Together, Over employees can buy any single house for sale in San Francisco, Oakland and Berkeley with ...
Together, Ober employees can buy any single house for sale in San Francisco, Oakland and Berkeley with their cash orchestra
The huge public offering is liable to exert additional pressure
The Bay Area housing market, has been the most expensive on
Country.
With wealth generated through
Uber's comprehensive offering of Uber, current and former employees of
The business can buy any house for sale in San
Francisco, Oakland
Berkeley
In combination, in cash - and there are still about $ 400 million left.
Or, they can purchase almost half of the homes for sale on
Bay Area.
This is based on the IPO price of 47 per share, the midpoint of
The bid range of the company bid of 44 $ to 50 $ per
. Using the price of 47 per share, current and former employees
Hold about $ 3.32 billion worth of stock in San
Francisco-based company.
If all 3.32 billion of total wealth stocks were to enter
San Francisco Bay Area real estate market once IPO
Together, Uber Employees Could Buy Every Single Home for Sale in San Francisco, Oakland and Berkeley with their IPO Cash
The intense public offering could put further pressure on
the Bay Area housing market, already the most expensive in the
country.
With the wealth created through
Uber's massive upcoming IPO, current and former employees of
the business could buy every single home for sale in San
Francisco, Oakland and
Berkeley
combined, in cash-and still have about $ 400 million left over.
Or, they could purchase nearly half of the homes for sale in the
entire Bay Area.
That's based on an IPO price of $ 47 per share, the midpoint of
the ridehailing company's proposed price range of $ 44 to $ 50 per
share. Using the $ 47-per-share price, current and former employees
hold roughly $ 3.32 billion worth of stock in the San
Francisco-based company.
If all $ 3.32 billion of the total stock wealth were to go into
the San Francisco Bay Area real estate market once the IPO lockup
period ends, current and previously Uber employees could hypothetically
buy:
All 1,612 homes for sale in San
Francisco, Oakland and
Berkeley
combined for $ 2.9 billion.
All 853 homes for sale in the city of San Francisco for $ 2.2
billion, and have $ 1.1 billion left over.
All 1,272 homes for sale in the city of San Jose for
$ 1.47 billion, and have nearly $ 1.9 billion left over.
All 643 homes for sale in the city of Oakland for $ 510.1
million.
All 116 homes for sale in the city of Berkeley for $ 165
million.
Nearly the entire bottom half of homes for sale by list
price-7,551 homes-across the Bay Area (the San Jose-San
Francisco-Oakland combined statistical area) for $ 3.32
billion.
The top 2% of homes for sale by list price-223 homes-in the
entire Bay Area for $ 3.32 billion.
Lyft, the other big ridehailing business based in San Francisco,
went public at the end of March. At that time, we calculated that
current and former Lyft employees could have purchased every
home for sale in the city of San Francisco based on the
company's IPO price.
Put that together with the wealth from Pinterest's recent IPO
and the wealth that'll soon be created by Uber's IPO, and
factor in the smaller but still major public debut expected to come
down the pipeline from San Francisco-based Slack this year, and
there will be billions and billions worth of cash that could
potentially be poured into the Bay Area real estate market.
The San Francisco metro area, where the typical home sold for
$ 1.4 million in March, is already the most expensive large housing
market in the country, and San Jose, where the median home price is
$ 1.1 million, is not far behind. The wealth coming down the
pipeline from this year's Bay Area tech IPOs could put further
pressure on an area where housing is already unaffordable for many
of its residents: Just 2.6 percent of homes
in the San Francisco metro are affordable on the area's median
household income of $ 101,714.
"The Uber IPO, along with the other large tech companies going
public this year, is likely to have a large and lasting impact on
Bay Area real estate, "said Redfin chief
Economist Daryl Fairweather. "Given the existing shortage of
housing, competition among newly wealthy buyers will drive up
prices. Less fortunate locales will move inland or out of state in
search of affordable homes and lifestyles. "
Methodology
For this report, we used Uber's S-1 filing, combined with
Redfin data, to determine the number of homes (single-family homes,
townhouses and condos) current and former Uber employees could
hypothetically purchase with their stock wealth from the
company's upcoming IPO. Current and former Uber employees held
approximately $ 1.5 billion worth of vest stock options, plus
$ 21.7 million worth of vested SARs. They also hold 38.3 million
shares underlying RSUs that will have satisfied vesting conditions
upon the IPO's completion and that will be left after obligatory
tax withholding in connection with vesting. We multiplied the
number of shares by $ 47, the midpoint of Uber's proposed IPO
price, to get $ 1.8 billion. Altogether, the forthcoming stock
wealth is worth roughly $ 3.32 billion. We looked at all of the
active listings in the city of San Francisco and the San Jose-San
Francisco-Oakland combined statistical area. Then, we took the
aggregate value of the Uber stock wealth and created a running
total of list prices in each of those regions until the $ 3.32
billion was exhausted. We repeated the process for the cities of
Oakland, Berkeley and San Jose.
The post Together,
Uber Employees Could Buy Every Single Home for Sale in San
Francisco, Oakland and Berkeley with their IPO Cash appeared
first on Redfin
Real-Time .————————————————————————
Sat, 27 Apr 2019 01: 42: 49 + 0000
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With IPO Cash, Uber Employees Could Buy Soon Half the Homes for Sale in the Bay Area
With the wealth that will be created through Uber's massive IPO, current and former employees of the business could buy every single home for sale in San Francisco, Oakland and Berkeley combined.
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