Wednesday, August 02, 2006

Multi-Million Dollar Condo Takes a Loss - Park Place #3001

No sector of the market seems immune to the price reduction trend. This is the first known loss taken at Park Place which is a condo tower in downtown San Diego's Marina District

Resale Price: $2,000,000
Cost: $2,100,000

Loss@6% Sales Expenses: $220,000

Resale Date: 06/15/2006
Purchase Date: 01/03/2005

Loss%: 10.47%

Bedrooms: 2
Bathrooms: 2
Square Feet: 2047

Purchase Details: view

Resale Details: view

9 comments:

Anonymous said...

Wow, big loss.

I like the new format of the page!

Lindismith said...

yes, format's easier to read old posts.

Thanks for publishing this one!

Lindismith said...

Mr B, are you tracking sales downtown that are not losing money? It would be interesting to see how they compare.

Mr. Brightside said...

Hi Lindismith,

I am not tracking non-losing transactions at the moment. I can think of a few ways of doing so but really a lot depends on what someone paid for their unit since as the old adage goes you make money on real estate when you buy, not when you sell.

I keep thinking about this to see what I can come up with.

Thanks for stopping by!

Mr. B

Dave said...

Mr. B,

I have a friend who knows a woman that bought in the Treo (or is it Trio) complex maybe two years ago for around $860K - it's a two bedroom with one or two baths (I'm not sure) - and has the unit on the market now for around $750K. She was never a downtown flipper - she lived there and took a new job in the Midwest and had to sell. (It actually fell out of escrow recently at $750K after the buyer got cold feet.) She did, however, lose her ass with a friend of hers trying to flip a property in Santee, but that's another issue. Just wondering if her downtown property is in your sites (no pun intended).

Love the site.

Mr. Brightside said...

Hi Dave,

It looks like it might be Treo #1700 which is range priced at $750,000 to $829,000. This unit last changed hands $845,000 in August 2004 so this property is underwater.

I'll put up a post later today on this.

Thanks for the heads-up! If you know the address of the Santee malinvestment let me know and I'll work up an entry on that one too.

Anonymous said...

Yeah, that sounds like the one at Treo. Regarding the Santee property, I have absolutely no idea what the address was. Sorry.

nykid said...

I'm a New Yawka looking to become a san diegan(?). Following the market has become much easier since i found your blog.
Have you discovered any desperation declines(20%+) on any downtown condo.

Mr. Brightside said...

Hi nykid,

Welcome in advance to San Diego.

I used to say we were down a "quiet 10%" however that's turning more into a common knowledge 10% as even the most rabid of real estate bulls are starting to acknowledge the downturn that's underway. Whether or not you decide to buy when you get here it's good to be informed. Let me know if you'd like the name of an honest, unbiased real estate agent when it's time.

Personally I'd wait until late 2007 as I expect a lot of the excesses to be burnt off by then. Of course I'll be watching conditions until then as well.

So far I've recorded two properties that have resulted in just at or just over 20% losses (including sales expenses). One is another unit at Treo the other a bankrupcy at Renaissance.

Treo: http://sandiegomarketmonitor.blogspot.com/2006/07/downtown-condo-at-treo-2106.html

Renaissance:
http://sandiegomarketmonitor.blogspot.com/2006/07/foreclosed-downtown-condo-at.html