Saturday, August 05, 2006

Another Foreclosed Condo at Discovery #1902

Here's a bank owned unit that is fully foreclosed and listed for less than its value in June of 2004.

As usual the loss calcuation does not include carrying costs, since this unit is vacant the loss is much more than the value below.

It's interesting to note that this condo was priced at $474,000 by Bosa, the developer in June 2001. Anyone have a guess as to what this unit will be worth in August 2007?

More details about this and thousands of other properties availabe at Foreclosure.com

Resale Price: $805,000
Cost: $820,000

Loss@6% Sales Expenses: $63,300

Purchase Date: 06/25/2004
Holding Period: 26 months and counting...

MLS: 061047063

Bedrooms: 2
Bathrooms: 2
Square Feet: 1230

Purchase Details: N/A

9 comments:

Mark in San Diego said...

I walked past Cortez Blu yesterday on Cortez Hill - near Discovery, and it looks like there have been almost none sold. . .one "for sale by owner" sign in the window. The builder, Hovarian (sp?) had a bad quarterly report last week, and may be forced to dump condos at whatever they can get. According the the news item on marketwatch.com, they had massive cancellations from projects. If they start dumping properties, this will kill re-sales at Discovery, etc. Any information from this project?

Mr. Brightside said...

Hi Mark,

I will be able to report soon the number of closed units at Cortez Blu relative to the total number in the project.

I do think this building is very lighly populated as I walk by it on a weekly basis as well. Hovnanian really screwed up the building by only have four or five units with two parking spots, the rest only have one.

The same developer is also finishing Gaslamp Square Phase II and also has a bunch of unsold units in that project.

Resales as Discovery are steadily going down in price, my site documents several that are selling at a loss and the building does have a handful of foreclosures or units in trouble. I think that there are a lot of very week hands out there paying some huge monthly payments, now that prices are going down the ability to hold on would seem greatly diminished.

Mark in San Diego said...

Walking around today. . .Auction site for 200 unit condo cite by Inland Auction on Aug. 30th. . .undeveloped site on B Street out by City College. Developer (not mentioned) has approved ready to go 200 units plus retail up for auction. . .big sign facing the KFC. Another condo that won't be built in our lifetime. Also my opinion - Vantage at B at foot of Cortez Hill - likely to remain an uncompleted hole in the ground unless developer has deep deep pockets. I am renting at LaVita, and there are two large developments on either side of me - one is pretty far along, the other just coming out of the ground. These will probably be completed, but I can't see how some announced projects can proceed. . . Am I missing something?

Mr. Brightside said...

mark,

I don't think you're missing anything, I walk around too and can't help but wonder if all these projects are going to get built.

It does appear that VantagePointe is moving forward although I think that building is an accident waiting to happen, it's huge, has limited parking and is full of very small condos. In fact they have a two bedroom that is under 800 square feet. That's tiny and given the prices they are asking the numbers don't work unless you factor in stellar appreciation which simply is not happening anymore, in fact the exact opposite is occurring as my site documents.

All that said Bosa somehow found a way to build Discovery and sell units for $475,000 in 2001 that just three years later sold for as high as $820,000. If land, labor and material costs all deflate then I think new units at 2001 prices could go up and sell at a profit for the developer.

Mark in San Diego said...

Mr. Brightside

Bosa is likely to be the "last man standing" when all this comes to an end. They do build quality product, and have pretty deep pockets. I was told that the Electra is sold out, but that could change. Icon at the ballpark will likely do ok, as perhaps corporate types will want a "skybox" for their clients to watch the ballgames. . .I understand Bayside - next to the Grande is going to break ground. Still wonder where all these buyers are coming from.

Mr. Brightside said...

Electra was the climax of flipper mania, I'll bet that 50% of the people who have reserved are leveraged to the hilt and either plan to sell their Electra unit -or- some other property in order to close when the building is done.

If the market funk remains or grows it will be very interesting to watch how it goes.

Looks like Icon will be the first of the next wave of buildings to be completed. It does look like a nice project, the developer has had and just put a number of units on the MLS so it's not sold out.

Anonymous said...

To your dismay mr. brightside, many of us who bought Electra are not leveraged to the hilt or selling something to pay for something else. It amazes me that here is one unit that is up for foreclosure and I am sure there will be more and some are saying the sky is falling.

I personally live in a very nice home in Atlanta, Georgia and am buying because I love San Diego. I will keep buying up over the next 30 years and when it is time to retire folks will rumor that a rich uncle died and left me the money. They well never give credit that you took the slow road to riches path.

Mr. Brightside said...

anon 7:25

I'm sure that there are very wealthy people buying properties just like I'm sure there are over leverage people doing so. It will be interesting to watch the market in 2007/8.

Thanks for stopping by

Anonymous said...

Discovery #1902 will close escrow in late April for $625,000. It's pretty beat-up and will likely need $50k of work just to be put back to Bosa-built level. At $675, its just below $550 a foot.