This is our first look at Astoria at Central Park West, the towers that missed the peak.
Asking Price: $519,000
I dont wanna talk
About the things weve gone through
Though its hurting me
Now its history
Ive played all my cards
And thats what youve done too
Nothing more to say
No more ace to play
The winner takes it all
The loser standing small
The Winner Takes It All — ABBA
When you look back on the towers built along the Jamboree corridor, you see differing groups of winners and losers. The developers of the North Korea Towers (Marquee at Park Place) were winners. They sold the property out at peak prices and made a fortune. The buyers and the lenders who bankrolled the purchases there are the big losers. The other condos that came a little later have a mixed bag of winners and losers with both the developers and the buyers suffering.
Today’s featured property, Astoria at Central Park West has a clear loser — the ownership entity that developed this property (Lennar has only a small investment). None of these units sold at the peak, and now that we are nearing a long, flat bottom, these units are hitting the market. The early buyers will be knife catchers, but in a couple of years, some of these units will be good buys — at about $300,000 to $350,000.
When this property is completely built out and sold, it will be a nice community. The Jamboree/405 intersection will always be a traffic nightmare at certain times, but the convenience of this location together with a good master plan will make this a successful project in the long term. It is getting from now through build out that will be interesting.
As it stands, the developer does not really want to sell these units because the revenue will fall far short of their financial proformas. Somebody somewhere is taking a big loss on each sale. There will be little economic incentive to finish off the remaining construction and complete the project. Perhaps someone will buy the property inexpensively enough to warrant completing construction, or perhaps this property will sit, partially finished, for another decade.
Asking Price: $519,000
Income Requirement: $129,750
Downpayment Needed: $103,800
Purchase Price: New
Purchase Date: 6/30/2009
|View:||City Lights, City|
|On Redfin:||1 day|
NEW Urban High Rise Living at Astoria at Central Park West. Located in
the heart of the Irvine business district. Unbelievable Amenities:
Large 8,000sqft Clubhouse, 24 Hr. Valet, Concierge & Security,3
Pools, 2 Basketball Courts, 4 Parks, Fitness Center & More! Models
open Daily 10-5pm. Home Includes: Fisher Paykel SS Appliances,
Refrigerator, Washer & Dryer, Granite Countertops, Gourmet
Fisher Paykel SS Appliances? Am I that ignorant? Does everyone else know these brands?
There is no mortgage history on this property as it is new construction. It would be interesting to see the financials of the venture to see just how much money they are losing. At current pricing, I would estimate they are losing $100,000 to $150,000 per unit. These were likely estimated to sell at around $700,000 each. That might happen 20 years from now.