This post doesn't examine a specific unit that is listed or has already sold for a loss, rather this is an entire project that appears to be in serious trouble.
The 777 Lofts at 6th Avenue is an apartment conversion located in the Gaslamp Quarter. San Diego County records as of May show that only nine out of 103 condos have been sold. The project has been for sale for close to a year. The project website is noting that a "MAJOR PRICE REDUCTION" has taken place.
The San Diego Union Tribune published a story with the below:
"Kristian Cabuago, a 27-year-old dentist in Tierrasanta, hopes to spend his first night in the first home of his own, a 950-square-foot top-floor condo at 777 Sixth Ave. in the Gaslamp Quarter. It cost him $550,000 and he thinks he timed his purchase just right when he signed a sales contract earlier this year.
“At that time the news was forecasting condos in downtown and everywhere were suffering,” Cabuago said. “I thought that was a perfect time to buy.”
He negotiated the price down from $591,000 and considered it a bonus that his homeowner association fees will be $250. And he's happy to be moving with his girlfriend from a Rancho Peñasquitos apartment to the lively night life downtown.
“For my age group, there's no way I can lose,” he said. “You can't ask for more.”
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7 comments:
"no way I can lose". Haha, love it. How does a 27 year old afford 550k? My guess is there is some crazy-loans going on, or deep pocket parents.
Good stuff. I remember reading this when it first came out and thought this guy is an idiot. Needless to say, proof is in the pudding.
I think the market is going to keep going down, down, down just like the titanic.
Nope. No way he can lose. At 27 he has PLENTY of time to rebuild his credit after he BK's on this purchase. Just in time (about 2 years to lose and 10 years to recover) to watch the market climb back to his buying price.
Mr. Brightside,
At a 4th of July party last night I ran into a guy in the corporate housing buhsiness and he said this building, 777 6th was reverting into "repartments"! Amazing how this dumb sap is going to be surrounded by renters. Bummer for the guy who thinks there is "no way I can lose!"
manmon,
Thanks for the read! This comes as no surprise at all.
101 Market, Porta D' Italia and possibly Metro Lofts are all in the same situation. Check out the blog for another project on Bankers Hill, Laurel Bay, that's also not going well.
I'm actually thinking that the rental market is going to get saturated next, there are many rentals hitting the downtown market as well.
When the smoke clears I think that most people will accept the fact there there never was such major demand and that an overbuild has occured and will require lower prices (be in cost or rent) for the market to get these units occupied.
Hi, We are looking for a great deal on a wonderful large Loft. Can you guide us to one downtown of course. Not Little Italy - better for us to be near the gaslamp. HELP!
M2i and Farenheight are nice. I don't know of any stellar deals there though. Both are in East Village.
Broadway Lofts is a new rehab of an old office building. It's on the corner of Broadway and 5th. Also there are new lofts projects on two corners of the block at 6th and Broadway.
Since all of these are new or rehab projects I don't envision getting a great deal, yet. It should take awhile.
You can also check out Solara Lofts which is yet another rehab of an office building. It's on lower Cortez Hill due north of Gaslamp. Check out my other blog entry for a link:
http://sandiegodowntown.blogspot.com/2006/08/solara-lofts-on-cortez-hill.html
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