How Owners are Making $402,000 from Re-Sale in Arden in Just Over 2 Years

Arden SF

Welcome To San Francisco.

Yes, you read that correctly. Less than 2 years. Sold for $402,000 than what they bought it for. How many days on market? ... 0 

Arden is re-selling at rate most buildings in San Francisco take 10 years to realize, if at all. This surge of buyer interest dawned on me during the sale of unit #303 with Afi Valizadeh in late 2017.

We we're doing a few market pieces for the unit and it was during the video piece I produced when I asked what the listing price was ($1,329,000) that something inside of me, albeit jokingly, asked what the original purchase price was. Our client had bought the unit in July of 2016 for $1,250,000, and the thought of listing the unit $79,000 above what he had paid for it just 12 months earlier, was a little mind boggling to me, but the Mission Bay neighbourhood was developing fast, cafes and coffee shops were appearing on all corners, and life had began sprouting locally. We listed for $1,329,000, sat on the market for 7 days, and sold for $1,485,000. $156,000 above asking, and $235,000 above what was paid for the space just 13 months prior. 

Could buying at a discount off the developer and holding for a short period of time be the fastest route to appreciation?

This question struck a chord with something inside of me and I couldn't resist the thought of digging deeper, deeper into Arden to begin with, then expanding to other developments across the city.

The K.O. punch came when I stumbled upon unit #315. I had noticed other people making anywhere between $150,000 and $250,000 for the first re-sale of the unit since the developer, but 315 was off the charts, and sold off market! Originally purchased and recorded on 1/15/16 as one of the first sales in the entire building for $1,293,500, these early owners had full faith in the product BOSA delivers when they build in the city. Potentially because of a fond relationship they had with the developer after Radiance, or maybe in absolute serendipity, the faith in the purchase price of this unit made this owner a pretty penny.

The unit re-sold two days ago, 4/11/18 for $1,695,000.

$402,000 more than 27 months ago. 

Arden owners are in a prime, but potentially small window, to cash in on buyer demand for the building. Buyer demand is fickle, but what Arden affords buyers that many other buildings cant, is a guaranteed view. Any north facing unit will foreseeably have one of the few 'views' in San Francisco that is unobstructable. Mission Bay as a neighbourhood is built on 'grass space,' people pay a premium (technically a neighbourhood wide HOA) to keep the grass and leisure space in place. For those that didnt know, the running cost per month to own in MB is an additional ~$38 a month. With this system in place, and nothing but grass and leisure land between the building and the channel, even lower floor units will retain their view indefinitely. Buyers like this. Buyers REALLY like this. Other buildings are having a hard time selling due to the 14 New Highrises  erecting from the ground causing views to vanish. No one wants to buy into a unit that could lose its view and potentially destroy the re-sale value, so buyers and agents alike are actively seeking units where value will seldom be adjusted by the the variability of city permitting and new development. 

For more information or a private consultation and value analysis of a particular unit, click here.

Tim McMullen