Anonymous
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| 08/12/2007 2:17 PM |
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| The price was just reduced Thursday to less than HALF of what it sold for in 2005. At 300k (plus tax benefits for historic designation) this 1,000sf 2/2 bank-owned foreclosure is getting interesting. |
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daveB
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| 08/13/2007 7:06 PM |
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I saw that, too. But isn't the HOA having legal troubles (equals high expenses) with re-developer (or something like this)? I've lso seen posts about this not being a grat place to live. Old woindows that cannot be double-paned, lots of noise. But I don't know what is really true. If anyone who lives there sees this, please post on what's going on at El Cortez.
this won't be the last unit to drop in price . . . |
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Smith
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| 08/13/2007 8:16 PM |
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The description indicates that the unit overlooks the patio, I'm pretty sure this is going to be removed for a tower so this unit is probably a casualty of the proposed tower for the adjoining parcel in term of view and the pain of having an active construction project outside your window for three years.
A 1,000 square foot dual master should rent for about $2K per month or so which makes the unit still a negative cash flow rental but not by much at all. |
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daveB
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| 08/13/2007 8:41 PM |
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Ahhh, that may explain both the foreclosure and the price drop. I would think that further condo construction projects in downtown SD would be insane these days, but I suppose will probably eventually will happen. Construction next door would not help the rent, either.
Do you know anything about the status of that project and/or any other HOA issues at El Cortez?
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Smith
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| 08/13/2007 9:12 PM |
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There are various meetings taking place over the new tower. My sense is that the tower will get built because arguing about views lost doesn't work and CCDC wants new projects. From a financial point of view the developer already owns the dirt at prices that go back to when the place was a rental project so there is a lot of economic reason for them to develop the property. In fact their cost basis on the dirt is probably zero from their point of view as they kept the property when the building went condo. I actually think the new project will be good for the El Cortez owners and neighbors assuming it's done right.
I also think new projects will keep going up for the above reason or we'll see more hotels, offices, etc. The new apartment tower going into on county land is another example of a project that will get done. The county owns the dirt and it's a parking lot, the economic value of developing into rentals is far too high to let it just sit there even with a slower market. Wall Street will simply write off a lot of losses and and money will still flow into new projects with sales prices at the new, adjusted lower, level. Keep in mind most of the newer buildings downtown were sold at initial prices that we can assume were profitable for the developer. As the price for the land and labor go down so will the asking prices. |
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Anonymous
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| 08/13/2007 10:16 PM |
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I agree with Smith. One of beauties of Capitalism is if the current owners of a property can't make it work financially, it gets transferred to new owners/managers with lower cost basis who can. Bankruptcy of one because a deal for another.
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Anonymous
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| 08/13/2007 10:20 PM |
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Also, the city should not get in the business of protecting developers. I should lower building restrictions to generate a lot of new buildings. New buildings and inhabitants invigorate and diversify Downtown for a stronger future. Now is the time to authorize lower priced, basic buildings to create the affordable housing we need in he city.
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daveB
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| 08/14/2007 12:51 AM |
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In view of this future for this 2nd floor unit, sounds like $300K remains too high. Maybe $200K (still $200/sf for a very old building) is right price . . . .
Are the HOA fees at El Cortez are high (or doomed to be high because of fighting over the new tower?
Thanks for the info |
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Anonymous
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| 08/14/2007 7:46 AM |
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HOA are doomed to be high because it's an old building that wastes a lot of energy and requires a lot of maintenance. My friend lives in an old building in Chicago and it's the same. The price needs to drop in order to compensate for the sky-high HOA.
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Anonymous
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| 08/14/2007 7:47 AM |
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| Does anyone know if there is air-conditioning at El Cortez. I would buy there are the right price but I want A/C. |
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Tom Tom
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| 08/14/2007 4:06 PM |
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| Yes El Cortez has Air |
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watching
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daveB
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| 08/17/2007 5:35 PM |
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| Thanks for the floor plans. Much easier to put in perspective |
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Anonymous
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| 08/23/2007 9:27 AM |
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List Price: $309,900
MLS#: 076041731
I wonder how much more this will drop. |
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Anonymous
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| 09/12/2007 1:51 PM |
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| Apparently it's dropping more. The price was reduced AGAIN last weekend to $294,500. |
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Anonymous
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| 09/12/2007 3:01 PM |
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List Price: $294,500
MLS#: 076041731
Wow, lower and lower it goes.
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daveB
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| 09/12/2007 10:58 PM |
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| I said $200K, but probably will go for a bit more ($225K). Someone will have to pay cash, or very large down payment, since banks won't want to touch this bad boy with the lawsuits flying. |
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Anonymous
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| 09/14/2007 12:11 AM |
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does anyone know the result of the september 5 meeting regarding the new 12-13 story proposal?
http://elcortez.info/events.html |
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Smith
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| 09/14/2007 6:53 AM |
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| I saw a rendering that was shorter than the original El Cortez. It was still pretty tall. I thought it looked pretty good. |
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