SoMa Penthouse Nearly Fetches Its 2007 Price

Purchased for $850,000 in January of 2012, the two-story, 1,245-square-foot penthouse unit #827 at The Palms returned to the market listed for $1.399 million this past June.

Reduced to $1.299 million and alternatively offered for rent at $5,450 a month, the sale of 555 4th Street #827 has now escrow with a contract price of $1.25 million or roughly $1,004 per square foot.

On an apples-to-apples basis, that’s total appreciation of 47.1 percent or $400,000 over the past six years, which is nearly as much on an absolute basis as the previous owner’s loss of $415,000 from 2007 to 2012 as the unit was purchased as new for $1.265 million ($1,016 per square foot) in March of 2007, which was a few months before the market for SoMa condos peaked and around a year before home values in San Francisco’s more expensive neighborhoods – including Noe, Bernal and the various Hills – turned in the second half of 2008.

Credit: Socketsite