Sunday, August 20, 2006

Downtown Condo at Palermo #507

Palermo is techically located in downtown's Cortez Hill neighborhood but isn't on the hill and is right on the border with Little Italy.

This building was designed and built as rental apartments (read lower quality) and was coverted into condominiums before completion.

At this point downtown there are many run of the mill one bedrooms on the market (and many coming in 2007) so there really isn't anything to make these properties stand out, except affordability which means lower prices.

Type: Listed on MLS(#061068322)

Resale Price: $425,000
Cost: $441,000

Loss@6% Sales Expenses: $41,500
Loss%: 9.41%

Purchase Date: 04/25/2005
Holding Period: 16 months and counting...

Bedrooms: 1
Bathrooms: 1
Square Feet: 749

Purchase Details: view


Mark in San Diego said...

From the looks of the pictures in the listing, it is Staged, not currently lived in. $425K seem very expensive for this unit. I am renting in LaVita with a bay view, and my landlord owner would love for me to buy it for 400K even! . . .same footage, etc. and we have a nice pool and better location. Don't know if you caught the item in Voice of San Diego about "getting out the needles" to pop the bubble, but they suggested starting to really lowball places - offer what it is really worth - about $300K. . .the author mentioned that speculators didn't hesitate to be agressive on the upside, so buyers should really start being agressive on the downside.

Mr. Brightside said...

Hi mark,

I agree with you completely. I post these entries to show the current state of the market, I doubt the Palermo unit is worth a nickel over $350,000.

I've seen La Vita view one bedrooms sell for under $375,000 so $400,000 there would be an early Christmas for the current owner.

Thanks for the tip on that article, it's good. I do like the Voice of San Diego more and more.

Mr. Brightside said...

I've owned real estate that was painful to sell before. Eventually a buyer shows up and you'll do about anything to get a deal closed.

Was that at Palermo or is that a La Vita unit? If you have the building and unit number I'll take a look to see what the numbers look like.

Keep in mind that general neighborhood as 77 "new" units coming into the marketplace that not many people are aware of. Solara Lofts is like 350 West Ash as it's a conversion of a lower grade office building into residential.