Monthly Archives: February 2007

Citrus – Corporate Flop in Turtle Ridge

Address: 35 Hidden Trail, Irvine, CA 92603 (Turtle Ridge)

Plan: 3675 sq ft – 4/4.5

MLS: S446750 DOM: 241

Sale History: 7/13/2006: $2,250,000

Price Reduced: 07/19/06 — $2,499,000 to $2,350,000

Price Reduced: 09/19/06 — $2,350,000 to $2,225,000

Price Reduced: 01/04/07 — $2,225,000 to $2,150,000

Current Price: $2,150,000

Thanks to waitingtill08, we’ve found our first flip inside The Summit at Turtle Ridge! This is a Plan 3 in the Cirtus tract built by Brookfield Homes. It was first listed on the market on June 26, 2006. That is BEFORE they even closed escrow on the purchase on July 13, 2006! Doesn’t that smell like a flip to you?

The description reads “Corporate relocation. Outstanding panoramic view – city lights, ocean. Highly upgraded with hardwood floors, crown molding, plantation shutters, custom built-ins. Main floor master bedroom. Extra large bonus room.” This makes you think that the seller is relocating. When I looked into the title, it says that the owner is Prudential Relocation Inc. Hmm, sounds like it’s actually a company that specializes in Corporate Relocation. The property is listed by Prudential California Realty so I suppose this all makes sense now.

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Each of the price reductions on this property have been pretty substantial. I couldn’t find any mortgage information for the home and it wouldn’t surprise me if a behemoth like Prudential actually owned it outright. Anyone know how these Corporate Relocation companies work?

Instead of wishing for a $250k profit on the home like they did in July 2006, they are now wishing for no more than a $100k loss! Assuming 3% in selling costs, this flop will be a loss of around $164,500! Oh, and don’t forget the carrying costs on this beast. The MLS listing says that it is Vacant.

So what else is available in the Citrus tract right now? Continue reading →

The Welcome Mat is Out – OC Metro

This months OC Metro has a cover story talking about how “homebuilders are working hard to bring buyers in the door.“

Some blame for the rapid appreciation is placed on speculators but I didn’t notice anything mentioning the suicide loans.

” All the speculation had a variety of disruptive effects on the market, he says, including an “artificial demand” that fuels price increases, as well as “a less-engaged community.

“Neighborhoods get homes that sit empty until buyers can resell,” he says. “And that’s not good for (buyers) who are striving for a great place to live.” “

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There are some quotes from a few of the builders, Taylor Woodrow, Centex, Standard Pacific, and Brookfield Homes, that are worth reading.

” Forsum, whose firm offers homes ranging from the $200,000s in Corona and $600,000s in Buena Park to the multi-millions in Newport Coast, said that foot traffic at the company’s developments “has not really been the problem. It’s really a lack of urgency on the part of prospects – how to get them to buy.” So the firm has been offering some “targeted incentives” that range from mortgage help to design upgrades to a reduction in lot and view premiums – but not, he stresses “wholesale discounts.”

Those don’t appear necessary, “because things have picked up, and we’re very encouraged. There’s a market out there for sure, a demand by customers, and we’re in a position to give it to them. We can sell a clear and present value proposition.” “

It seems like the builders don’t think they’ll have to lower prices any more. I’ve definitely noticed that foot traffic has increased since 2007 started (due to the price cuts). The quote above makes it sound like there are a lot of people looking but not necessarily buying. But then it says that things have picked up. So… what is the dealio?

Ladera Ranch II – Rancho Mission Viejo Company

I don’t have much information on this, so please share if you know something. Rancho Mission Viejo, probably the only other big landowner in Orange County other than The Irvine Company, is going to build another master planned community just south of Ladera Ranch (mostly east of the Antonio and Ortega Hwy intersection). I’ll call it Ladera Ranch II until I learn of the official name.

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It looks like there will be 12,530 homes built (in 5 villages) starting in 2008. The homes will be built on about 5,373 acres and the rest of the area should be open space. I took some survey regarding this several months ago and one of the things they were considering for this community was some sort of golf cart for each home. I wish I remembered the specifics. I also recall that there will be plenty of housing targetted towards seniors.

Here is a map of the overall plan for “Ladera Ranch II”:

Read on to see a detailed map of the first village… Continue reading →

Random Bits

Stupid MLS Login Procedures

I haven’t been able to scour MLS lately. The reason is that the MLS system I have access to, Tempo SoCalMLS, requires the use of a token that has a code that changes every minute or so (and I don’t have this stupid token handy). I’ve been able to get around it by using the MLS Alliance system which actually is a more comprehensive database as it contains listings from the EIGHT Southern California (excluding SD) MLS systems (of which Tempo is one – the main one for OC). But just recently, they changed the login procedure so that I HAVE to login through Tempo first. Argh! Time for me to get that token. Until then, I won’t be able to feature any flips. I should get this squared away in the next few days.

Bad news from New Century of Irvine

LA Times: “The bad news from Irvine’s New Century Financial Corp. and London’s HSBC Holdings sent shares of sub-prime lenders tumbling by double digits, with New Century down 36%.”

“New Century is the second-largest sub-prime mortgage originator after San Francisco-based Wells Fargo, with HSBC just behind in the No. 3 slot. The Irvine company said late Wednesday that it had greatly underestimated the losses it would record as a result of loan buyers forcing it to repurchase mortgages that had quickly fallen into default.”

OC Register story

Reuters story

Central Park West Grand Opening

Central Park West, the development on the corner of Jamboree and Michelson (across from Park Place), is debuting their Lennar homes tomorrow. Almost all of the tracts in Central Park West are built by Lennar. The high rise towers are built by another company and I’m not sure who is building the affordable condo complex hidden behind the high rises. I won’t be able to check it out tomorrow but hopefully some of you will. Here are the details:

Date: February 10th

Time: 10am – 4pm

Place: CPW Living Studio / Central Park West

2500 Michelson Drive, Suite 100, Irvine, CA

Complimentary valet parking