Friday, October 13, 2006

Foreclosed Downtown Condo at Union Square #2627

Union Square is deep in the East Village in a somewhat rough area.

This unit is one of the very nice loft units. Other very similar loft units sold for over $600,000 at the height of the boom. This unit sold in late 2004 for $565,000 and has since gone into foreclosure. indicates the unit is now owned by Morgan Stanley which is a very large financial services firm.

Resale Price: $499,900
Cost: $565,000

Loss@6% Sales Expenses: $95,094
Loss%: 16.83%

Purchase Date: 12/10/2004
Holding Period: 22 months and counting...

Bedrooms: 2
Bathrooms: 2
Square Feet: 1250

Purchase Details: view


Anonymous said...

This unit will wind up selling for under 300k. Max rent is $2000 per month, and why buy it with a negative cash flow since there will be no appreciation for 3-5 years, and there are hundreds of others like it sitting vacant downtown? The only hope the lender has is to cut the price $100k to $399,000 and sell it before December 1st when everyone will have figured out the market has collapsed.

Anonymous said...

East Village is a dump. The redevelopment efforts have not made it inhabitable yet- unless you are next door to the ballpark. This place is really going to be a bloodbath.

Mark in San Diego said...

"somewhat rough area". . .yes, that is a nice way to put it - although the police headquarters is nearby. . .a few years ago, when condo craze would make this a good investment, the neighborhood might have improved as more and more new buildings were built. 2006 is a new ball game (no pun intended) no new buildings will be built for at least 5 years once the current under construction buildings are dumped by developers. I walk the area every few weeks, and see no signs of new business moving in. I DO see section 8 type housing, and homeless and winos on the streets. On a related note - there was a good article in North County times on foreclosures in SD county - 4062 in some state of foreclosure in September. . .I think the whole SD market is really in trouble - not just downtown. Let's hope those SAIC new millionaires buy some condos!

ronw said...

Dear Mr. Brightside:

Thank you for all the time you have put into this blog! I check back every few days, and my wife and I really appreciate the information you provide.

Is it just me, or have the typical losses been growing by about $10K per month? For example, when I first found your blog many months ago, $20-30K seemed like a typical loss. Lately, $80-90K seems more typical. Or is it just me?

Anyway, my charming wife just said, "When we see $300-400K losses, then we'll buy..."

The units we're interested in were in the $8-900K range about a year ago and now those same units, or very similar units in the same bldgs are selling for nearly $100K less.

At this rate, another year or two ought to get us there.

Anyway, thanks again.