000. Days on market, 150. (That would actually be an interesting chart to see how as the DOM goes up, the price comes down.)
Since we’re talking about the St. Regis, you buyers out there might like to know of what else you can get in that building. You can get the penthouse for $70 Million (or a bit less), or, take your pick from this list. Just because it might be “expired” or “withdrawn”, or not on MLS, doesn’t mean it can’t be sold. And guess what? We know the scoop, so don’t hesitate to contact us if you’d like to learn more.
It also begs the question, “Is the addition of Millennium Tower to our market hurting sales at the St. Regis?”
Below is a PARTIAL list of my recent transactions:
-------------------------- 1119 Hopkins Ave in Palo Alto!
Buyer Representation
5 bed, 3.5 bath, 3626 sqft, Single Family Home
New Construction
Original Asking $3,475,000 (Purchased for much less) Contact Alex Clark for details
-------------------------- 195 Beacon
Buyer representation:
4 bed, 3 bath, Mid Century Modern "Green" Home
Asking $1,650,000 Contact Alex Clark for details
--------------------------- 2185 Bush #307
SOLD $790,000,
3bd,2ba,1pk condo
Lower Pacific Heights
Top Floor, High Ceilings, Living/Dining Combo, Fireplace, bright, patio & balcony, views, Earthquake Insurance, A+location
Represented Seller Email Alex Clark for details.
--------------------------- 62 Buena Vista Terrace
Buyer Representation
2 bed, 1 bath Top Floor Condo
$885,000 Contact Alex Clark for details
--------------------- 2186 33rd Avenue
Buyer Representation
3 bed, 2 bath Center Patio Home
$815,000 Contact Alex Clark for details
--------------------- 442 41st Ave (SOLD $1M) $1,049,000
3 bed, 1 bath up
1 bed, 1 bath down (unwarranted)
2 Pk, Outer Richmond Single Family
Represented Seller Email Alex Clark for details
--------------------------- 613 Peralta (SOLD Cash $520,000) 2bd, 1 ba, 1pk, $539,000
Bernal Heights Condo
Represented Seller Email Alex Clark for details
------------------------ 241 7th Ave (SOLD-$950,000 cash) PRICE REDUCED $1,129,550 $999,000!
2bd, 1.5 bath, 2pk, Inner Richmond Single Family
Represented Seller Email Alex Clark for Details
