Check out 469 Valley St: $649k for a total teardown. The MLS describes it as a probate sale and "absolutely uninhabitable under current conditions." But even given the condition we'd expect a bit more, especially because of the potential for views.
Compare it to a few recent sales that were also torn down or majorly fixed:
1409 Sanchez sold in September 2008 for $875k. It returned to the market as an empty lot with approved plans for $1.25M. It didn't sell, and was eventually withdrawn from the MLS.
168 Clipper St sold in 2007 for $800k and is currently slated for demolition and working through the approval process for new construction.
4033 26th St sold in 2007, was raised 2 levels and is now offered as a $2.595M single family home.
Has the market changed that much? Or is the risk to developers just too high, and construction loans that hard to come by? Maybe it's just not Noe Valley enough?
Maybe they were cooking meth in there and the ground will qualify as a superfund site...
ReplyDeleteYou laugh, but I've seen it in Sonoma County (but I didn't see any teeth in the mouths of the sellers!) Certainly the market for crystal meth is a little softer in Noe Valley...
It is definitely getting more challening to fund construction projects, especially on one-off properties like the ones you mention.
ReplyDeleteI blogged about one mess up the block from me that is still at a standstill:
http://insidesfre.com/2009/12/04/noe-valley-condo-development-hits-the-skids/
Another property that's on the market--not a fixer, and relevant to the Noe business community--is 1504-06 Church (next to Eric's). The property is currently being used by the owner, with half of the commercial space rented. But there is apparently potential for the building to be delivered vacant. The owner is also the proprietor of When Modern Was, and is willing to sell that business. Stay tuned to see what will eventually take up residence. Upper 2BR flat + commercial space for $1,275,000. They paid $1,195,000 in 2006, so we'll see whether they can build in appreciation.
i've been in this house on valley street. remember, when the house is "absolutely uninhabitable" you cannot get a loan, instead, it must be an all cash purchase. also, this house does in fact need to be knocked down and in SF, not only is that amazingly time consuming, but costly and tricky. once the place is demolished (within city requirements, likely having to leave a wall or two), you need to spend money on plans, permits and materials. the good news is, building is significantly cheaper today than it was a few years ago. that said, another challenge with this particular house is the parking situation... based on the street angle and the house offset, creating a functioning garage may be tricky and if you're going to build a $1.5m dollar house, ya gotta have parking...
ReplyDeletewhy do you keep linking your name Garrett to your closed blog?
ReplyDelete@rocky's dad,
ReplyDeletei don't comment here too often (maybe 3 times, ever), so i'm not exactly sure what you're referring to by "keep linking," but to answer your question, it was not deliberate. i guess i've remained signed in and the info was pre-populated. i've removed the link now.
In the past you could get construction loans to fund the purchase of the lot and the building of a house, but those are very difficult to get these days. I have a friend who is trying to build on a lot that he owns and has been having difficulty getting a construction loan. And this is a professional who makes a very tidy salary.
ReplyDelete