Bank of America foreclosed on Barratt American’s 12 projects in Southern California, and has now put them out for bid.
Carlsbad’s Magnolia Estates is being offered as a package of:
Five finished lots that average a half-acre, plus
Six almost-complete houses that range from 4,985sf to 6,219sf.
The HOA fee is currently $199/month, plus the Mello-Roos is $233.25/month through 2035.
There is also an outstanding balance of $280,000 for Grading and Erosion Control Bond, but the outstanding surety bond may pick up part of that amount.
Bids are due by May 15th, and must close by June 22, 2009.
Eight of the 13 previously-sold houses closed for $2,000,000 or more, and the last sale was that 5,293sf REO a year ago that closed at $1,355,000.
What’s the package worth??
Here’s the youtube tour:
Is this a contest?
I have no idea, but I’ll swag $3M
$8.4m plus assumption of liabilities.
I’d make it a contest but nobody wants Padres tickets.
T-shirt?
The price at the trustee sale was $7,812,000 in 12/08.
Will B of A get enough to sell it and close as desired?
This contest could take months or years before we have a winner.
$7M. Take that one to the bank……..
My number off the top of my head was a million each for the houses, and throw the lots in for free (since you aren’t going to be building on them any time soon-you’ve pretty much got to sell the six houses first, and that might take a very long time, maybe a year or more to sell all six). So I would bid $6 million; you said $7 million.
I’d make it a contest but nobody wants Padres tickets.
T-shirt?
You mean these?
No I was thinking of something more stylish than the puke-yellow.
A bubbleinfo.com t-shirt!
Much harder to find, and may be worth something someday?
Nice find though, your ability to generate images at-will is impressive.
Why on earth would BoA sell houses like people sell old records on eBay? Just sell them retail and they wouldn’t have to give a cut to a middleman. It’s a step up from buzzdozing them I guess.
I’ll say a round $8mil.
$7.5M including the liabilities. Assuming they don’t get broken into and stripped.
Hey, I’m waiting for Dixon to close.
Pass the crack pipe & gag me with a spoon!
*Chuckle* I thought you’d never find the master
bedroom, Jim. Talk about square footage…
The house was way too big, but it’s nice to finally see a builder that provides nice lots.
If we could pick up one of those lots for $200-$300K, and wiggle out of the HOA and Mello-Roos, let me know!
These houses are silly… who needs a house that big? If I had that kind of money, I sure as hell wouldn’t tie it up in a monster track home. Start a business, invest it. Or get something gorgeous with a wonderful view.
What a waste.
Is this the same builder that put those monstrosities on top of San Elijo Hills?
If its no money down….count me in. Change to multiple units zoning, and I could make some bucks. May have to give one to the Mayor first though. I bet that Encinitas foreclosed mansion lady could do something with this….lots of space to put her ‘stolen’ (wink wink) artifacts……..although the very underwater original buyers would have a cow.
Oh, and I would change the name to Magnolia Mistakes.
I’m with CA Renter — love the lots!!!
Pool, spa, tennis court, lots of grass & trees… perfect for an at-home paradise. The HOA/MR fees I could do without.
I loooved looking through those models a couple years ago. I’m a sucker for a pretty kitchen though, 2 islands and 2 dishwashers? sign me up!
It’s like you need a golf cart or segway to get around the 2nd floor though. huge!
I guess 6.8 mil.
9-9.5 Mil
$7.8 million…
I bid zero. Bank of China will never accept any of the bids & within a few weeks REO agents will have free-fire-range on these turkeys.
Jim: Why don’t you submit an offer to get to work selling the damn things, period. Include a marketing budget that uses BoCs money, not yours.
Just because BoC has put an FRP on the street to sell the whole lot doesn’t mean they won’t read your proposal. Write it up as “Jim’s team” will get the job done. Just make sure in the fine print you get paid for each individual sale.
Is this the same builder the left a number of undeveloped lots at Quail Gardens and Encinitas Blvd. What will theses prices do to the comps in Carlsbad when they sell? I wouldn’t touch Bressi Ranch area with a ten foot pole. When we did tour the area in 05/06, I said to myself ‘you got to be kidding me’. Towards the end of ’06 I was seeing chinks in the selling price because the BR sales agent kept calling me (they didn’t know we had already purchase a home) dropping the price every few mos.
