Pt. Loma question… this listing:

http://www.sdlookup.com/MLS-076061833-3327_Lucinda_St_San_Diego_CA_92106

Bought for 1.4 million recently, plans drawn up for a new house but the old shack still stands (one bdrm, two bath). Now on sale for 1.9 million. Is this realistic? Is it worth another $500K because an architect drew up plans?