VP Gives Up (Again)
Hat tip to kwaping for sending this along, from the U-T:
The developer of downtown San Diego’s largest residential highrise said today that it is giving up on trying to sell any of the 679 condos and is returning deposits to dozens of buyers who had been awaiting the close of escrow.
“We’re not able to meet the Fannie Mae or Freddie MAC or FHA requirements in this marketplace because we can’t get enough sales,” said Randy Klapstein, CEO of Pointe of View, developer of Vantage Pointe, which completed construction last year in the midst of the economic downturn.
“We’re not getting the traction we’d hoped for, and we don’t want our customers to stay in limbo, so it’s best to move on.”
It is now likely the East Village condo project will remain a rental complex for the foreseeable future, said Klapstein, noting that there are now roughly 200 renters, about a dozen of whom are buyers who were waiting for the sales contracts to be finalized.
“At this point, we’re going to continue renting,” Klapstein said.
Over the last several months, the Pointe of View loan has been marketed for sale, but no deal has been finalized yet. When asked whether it was possible that the condo project might be sold, Klapstein would only say, “It’s always a possibility.”
The developer is in the process of returning deposits to buyers, and purchasers who are living in the complex as renters have the option of remaining or working with the Pointe of View sales team to find a condo to purchase elsewhere in downtown, said Klapstein.