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You may have already heard about this because it’s become a hot topic at City Hall among those in the know: Did Supervisor Aaron Peskin get a Sweetheart Deal on a valuable piece of Telegraph Hill real estate, and did he subsequently rehab that real estate without benefit of the proper permits from the Department of Building Inspection?

The documents below raise serious questions. Take a look for yourself, but here’s teh quick and dirty:

On Oct. 27, 2000, a man named William Brady sells a house at 224 Filbert to a woman named Joanne Trafton for $1.5 million — cash. Trafton, according to records at the Ethics Commission, is a property manager at a company called Presidio Management, and Brady is her boss.

On Dec. 23, 2002, Trafton sells the houseto a trust controlled by Harvey and Tsipora Peskin, Aaron’s parents — for about $800,000, nearly $700,000 less than she paid for it two years ago.

The trust subequently clonveys nearly 70 percent of the interest in 224 Filbert to Peskin and his wife, Nancy Shanahan, for free.

On Oct. 28, 2004, according to records from the DBI, 224 Filbert was “converted 2 units to 1 w/o approval.”

These documents raise some obvious questions:

1. Who is Joanne Trafton and why would she take a $700,000 hit in the shorts selling a house to the Peskin Trust, in arguably the hottest real estate market in the country, where houses change hands in days for cash?

2. What is Presidio Management’s relationship to Supervisor Peskin?

3. What’s up with the illegal demo?

These questions, as well as some others you can probably think up on your own, need to be answered. Something here just doesn’t smell right.