Mission District: Tenancy in Common Sales

As part of our on going series detailing home sales in the Mission District, today we spotlight a few recent tenancy in common (TIC) sales.

760-762 Church Street

760_Church_StLocated on Church Street at 20th, this 1BR/1BA tenancy in common residence sold on April 13, 2011 for $570,000. It was on the market for 90 days and sold for $4,000 below its list price of $574,000. This flat was recently renovated. It’s located in a three-unit building. This ground floor residence includes a garage parking space, a laundry room, stainless steel appliances, granite countertops and a private deck. Monthly HOA dues are $152. This property is located across the street from Dolores Park and less than one block from a stop on the J Church Muni Line.


1438 Valencia Street

1438 Valenica StLocated on Valencia Street at 25th, this 2BR/1BA tenancy in common residence was on the market for 157 days and went through three separate price reductions before it sold on February 2, 2011 for $532,000.  The final price was $93,000 less than its original list price of $625,000. This renovated flat includes a garage parking space, an in-unit washer & dryer, stainless steel appliances and granite countertops. It’s located in a four unit Edwardian building. Monthly HOA dues are $250.

158 Linda Street

158_Linda_StSold on January 28, 2011 for $523,000, this 2BR/2BA tenancy in common residence is located on Linda Street at 19th. This property was on the market for 73 days and sold for $2,000 below the list price of $525,000.  This two level, loft style residence was recently renovated with eco-friendly green building materials. It is located in a six-unit building. The sale included a garage parking space, an in-unit washer & dryer, stainless steel appliances, and cesarstone countertops. HOA dues are $175 per month.  Fractional financing was provided by Sterling Bank.

If you are thinking about buying a TIC, here are some key factors to consider.

  • Purchasing a unit in a TIC building carries additional challenges compared to buying a traditional condominium.  With TIC ownership you acquire an interest in the entire building not just your individual unit.  This type of “shared” ownership is subject to non-traditional financing offered in two types:  fractional loans and group loans.  The preferred type is a fractional loan that grants a TIC owner an individual mortgage for his or her unit.  The other less desirable type is a group loan where all TIC owners in the building share the same mortgage and collectively contribute to the monthly payments.
  • In today’s post credit crunch marketplace, there are fewer lenders offering fractional loans.  As a result, the terms on these mortgages are less favorable than traditional 30-year fixed rate loans.  Fractional loans require a down payment of at least 20% with additional cash reserve requirements.  Furthermore, these loans carry higher interest rates and are typically limited to 5 or 7 year terms.

Financing is just one of many factors that should be considered prior to purchasing a TIC unit. Additional factors will be outlined in future blog posts.  Until then, feel free to call our office at (415) 829-2996 to discuss TIC home ownership in greater detail.