Paolo Shoes staying on Fillmore

Photograph of Paolo Iantorno, owner of Paolo Shoes, by Daniel Bahmani

Photograph of Paolo Iantorno, owner of Paolo Shoes, by Daniel Bahmani

By Chris Barnett

THE RANCOROUS LEASE DISPUTE between Paolo Shoes and its landlord has been resolved out of court, and the custom Italian shoemaker won’t be taking a hike from the corner of Fillmore and Pine for at least two more years.

The clash between the two San Francisco real estate dynasties was recently settled as Paolo Shoes and Webco Group LLC and their lawyers met in the halls of the courthouse awaiting a mandatory settlement conference of a lawsuit based on a disagreement that had dragged on for 10 months with neither side budging.

“We made amends and settled on a rent that is twice what I am paying now, but still below market,” says Paolo Iantorno, the tenant and owner of the store. Under terms of the agreement, he will pay $10,000 a month rent for the first year and $10,500 a month in the second year. Previously, he was paying $5 a foot for the 1,000-square-foot storefront at 2000 Fillmore Street.

Patrick Szeto, a member of the family that owns Webco Group and American Realty and Construction Co., did not return calls or respond to an email seeking comment.

“We met for four hours in the halls and we each had our lawyer with us,” Iantorno says. “The mood, to be honest, was fine. Very constructive. There was no anger or emotion and we talked everything out.”

Still, both sides were at an impasse and ready to go to trial until Iantorno’s father, Sergio Iantorno, showed up and acted as unofficial mediator. His son will not disclose what precisely brought the factions to an agreement. But he hints that his dad made certain amends and pointed out that Paolo had been in the storefront for 10 years and in the Fillmore neighborhood for 15 years and had been a good tenant during those years.

“For Patrick, I now understand that it was business and not personal,” says Iantorno. “We settled our differences — despite the fact that he had a prospective tenant ready to move in and pay $15,500 to $16,500 a month.”

The amiable resolution was a 180 degree turnaround from earlier this year when Paolo Shoes faced eviction on Valentine’s Day when his lease expired. Webco would not extend the lease, claiming Iantorno’s request in July 2013 for an extension did not meet a deadline in the existing lease.

Both sides hired lawyers and spent the fall and winter haggling.

These days, Paolo Iantorno, who has two other retail stores in Hayes Valley — including one called Duke et Duchess that sells its own line of jeans and accessories, — is spending most of his time working for the family real estate business, Realty West. He is doing hands-on renovations of apartment complexes and mixed-use retail and residential properties.

Iantorno says he is grateful his Fillmore Street hassle is behind him.

“My dad and I were talking,” he says. “Maybe there is some way our two families can work together on a deal. I would like that.”

EARLIER: “Getting the boot

Shell station may lose garage

The Shell station and garage at California and Steiner Streets.

The Shell station and garage at the corner of California and Steiner Streets.

PLANS HAVE BEEN UNVEILED to demolish the Shell station at 2501 California Street and replace it with a new high-end convenience store called Loop.

Loop is the next evolution in service station retail,” said Nick Goyal, one of California’s largest operators of Shell service stations, who now controls the local station and more than 100 others. During the past year he has opened six Loop stores at Shell stations in the Bay Area, with more on the way.

Loop stores offer groceries and fresh foods along with wine, espresso, smoothies, frozen yogurt, sushi and a soup and salad bar. “It will change your expectation of what you can purchase at your next fill-up,” Goyal said.

Shell Auto Repair would be eliminated and the fuel pumps reconfigured and rebuilt, if the project is approved by the city.

EARLIER: “50 years at the Shell station

Pacific Heights is cheap compared to Noe Valley

The views are better in Pacific Heights — and maybe the deals, too.

The views are better in Pacific Heights — and maybe the real estate deals, too.

By Nina Hatvany

SALE PRICES of real estate in San Francisco’s southern neighborhoods have taken off dramatically in recent months. Noe Valley, Potrero Hill and South Beach are especially sought after by people who commute to the Peninsula, but still want to live in the city, or couples in which one person commutes south or to the East Bay. The south side generally offers better weather, proximity to the burgeoning restaurant scene in the Mission District, and often better access to muni or bart for commuters. 

In contrast, the more established northern neighborhoods are still desirable, but aren’t experiencing the same surge in popularity, despite the views, the bustling retail streets and easy commuting to downtown and to Marin.  

Areas like Pacific Heights, Presidio Heights, Cow Hollow and Russian Hill will always retain their allure. They are what I consider to be “blue chip” quality in the long term. But at the moment, while attention is focused southward, the properties coming up for sale in the northern neighborhoods are often a comparatively better deal — either by dollars per square foot, or because there are fewer people bidding on them and buyers therefore don’t encounter quite the same kind of bidding frenzy. 

One could argue that now might be the time to buck the trend and revisit the traditionally more expensive neighborhoods, considering the southern craze.

But gut feelings on the real estate market have to be backed up with evidence, and in this case the evidence speaks volumes about how the southern neighborhoods are quickly catching up to — and in some cases surpassing — northern values, at least in certain price ranges.

For example, consider a typical search by a younger couple interested in both Pacific Heights and Noe Valley — arguably the most expensive neighborhoods in each of their geographies. Looking at recent sales results, I found that one- and two-bedroom condominiums with parking priced under $2 million were selling in the last three months in Noe Valley at an average of 13.2 percent above asking price and roughly $879.16 per square foot.

That’s hundreds of dollars per square foot more than prices in these up and coming areas just a few years ago. On average, the homes were on the market from the start of marketing to closing for only 22 days, meaning there was a high percentage of all-cash and preemptive offers.  

In contrast, similar Pacific Heights home sales were averaging only 8.9 percent over asking price (indicating less competition) and $880 per square foot.

That’s a difference of only 84 cents per square foot between the neighborhoods — despite the fact that historically Pacific Heights has been San Francisco’s most expensive neighborhood.

This evidence speaks volumes. The competition for first-time or mid-range home buyers has soared in the southern neighborhoods, and there may well be some competitively priced deals to be had by turning one’s gaze back toward the bay. I will be encouraging clients to join me in living on the north side
of town.

Nina Hatvany is a real estate agent with Pacific Union.

Mrs. Doubtfire’s neighbors move up

The historic Ellinwood mansion at 2799 Pacific Avenue.

The historic Ellinwood mansion at 2799 Pacific Avenue.

By Maria Marchetti

IN THE DEPTHS of the real estate crisis in 2011, the defaulting owners who had spent millions restoring the Ellinwood mansion at 2799 Pacific were removed and the home was put on the market as bank owned. In the same family for more than a century after it was completed in 1894 — and empty for half that time — the house has a rich and colorful history, with a basement billiard room that hosted at least one world championship and a side garden with a tree that was a gift from Queen Victoria, now replaced by a lap pool. The house sold in June of last year for $11.5 million — not much more than the price of the restoration.

The new owner — producer-writer-director Chris Columbus (“Mrs. Doubtfire,” “Home Alone,” “The Help” and several Harry Potter films) — is now selling his former home overlooking Alta Plaza Park at 2622 Jackson Street. It’s also a neighborhood landmark, designed in 1895 by Willis Polk in the Italian Renaissance style and constructed of sandstone, which is rare in San Francisco. For decades its classical rounded portico welcomed students and guests inside to the Music and Arts Institute. Now it’s a comfortable home with bay views — and a screening room, of course — listed for $13 million.

The historic square sandstone house at 2622 Jackson Street.

The historic square sandstone house at 2622 Jackson Street.

Maria Marchetti is a real estate agent with Sotheby’s International Realty.