Got a three-unit building you want to sell, but don’t want to tread the choppy waters of the multi-unit TIC ocean? Take a tip from the sellers over at 215-217 Cole in the North Panhandle: Create an “airspace” subdivision of a three-unit building. Turn the top unit into Parcel A, and designate it a planned unit development, or PUD. Turn the middle and lower flats into Parcel B, and market them as two TIC interests. Then you can end up selling a two-unit building—much more marketable than three units due to the condo conversion requirements—and a PUD, which can be sold in a very similar manner to that of a condo.
Both parcels can, according to the disclosure documentation, “share the use and enjoyment of the land and certain elements of the building.” There’s one association that is then subject to a declaration which governs the building. Everybody pays monthly association dues as specified in the disclosures.
In the case of 215-217 Cole, the top unit was sold as a PUD in December for $775,000 after being on the market for 208 days. What remain are the two units, priced at $809,000 and $805,000 and first listed in November 2008. The units were in contract recently, but the deal fell through.
A word out there to prospective buyers: Consult with an attorney before you consider an ownership arrangement such as this one. It’s worth paying for a consultation so you know what you’re getting into.
There once was a time when you could buy a small-but-cute Victorian in a reasonably good part of Potrero Hill and expect nice appreciation over a four-year period.
There seems to be no stopping luxury development in the Mission, despite the current economy. I stopped in yesterday during my broker tour at 3099 22nd Street, where three new condos priced at $785,000, $789,000, and $795,000 are gracing the landscape at the corner of 22nd and South Van Ness. Featuring higher-end finishes and weighing in at 1300+ square feet per unit, the building is coming along nicely. The last reported sale in the MLS for the lot was for $2.5M in February 2005.
