San Diego, CA. Big Trouble Ahead For Vantage Pointe with Notice of Default Filed in April 2010
Another reason why it’s so important to work with a downtown specialist who is aware of this very complicated market. While Vantage Pointe missed opening before the market turned that’s not the only reason for it’s failure. Once again Kelly Bennett over at VoiceofSanDiego.org has written an excellent article.
Weighing in at 679 units, downtown’s biggest condo building, Vantage Pointe, has met with outsize trouble since 2004 when buyers first got in fistfights for the privilege of securing a unit.
The building’s trouble continues. The developers haven’t sold a single unit in the 14 months since returning deposits to the previous contracted buyers. About 40 buyers have signed contracts to buy there but can’t close the deals. More than 150 other units are being rented.
But that’s not enough to satisfy the project’s lenders behind its $210 million loan, the largest construction loan on a single residential building in San Diego history. Those lenders filed a notice of default in April, pushing the developers to the first stage of foreclosure. Now the building’s being handled like a giant hot potato. While the rest of the downtown market shows signs of stabilizing, no one has yet found a way to make Vantage Pointe profitable enough. The developers have been trying for a couple of months to find a buyer for the whole project or to become a partner. But the bank separately stuck up its own for-sale sign seeking buyers for the mortgage.
Add this to other financially troubled buildings downtown including Aria, The Mark, Se Hotel, and Skylofts (Smart Corner). Other newer buildings like Bayside, Sapphire Tower, Breeza, and Park Terrace appear to have done much better – in real estate location is everything.
The article goes on to say that downtown prices are seemed to bottomed out. While I have seen some encouraging signs of this in the under $500,000 market I am not too sure that this will hold true for the $500,000 plus markets. Again I am advising all my Clients to buy location and quality and plan on holding for at least 5 plus years. Interest rates are incredible now, construction has all but ceased in downtown, and prices will go up eventually. Of course no one really has the answer.
You can always visit my weekly market update for closed downtown sales category or active market statistics and market reports. You may also sign up for my free market update from Altos Research.
As of today Sandicor Multiple Listing Service (MLS) has reported 479 sales of attached units in 92101. The highest sales was at $2,200,000 or $791.98 per square foot while the lowest sale was $120,500 at $110.00 per square foot. On an average the price per square feet of the total sales is $368.51 with an average market time of 81 days.
If your curious which buildings are selling and for what here is a complete list of closed sales for 2010.
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Now for the legal stuff. Not all sales are reported to Sandicor MLS, and sales may not be reported on a timely basis by the listing agent. See Disclaimer for more details.
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