When Daniel Rabin bought 238-240 Alma St. in 2012, he was a single guy drawn to the prime Cole Valley location and the potential to turn an old carriage house behind the duplex into a standalone home. He finished the renovation of what became 242 Alma in 2019, by which point he was married and on the cusp of starting a family.
The couple moved into the newly built backyard house, a two-bedroom, two-bath with double-height ceilings, and rented the two units in the renovated 1921 duplex out front to a series of tenants. The last of those tenants vacated at around the same time the couple had their third child, in October, and the need for more space won out over their beloved location across from Grattan Park.
“We had reached the end of our life in that building,” said Rabin.
The family of five moved to Mill Valley, and the compound Rabin built came to market this month at $3.2 million. Though it was also offered as three tenancies-in-common, a single buyer quickly gobbled it up.
The duplex at the front of the lot was built in 1921 but updated throughout. | Source: Courtesy Open Homes Photography
During its two weeks on the market, the new-construction home, with its “secret garden atmosphere” and private patio drove buyers’ interest with its modern style, hot tub with outdoor shower just off the downstairs bedroom, and secluded location behind the duplex, listing agent David Cohen of City Real Estate said.
Most people who were interested in the standalone home wanted to buy all three units. On the TIC front, he heard by far the most interest from folks fond of the smallest and most affordable unit: a one-bedroom, one-bath on the ground floor of the duplex asking just under $500,000 for 600 square feet.
He got calls about that unit from all over the Bay Area — Peninsula and East Bay buyers looking for a pied-à-terre, first-timers drawn to the affordable price tag, and parents hoping to buy the unit for their college-age kids. Apparently, they were undeterred by the fact that the duplex’s garage and patio are both deeded to the rear unit.
The hot tub and outdoor shower off the rear home’s ground-floor bedroom. | Source: Courtesy Open Homes Photography
The private patio between the front duplex and rear home. It can be accessed via a side entrance or the garage in the duplex. | Source: Courtesy Open Homes Photography
The lower bedroom in the rear home can be tucked away behind a sliding wall. | Source: Courtesy Open Homes Photography
“You don’t have a backyard, but you walk a couple blocks, and you’re at the biggest park in San Francisco,” Cohen said.
Interest in TICs generally dips alongside the overall market, since the ownership model and financing are typically more complex than for condos. But when the market is as competitive as it is now, TIC values pop right back up.
“When the market’s hot, people tend to forget about any perceived flaw with a property: 100 stairs to the front door, being on a busy street, or a TIC,” he said. “Right now, people are valuing them pretty close to condominium pricing.”
Even with the uptick in TIC demand, the novelty of buying a ready-made compound in a coveted neighborhood like Cole Valley sealed the deal.
The kitchen of the smaller duplex unit, which was a big hit with TIC buyers. | Source: Courtesy Open Homes Photography
Cohen stayed mum on the number of offers, sale price, or buyer but noted that during the marketing process, he heard from siblings who wanted to spread out across the three units and parents interested in living in the modern home while housing their young adult children in the two units out front. There were also groups of friends who imagined creating a co-living space.
“What’s so special about this property is the flexibility,” Cohen said.