If it takes that much walking and you still missed the master bedroom, you know you are in a BIG house.
$5.2 Million is my guess. Two of these houses, I’m pretty sure, are still virtually unfinished inside. So you have to cut your to-buy price on those in half.
And I agree with Geoptf about the lots–they have to almost be a rounding error, as you may have to sit on them a very long time.
The model in Jim’s video is the biggest–and it IS huge. The finishes are very nice in most of the homes I’ve been in.
But another one of this exact model, with virtually all the bell-and-whistle finishes and up-grades, is currently for sale from a private owner on Keeneland. It’s been on and off much longer than even the 223 DOM indicates. With the current price-range dipping down to $1.599 since last January, most anyone (except apparently the owner) could see that even the biggest home in this development is not going to go for anywhere near that price.
As an investor, I would have to ask myself what I think I could sell them for over the next few months (if I’m lucky). Then of course my offer has to be much less than that–especially in such a volatile market.
They’ll be lucky to get $5+ IMHO.
1/2 mill or 3 mill. I would not buy one because the school district sucks.
If the school district really does suck, that’s definitely a negative, although possibly not a big deal as you might think. I suspect if you are buying a house as big as this, with a lot as big as this, and can get a loan in this environment for $1.2 million or so, you probably can afford to put your kid in private school. So who cares about the public schools in that case?
Somewhere between $3M and $4M, but nothing above $4M–Keep in mind that this probably needs to be a cash transaction–at least to close it–I figure about $100/sf for the unfinshed homes and about $200K for each lot. Whomever buys it will want to pay no more than 70 cents on the dollar of today’s value–they need to turn a profit for finishing and assuming the risk.
The empty lots are a real dead-weight loss… you get to bleed all the fees and taxes every month just for the joy of waiting until the market makes it worth building on them again. Ugh. Maybe they should just have a “Buy a Home, Get a Free Lot” sale?
The HOA fees are going up to 225 and at one point there will be a special assesment and monthly fee on the Magnolia homes because the roads are private. So the Magnolia homeowners have to bear all of the costs of the roads.
We have already seen contractors go through the houses and they told us they were submitting bids to BofA’s agent to finish up the homes.
I suspect BofA is trying to decide whether to sell the homes bulk or individually. So keep in there Jim to see if you can pick up the listings.
You know, if BoA swallowed 12 projects this size at once, they might not want the hassle of listing them seperately-hence the group bid. That is, they are willing to take a lower bid to get the whole damned thing off their books all at once.
Let end-buyers buy the lots so they can build homes that they really want. Not everyone wants to be a specuvestor.
I’m so sick of seeing developers/builders suck up all the raw land so they can put up zero lot-line monstrosities with HOAs and MR. Besides, they build ugly houses for the most part. Let’s see some custom home sites once again!
How about approaching the city & proposing to build high density, affordable income townhouses on the vacant lots!
why would any thinking person spend $1 million to live next door to a vacant/future construction site in a rambling 5000 sq ft basketball court with bathrooms?
Let’s see: at $88 a square foot, my offer is $352,000 for each finished house.
Carlsbad Schools folks. I have walked through these. Nice places for 2006. Today they are gonna get hammered for being Mc Mansions on too large of lots to landscape because no one can take out a HELOC 60 days after close purchase. No one has the funny money to pull this stuff off. Anyone of us with a glue or nail gun and some cash can make our homes look the same. Glue on “upgrades” on basic drywall. We’ll all remember ’95-’05 as the upgrade ear.
Not Carlsbad Schools – this is in the San Marcos school district. Forget sending your kids to those schools. It’s Private school, so if you have, let’s say, two kids. $15k x 2 = $30,000 extra you have to lay out for education.
I live in Carlsbad and am in the San Marcos school district. The school district lines don’t match up with the city lines. I pay the price for private education.
These turkeys might be sold for sub 700K if they do it quick.
Correction Kelja, all of Bressi Ranch is in the Carlsbad school district. None of the houses are in the San Marcos school district.