A 13% Markup in Martyrs

Posted by Dave Fratello on Wednesday, August 29th, 2012 at 6:59pm.

If 2006 and 2007 were pretty much the end of the bubble years, one question would be: When are those prices coming back?

On one prestige block of the Marytrs neighborhood of the Tree Section, 2007 isn't just back – it's been topped with a resale of a property for 13% more than its 2007 acquisition price.

624 14th
624 14th (5br/6ba, 5765 sq. ft.) is the subject here, a home we called "a ginormous, newer Mediterranean in an A+ location."

Getting all gushy, we added: "Elegant and kind of fun, this one is a pleasure to behold."

Part of the charm is the abundance of outdoor living spaces – a big front patio, a center courtyard and a cabana out back by the pool and jacuzzi. And if that's not enough, there are 5765 other square feet inside to hang out in.

The home is opulently decorated and gets a bonus basement home theater.

We could go on, but you may get the picture without that.

Despite all these pluses, we heard polite grumbling at the first brokers' open house to the effect that the $5m asking price was out of range. "This is a really nice $4 million dollar house," one broker said softly.

In MBC's review, we said that a price near $5m "would really be something categorically new, even for Martyrs."

Well, here it is, something "categorically new." The new resale, posted Wednesday: $4.900m.

The home had been acquired new in March 2007 for $4.350m, making the markup this year +$550k/+13%.

Yes, we should try to account for any costs of customization – the pool, theater, décor here and there. That $4.3-ish house had a lot more into it before it hit the market this Summer.

But whatever market value 624 14th lost during the local market decline sure came back with a vengeance.

And reasonable skepticism about stratospheric prices was dealt another blow by the action on the ground in 2012.
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