A historic Presidio Heights home, on the market for the first time in over 60 years, has sold for $4.4 million, nearly 50% above its initial asking price. The sale closed this week despite the property lacking both dedicated parking and a modern primary suite, signaling intense demand for single-family homes in San Francisco's prime neighborhoods.
The four-bedroom, 2.5-bath residence at 116 Cherry Street attracted significant attention, culminating in a fierce bidding war that underscores the current state of the city's high-end real estate market.
Key Takeaways
- A Presidio Heights home listed at just under $3 million sold for $4.4 million, a 47% increase over the asking price.
- The property generated 100 showing requests and received 16 written offers, leading to two rounds of bidding.
- The home lacks a garage and a primary suite, features often considered essential at this price point.
- A $100,000 pre-listing renovation was credited with adding approximately $1 million in perceived value for buyers.
- The sale highlights the scarcity of inventory and high buyer demand for character homes in desirable San Francisco locations.
A Frenzy in Presidio Heights
When the turn-of-the-century home at 116 Cherry Street was listed on October 10, it was priced at just under $3 million. The property, which had been in the same family for generations, immediately became a focal point for prospective buyers looking to enter the exclusive Presidio Heights neighborhood.
According to City Real Estate agent Alexander Lurie, who co-listed the property with David Cohen, the response was overwhelming. The agents fielded 100 requests for showings, which translated into 16 formal written offers. The intense competition necessitated two separate rounds of bidding before a final buyer was selected.
"It was the talk of the town," Lurie stated, reflecting on the market's reaction. The final sale price of $4.4 million demonstrates a significant gap between listing price and market value, driven by a shortage of available homes.
Overcoming Significant Drawbacks
The property's high sale price is particularly noteworthy given its structural limitations. The home does not have a garage or any off-street parking, a major challenge in a city known for its difficult parking situation. Additionally, it lacks a primary suite—a combined bedroom, large closet, and en-suite bathroom—which is a standard feature in modern luxury homes.
Lurie mentioned that during the sale process, he was frequently told a home without parking would struggle to surpass the $4 million mark. However, the market proved otherwise, with several bids exceeding that threshold. "A lot of people were mistaken," he noted.
By the Numbers
- Asking Price: ~$3,000,000
- Final Sale Price: $4,400,000
- Premium Over Asking: 47%
- Written Offers: 16
- Renovation Cost: $100,000
- Estimated Value Added: $1,000,000
The Power of a Pre-Sale Renovation
Before listing the home, the sellers invested $100,000 in a month-long makeover. The goal was to appeal to today's buyers, who are often hesitant to take on large-scale renovation projects. The work involved updating the kitchen with new countertops and flooring, refinishing existing floors, painting the interior, and improving the landscaping.
The agents and their team dedicated around 200 hours to overseeing the project. Lurie estimates this strategic investment directly translated into a substantial return, adding approximately $1 million to the home's final value. "Before it had been touched, I wouldn’t be surprised if it traded with a 3 up front," he said. This highlights a key trend where move-in ready homes command a significant premium.
Architectural Significance and Future Potential
The home's appeal was bolstered by its historic character and architectural pedigree. It was designed by Willis J. Polk, a renowned architect responsible for other Bay Area landmarks like the Filoli estate, the Flood Mansion, and the Beach Chalet. Classic details, such as four fireplaces and a library with a distinctive wood-beam ceiling, were major selling points.
"I think there’s an enduring element to that timeless home that’s been modernized enough but still has the character people love and identify as San Francisco," Lurie explained.
Addressing the Parking Problem
To address buyer concerns about the lack of a garage, the listing agents commissioned a feasibility study. The analysis determined that adding parking is possible. A two-car garage without interior access would cost an estimated $400,000, while a more extensive lower-level expansion with a four-car garage could cost around $650,000. This provided potential buyers with concrete data for future improvements.
Some prospective buyers also explored the possibility of creating a primary suite. One popular idea involved converting a small office adjacent to a bedroom into a walk-in closet and a new bathroom. However, the winning bidders, represented by Monica Pauli of Compass, reportedly have no immediate plans for major renovations and intend to move in as-is.
"A lot of buyers are overwhelmed and intimidated at the prospect of having to do perceived work."
A Market Defined by Scarcity
The sale of 116 Cherry Street serves as a clear indicator of the current dynamics in San Francisco's real estate market, particularly on the affluent north side. Monica Pauli noted that the outcome illustrates the combination of high demand and extremely low inventory, especially for properties priced under $4.5 million in Presidio Heights.
Even with its imperfections, the home's location, historic charm, and move-in condition were enough to create a competitive environment that pushed its value far beyond initial expectations. The result suggests that for many buyers, the opportunity to own a single-family home in a premier location outweighs traditional deal-breakers like the absence of a garage.
