tag:blogger.com,1999:blog-25213986.post8248988927485671478..comments2023-09-05T02:56:11.562-07:00Comments on San Diego Market Monitor: Major Default on an Apartment ConversionUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-25213986.post-71862318209923389332007-01-11T12:33:00.000-08:002007-01-11T12:33:00.000-08:00david,
My guess is that this is their worst proje...david,<br /><br />My guess is that this is their worst project/biggest problem and made a practical decision to hand it back to the bank rather than throwing good money after bad. This is very intuitive and predictable human nature.<br /><br />This is why you will see a lot of short sales and foreclosures on individual properties as well. What sense does it make to pay 2-2.5% what rent would cost on a property that is 20-30% underwater? Give the keys back to the financial institution. This triggers another level of valuation depletion and more pain similar to how margin calls trigger more sell volume that the worst possible time.<br /><br />Finally my guess is that the first 40 units sold are also a big risk for bankruptcy as well.Mr. Brightsidehttps://www.blogger.com/profile/00185212105018833014noreply@blogger.comtag:blogger.com,1999:blog-25213986.post-16998776975696822772007-01-11T11:01:00.000-08:002007-01-11T11:01:00.000-08:00I love the "Limited Units Remaining!" statement on...I love the "Limited Units Remaining!" statement on the bankrupt project's website:<br /><br /><a>http://www.mpcondos.com/property_detail.php?pid=30</a><br /><br />There are 280 units in the complex, and less than 40 were sold. <br /><br />So, you better hurry! This opportunity is not going to last! Experience the pride of home ownership today!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-25213986.post-79630985908896817252007-01-11T10:12:00.000-08:002007-01-11T10:12:00.000-08:00This is the tip of the iceberg. The question is h...This is the tip of the iceberg. The question is how many of these projects get foreclosed upon before Maisel-Presley itself goes BK? I'm curious as to how well insulated MP is from each of its projects - I'm sure they're all separate LLCs, but I'd guess that there are also certain corporate-level and personal guarantees that went into each project such that if a few of these go through foreclosure it wipes out all the equity MP built up during the good times. I'll try to find out the details...Anonymousnoreply@blogger.com