Speculators have not left the San Diego real estate market.
La Vita is a 23 story condo building in downtown's Little Italy neighborhood.
Unit #1802 was for sale for several months and finally went into and closed escrow at $725,000 this June.
This unit has hit the rental market for a whopping $3000 per month. Even if this investor gets this amount of money the negative cash flow is frankly stunning given what the market is doing. Note that water view La Vita two bedroom units are actually renting more in the $2300-2500 range so this over-priced rental will likley lag on the market for some time before finding a tenant.
Assuming a cost of funds of 6%, $400 HOA and standard taxes that monthly carrying cost of this unit is over $4000 resulting in a solid $1,000 negative cash flow. All this in a declining market.
Note that La Vita #2003 same floor plan, sold at the high in the market for $810,000.
Finally the rental listing and the now expired for sale listing both talked about "permanent bay views", this is quite debatable as there is no known reason why the property in front of this unit cannot be developed. If you have any information pro or con to this effect by all means post a reply. I'd love to know the facts.