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bill
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| 05/03/2007 4:33 PM |
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Posted By n/a on 05/03/2007 12:37 PM
Very interesting information. I did notice that the lock company building with is part of Phase II is for lease. Pretty much indicates not a lot of action on Phase II for awhile.
No question that when banks get handed underperforming assets (bad loans) that they want these off of their books. In fact bank regulations require this type of thing to be handled quickly.
Actually bank regulations don't require that bad loans be disposed of quickly. They do, however, require that banks charge such loans off and reserve for such losses quickly. But a regulator has no problem with a bank that wants to spend a lot of time working out a problem loan, so long as the hit gets taken quickly from a P&L and balance sheet standpoint. It's really up to the bank. Most banks, however, don't want to be owners of real estate - that's not their business. That's why they tend to move this stuff off their books pretty quickly. But I've seen problem loans sit on a bank's books for several years while they work it out. Sometimes patience in that regard pays off.
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swimjet
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| 05/18/2007 7:34 PM |
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| So, what do ya'll think will happen with sales at Solara in the next six months? I am very interested in a couple of units there but #1 won't be ready financially until end of 07 and #2 am super nervous about the downtown market. I'm a little worried about their availability by year end although when last I visited a week ago, they hadn't sold/reserved any of the SW corner units I'm interested in. I think their smaller more reasonably priced units are selling now. Although the corner units are nice, they are still high priced one bedrooms. Those washer/dryer combos concern me a bit as I have tangled with them before. |
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Anonymous
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| 05/18/2007 7:44 PM |
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I do not believe sales are going well at Solara. I'm hearing rumors of a possible handover to the lender. Nothing substantiated yet. It's a nice project but that's a ton of a unsold real estate to hit the market at a very bad time.
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Kelly
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| 05/19/2007 12:59 PM |
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| I am also considering a unit at solara. I was at the sales office again yesterday and someone had just purchased. I think it was a north facing location. |
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swimjet
Posts:18
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| 05/28/2007 8:31 PM |
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Anyone who has looked at the Solara units or is considering Solara, can you please comment on the combo washer dryer? I'm comparing properties in the area, considering purchase, and would like to know how others feel about not having the option to switch them out for standard washer/dryer. Personally, I believe it could be a deal breaker for some as not many are familiar with these machines. But, I may be wrong so would like to solicit other's opinions. Thanks! :) |
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cl
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| 05/28/2007 10:29 PM |
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These european combo washer/dryer are a pain in the you-know-where. It takes hours to dry your clothes because the units are not vented. Plus the drying process messes up your clothes. People who live in urban condos tend to dress nicer but those machines are worthless and will ruin their clothes.
Do you know why Europeans smell bad in the subway? Because 1) they don't take frequent showers, 2) they don't have dryers so it's a lot of hassle to wash clothes. They wear their clothes, including underwear, for at least several days before washing.
I believe that Solara was cheap and did not want to install the vents that would allow conventional clothes dryers. I would never buy a place that did not have option of putting in a regular dryer. If there's a vent and a 220v outlet, you can easily stack a dryer on top of a washer.
But I highly recommend the front load washers. They are more gentle your clothes because there's no agitator. They use less electricity and water. Plus the spin speed is much faster so your clothes dry much faster in the dryer.
I'm a clothes nut and I sort my and wash my clothes very carefully. So take it from me, don't get one of these combo machines. They suck. You'll regret it.
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Anonymous
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| 05/28/2007 10:46 PM |
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You could hang shirts up to dry, I do that because any shrinking is bad as I'm tall.
I imagine that they came up with this approach because the building was originally an office building and as cl said they didn't want to make the investment in the venting system.
When I saw Solara I felt it could have been nicer, 350 Ash turned out a very nice product with their office conversion.
I also biked by the building this weekend and noticed a handful of SOLD signs up on the building. |
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cl
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| 05/29/2007 8:12 AM |
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It takes about 8 hours to dry your clothes in the combo washer/dryer. It very energy inefficient since there's no vent (I think that the moisture gets condensated out the drain line).
That type technology has been available since the 1970s in Europe and Europeans don't even use it. They hang their clothes out to dry on little foldable racks in their kitchens where the clothes absorb all the cooking smell (the English use deep fryers for cooking). They can't put it on the balcony (if they have one) because the weather sucks, especially in the winter. I used to live in Europe and there's great culture and urban life over there, but the worse part was the laundry. People would walk under the rain and wear the same clothes for several days. Yuk!
Where are you going to hang your clothes out to dry? On the balcony? It's sunny everyday in San Diego so that might be possible. Hanging clothes is not only a pain in the rear but also not very decorative. Your $500k++ urban loft will not look so stylish.
What do you do with bedsheets, or mattress covers, or blankets or comforters? I hate to say it but that's another reason Europeans smell bad. If you stayed in a European's apartment, you'd know what I mean.
Sorry for being so negative on this point but cleanliness is very important to me. If you're gonna be urban and stylish you'd better be clean; otherwise, live in the suburbs. Isn't living Downtown a matter of lifestyle?
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swimjet
Posts:18
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| 05/29/2007 8:42 AM |
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| Thanks. I have had experience with these as well. They do ruine your clothes, if you dry. They seem to wash better. But, my concern isn't as much how to make it work for me but whether it's enough of a turnoff for people not to purchase a unit. I'm concerned about resale later on down the road, if I were to purchase a unit. I think I know CL's answer to that. :) I do appreciate your comments. |
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cl
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| 05/29/2007 10:10 AM |
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Well, swimjet, having lived in Europe where housing is very expensive and location is everything, I've learned to adapt to adversity.
