The remains of the former Barratt American tract in Carlsbad has closed escrow. Bank of America had foreclosed on their $7,812,000 mortgage in December, 2008, and they put the whole package of six houses and five lots on the market in May, 2009.
Click here for our first and second youtube tours from last year.
Although the salespeople said in May that the bank was adamant about a quick close, it took until now to wrap things up.
Here is our next, but probably not last, segment in the Saga of Magnolia Estates:
JTR – you may recall I guessed $4.6 in a conversation a while back.
I arrived at that as follows
5 lots x $200k = $1mm
6 homes x $600k = $3.6
Partially completeed Homes at $1.4mm
minus $100k cost of sale/mktg
minus $300k 20% profit
minus $250k inside work/renovation/site
minus $150k cost of carry/permits/soft costs
—————–
Residual Home $600k
LOTS
$1.4mm sale value
-$100k cost of sale
-$300k profit
-$700k new const at $150/sf
-$100k permits, soft costs etc
—————
Lot residual value $200k
seems like what a builder would pay…
$4.5M….as you said in your first video, they could have listed the 6 homes for $900k each, and given a lot away with each home, and after commissions, could have made more than that.
These homes were horrible! The product design/architecture, interior design, etc. were all horrible. Not what the market in Carlsbad wants…Just look at LaCosta Ridge and other neighborhoods that have outsold what was done here. I’m a Carlsbad resident & homebuilding professional-bad move on Barratt’s part.