Thursday, May 24, 2007

Large Loss on Luxury Downtown Condo at The Metropolitan #2803

The Metropolitan might possibly be the highest end condominium in downtown San Diego. I know several Realtors are saying that only the low end properties have seen price corrections, this specific unit indicates otherwise.

Type: Listed on MLS(#066046317)

List Price: $2,288,888

Cost: $2,400,000
Loss@6% Sales Expenses: $248,445
Loss%: 10.35%

Purchase Date: 03/16/2005
Holding Period: 26 months and counting...

Bedrooms: 2
Bathrooms: 2.5
Square Feet: 2058

Purchase Details: view


23 comments:

Mark in San Diego said...

The Meridian also has a lot of inventory for the first time in the year I have been tracking - 805 is listed below one million - the first two bedroom I have seen there priced that low. . .likely not underwater, as this is an older building, and owners probably bought for peanuts. . .but, a sign of the times. Also noticed a few move ins at the Mark - we will soon see a lot of re-sales there. . .also my sources tell me that there will be a few cancellations at Elektra. . .I head that a few people need to unload other property before closing at Elektra. . .should be an interesting 2007.

PL Willy said...

Mark,
How many of the Electra escrows will actually close? 90%, 70% 30%?

I think Bosa's pricing on these units may be well above market, and it may be prudent for many buyers to just lose the deposit. There are several foreclosures at Park Place and the Grande. Why not just buy one of those?

daveg said...

I remember looking at the town homes in Park Laural for ~1.6 million about 5 years ago.

Now the are asking 2.4 for this.

It has been on the market a while. I could be interested if it went down in price a bit. Any comps available?

I can't seem to access the recorders office www.sdarcc.com.

daveg said...

And BTW, is it just me or is The Grande selling suprisingly well?

Mark in San Diego said...

"Electra escrows". . .could not really give an estimate, but offhand, I would say most will close - probably about 75%. . .just an educated guess. . .but 25% back on market would still be a lot.

I also agree with the view that Grande seems to be selling ok, and holding value pretty well - some of the north facing units in the north tower are having their views reduced by Bayside, but I guess they knew that going in. . .very well built building - a likely place I may eventually buy.

PL Willy said...

Mark,
Also remember the South tower units will get their south and west views blocked by the Irvine Company office building at Broadway and Pacific Highway, and by the Port's Lane Field project. The Grande is a very nice project no matter what.

Anonymous said...

NYTimes just had a nice story of condo investors in Florida trying to flee from their deposits:

http://www.nytimes.com/2007/05/26/us/26condo.html

Anonymous said...

The link to the above article

Anonymous said...

There are 11 units for sale at Park Laurel.

See this

I don't know about past sales info...

taxman said...

Here is the sales history.

Link

Unit #107 sold for 2.1 million in Sept, 2005. They made some nice cash on that.

Hard to say why they unit you are looking at is worth so much more in a soft market.

Mr. Brightside said...

This page shows both Park Laurel Listings and Recent Sales

Mark in San Diego said...

NY Times article - read that this morning - very interesting how seasoned investors are walking away from $200K depostis as a prudent thing to do. . .my feeling is that too many people in a difficult financial situation will just "ride the market down" and loose everything. I personally know a number of people who own multiple units and are renting them out at a loss. Their "hope" has been that they will wait the market out . . .even the optimists now feel the market will not turn around till 2009. People who are waiting this out are simply draining thier 401 accounts. Very sad - I ran the numbers for one person (they have a net loss of $1500 a month on an underwater rental), and they still couldn't bring themselves to sell for a 50K loss. . .

Mr. Brightside said...

mark,

These negative cash flows are going to slowly knock these people out. It's a slow and monthly grind, if the economy slows and renters start not paying and the eviction process goes on for awhile which I suspect it will or if any unforeseen repairs in the unit of HOA assessments come up these investors are going to really get hurt.

This situation could go on for quite some time, rents will go up a bit but it won't be enough to make these investments make any sense for quite some time. In fact after their capital is depleted and they have to sell they'll end up doing so when it actually may make sense to buy some rental property. Weak hands are always forced to sell.

Anonymous said...

What's the proverb about staying power or not having enough of it? I forgot.

I don't think it's sad a all. People who let greed rule them deserve the losses -- just like we deserve to lose in Iraq because we royally fucked-up. It's not in our national interest but we asked for it. Can we fix it? No. It has to run its course.

I'm preparing to scoop in and buy property at rock bottom prices after the boom-investors are worn-out and tired. I think we're about 4 years away from that time.

taxman said...

My brother bought downtown, but he really lives and works there. So, he can wait things out. He really enjoys the lifestyle.

However, he still complains that the city feels empty at times. (He lived in Seatle before). Many of the buildings are half lit during the week.

There are some people who use their places for weekends, so it is a little better then, but overall I think a lot of people are just investors siting on dead money.

Only time will tell.

Anonymous said...

Anyone know how the Irvine high rises are doing? The Plaza Irvine developers just sold all their units and there are a lot of units on the market as resales that seem to be asking for more than developer pricing. Even the rents seem high to me ($4,000 for 1775 sf) Shouldn't Irvine follow San Diego as far as flippers flopping?

taxman said...

For Irvice, I think commuting is a huge factor for these places. That is, people are trying to live closer to where they work.

That is probably not the case for SD, where work is still far away.

Also, the supply in Irvine is probably small relative to SD. How many units are they building in Irvine?

Anonymous said...

You're right, not as many units. I don't know the exact number of units, but I know there are currently 4 high rise towers around 15 or 16 stories (2 at Marquee and 2 at Plaza Irvine, with 2 more similar size towers (3000 Plaza and Central Park West). But the HOAs are $1,000/month! And from what I hear, Marquee is half vacant with 25% of the building listed for sale. I still don't know how the values are sticking up there, like 1700 sf asking in the low millions.

taxman said...

Wow, maybe those are not comuters!

Let's face it, OC has a lot of $. More that SD.

Sounds like they are hitting the market with the right product at the right price and with the right number of units (so far).

Anonymous said...

San Diego now follows Detroit in the Case-Shiller index. Not a good news to sellers:

Link here

Anonymous said...

Anyone know anything about Parkloft #1102. It's a bank listed property for $1,894,900. As a top floor, 2900+ sqft unit, selling at $650 PPSF, it seems too good to be true. There must have been a huge loss on this property...

Anonymous said...

Assoc. Fee: $1,450/Month

What a joke!

Anonymous said...

Amazing! It could be yours for just 16k carry cost a month. Does it come with free hookers and coke or something?