Across the country, luxury homesellers are slashing prices. Here are some of the biggest drops.
When the 20,000 square foot, six-bedroom St. Regis penthouse in San Francisco was listed in late August 2008, for US$70-million, it was the highest price ever sought for a Bay Area property.
Even though it was before the meltdowns at AIG and Lehman Brothers, which would later virtually freeze transactions of multimillion-dollar homes, the listing generated skepticism among San Franciscans. It wasn’t in Sea Cliff overlooking the bay, nor nestled among the stately spreads in Pacific Heights, and nowhere near the Geary Boulevard mansions made famous in Hitchcock’s films.
Rather the St. Regis is on Third Street, next to the Museum of Modern Art, a fine neighborhood to be sure, but on the edge of the grittier Mission district. It’s far from the city’s best restaurants, the ocean and boutiques. Instead, the St. Regis residents greet throngs of tourists and homeless encampments when they step out the door.
Those reasons no doubt kept would-be buyers away. Another drawback? The near eight-figure price tag.
Read Matt Woolsey’s full article “Ten Multimillion-Dollar Home Price Cuts” in Forbes (May 14, 2009).