A tack-on to the previous Carlsbad condo report – the new complex in downtown Encinitas:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
I think their vague, super-wide price ranges are a negative. If they put aggressive prices on each unit, they’d sell more.
How much will someone pay to look at trains going by 40+ times a day?
I don’t know. $450,000? But you are in downtown Encinitas, walking distance to the beach.
Jim, how many of these do you think are going to be bought and rented out? Do you think they’ll sell out or will it stumble?
Love those captions!
Anyone know if the commercial/residential condo complex on the corner or Encinitas and PCH is sold out? And how much were/are those selling for?
“Home prices, as best we can judge, have really flattened out in the last year,” Greenspan said. “And while it is true that most economists expect a small dip from here, largely as a consequence of the ending of the tax credit, the data don’t show that at this particular stage. If home prices stay stable, then I think we will skirt the worst of the housing problem.”
Threatening that stability is a growing shadow inventory of homeowners entering default, Greenspan said, which could lead to more foreclosures hitting the real estate market.
The lofts on the corner never sold, and went to rentals also. No information on their website about pricing, but it looks like they have some occupants, both commercial and residential.
Don’t believe anything Greenspan or Bernanke says. First, everything they say is tainted by banking interests. Second, these people are Bureaucrats. They won’t see/react to market changes until they’re well underway.
You can get ahead of the curve but watching the market yourself. We all know there’s a huge amount of “overhang” waiting to hit the market. It’s all a matter of how long banks can keep it from happening.
Not to hijack a topic but this is worth it…
http://www.npr.org/blogs/money/2010/08/02/128932599/how-the-housing-bust-helps-get-disadvantaged-families-into-plush-homes
Houses low income people should be able to afford if there was no government intervention are being sold to investors and then rent is subsidized by government so low income people can live in the houses they should have been able to buy.
If there was no government intervention both rents and houses would be priced lower. The prevailing wages would work.
Instead taxpayers foot the bill and the only people that get rich are banks who don’t have to sell properties at the market price and investors that are able to charge inflated rents because of section 8 programs.
Alles – We negotiated to buy the construction loan on the Lofts about a year ago to no success. This loan was part of the FDIC takeover of Vineyard bank which went to California Bank/Trust which has the full ‘loss sharing provisions’ previously discussed here.
At that time no units were sold as the lender wisely disallowed any sales even at low prices. I hear you say, why “wisely disallowed”? As a lender/investor I would rather keep the entire project in one set of ownership so we could chart our own course on pricing, HOA, rentals, and, most importantly, ease of foreclosure and liquidation of the project with no legacy owners to deal with and get their approvals.
PLUG: Lastly, if anyone needs a good divorce attorney, my sister-in-law took space in that bldg as “Law Office of Annette Hall Neville”…
CF, it looks like the lofts are still owned by the developer (bank didn’t foreclose).
Is that the case?
Thanks for the updates about the Loft. I drive by there at least four times a day and always wonder what is going on.
CF, tell your sister-in-law congrats on the law office. Those offices look pretty sweet and that is a nice location for that type of law practice.
I imagine lease terms are pretty favorable at the Loft considering “Tube Dog” has managed to stick around as a tenant for as long as it has. Not that their tube dogs are bad – they are actually kind of good – I just rarely see anyone in there other than a few teenagers playing X-Box.
JTR – I understand that the bank has not foreclosed. The owners are upside down by at least $10mm+ and that will never come back…but they are obviously convinced it will.
My take is that there is a deep pocket on the hook with a personal guarantee for the interest payments, etc and the bank is grinding that angle pretty aggressively to keep some interest coming in, and to have them keep the place maintained with the hope of the economy saving them.
Once the economy turns, I would expect the bank to foreclose when they feel they can spin the units and make some $$$. But why take it back now and incurr a negative cash flow.
Clearfund & JTR,
Do you guys think Whole Food Condos (love that term haha) will be a success? Are the prices what you thought they would be? What do you think of the development in general?
I would love to hear your thoughts.
Joe – I honestly know zero about that project, except that the unit prices are lower than what the Lofts started at.
I’ll withold any commentary until I see what you get for your $$$, however, I have a feeling they are overly optimistic by definition of being an upside down seller.
What is it that you do exactly? I’ve always wanted to go into real estate, it’s something that I love. My parents are doctors at Scripps, which is cool and all….but not for me! haha.
How’d you get started, is what I want to know.
Joe – Was initially a biochemistry major at UCSD and thinking of med school (finished as an econ major and biochem minor)…now manage investment partnerships on behalf of many individual investors in commercial real estate nationwide. We’ve done over $1B of transactions over the years.
How’d I get started…worked 20 hour days, 7 days/week at the Morgan Stanley Realty Fund learning the fundamentals of cash flow/acquisitions/corporate finance/etc.
First job was reading/analyzing leases for our purchases (think 50-300 legal sized pages x 50 tenants in a center). Lease terms, even the minutia, are the bedrock of the property’s cash flow and landlord liabilities/expenses. Learn operations first, buy second.
That is interesting, clearfund. I’ve always wanted to get into the investment field, but taking that paycut from my current job always made me shy away.
I’ve thought about doing value investing stock analysis on the side, and selling presentations on it, but the work involved in getting known was also a barrier. 🙂 I’d rather just relax in my jacuzzi after work.
BTW, I started out as an Physiology major (pre-med)@ UCSD, but decided to dive into Computer Science instead.
I wanna go check out those lofts when they are done. How can they justify $800k for a 3 Bedroom with a street view? I wonder if they are ingesting too much Xylitol (sugar-alcohol) from Whole Foods. Hopefully they are not reading this blog haha.
The lofts are owned by the developer who paid everything with cash. I see talks in here about foreclosure. Trust me, this guy is nowhere close to that. This deal is pocket change for him, He wa sjust smart enough to lease. The market will turn around eventually, especailly by Moonlight Beach, and he’ll come up roses.