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penthouse sale at The Avery in San Francisco's East Cut neighborhood has reached $11.25 million, marking the area's largest condo trade in over two years. This significant transaction is a positive sign for the sector, which has been lagging behind the modest recovery seen in the city's single-family home market last year. According to Derec Lacio, sales director at The Avery, there was an uptick in activity in 2024, with 70% of its 118 condos sold and several more in contract.
The penthouse, which spans half of the 56th floor, initially came to market in 2019 for $41 million. After a price drop to just under $12 million, it was relaunched by Compass agent Butch Haze's team in late 2023. The buyer, described as a "very successful tech person," took a calculated risk on the city's rising future and plans to make the penthouse their primary residence.
The sale works out to $2,616 per square foot, with the buyer planning to build out the existing roof deck. Lacio noted that primary owners are common in the building, while others use it as a second home or rent out lower-floor units. The sales team is seeing referrals from current owners and interest from tenants looking to upgrade.
With this sale, Related will now focus on selling two more 56th floor units and three units below, which will be marketed as penthouses. Lacio plans to analyze market trends and remaining inventory when determining prices for these units in the spring. The Avery has averaged $3.7 million per unit, with condo resale prices up 4.2% year-over-year to a median of $1.125 million.
The East Cut neighborhood is experiencing growth, with amenities like grocery stores, coffee shops, and restaurants opening, and more residents moving in. Lacio notes that the community spirit is increasing, with many buyers already living in the area or knowing someone who does. The neighborhood's Community Benefit District provides private cleaning and security services, removing over 110,000 pounds of trash between January and November 2024.
The sale of this penthouse marks a significant shift from the "absolute hell" experienced by Bay Area agents in 2022 and 2023, with rapidly rising interest rates and uncertainty casting a long shadow. With the increase in competition, Haze notes that buyers are now taking bold first moves, and those who step up tend to win.