The washer thing at Solara is a turn-off for me, BUT if the units were proportionately priced to take into account this negative, I would buy one. I would get an electrician to run an 220V outlet, build a cabinet near the window and cut out a round hole in the glass to create my own vent.
That's what I did in an old condo I lived in, in Chicago. The washer was in the kitchen and the dryer was in the living room under a louvered cabinet. The electric wires were in metal conduit that lent the condo and "industrial" look.
In San Diego, location is not everything, so all else being equal, I would choose a condo with the proper setup at the right price.
As you can see, I'm fairly analytical. But most buyers make decisions on emotions; so I would say that in a hot market, the Solara lofts will sell... but in a soft market, people will compare. If you buy a Solara unit, be prepared to hold it until the next bull cycle.
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anon66
Posts:37
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| 06/03/2007 3:06 PM |
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| Considering Solara purchase. I noticed a few "sold" signs on unit balconies. Not many though and I suppose those are not necessarily closed sales. Anyone want to share their experience purchasing or visiting Solara? Has anyone tried to get them to reduce their asking price on a unit? In discussions with sales staff, did you get the impression they were open hearing an offer. Thanks in advance. |
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Mr_Brightside
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| 06/03/2007 5:52 PM |
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When I went through the project on the first weekend I was told that "prices were going up since yesterday" which I laughed at considering the market.
There was also talk of members of the credit union that is on the block getting a discount of some sort.
Keep in mind that with their price protection plan in place that a good deal for you could trigger discounts for the other people that may have already bought which could make them less interested in looking at an offer. That said there does not appear to be a lot of sales there.
You might ask pointed questions about your concern that the investors in the building get in trouble and back out, this would probably put the project in the hands of a large financial institution that could decide to just chop prices in order to get it off of their books. Also they could rent the balance of the units out which would also be bad for those that bought. Variations of these themes are taking place at Laurel Bay, Lofts at 777 6th Ave, and 101 Market/Atria.
In order to asses the above type of risk you would need to understand the capital structure of the legal entity that controls the building. This would tell you how long they can hold the units and who would end up in control in the event of a worst case scenario.
I'd love to understand this as well so if you get any of this information share it here or via email. |
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anon66
Posts:37
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| 06/03/2007 7:10 PM |
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| Thanks Brightside. I'm meeting with my mortgage broker this week ( a good one). He may be able to track down that information. I'll email you if I get any info. |
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Anonymous
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| 06/07/2007 7:39 PM |
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I was Downtown the other day. I also saw the SOLD banners on the building.
What are they trying to do? Reverse psychology?
I'm chuckle at the gimmicks the salespeople always come up with.
I've worked with salespeople for years in a corporate environment. They always want to move sales from one month the next in order to meet targets. In the end it makes no difference as it steals from future months.
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downtown dude
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| 06/08/2007 8:35 PM |
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| Sales people are driven by commission, but it is common for management to want to smooth out the spikes in sales. There's less value to a company for random, sporadic "good months" vs. "bad months". It's far better to be able to show a consistent growth pattern of X-percent every month. For this reason it's fairly common to try to defer sales during a good month, or bring pending sales up into a bad month. |
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Jon
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| 06/08/2007 10:29 PM |
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Yeah, salespople are driven my commisions. Management knows that but sometimes screws up by setting targets that need to be met by certain dates. The salespeople often times meet those deadlines by stealing from future months.
I guess everyone plays games.
I have enough experience to know not to fall for the hype. I just do my own things. If it makes sense, I'll buy. If not, oh well.....
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Mateo
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| 07/11/2007 10:53 PM |
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| I'm really interested in this project. I like the open loft floor plans. Quality seems good. Large balconies. Great parking situation as there is even guest parking which is great for downtown. Storage room is included which is often overlooked in condo developments. The location is good since you can easily walk to the Gaslamp and Little Italy. If I can get them to reduce the purchase price by $20K, I'll go to contract soon. Does anyone have any experience negotiating with the Solara Lofts staff? What type of purchase price reductions are they willing to do? I was already told that they are willing to prepay 2 years HOA, which is important to me as I expect to move on to a single family home in 2-4 years,but I also need a purchase price reduction. |
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Lin
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| 07/17/2007 8:19 AM |
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| Has anyone actually moved in yet? |
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Jon
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| 07/17/2007 9:10 AM |
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| Mateo, in my opinion it's a big mistake to buy now if you'll be moving to an SFR in 2-4. You're not giving yourself any time to amortize transaction costs.
I'm willing to bet that your condo will be worth less in 2-4 years.
But of course, do whatever makes you happy.
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Mateo
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| 07/18/2007 6:05 PM |
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I've since been convinced by a couple of real property appraisers that this is not the time to buy downtown. I probably will not be buying at Solara or downtown unless I come across a ridiculous deal that even all of you would be interested in. :)
I still like Solara but the sales techniques there are laughable. I was recently told that they've moved to Phase II pricing, which means that they are taking some units off the market, increasing prices on the floorplans that are popular and decreasing prices on the more expensive units.
I was stuck on a unit that I'm sure was being tracked by the Price Protection Plan discussed on this website. Therefore, they were unwilling to negotiate on purchase price.
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